All mining activities in the Philippines are going to be advantageous to government, an official said Wednesday, citing the implementing rules and regulations (IRR) of the executive order covering the industry.
Revenue-sharing is one of the highlights of EO 79 as it tackles income for for government, Leo Jasareno, director of the Bureau of Mines and Geosciences, told GMA News Online.
“It aims to come up with a scheme advantageous to government. Everything must be advantageous to government,” said Jasareno. “You don’t pursue projects that are disadvantageous to government,” he added.
However, Jasareno said government would also look into the revenue part of the private sector. “It does not mean that what is advantageous to government will be disadvantageous to the private sector,” he noted.
On Tuesday, the Department of Environment and Natural Resources signed and released the IRR for EO 79.
No specific numbers were spelled out regarding the proposed revenue sharing scheme in the EO and the IRR, which Congress must first legislate into law.
Environment and Natural Resources Secretary Ramon Paje earlier said the goal was to increase several fees and charges, including application and occupational fees, with the application fee pegged at P50,000 per project.
DENR is targeting a revenue stream of P760 million for occupational fees alone, which would be charged once the mineral production sharing agreement is approved, Paje said.
Jasareno said officials are not allowed at this point to disclose further details of the revenue-sharing scheme. A technical working group was tasked to tackle this part of the new policy on Philippine mining, he added.
The group – in turn – would provide all information required by those in charge of drafting the bill, the official said. It could draft the bill itself and look for a sponsor in both congressional chambers to file it, Jasareno added.
“Normally, you can draft a bill and you can give it to a sponsor to file it in Congress,” Jasareno noted.
Review of contracts
Section 6 of the IRR calls for a review of existing mining contracts “to ensure compliance with environmental standards, laws, rules and regulations, and to rationalize the management and utilization of minerals toward sustainable development.”
Jasareno said the review was required “because protection of the environment is the primary responsibility of mining operators.
“Government will not compromise the harvesting of gold at the expense of the environment,” Jasareno added.
Existing mining applications would also be reviewed to see they fall on areas off limits to mining or the “no go zones.”
No mining companies are currently operating in no-go zones, but 33 mining companies are operating in areas allowed by the DENR, Jasareno noted.
To make it easier for the DENR to spot companies operating in prohibited areas, the department is eyeing the use of an integrated map which depict places where mining operations are allowed, Jasareno said.
Stiffer penalties
The IRR is enforcing stiffer penalties against miners responsible for activities that are destructive to the environment .
“Mining rights shall be granted only to those who are able to strictly comply with the environmental management record requirement,” the IRR read.
Mining firms responsible for environmental destruction and have not enforced measures to remedy the situation would be disqualified from operating. “If we implement this, we will have a roster of mining companies that have good environmental records,” Jasareno noted.
The rules also prohibit hydraulic and compressor mining and the use of mercury – particularly in small-scale firms – “due to the serious safety, health and environmental impacts” these pose against man and nature. Jasareno said these are “hazardous methods of mining.”
According to the IRR, the use of hazardous methods by small-scale miners would result in the cancellation of their permits.
The mining EO delineated areas called “Minahang Bayan,” where small-scale mining operations are allowed.
Primary of national laws
To address the growing conflict between the national government and local units – or the EO 79 and LGU legislation – Jasareno said the IRR reiterates the primacy of national laws.
Asked how this could be done, he said the Department of Interior and Local Government (DILG) is in charge with settling a compromise.
According to the IRR, “LGUs shall confine themselves only to the imposition of reasonable limitations on mining activities conducted within their respective territorial jurisdictions that are consistent with national laws and regulations.” – VS, GMA News