MANILA, Philippines — Mining stakeholders lauded the government for rejoining the global transparency initiative on mining, as this will ensure accountability as the current administration ramps up the mining sector.
Alyansa Tigil Mina (ATM) welcomed the move to rejoin Extractive Industries Transparency Initiative (EITI) as this will allow the country to sustain the momentum in pushing greater transparency and accountability in the extractive sector.
The Philippines re-engaging the EITI comes two months after the previous administration decided withdrew from the coalition.
“Rejoining EITI is in the best interest of the Philippines, as stakeholders strive to address the issues against illegal and destructive mining. We share the aspiration that EITI can contribute to ensure that mining taxes and revenues are truthfully paid to government and redound to benefit the communities and the country,” ATM national coordinator Jaybee Garganera said in a statement.
The EITI is a global coalition of companies, civil society, and governments and prescribes a standard for transparency and accountability in the mining, oil and gas industries.
As members of the coalition, extractive companies publicly disclose data on taxes, royalties and other payments they make to the government and their host communities.
Annual disclosure of contracts, financial, economic, social and environmental data is also mandatory for extractive industries.
ATM said the EITI’s procedures and mechanisms play a critical role in ensuring compliance of mining companies with their contractual and financial obligations, as well as the government’s capacity to monitor the industry effectively.
“We expect that the extractive industry itself will intensify its efforts to have more mining corporations become EITI-compliant. We also expect the government, especially the Department of Finance (DOF) and Department of Environment and Natural Resources (DENR), to perform a more pronounced role in making EITI a relevant and meaningful platform where mining-affected communities and environmental organization can feel safe to engage,” Garganera said.
Meanwhile, the Chamber of Mines of the Philippines (COMP) said its members are ready to adhere to increased transparency and reporting of ESG practices in mining as exhibited in the past.
“We support any initiative that promotes the highest standards of transparency and accountability in business, something we demonstrated as a participant in the Extractive Industries Transparency Initiative (EITI),” COMP chairman Michael Toledo said in a statement to The STAR.
“Our members will gladly comply should the Philippines be allowed to rejoin EITI,” he said.
The chamber noted that the Philippines was the first out of 51 implementing EITI countries to have satisfactorily met the 2017 EITI standard for fiscal transparency in the extractives sector.
The Philippines has been implementing the EITI since 2013. In 2016, the EITI recognized the country for its impactful implementation.
To date, the PH EITI has produced seven country reports, covering data from mining, oil, gas and coal industries and reconciling over P362.5 billion in government revenues from extractive projects from 2012 to 2019.
The Marcos administration sees the mining sector has a high growth potential that will help the economy recover amid the pandemic.
The mining sector has only been contributing less than one percent to gross domestic product (GDP).