Mines bureau to produce a mining roadmap

THE Department of Environment and Natural Resources (DENR)-Mines and Geosciences Bureau (MGB) will craft a mining industry roadmap within this year to ensure a sustainable industry.

MGB Chief Mario Luis Jacinto said the roadmap shall guide the mining industry players toward the road to responsible mining.

"The roadmap is needed because we must know the direction we must take, what are the essential requirements, it (roadmap) will be a continuing work in progress as the key to a successful implementation plan is the ability to adjust to the conditions as you go along," he said in a chance interview Friday at the sidelines of the 22nd annual mining symposium along with the 25th anniversary celebration of the Mindanao Association of Mining Engineers Inc. at the SMX Convention Center, Lanang, Davao City.

He clarified that policy directions should be stable and long term.

The roadmap is seen to propel the sector and significantly improve its contribution to the economy.

National Economic Development Authority (Neda)-Agriculture, Environment and Natural Resources director Mercedita Sombilla said in a report that it would allow the country to weigh the potential of downstream development of minerals or the creation of domestic mineral processing plants.

At present, the mining industry is contributing only some six percent of the country's Gross Domestic Product (GDP) and 5.1 percent to exports in the last 10 year.

For the tax contributions, the government collects only 12 percent from mining companies, significantly lower than other mining-producing countries such as Chile and Indonesia at 23.1 percent and 20 percent, respectively.

But Jacinto said though it would appear that the industry may seem not contributing much in the country, he emphasized that on accounting these, one should consider how many mining players are operating here.

He said there are only a total of 102 locations where mining operations are active. Also, a total of 723 mining rights were issued by the government, bulk of the rights are from the Mineral Production Sharing Agreements.

"In areas where mining is operated, the industry is contributing some 60 to 80 percent to the economic activities to the community especially on providing jobs," Jacinto said.

Not a "sunset" industry

The MGB chief also said that mining can't be considered as a sunset industry.

"We have the resources that is available, it is not present in other countries, the important thing is you are able to study it well and understand its occurrence, condition of the ground and how to optimize, maximize it, when I say optimize, I say we are able to maximize the recovery of the resource, because it is irreplaceable," he said.

He said that a lot of areas of mining are now being explored. Before, popular resources to be mined are only gold and copper, among others but now mining engineers found new opportunities for exploration and find elements/metals that previously not used.

Mining audit

The result of the mining audit is expected to be out today, September 26.

"The mandate was to do the auditing in the highest degree of professionalism and competence," Jacinto said.

Leo Jasareno, head of the mining audit team of DENR and the former Mines and Geosciences Bureau head, said in a recent interview that 65 non-metallic firms were audited in September. In August, 40 metallic mining companies were checked, 23 of which are operating in Mindanao.

Jasareno said that depending on the violations, the DENR may suspend until violations are rectified, worst, after the due process DENR may cancel their mining contracts.

DENR Secretary Regina "Gina" Lopez also said the ongoing audit is not based only on technical but also social and environmental. She added that those companies holding environmental certificate of compliance are also evaluated.

The Chamber of Mines of the Philippines, in a report said, they are hopeful that the findings are done in fairness and objectivity.

Streamlining

Jacinto said the office is also checking on "how we will eliminate some requirements that is redundant and they target to streamline everything by the next two months."

However, Jacinto underscored that no shortcut should be done by any mining firms.

"Everybody should follow, it is the mandate of the President (Rodrigo Duterte), and we should do it in transparency and in accordance with the law. We must also make the implementing rules well understood by everybody, and then people will know what they need to do," he said.

At present, a total of 1,364 mining rights applications are under process accounting to a combined 3.7 million hectares.

"Of the 1,364 mining rights applications, there are around 500 pending applications for mineral production sharing agreements. The applications must be technically feasible, environmentally compliant, socially accepted and economically viable, otherwise it is not time to mine," Jacinto said.

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