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DENR-MGB Approves Philex’s P61 M Social Development Program


 

(May 20, 2003) Over P61million in additional livelihood, infrastructure, educational and health projects await the people of Tuba and Itogon, Benguet Province in the next five years courtesy of Philex Mining Corp. (PMC), as the Department of Environment and Natural Resources (DENR) approved the company’s Social Development and Management Program (SDMP) last week.

This was the ninth SDMP the DENR-Mines and Geosciences Bureau (MGB) has approved since last year, bringing the total programmed social commitment by mining projects to P127.6 million within 5 years.

The SDMP is a mining/quarry company’s comprehensive five-year plan for the implementation of community programs and projects based on consultations with the host and neighboring communities. The development of mining communities is a social provision prescribed under the Philippine Mining Act of 1995 (Republic Act 7942).

DENR Secretary Elisea G. Gozun said the MGB is strictly monitoring the implementation of this program, realizing the important role that industries like mining play towards countryside development and poverty alleviation.

“With the SDMP, we strengthen the government’s thrust to create responsible, self- reliant and resource-based communities within and around mine and quarry sites that they maybe able to sustain the development of their respective communities even after mine closure,” Gozun said. “The SDMP would therefore ensure that there would be no more ghost towns from mining.”

Apart from Philex, other companies with approved 5-year SDMP are: Alsons Cement Corp. in Misamis Oriental; Union Cement Corp. (UCC)-Bulacan Plant; Taganito Mining Corp. in Surigao del Norte; UCC-Davao Plant; UCC-La Union Plant; Northern Cement Corp. in Pangasinan; Cagdianao Mining Corp. in Surigao del Norte; and Pacific Cement Co. in Surigao del Norte.

Under RA 7942 and its implementing rules and regulations, a mining company is required to allocate not less than 90% of its 1% direct mining and milling costs for the implementation of the SDMP. This is in addition to the excise taxes paid to the government, 40% of which goes to the local government units as share from use of national wealth.

The DENR started requiring mines and quarry operators to submit their SDMPs in 2000 following the issuance of DENR Administrative Order 2000-99 which set the guidelines in the formulation of the SDMP in compliance to RA 7942. The DAO particularly requires mining companies to prepare SDMP for a maximum period of five years based on the needs of its host and neighboring communities.

SDMP activities commonly include: the construction or maintenance of public infrastructure such as schools, hospitals, churches, roads, bridges, electric power and sewerage systems, etc.; the establishment of livelihood industries including reforestation; and the use of mine camp facilities such as hospitals and schools by members of the host and neighboring communities.

The MGB Regional and Central Offices undertake the screening and review of all SDMPs submitted by mining companies. The MGB Director issues a Certificate of Approval after the proposed SDMPs pass the rigorous screening process. The MGB also monitors and audits the implementation of all approved SDMPs on a periodical basis.


Republic of the Philippines - Mines and Geosciences Bureau / Department of Environment and Natural Resource
Central Office: MGB Compound, North Avenue, Diliman, Quezon City | Telephone: (63-2) 928-8642 / 920-9120