‘Gina Lopez may have violated Mining Act’

MANILA, Philippines -  Embattled Environment Secretary Gina Lopez has ordered suspended mining companies to put up non-government organizations (NGOs) for the rehabilitation of affected areas – an apparent violation of the 1995 Mining Act.

Lopez issued a memorandum dated Jan. 30, 2017 to Mines and Geosciences Bureau director Mario Luis Jacinto in response to the request of some mining contractors to be allowed to remove their nickel stockpiles to prevent damage to the environment.

Those who oppose Lopez’s appointment as secretary of the Department of Environment and Natural Resources (DENR) pointed out that the order is separate from the existing rehabilitation trust fund set up by the government as required under Article 71 of Republic Act 7942 and DENR Administrative Order 2010-10.

Some mining firms have questioned the memo for being redundant and burdensome, since most of them mine large tracts of land.

Suspended mining firms are also required to deposit P1 million to the fund for every vessel of ore shipped out, which is not a requirement before a mineral ore export permit (MOEP) is granted, sources said.

The mining firms who followed the DENR on the trust fund were likewise subject to the guidelines set by Lopez, including the setting up of an NGO, its members, recipients of the trust fund and the drafting of all company documents.

Industry sources lamented that with the order, mining companies are virtually turned into dummy firms as Lopez will have to approve board resolutions, establishment of the trust fund, organization of the trust fund recipient NGO and drafting of company documents.

They also claimed that environment undersecretary Philip Camara asked a suspended mining firm to hire a lawyer from a favored outfit to handle all documents pertinent to the trust fund and its recipient NGO, including the provision that in the event of a corporate failure, the entire fund would be turned over to the Natural Resources Development Corp. and the Philippine Forest Corp., both under the DENR.

They said Lopez was virtually amending the law in forcing companies to put up another trust fund and deciding how and to whom the funds should be used.

Lopez’s memo ordered all suspended mining firms to each open a trust fund account in the amount of P2 million per every hectare of disturbed land before they could be allowed to remove their stockpiles from mining areas and given export permits.

The memo was one of the documents submitted to the Commission on Appointments by those objecting to Lopez’s confirmation to show that she has been ignoring the law in running the DENR.

Lopez ordered the suspension of 10 mines last year and the closure of 23 others following an audit that was questioned by the industry as well as by some Cabinet officials.

The 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 a MOEP.

Some mining firms complied and were allowed to export the nickel ores, which is expected to boost global supply of the raw metal.

The Commission on Appointments recently bypassed Lopez owing to the numerous objectors to her appointment.

Earlier this month, a graft complaint was filed against her before the Office of the Ombudsman for allegedly lobbying with the Department of Energy to award a $100-million contract to a French company, EcoGlobal Inc. – With Jess Diaz, Louise Maureen Simeon, Elizabeth Marcelo