The mining sector lauded President Rodrigo Duterte’s latest move to issue Executive Order (EO) 130, lifting the moratorium on new mining projects under EO 79 of the Aquino Administration.
In a statement, Chamber of Mines of the Philippines (COMP), an organization of some of the country's largest mining operations, reiterated that EO 79 is “a major roadblock to the huge potential of the Philippine mining industry to contribute to socio-economic growth."
“We welcome the lifting of the moratorium on new mining projects – in place for nearly nine years – in this time of great national difficulty as a result of the Covid-19 pandemic,” COMP said.
On Tuesday, COMP Spokesperson Rocky Dimaculangan told Business Bulletin of his organization's hopes the Duterte Administration to finally address this “problematic policy.” Later that day, Duterte signed EO 130, amending EO 79, which was issued in 2012 to ban the approval of new mining permits until a new legislation rationalizing revenue-sharing scheme is enacted.
Under EO 130, the President directed authorities to strictly implement mining safety and environmental policies, review existing mineral deals for possible renegotiation, and rationalize the existing revenue-sharing scheme.
The issuance came two days after Business Bulletin reported that Environment Secretary Roy Cimatu and Finance Secretary Carlos Dominguez 3rd signed and forwarded a memorandum to the Office of the President, which contains concerns and appeals made by the mining sector to the government.
COMP said mining projects that will be allowed to operate following this development will “provide additional government revenues in the form of taxes and fees, royalty fees, and increase in export value, as well as employment opportunities for thousands of Filipinos, especially those in rural areas”.
“Since 2010, investor interest in the Philippines has declined. Executive Order 130 will help bring the Philippines back on the investment map,” it added.
Right now, the mining industry contributes only 0.85 percent, or P134.5 billion, to the country's total gross domestic product (GDP). This is despite the fact the the country's mineral resources has an estimated value of around US.1.4 trillion.
Two of the biggest proposed mining projects that could not move forward due to EO 79 are the King-King Copper Gold Project of the Villar Group and the infamous Tampakan Copper-Gold Project in South Cotabato.
In 2019, Dindo Manhit, President of Stratbase ADR Institute, said “a 2016 list of just 11 pending mining projects was estimated to total over US$23 billion in capital investments”.
“Compare this to the official figures of the BSP on our total foreign direct investment from January to November which totaled only $9.06 billion," he added.
Meanwhile, Alyansa Tigil Mina (ATM) considered the issuance of EO 130 as a “betrayal of the Duterte administration against the legacy of former DENR Gina Lopez and treachery against the future generations of Filipinos.”
“President Duterte has completed his turn around, from claiming to protect the environment and stop the destruction of forests by destructive mining to a pro-mining president. Lifting the mining moratorium exposes his administration’s support for mining projects that will impact our water, food supply, forest, biodiversity, indigenous communities and fragile island-ecosystems,” ATM further said.
Meanwhile, despite the issuance of EO 130, the ban on open pit mining method, imposed under DENR Department Order 2017-10, is still effective.
Dimaculangan said the other day that the mining sector is also hoping the Duterte Administration will likewise repeal this order, which was imposed by former and late Environment Secretary Gina Lopez.