April 7, 2006

This is in response to the statements of the anti-mining group Defend Patrimony-South Negros about foreseen effects to the environment of the mining project of Colet Mining Development Corp. (CMDC) in Sipalay City.

In its recent press release, Defend Patrimony said that “should mining operations go full blast, there will be a destruction of approximately 100 hectares of fertile rice lands at Sitio Dung-i where the mine tailings pond will be built. The planned open-pit mine at the Alepanto mountain threatens to cause massive siltation and ecological havoc to the surrounding areas and that hundreds of people from neighboring sitios and barangays are also expected to be displaced with no clear livelihood alternatives.”

Colet project

As a backgrounder, CMDC has an approved Mineral Production Sharing Agreement (MPSA) covering 2,901.8040 hectares for possible mining of copper and other minerals in Sipalay City. At present, the company is undertaking confirmatory drillings in Barangays Manlucahoc and Nabulao—both of which are within its MPSA area. The company has an operating agreement with Hinoba Holdings Philippines, Inc. (HHPI).

Because of its potential, CMDC’s project has been included in the 24 priority mining projects and the copper-rich district of southwestern Negros Occidental as among the promising areas for development under the revitalization program of the country’s minerals sector.

As declared by DENR Secretary Angelo T. Reyes, the revitalization of the country’s minerals industry is expected to generate US$8 billion investments for the country during the term of President Arroyo as well as jobs and social development projects particularly in the countryside. The inclusion of CMDC in the priority projects would therefore mean jobs, livelihood and community development in Negros Occidental.

Pro-environment, pro-people mining policy

We would like to stress, however, that the vision of the government for a socially and economically-responsive minerals sector goes hand in hand with its commitment toward an environmentally responsible industry.

Fears and apprehensions on the impacts of mining to the environment and the people are of paramount concern to the government. It is a fact that all development projects have considerable impacts. The environmental and social impacts of mining are taken into account in two major policies governing mining—the Republic Act 7942 or the Philippine Mining Act of 1995, and Presidential Decree No. 1586 or the Philippine Environmental Impact Statement (EIS) System.

PD 1586 or the Philippine Environmental Impact Statement (EIS) System ensures that environmental concerns are adequately addressed in all stages of project implementation. The EIS identifies potential environmental impacts from development activities like mining and provides for mitigative or ameliorative mechanisms to minimize or eliminate such impacts. It also sets out the process in obtaining social acceptability.

In this case, CMDC still has to undergo an Environmental Impact Assessment (EIA) of the project should it decide to proceed to the next stage of its development after it has completed the exploration stage. It is at this point that all the environmental and social impacts of the project shall be assessed and mitigating measures will be identified.

The Philippine Mining Act of 1995 and its implementing rules and regulations (IRR) provide the framework for responsible mining wherein at every stage of the project, the impacts are being guarded.

During the exploration stage, the company submits and implements an Environmental Work Program together with its Exploration Work Program. The Environmental Work Program spells out the environmental activities that the company shall undertake to address the impacts of its exploration activities, if there are any.

The Mines and Geosciences Bureau in Region 9 (MGB-6) has been regularly monitoring the exploration activities of CMDC to ensure their compliance to the Environmental Work Program.

During the commercial production or actual mining operations stage, the mining law and its IRR puts premium consideration to environmental protection. Stringent measures were institutionalized to ensure the compliance of mining contractors/operators to internationally accepted standards of environmental management.

On top of the Environmental Compliance Certificate (ECC) conditionalities, there are mandatory requirements to address environmental concerns such as the allocation of an approximately 10% of the initial capital expenditures of the mining project for environment-related activities, annual allocation of 3-5% of the direct mining and milling costs to implement an Annual Environmental Protection and Enhancement Program, establishment of a Mine Rehabilitation Fund (MRF), and operationalization of a Multipartite Monitoring Team composed of representatives from the MGB-6, affected communities, Indigenous Cultural Communities, an environmental NGO, and the Contractor/Permit Holder, to monitor mining operations.

These are just some of the environmental provisions of the Mining Act of 1995, which the government is determined to enforce to ensure that responsible mining is achieved in this country in contrast to past mining practices under the old mining laws that painted a grim picture of the industry.

To address social concerns, the mining law provides that mining contractors/operators shall allocate a minimum of 1% of their direct mining and milling costs for the development of the host and neighboring communities and mine camp to promote the general welfare of inhabitants in the area. This includes construction and maintenance of infrastructures such as roads and bridges, school buildings, housing and recreational facilities, water and power supplies, etc. among others.

There is probably no other industry in the Philippines that is required to spend for community development.

Contrary to popular belief, the whole area covered by the mining claim will not be mined but that it is imperative to subject a bigger area to exploration to enable investors to determine the feasibility of a mining project.

The odds of finding a feasible mineral deposit is conservatively placed at 1:500, that is, for every 500 exploration projects, only one may be developed into a mine. Moreover, the decision to mine may come only after another 5 to 10 years, once all regulatory requirements and an exhaustive study of the mineral deposit had been undertaken.

Rather than unite our people against mining, the government implores various anti-mining groups to be active partners in ensuring that mining companies comply with all applicable laws, implement their economic, environmental and social commitments, and respect the rights of IPs and local communities.

The Mines and Geosciences Bureau Region 6, DENR appreciates the concern and initiatives to protect our environment so that we can constantly improve the way we manage our precious mineral resources and review existing policies pertaining to environmental and social protection.

By authority of the Regional Director:

REYNALDO M. D E VEYRA
OIC-Chief, Administrative and Finance Division
.DENR-Mines and Geosciences Bureau
Region 6, Iloilo City
Queen City Garden Mall
J. De Leon Street, Iloilo City
Telephone Numbers: (033) 3362815 (telefax); 508-8029
Email address: mgb6iloilo@yahoo.com