Mines bureau calls for review of IP consent rules

MANILA, Philippines - The Mines and Geosciences Bureau (MGB) is calling for the review of the new rules in getting the consent of indigenous peoples (IP) to be affected by a mining project citing that some of its provisions could discourage investments to the mining sector.

“We’re calling for its (revised guidelines) review,” Mines and Geosciences Bureau director Leo Jasareno said in a text message late Friday.

He said a review of the revised guidelines on free and prior informed consent (FPIC) is needed as no consultations were held as the new rules were being crafted.

The FPIC refers to the consensus of all members of the IPs for a project or activity, which is obtained after the full disclosure of the intent and scope of the project.

Jasareno said there are provisions in the revised guidelines which “threaten investments.”

In particular, he said the provision in the revised guidelines which requires a firm to get a certification from IPs for every stage in the development of the mine could discourage investments in the mining sector since at present, firms only have to get the FPIC once.

The need to get the consent of the regional National Commission on Indigenous Peoples (NCIP) commissioner and chair prior to the release of the royalty fees under the revised guidelines, he said, could also prevent firms from investing in the mining sector since it could affect relations with host indigenous communities.

The revised guidelines on FPIC of the NCIP were published on May 16.

The Chamber of Mines of the Philippines (COMP) has earlier asked the government to delay the implementation of the revised guidelines warning that some firms involved in large-scale mining projects in the country are already rethinking their investments here as the changes are set to take effect.

The COMP also said that as the government is set to release a policy statement for the regulation of the mining industry, it would be best to delay the implementation of the revised guidelines so that the new rules could be harmonized.

Environment officials said earlier that a mining policy statement followed by a series of policies for the regulation of the mining sector will be released this year.

The policy statement, among others, will focus on ensuring the contribution of mining to sustainable development and protection of the environment by pushing for higher revenues to be remitted to the state, as well as affirm the primacy of national over local laws.

Investments to the country’s mining sector reached $618.50 million last year, below the government’s $1.4 billion projection.

Last year’s mining investments were also lower compared to the $968.29 million in 2010.

The MGB has set a $2.27 billion projection for mining investments this year as it expects the release of the mining policy statement will put to rest uncertainties of investors in the sector.