fyi update

MINING rules issued earlier this month will not take effect this Saturday, Sept. 29, pending the release of planned revisions, the Environment department said.
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Implementation of mining rules suspended

Capping a week where issues tied to its new mining policy took prominence, the Palace on Friday said also said it was still evaluating an appeal involving a permit for the $5.9-billion Tampakan project, despite earlier setting an end-September deadline.

The government on Monday said it was revising just-released implementing rules and regulations (IRR) of Executive Order 79, which among others called for a new law raising the government’s share of mining revenues and sought to address issues such as a local government ban threatening the Tampakan development.

Provisions of the IRR, issued last Sept. 10, were heavily criticized by the mining industry, which threatened to sue the government. The rules’ publication last Sept. 14 meant it should take effect 15 days later.

“The implementation of Department Administrative Order No. 2012-07 ... which becomes effective on September 29, 2012 is hereby suspended pending the issuance and effectivity of the amendments thereto,” Environment Secretary Ramon P. Paje said in a memorandum obtained by reporters.

Industry criticism a week earlier led to Malacañang announcing last Monday that the Mining Industry Coordinating Council had agreed to revise questioned IRR provisions, among them Section 9 that states new terms would be applied when a 25-year mining contract is up for renewal.

The Chamber of Mines of the Philippines (CoMP) had called Section 9 “patently illegal” and contrary to the Mining Act of 1995.

The Palace said Section 9 would now state that “mining contracts/agreements that may be renewed shall be subject to existing laws, rules and regulations at the time of renewal”.

The revised IRR, President Benigno S. C. Aquino said last Wednesday, would be released next week and would make things “clearer” for the industry. The mines chamber, however, appears to be little mollified, on Thursday declaring it wanted further clarification and additional improvements to the changes announced by the Palace.

On the Tampakan issue, meanwhile, Deputy Presidential Spokesperson Abigail F. Valte said Sagittarius Mines, Inc (SMI) would have to wait a little longer with regard to its plea that the Palace overturn the Environment department’s rejection of a permit for Tampakan.

“It is still being evaluated,’ Ms. Valte said in a press briefing.

Secretary Ramon “Ricky” A. Carandang of the Presidential Communications Development and Strategic Planning Office, who a week earlier flagged the possibility of missing the end-September deadline given the death of Local Governments Secretary Jesse Mr. Robredo, on Friday said “there’s no news yet” with respect to SMI’s appeal.

The Environment department earlier this year rejected SMI application for an environmental compliance certificate, noting an existing open-pit mining ban imposed by the South Cotabato provincial government.

EO 79 directed the Local Governments department to ensure that local laws conform with national policies. Open-pit mining is not banned under the Mining Act of 1995.

The Tampakan project, described as the largest undeveloped copper-gold reserve in Southeast Asia, is controlled by Australia’s Indophil Resources NL and Swiss-based Xstrata Plc, which have a 40% stake in SMI.

Commercial operations are scheduled to start in 2016 and the mine is expected to generate total revenues of $37 billion or $1.8 billion annually over 20 years.