The Chamber of Mines of the Philippines (COMP) has expressed “great relief” that a local court granted a preliminary injunction against an ordinance banning open pit mining in Zamboanga del Norte.
COMP said the order provides hope that provincial officials of South Cotabato will reconsider their position on a similar ordinance that effectively prevents their constituents from reaping the benefits of transforming minerals into wealth such as that being enjoyed by hundreds of employees and their families as well as thousands of residents in host and impact communities of TVI Resource Development (Phils.) Inc. (TVIRD).
In mid-2010, the outgoing South Cotabato government passed an ordinance against open pit mining, threatening the timetable for the $5.9-billion Tampakan copper-gold project led by global giant Xstrata Copper. The ordinance is still under debate.
“Clearly, the court (in Zamboanga del Norte) recognizes the excellent track record of TVI Resource Development (Phils.) Inc. in protecting the environment and in advancing the interest of its host communities—a record that reflects the advocacy of COMP and all its member companies,” the industry group said.
TVIRD has said that it is now preparing for a legal battle to prove that the ordinance is “invalid and unconstitutional.”
COMP said the court order is well received by the industry and the investment community.
The mining industry, COMP said, is thus renewing its call for the national government to act on harmonizing conflicting national and local laws that have now become irritating obstacles to President Benigno Aquino III’s developmental agenda.
For the local government units (LGUs) to fully appreciate responsible mining, the industry has recommended that the President’s Minerals Policy Group recommend allowing mining firms to pay directly to LGUs their share in mining taxes.
There is also “a compelling need” for the Policy Group to recommend to Congress amendments to PD 1899 and RA 7076 so that the entire permitting process, regulation, control, and supervision of small-scale mining operations be given back to the Department of Environment and Natural Resources (DENR), which has the technical competence to deal with environmental and risk-related issues on mining, COMP said.
Environment Secretary Ramon J.P. Paje has also said he “welcomes” the court action in Zamboanga del Norte but has so far declined to make further comments.