Press Release
August 31, 2008

Mining firms told to apply "best practices"

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today reminded foreign mining companies to apply "best practices" in their operations in the country to prevent the degradation of the environment and the violation of the rights of the people living around the mining sites.

Pimentel observed that a number of mining ventures being undertaken by foreign firms in the country have encountered delays and difficulties due to the resistance of local government officials and residents who are apprehensive over the harmful consequences of large-scale extraction of mineral deposits on their forests, rivers, water supply, farms and fishing grounds.

"We must insist that the best international practices that those mining companies now operating in the Philippines observe in their own homegrounds should also be followed here," he said.

"The danger is that there are mining companies that come here and scour the mountains for gold, copper, nickel and other minerals but they do not care about the preservation of ecological balance to the detriment of our people."

Pimentel noted that a foreign-owned mining was forced to stop copper mining operations in Rapu Rapu Island due to mine tailings that caused heavy pollution in the waters around the island.

The mining operation of an Australian company OceanaGold in Nueva Vizcaya has run into serious trouble due to conflict with local government executives.

Chinese and Filipino firms have entered into joint ventures in nickel mining in the country to meet the rising nickel demand by industries in China.

Pimentel, however, said the people in areas with rich nickel deposits like Zambales, Surigao and Romblon are vigorously opposing such activity because of fear that this would destroy their forest, watershed and means of livelihood.

Foreign mining companies, including the largest in the world, have been lured into operating in the country, taking advantage of the December, 2004 ruling of the Supreme Court that cleared the way for l00 percent foreign ownership in mining projects here. The ruling also overturned an earlier court declaration that Mining Act of 1995 was unconstitutional.

By attracting foreign investments, the government hopes to transform the mining industry into one of the main engines of economic growth. The Philippines is believed to have the biggest nickel deposits in Asia and the fifth biggest gold deposits in the world.

The government has boasted that foreign firms have poured $4 billion worth of investments in the mining industry over the last four years. It expects the surge in mining investments to hit $l0 billion by 2010.

Pimentel said studies conducted by international and Filipino groups have shown that mining operations have invariably evicted people in many mining areas. They have polluted rivers, destroyed mangroves, damaged corral reefs and ruined agriculture or in sum they have damaged the nation's biodiversity.

To address these problems, he said these groups have recommended that the Mining Act be amended or repealed and be replaced by a more environmentally friendly-legislation.

They have also suggested that mining firms be required to post bond to cover the potential damage that their operations could cause to the environment and the residents of the affected areas.

Likewise, they said mining firms should be required to submit to genuine consultations with the indigenous peoples before they are allowed to operate in the areas occupied to the latter.

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