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Investors still bullish on mining industry
By Othel V. Campos

FOREIGN investors remain bullish over mining prospects in the country despite the persistent opposition of nongovernment and environmental organizations in the country.

Carlos Dominguez, chairman, president and chief executive officer of Lafayette Philippines Inc. (LPI), said the mining sector, as a whole, remains confident that the government will support measures that will help strengthen mining operations in a sustainable manner even in the wake of renewed pessimism by some quarters.

“Mining is location-specific, investors will always want to go where the gold is,” said Dominguez.

Protest groups had been lobbying for the revocation of the mining licenses and environmental certificates of such firms as LPI and another Australian mining company, Climax-Arimco, claiming these companies violated certain environmental laws.

One such case is the spilling of effluents in the mining facility owned and operated by LPI in Albay.

LPI is being accused of two mine spills last October and discharging toxic waste in Albay and Sorsogon, killing fish in the waters.

These developments have raised concerns that opposition to mining would lead foreign investors to seek more investor-friendly locations.

Dominguez, however, said that even with the best mining laws and incentives, investors would still scout for areas where potential mineral production is high.

“I don’t think that the current opposition to mining will have a major impact on efforts to revive the industry. Investors’ confidence remains high,” Dominguez pointed out.

In his testimony before a fact-finding commission Thursday, Dominguez acknowledged that there were serious operational lapses and negligent supervision, problems that LPI is now trying to rectify.

He said the mining firm is near to complying with all the requirements of the Department of Environment and Natural Resources, including the fortification of the tailings dam.

The mining firm’s operations have been suspended until these environmental issues have been resolved.

The Environmental Management Bureau in Region 5 suspended LPI after two mining spills in October 2005, causing the spread of cyanide-laced slurry into nearby creeks.

Dominguez admitted that the Rapu-Rapu issue has raised old fears about irresponsible mining operations, which became the basis for the Supreme Court to nullify the Philippine Mining Act of 1995. That decision was reversed last year following intense lobbying by mining companies.

He added that LPI was already vindicated by the results of the study done by the University of the Philippines-Natural Science Resource Institute which found no mercury in the waters, fish and sediments sampled in and around Rapu-Rapu and the coastal waters of Sorsogon beyond the DENR safe standards.

Dominguez pointed out that by April 15, LPI would have completed all the required measures imposed by the DENR and other government agencies.

“We are still hopeful that we will still be given a chance to prove our worth. A petition for the temporary lifting of the suspension order had been filed,” he said

Dominguez added that the firm requested the Mines Rehabilitation and Contingency Fund Committee to verify its full compliance with the measures as well as all environmental and safety laws.

Mining investments are expected to peak at $8 billion over the next five years with the opening of 24 medium and large-scale mining projects.

To encourage investors, the DENR revised existing procedures by simplifying and limiting the documentary requirements to speed up approval of permits and contracts.

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