Enrile sees potential in mining industry

Senate President Juan Ponce Enrile today called on players in the local mining industry to exercise prudence and extreme caution in mining activities, saying that the environmental and social costs will far outweigh the economic benefits from the industry.

Speaking before the Mining Philippines 2009 Conference and Exhibition held at the Sofitel Hotel in Pasay City , Enrile said member of the Chamber of Mines of the Philippines should apply "the best practices" in their operations "to prevent further environmental disasters of catastrophic proportions."

"Exercise prudence and extreme caution in your mining activities, for, if you do otherwise, the environmental and social costs will far outweigh the economic benefits from the mining industry," Enrile said.

In his speech, Enrile reiterated his support for the development of the local mining industry, saying that if done properly, mining can bring benefits to the national economy and the people.

"I am one of the believers of the benefits that the mining industry can bring to the economy and to our people, only if mining is done responsibly by applying the best practices," Enrile explained.

He, however, deplored that mining operations in some parts of the country have caused severe environmental damage and brought untold economic and social suffering to the people.

"Studies have been done on the impact of mining in the nation's economy," the Senate President noted. "While there are economic benefits to the local community in terms of employment and revenues, mining also have many adverse effects on the economy, environment and the health and safety of the people. These include the eviction and displacement of people, pollution of rivers and streams, destruction of mangroves and coral reefs and devastation of agriculture land."

Despite these negative reports, Enrile, however, said he was optimistic that the local mining industry would improve with new investments for as long as responsible practices are implemented.

"With more investments pouring in, and with adherence to international mining practices and standards, the mining industry will once again become one of the drivers of the Philippine economy," Enrile said.

Enrile said the economic benefits of mining activities to the local community in terms of employment and revenues far outweigh the adverse effects on the economy, environment and the health and safety of the people.

Enrile said that since the Philippines was situated geographically along the so-called "Rim of Fire," the country was well endowed with mineral deposits such as copper, chromate, nickel, silver, gold, gypsum, coal, marble and phosphate. "Today, the Philippines is considered as one of the richest sources of minerals worldwide, with untapped mineral wealth estimated at more than $840 billion," Enrile said.

Enrile recalled that Philippine mining industry was at its peak in the 1970s and 1980s. "Back then, the country was ranked among the ten leading gold and copper producers in the world. But a confluence of events led to its decline in the latter part of the 20th century," Enrile said.

"However, in 2004, hopes were raised for a resurgence of the industry after the Supreme Court upheld the constitutionality of the Mining Act of 1995. Despite the various opposing opinions on this law, it has been widely-viewed as a mechanism that will make the mining industry one of the drivers of economic growth," he added.

Earlier, the Chamber of Mines of the Philippines, Inc. (CMP) warned that continued public protests by some anti-mining groups would send a wrong signal to foreign investors interested in putting capital not only in mining, but in other local industry ventures as well.

The three-day mining conference, attended by different stakeholders of the industry, will discuss developments in the mining sector not only in the Philippines , but also in other Asian countries.

The Mining Philippines 2009 conference and exhibition is organized with the support of the Minerals Development Council (MDC) under the Office of the President, as well as the Department of Energy and Natural Resources, and the Mines and Geosciences Bureau.