Canada ‘discouraged’ by open-pit mining ban

The Canadian Embassy in the Philippines is disappointed over Zamboanga del Norte’s passage of an ordinance banning open-pit mining, saying this runs counter to what the national government wants to do with the local mining industry.

“We are discouraged that our mining investments are being frustrated. (What happened recently is) not within the jurisdiction of the party taking these actions,” Canadian Ambassador Christopher Thornley said in a briefing yesterday.

He said that Canada was a “responsible” mining country, and that Canadian mining companies follow a stringent set of rules, both in their home country and overseas, including the Philippines.

As a significant part of the Canadian economy relies on mining, he said mining firms took responsible mining activities very seriously.

Canadian Chamber of Commerce of the Philippines president Julian Payne added that the local mining industry could be developed by using socially and environmentally responsible mining practices.

Irresponsible practices employed by illegal small-scale mining operations, he said, should not be taken as an industry-wide norm.

The Zamboanga del Norte provincial government last week issued an ordinance banning open-pit mining in the province, which would take effect on Nov. 6.

The ordinance gives existing operations such as Canadian firm TVI Pacific Inc.’s Canatuan project one year to close shop.

TVI Pacific said it would challenge the ordinance in court through local affiliate TVI Resources Development Philippines Inc.

“It is the opinion of TVIRD’s external Philippine legal counsel that the powers assumed by the province, and by the provincial governor of Zamboanga del Norte under the ordinance, are in direct contravention of Philippine laws passed by the Congress, including the Philippine Mining Act of 1995 and the Local Government Code of 1991, and are, therefore, unconstitutional,” TVI Pacific said in an earlier statement.

Ambassador Thornley said the Canadian government was quite satisfied with how the national government was handling the issue, and that the embassy would support whatever the government would do to address mining firms’ concerns.

He said that despite the setback, Canadian mining firms remained keen on investing in the Philippines.

“They’ll go where the minerals are. It’s up to the government to resolve the issues because there are other countries that also have mineral resources and may be easier to operate in,” he said.

Earlier in the year, Interior and Local Government Secretary Jesse Robredo said the open-pit mining ban currently in effect in South Cotabato could potentially be lifted before year’s end.

The ban, however, remains in place, and neighboring provinces such as Zamboanga del Norte have started to follow South Cotabato’s example.