Lack of consultations on new EO worries miners

Miners have expressed deep concern that the government was not holding any further consultations with the industry on the new draft mining policy.

The Chamber of Mines of the Philippines cited reports quoting Environment Secretary Ramon Paje as saying that there would be no more consultations on the draft executive order (EO) crafted by the government’s mining study group and that appeals on the policy’s implementation should be brought to the attention of the Office of the President.

The group said there has only been one consultation made with the industry on Nov. 14, 2011. At that time, chamber officials were given two hours to present their position before members of the study group on the proposed minerals policy. Paje was not present during the consultation meeting.

“The legitimate large-scale mining industry has been looking forward to more consultations with the study group following assurances made in a press conference by Presidential Spokesperson Edwin Lacierda last February 14,” the chamber said.

Dennis Lucindo, business development manager of Philex Mining Corp., said that so far this year, the government has not sent any notice of consultation on the draft mining EO.

The chamber said it strongly opposed the Department of Environment and Natural Resources’ (DENR) proposal to convert current and future mining operations into mineral reservations in order for the government to collect an additional 5-percent royalty.

“Given that the government’s share in net mining revenues is already well above 50 percent, the proposal to tack on an additional 5-percent royalty on a mining company’s gross output is almost confiscatory and is tantamount to the expropriation or nationalization of the mining industry,” it said.