Purisima urges SC to recall decision on Mining Act

Trade and Industry Secretary Cesar V. Purisima is urging the Supreme Court (SC) to reconsider its decision to declare as unconstitutional the Financial and Technical Assistance Agreements (FTAAs) allowed under the Mining Act of 1995.

The FTAAs basically allow foreign investors to control up to 100 percent of local mining operations.

According to the SC decision, the FTAAs violates the Philippine Constitution which prohibits 100-percent foreign ownership of natural resources.

However, according to Purisima, large-scale mining involves billions in investments and technology which only foreign investors can provide.

He stressed that it is but logical for a foreign investor who is risking billions in investments to control how his investment is being used.

Purisima pointed out that because of the current high world price for metals, this is the best time to attract investors to the mining sector.

Attracting such big investments, Purisima reiterated, would greatly help the government and the country.

The government, through the Solicitor-General, and the Chamber of Mines are set to file a motion for reconsideration of the SC decision.

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