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Tuesday, September 16, 2003
Mining industry recovering from US$500M loss
By Harley F. Palangchao
BAGUIO -- A dramatic decline in production pegged at US$500 million has been experienced by the mining industry over the past years, the Mines and Geosciences Bureau (MGB) said Monday.
Despite the situation, the industry continues to exist and is even slowly recovering from losses it sustained right after recording its highest production value of P1.2 billion in 1986.
MGB Director Horacio Ramos, one of the speakers in a two-day Luzon-wide mining forum and consultation, told reporters the production losses were the result of several factors, among them the worldwide recession that has affected the profitability of local mining firms.
Another reason Ramos cited for the loss was the pending case before the Supreme Court (SC) on the Financial and Technical Agreement Application sharing scheme.
Ramos said the strict requirement asked of mining firms when they secure a Free Prior and Informed Consent (FPIC) for applications in identified ancestral lands or domains is another factor for the slow recovery of the industry.
Sometime in May this year, Environment Secretary Elisea Guzon ordered all Department of Environment and Natural Resources (DENR) regional directors to suspend the issuance of licenses, permits and other development clearances within the ancestral domains of indigenous peoples in the country.
She explained the suspension is part of government's commitment to protect the indigenous rights of the more than 20 million (lumads) natives scattered in the entire archipelago.
Guzon emphasized that all project papers by big companies, like mining and logging, should not be facilitated if these companies failed to secure the FPIC, saying it is important in effectively implementing the provisions stated in Republic Act 8371 or the Indigenous People Rights Act (IPRA) of 1997.
IPRA defines FPIC as "the consensus of all members of the indigenous cultural communities and IPs that will be determined with respect to their customary laws and practices, and must be free from any external manipulation, and in a language and process that will be understandable in the community."
Despite the significant loss in production value, Ramos said there is still hope for the mining industry following the revitalization of the National Minerals Policy (NMP).
Meanwhile, anti-mining advocates in the region urged MGB officials to join the snowballing petition to abolish the NMP.
They claimed that NMP propagates the belief that large mining operations in the country can become environment-friendly and thus people-friendly if it is transformed into a "lean and mean industry."
The policy also acknowledged that few Filipino-owned companies could meet the capitalization requirements. Thus, the government is setting its sights on foreign investors and financiers to infuse the needed capital and resources. Sun.Star Baguio |
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