Message from the Industry

SPEECH DELIVERED TO

PRESIDENT GLORIA MACAPAGAL ARROYO AND THE MINING INDUSTRY

ON THE OCCASION OF

THE 50^THANNIVERSARY OF PMSEA

HELD ON NOVEMBER 13, 2003 AT MANILA HOTEL

Message of the Industry

Her Excellency President Gloria Macapagal-Arroyo, Secretary Bebet Gozun, Secretary Romulo Neri, Cong. Mauricio Domogan, other members of the Government, Director Horacio Ramos, Member of the Diplomatic Corps, my fellow members of the Boards of Philippine Mine Safety and Environment Association (PMSEA) and the Chamber of Mines, colleagues in the Mining Industry, Members of the Academe, the Indigenous People’s Group, Media, My friends – Good Evening.

Firstly and foremost, we would like to thank Her Excellency President Gloria Macapagal-Arroyo for joining us tonight on this special occasion commemorating the 50 years of the PMSEA. Secondly, we would like to thank the President for wisely shifting her policy on the Mineral Industry from tolerance to promotion. Thirdly, for tackling the very volatile issue confronting the Diwalwal problem and to convert the mine into a future model for high environmental and operational standards. And most importantly, for preserving and protecting our fragile democracy.

Your Excellency, we fully support your administrative programs and projects designed to propel the economy into sustained growth. We are encouraged by your positive pronouncement to revitalize the minerals industry in support of your economic development efforts. We are aware of the programs you have started to bring our industry back to prosperity and we hope you may consider our suggestions and recommendations to resuscitate the industry.

The Philippines is the second most mineralized country in the world. Up to the early 1980’s, the Philippines was a leader in the mining sector of the world. We were the top 5^th in the world. Twenty five percent (25%) of our foreign exchange was derived from the mining industry. Yet today, we are at the bottom of the heap and can barely contribute 2% to our foreign exchange.

In 1993, President Fidel V. Ramos created a Multi-sectoral task force on the Minerals Industry that assured the needs and laid out measures for the resuscitation of this industry. In 1994, Republic Act No. 7729 was passed that reduced the excise tax on mineral products as was approved. And in 1995, R.A. 7942 of the Philippine Mining Act was approved. All these activities spurred a lot of interests and started the resuscitation of the Minerals Industry. However, as exploration projects were approved, some pseudo environmentalist groups really anti-development groups camouflaging as environmental groups, began opposing the effort outlaying the vagracies in the processes and the Local Government Code to stall project. A challenge was mounted on the constitutionality of the 1995 Mining Law. When R.A. 8371 otherwise known as the Indigenous Peoples Rights Act of 1997, more confusion stalled any more activity as the implementing rules took time to be released and funding for the operations of the NCIP was stalled. As a result, no new activities moved and the only mining activities that were already in operation continued. With no new projects and mine life was ending, the mineral sector began a sharper decline. In 1998, the DENR drafted a National Minerals Policy and started its consultation with multi-stakeholder groups including environmentalists and the industry. Yet the policy that would have reconciled the issues languished for a number of years. Now that Her Excellency has directed the DENR and DTI early this year to institute measures to revitalize the local minerals industry, we have been hoping and waiting for positive action. The DENR approved the simplification of granting of mining tenements and establish the Mining Assistance Center at the MGB in partnership with DTI and the one stop shop committees in MGB regional offices and organized the Philippine Mining Workshops and Conference, and DTI thru the BOI tried to establish a Road Map for development. These efforts though a good start, are still flawed. When proponents try to implement the process, many roadblocks show up resulting in a stalemate as NGO’s oppose these programs. The abstinent attitude of the leftist infiltrated NGOs with an obsolete ideology funded from abroad have succeeded in stopping any project utilizing the confusing and lengthy processes.

The delays alone in the formulation of a National Minerals Policy that has been five years in the making is a clear example of how and why there is very little movement forward.

While we understand and respect the need for a process of engagement with multi-stakeholder groups, and we have actively participated in the effort, we all must recognize that we live in a world that has varied views and opinions and that is impossible to render a complete consensus. Yet we keep delaying the process to try to reach one. To those who oppose mining and development – a delay is already a victory.

Madame President, as the mother of our Nation, the leader of our people and the Chief Executive of the Government, we turn to you for help. We need a Supreme Court decision upholding the constitutionality of the FTAA and the Mining Act so that investors are able to decide on how to go about their projects. There is a need to settle once and for all the bottlenecks in the implementation of the Local Government Code, the IPRA, the Mining Act and the NIPAS law which drag implementation of regulations concerning minerals development and where several issues cannot be resolved by the executing agencies. There is a necessity of creating a Presidential Task Force that will take charge of resolving and monitoring the action plans that have been drawn to revitalize the industry out of the National Minerals Policy.

We, in the industry, are aware of the past. Today, we recognize the needs to balance the concerns of all stakeholder groups, we are committed to the highest standards set under best practices. We, to have children who breathe the air and drink the water and play under the sun. But we recognize the need to create a better way of life for all Filipinos and not retract to an isolated insular society with no development as some of the extremist groups would prefer. We can’t all send our spouses, brothers, sisters and daughters to be maids or OCW’s abroad to earn the much needed dollars to pay for our needs and imported goods and services. How about the destruction of the family environment when marriages are put at risk – how does that compare to the attacks foisted on an industry that creates economic activities in the most rural areas of our country, particularly in Mindanao where the poorest communities live and the richest mines exist. Not all of us can be advocacy groups or work for government. The rest of us must provide the means to build industry, products and services that will create jobs, livelihood and a way of life we all aspire for.

Our industry will affect at least two million Filipinos directly and indirectly if we are given the chance to develop. We can help stop the provincial exodus to the already overstretched urban areas. Madame President help us. Help us help our countrymen, help us help the Philippines.

Yesterday, the Inquirer reporter after the PMSEA Press Conference asked me a parting question – Who will the Mineral Industry support at the next Presidential Election? Well, I told her that while I thought we all had our personal views on the matter as an industry, we would support the candidate who would set forth the policies, platforms, action programs that would drive the industry forward towards prosperity and someone who would appoint the people in her Cabinet and agencies who would implement those programs.

Up to this point, the one who has begun to do and say the right things is President Gloria Macapagal-Arroyo.

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BENJAMIN PHILIP G. ROMUALDEZ is the President & CEO of Benguet Corporation, Director of the Philippine Mine Safety and Environment Association, and incoming President of the Chamber of Mines of the Philippines.