Malacañan on Wednesday expressed its support to the "win-win solution" of the Department of Environment and Natural Resources (DENR) on the fate of Lafayette Mining, saying the government's policy on responsible mining stands.

DENR Secretary Angelo Reyes has allowed Lafayette Mining to test-run for 30 days its zinc and copper mine on Rapu-Rapu Island to give the
mining firm the chance to prove that it can operate the facility in compliance with environmental standards.

Press Secretary and concurrent Presidential Spokesperson Ignacio R. Bunye said the 30-day test run will be closely monitored by the DENR
and other stakeholders to ensure full transparency.

"We support the sound decision made by the DENR to move the process forward on a win-win basis, and we hope all parties including Lafayette, the communities affected and the oppositors will participate in this process," Bunye said.

"We are confident that the DENR will closely scrutinize the test-run by Lafayette to enable the government to come up with a more definitive decision on this issue---under the standards of full transparency and accountability to all stakeholders," he added.

Bunye said President Gloria Macapagal-Arroyo maintains her policy of responsible mining and sustainable development which underpins her
basic philosophy in revitalizing the mining industry.

As always, the government will be sensitive of the need to strike a balance between promoting responsible mining to create jobs and resolve poverty, and caring for the environment, Bunye said.

One of the growth drivers of the economy, the mining industry is expected to attract $4 billion to $6 billion investments before the end of the President's term in 2010.

In the next two years alone, new mining investments are expected to reach $2.5 billion. The National Economic and Development Authority
(NEDA) has placed the value of the country's mineral reserves at $840 billion.

The government has suspended La Fayette's operations after two cyanide spills in October 2005. (www.gov.ph)

June 14, 2006