Senate starts review of Mining Act

The Senate starts reviewing today the status of the implementation of Republic Act No. 7942, or the Philippine Mining Act of 1995.

Reviewing the law will be the Senate committee on environment and natural resources chaired by Sen. Pia Cayetano.

The committee will also review four bills seeking to amend or repeal the Mining Act. These are:

• Senate Bill No. 2021, authored by Cayetano herself, which seeks to amend the Mining Act by instituting an independent health and environmental assessment for all communities affected by mining projects.

• Senate Bill 2205 of Sen. Jamby Madrigal, which aims to repeal the Mining Act and institute a new system of mineral resources exploration, development, utilization and conservation.

• Senate Bill 295 of Sen. Sergio Osmeña III, which seeks to repeal the Mining Act.

• Resolution 488, also authored by Cayetano, seeking a review of the status of the implementation of the Mining Act.

Cayetano said the invited resource speakers for today’s hearing are: Environment Secretary Angelo Reyes, Trade Secretary Peter Favila, Health Secretary Francisco Duque III, Socioeconomic Planning Secretary Romulo Neri and Chamber of Mines president Benjamin Philip Romualdez.

Archbishop Angel Lagdameo, Catholic Bishops’ Conference of the Philippines president, lawyer Marvic Leonen of the Legal Rights and Resource Center and Dr. Carlos Primo David of the UP National Institute for Geological Sciences were also invited to the hearing, she added.

Cayetano said the hearing is timely, considering that the public is awaiting the decision of the government on the fate of Lafayette Mining Ltd., which was shut down early this year because of two mine spills at the Rapu-Rapu polymetallic project in Albay.

"The resolution seeks to assess the status of mining activities in the country and their effects on the community, people’s health, livelihood and way of living, the environment, as well as the economy," she said.

Recent studies and media reports indicate that existing mechanisms under the Mining Act are not sufficient to protect development among communities hosting mining operations, she added.

Cayetano said the review of RA 7942 intends to find out whether the Department of Environment and Natural Resources was able to monitor mining activities nationwide and enforce the necessary penalties for firms caught violating their Environmental Compliance Certificate.

"On a broader front, it is important to assess the environmental and human cost of mining operations, and just how much our country has derived from the industry over the last decade in terms of income, taxes and employment," she said.

Cayetano said some sectors have questioned the estimated income and benefits from mining as stated by the government.

Despite its revenue potential, mining, by its nature, exploits the environment and natural resources, she added.

Cayetano said in most cases, areas exploited for mining are also the richest in biodiversity.

"Once mining destroys biodiversity, it is almost impossible to restore it, not even with the best available technology and environmental rehabilitation practices," she said.

"It is therefore important that extreme safeguards are instituted and are actually implemented by government. The price to pay is immense if we’re not careful."

She hopes the Mining Act’s review would provide senators with necessary data to help them make an informed decision on how to go about improving the law, Cayetano said.

Since the mining sector was opened to foreign investors after the Supreme Court declared as constitutional RA 7942 in 2004, the government has touted the huge revenue potential from mining.

The value of the country’s mineral resources was pegged at $840 billion; mining investments from 2005 to 2010 were estimated at $6.5 billion; mineral exports at $3.1 billion annually; along with $490 million in projected tax revenues.

Moreover, the government said the opening up of the mining sector would result in the employment of 34,800 workers and the creation of 200,000 indirect jobs. — Marvin Sy