DOF examines impact of DENR mining ban

MANILA, Philippines — The government is already assessing the impact of last week's order of the Department of Environment and Natural Resources (DENR) to close or suspend the operations of 28 mining firms in the country.

Finance officials have already directed local treasurers and called for a meeting of relevant government departments to measure the impact of the DENR order to close 23 mining sites and suspend the operations of five others.

In a statement, the Department of Finance (DOF) said on Monday that Finance Secretary Carlos Dominguez III already called for a meeting of the Mining Industry Coordinating Council (MICC) and ordered local treasurers to look into the impact of the order on jobs, local government revenues and the national economy.

Dominguez, co-chair of the MICC, said that he had already discussed with the heads of the Office of the Cabinet Secretary, the Departments of Labor and Employment (DOLE), Social Welfare and Development (DSWD), Public Works and Highways (DPWH) and Trade and Industry (DTI) how to address the impact of the move on jobs and revenues of local government units (LGUs) hosting the affected mining companies.

Impact on LGUs

The DOF also directed local treasurers to assess the impact of these closure and suspension orders on the fiscal state of the LGUs given that mining firms account for a hefty part of the tax revenues collected by these cities and municipalities.

Initial data from the DOF's Bureau of Local Government Finance (BLGF) showed that at least ten municipalities and one city would be affected by the closures while one city and four municipalities would be impacted by the suspensions.

"On the revenue side, our primary concern is the revenues of the municipalities. That's why we asked the treasurers already to give us a quick round assessment of how much is going to be lost in revenues," Dominguez said.

According to Dominguez, DOLE Secretary Silvestre Bello III suggested giving displaced mine workers with emergency employment but only for a temporary time and in limited volume.

The DPWH, according to Secretary Mark Villar, could study the conduct of additional projects in the affected communities so jobs for displaced mine workers could be provided under a proposed supplemental budget.

According to Dominguez, DSWD Secretary Judy Taguiwalo said that her department would conduct a census to determine the extent of job displacement in these mining communities while Cabinet Secretary Leoncio Evasco suggested providing jobs through the government's national greening program.

In response to the order of the finance chief, the executive director of the BLGF, Niño Alvina, issued a memorandum "directing city and municipal treasurers in all localities hosting mining projects to submit their complete and updated reports by Friday, February 10."

Treasurers of LGUs are under the supervision of the DOF through BLGF.

In an order in September last year, Dominguez ordered local treasurers to include in their quarterly and annual reports to the DOF all environment and natural resources revenues and expenditures specifically payments made by the mining industry to their respective local governments.

According to Dominguez, these reports would help the government in coming up with a comprehensive strategy to address the impact of the move of the DENR on the employment and fiscal situations of the communities hosting the mining operations.

Dominguez: People's welfare first concern

Dominguez also echoed the concern of Cabinet members about the impact of the mining orders on unemployment and income of people.

He said that his primary concern was the negative effect of the directive on jobs, second on LGU finances and third on the country's GDP growth.

"The national impact, the impact on the GDP, that, of course, is a concern. But the people's welfare is our first concern."

He noted that in Surigao del Norte alone, a mining company provides jobs to 10,000 people living in rural communities.