Mining group to challenge in court a provision in new mining rules

Chamber of Mines of the Philippines president Philip Romualdez gestures as he speaks during a mining conference in Manila in 2011. Romualdez claimed that the Philippine government is already getting the highest share from mining revenues among governments around the world. AFP FILE PHOTO/JAY DIRECTO

MANILA, Philippines—Mining companies will challenge the government in court over what they claim as a “patently illegal” provision in the implementing rules of Executive Order 79 on mining policy reforms, according to the Chamber of Mines of the Philippines.

Chamber president Benjamin Philip Romualdez told reporters on the sidelines of the Mining Philippines 2012 Conference that mining companies were “preparing legal action against government”  over Section 9 of the implementing rules and regulations (IRR) of EO 79.

The IRR provision says the government can renegotiate the terms of mining contracts after the first 25 years. This effectively shortens the potential project period from the existing maximum period of 50 years.

Mining companies “will sue,” Romualdez said. Since the government took “a lot of time” in putting together the IRR, industry players have carefully reviewed the provisions and their position is to sue, he added.

Romualdez expressed hope that Vice-President Jejomar Binay, the keynote speaker at the conference, would relay to the agencies and officials concerned the industry’s “shock” over the implementing rules.