Proposed Mining Policy To Clarify Rules Of LGUs, National Agencies

MANILA, Philippines - The proposed mining policy being crafted by a government team is intended to clear up mining regulations by integrating local and national government rules through

the Provincial Management Regulatory Board (PMRB) and consequently luring more foreign investors to the mining sector.

Instead of driving investors away, the mining policy that is expected to be issued by President Benigno S. Aquino will rather harmonize policies that will make the local mining sector more attractive.

"Some say the mining policy may drive investments away because of stricter rules. But we think it will provide clarity to rules. So it will be a reason for investors to place more money," said MGB Director Leo L. Jasareno in a Philippine Information Agency press briefing.

The PMRB is planned to be the link between local government and the national government. It will enable both the Department of Environment and Natural Resources (DENR) and local government units (LGUs) to co-manage mining operations.

Mining companies, particularly those considered large scale, have earlier asked government to harmonize rules as there have been conflicting policies issued by LGUs that ran in conflict with national policies.

One of these is the issuance of an open pit mining ban by the LGUs of South Cotabato and Zamboanga. National policies through the mining law, though, approves different types of mining operations including those employed by large firms such as open pit mining.

Large-scale mining firms have also asked the government to put small scale mining under the same strict DENR regulations that they are subject to since they claim small- scale mines have been obtrusively destroying the environment.

And that, they claim, is due to the lack of proper monitoring, rules, and penalties on small-scale mines that are imposed by the national government on large scale mines.

However, increased DENR or national government regulations of mining through the PMRB may lead to a more harmonized regulations, permitting process, and potentially reduced corruption in the industry.

"It (Corruption) sometimes happens because not all provinces have PMRB, so PMRBs in all provinces should be organized. That's one of those that the mining policy will look into," said Jasareno.

Out of 84 provinces, some 24 provinces have yet to establish PMRBs.

The PMRB may also be the same vehicle through which government may implement the proposed "Minahang Bayan," the organizational setup eyed for small scale mining.

The Minihang Bayan has long been envisioned to be formed by mining cooperatives participated by the community using artisanal techniques. It will be a more labor intensive mining entity rather compared to the illegal type of small scale mining that extensively prevails in rural communities. Under existing laws, small-scale mining operations should employ only the use of pick and shovel.

But some large companies escape the more rigorous and lengthier initial application process with the DENR by applying for small scale mining permits with the LGUs.

"There are some that don't have small scale mining permit. But even if you have a permit, but you use mercury or explosives or large equipment, your operation is still illegal," Jasareno said.

There are around 200,000 to 300,000 miners in the Philippines. And MGB-DENR estimates that 80 percent of such operations is illegal. All of the small-scale miners operating illegally will be put under the Minahang Bayan setup if this plan pushes through.

Despite the planned change, government will provide a transition period for these miners to migrate to legal operations.

"They will be given time to legalize, although it's not yet clear in the (draft) mining policy if it's one or two years. The policy will still be followed by implementing rules. In general, if you implement a policy, especially if there are social repercussions, you will provide for a transition period," he said.

Aquino said earlier the mining policy, which will be under an executive order, may be issued within February, although Jasareno did not confirm the date of release.

"A consultation will be held before it is issued," he said.

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