mines bureau seeks review of mining ban

http://business.inquirer.net/money/columns/view/20110403-329181/Mines-bureau-seeks-review-of-mining-ban

Mines bureau seeks review of mining ban

Readies appeal to provincial council

By Riza T. Olchondra
Philippine Daily Inquirer
First Posted 22:07:00 04/03/2011


MANILA, Philippines?The South Cotabato ordinance that could derail the $5.9-billion Tampakan copper-gold project in Mindanao is being challenged again.

The Mines and Geosciences Bureau (MGB), an agency attached to the Department of Environment and Natural Resources (DENR), wanted a review of the environmental code passed in June 2010 by the previous South Cotabato government.

Specifically, the regional director of the MGB wanted the provincial council to take another look at the portions banning open-pit mining in the province.

?I will submit a position paper to the Sangguniang Panlalawigan of South Cotabato calling for the review of sections 22b and 22c of the environment code,? MGB XII director Constancio Paye said.

The $5.9-billion Tampakan copper-gold project, which, when implemented, would be the biggest single foreign direct investment in the Philippines, straddles the municipalities of Tampakan in South Cotabato, Kiblawan in Davao del Sur, and Columbio in Sultan Kudarat.

Members of the technical working group (TWG) that drafted the implementing rules and regulations (IRR) for the environment code have already opposed the ordinance.

In a position paper, dissenting members of the TWG said: ?The prohibition on open-pit mining method in general contravenes national statutes and appears to be an act beyond the jurisdiction and authority of the South Cotabato provincial government.? The authority, they said, was with the national government through the DENR.

South Cotabato Governor Arthur Pingoy Jr. confirmed in an earlier phone interview that members of the TWG have expressed opposition and that he suggested that they file a formal petition to the Sangguniang Panlalawigan. Other parties opposed to the code could also seek legal remedy in court, Pingoy said.

Pingoy had said that the South Cotabato government might implement the ban by the end of March. However, the MGB has not seen the IRR published in local papers, which could mean the ban has not been formally implemented.

Meanwhile, Tampakan proponent Sagittarius Mines Inc. (SMI) remained committed to its project.

SMI communications manager John Arnaldo said that while the Tampakan project was not immediately impacted by the ban, the company continued to monitor the issue closely and ?engage with all stakeholders regarding the proposed development of the project.? SMI is controlled by global mining giant Xstrata Copper while Australian Indophil Resources NL has a minority stake.

Diversifying conglomerate San Miguel Corp. has bought a 10-percent stake in Indophil and acquired last year the mining firm Daguma Agro Minerals Inc., which has development and production rights in coal-rich Lake Sebu, South Cotabato.

Also last year, SMI completed its environmental impact assessment for the Tampakan project. SMI said it would continue to undertake extensive stakeholder engagement activities during the first half of 2011 to explain in detail its impact assessment and environmental management plans.

?SMI remains committed to the principles of sustainable development endorsed by the [environment] code and we believe that ope-pit mining methods are entirely compatible with these principles,? Arnaldo said.