DENR hit over P2-M fund for ore stockpile removal

MANILA, Philippines -  The mining industry is mulling possible legal options against the Department of Environment and Natural Resources (DENR) following the imposition of a P2-million rehabilitation fund to allow removal and export of ore stockpiles.

The Chamber of Mines of the Philippines (COMP) is questioning the decision of Environment Secretary Gina Lopez requiring mining firms to each open a trust fund account in the amount of P2 million for every hectare of disturbed land before they would be allowed to remove their stockpiles from mining areas and given export permits.

“We will contest that. The DENR should cite the law that requires companies to put that up because that is contrary to the previously imposed implementing rules and regulations under the law,” COMP executive vice president Nelia Halcon said during a weekly forum yesterday.

The new trust fund is separate from and on top of the existing rehabilitation trust fund set up by the government, as required under the Philippine Mining Act.

“Why should they impose that much when you already have rehabilitation funds? We have to meet (as an industry) and plan what to do next. We have to look at the possible legal options,” Halcon said. “We don’t know yet if (cases to be filed) will be by the individual companies or if it will be the chamber in behalf of the companies.”

The industry said legal cases will be filed within the month.

“They should know the law and should know what they’re doing. Sometimes they just do what they want. There should be experts in the DENR to be able to tell the secretary (what to do),” Halcon said.

Suspended firms are reported to have been required to put up trust funds ranging from as low as P150 million to as high as P300 million, depending on the volume or area of affected mining sites, before they are allowed to remove their stockpile and be issued an export permit.

To date, at least eight suspended firms have complied with the order and were allowed to remove and ship out the ore.

“They complied just so they could sell their ores. When you close a mine, of course, you have no cash flow, so they have to export their stockpiles,” she said.

Almost all of the country’s nickel ore is sold to China, where it is used to produce stainless steel.

Meanwhile, the mining industry has temporarily deferred its plan to take their last resort and sue the government for the cancellation of mining contracts, as the sector awaits the formal multi-stakeholder review of the Mining Industry Coordinating Council.