House wants answers on how DOT will save Boracay

Amid Boracay sludge, House probe sought on DOT's plans for

sustainable tourism
By: Vince F. Nonato- Reporter / @VinceNonatoINQ
Philippine Daily Inquirer / 05:59 PM June 26, 2017

MANILA — Citing the deterioration of the world-famous Boracay, Samar

1st Dist. Rep. Edgar Mary Sarmiento has asked the House of
Representatives to conduct on inquiry on the Department of Tourism’s
plans to promote sustainability.

House Resolution No. 1087 seeks an investigation into the DOT’s

roadmap, programs, projects and action plans aiming to regulate
tourist spots.

“The massive influx of tourists and the explosive population growth

in the island places it at the risk of destruction. This is highly
detrimental as our citizens are reaping numerous benefits from the
thriving tourism industry in the area. Moreover, the environmental
degradation is a proof of the State’s failure to preserve our
natural resources,” Sarmiento said in his resolution.

He said he noticed the degradation of the island when members of

the House of Representatives embarked on the so-called Western-
Eastern National Highway Expedition, a 10-day “inspection” of
tourist spots and roll-on/roll-off vessels.

Boracay’s renowned white sand beaches have been recently affected

by an abundance of slimy green algae growth. SFM

DENR to strictly enforce sewerage connection in Boracay

Monday, 12 March 2018 00:00 |

The Department of Environment and Natural Resources (DENR) said it

will force the local government of Malay, Aklan to strictly enforce
local legislation requiring residents and businesses in Boracay
Island to be connected to the sewerage system.

“The local government of Malay has enacted Ordinance 307 in 2012,

which mandates businesses and residents to connect to the sewerage
system of Boracay. The law is there. What we want to see is for it
to be strictly enforced,” DENR Secretary Roy A. Cimatu said.

The ordinance requires residents and businesses within 61 meters

from sewerage pipes to connect to the sewerage system. Those which
are located farther from the lines, or for other reasons cannot
connect to the system, are required to build and maintain sewerage
treatment plants and septic tanks.

Despite the ordinance, Boracay has been hounded with the issue of
untreated waste water being dumped into the drainage system of the
island, instead of the sewerage system. This untreated waste water,
which contains harmful bacteria and other substances, eventually
reaches the open waters in and around Boracay.

“Boracay’s sewage is the number one problem in the island, and it

requires urgent action from us. We are giving companies not
connected to the sewer lines one month to link up. If they fail to
do so, they will face sanctions,” Cimatu said.

According to Boracay Island Water Corp., one of the two water

concessionaires in Boracay and the operator of the island’s
sewerage infrastructure, 195 of its 578 business customers are not
connected to the sewer lines. Meanwhile, only 5 percent of their
4,331 residential customers are connected to the sewers.

Customers of the other water provider, Boracay Tubi System Inc.,

are not connected to the sewer lines, but the company offers to
siphon waste water from them into the company’s sewerage treatment
plant.

“Companies release a huge volume of waste water, so it is important

for us to crack down on them. And we do not know if these 195
establishments are causing problems with the island’s drainage
system,” Cimatu said.

“For residents, we will help them connect to the sewers if

possible, or provide alternatives for them in cooperation with the
water concessionaires,” Cimatu said.
Lopez’s crackdown on mines continues to rattle investors-Feb 2017
MANILA — Environment Secretary Regina Lopez’s revved-up campaign
against mining projects that allegedly have been violating laws and
ruining bodies of water continues to rattle the capital market as
regulators and investors try to make sense of what’s happening.
OceanaGold Corp. said its Philippine unit has finally received an
order calling for the suspension of the Didipio gold mine in Nueva
Vizcaya, which Lopez announced last Feb. 2

The Australian company said in a statement the order repeated

allegations previously made by the Department of Environment and
Natural Resources.

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These include the “petition of the local government of Nueva Vizcaya

for the cancellation of (the mining contract), alleged damages to
houses caused by the blasting operation; and the potential adverse
impact to the agricultural areas of the province.”

OceanaGold Philippines, one of the county’s top producers of gold,

was given a period of up to three months to address the issues
raised against it.

The company said that upon receipt of the order, it filed an appeal
directly with the Office of the President.

OceanaGold said the filing stayed the execution of the suspension

order, adding that it anticipated Didipio to continue to operate
during the appeal process.

“We have the strong endorsement from our host communities to operate
and are a major employer of Filipino nationals, majority of whom
are from the local communities,” OceanaGold chief executive Mick
Wilkes said. “A suspension of operations will adversely impact
thousands of Filipinos directly and indirectly.”
At the Philippine Stock Exchange, at least six listed firms said
mineral production sharing agreements (MPSAs) assigned to them or
their subsidiaries were among the 75 contracts that Lopez on
Tuesday said she wanted cancelled.
Apex Mining Co. Inc. said the list included the MPSA of its unit
Itogon-Suyoc Resources, related to a tenement in Mankayan, Benguet.

Marcventures Holdings Inc. said its prospective merger partner Asia

Pilot Mining Philippines Corp. got two subsidiaries in the list —
Alumina Mining Philippines Inc. and Bauxite Resources Inc.

MacroAsia Corp. said it got two MPSAs on the list, but said it has
not received any notice from DENR. The company said the two MPSAs
related to projects both in the exploration stage.

Omico Corp said it got a 3-percent stake in Macawiwili Gold Mining

and Development Co. Inc., with an MPSA in Itogon, Benguet the DENR
chief want scrapped.

The Vulcan Industrial and Mining Corp. said its MPSA for a tenement
in Negros Occidental was on the list but that it has not received
any notice.

NiHao Mineral Resources International Inc. said its unit Mina Tierra
Gracia Inc. — a tenement in Zambales — was “prepared to avail and
exhaust the legal and administrative remedies to defend the MPSA.”

Last week, PSE president Hans Sicat said in a forum the DENR’s
earlier announcement relating to the orders to close 23 mines in
commercial operation“may have been a worrisome trend if not very
irresponsible.”

Sicat said the PSE feared that the announcement last Feb. 2 — which
he described as a “trial by media release” — put at risk the
financial and investment health not only of institutional investors
but also of individual investors.

“We feared that listed companies may have lost wealth” because the
announcement caused confusion and misdirection, the PSE chief said.

Sicat said investors have been unhappy with the fact that not
everyone had the same access to information. “We want to make sure
that process and benchmarks are followed to prevent causing undue
advantages or disadvantages (for market players),” he said.

Sicat said that from a macroeconomic perspective, “when a surprise

announcement does not jive with the overall economic plan, one
begins to question whether policymakers have a handle of the
gameplan or whether a group or an individual has hijacked a well-
thought (out) economic plan.”

P50M set for review of DENR orders to shut down mines-Mar2017

MANILA — The government will set aside P50 million for a review of
the Department of Environment and Natural Resources’ order to shut
down or suspend 28 mines.

In a statement Sunday, Finance Secretary Carlos G. Dominguez III

said the Department of Budget and Management had committed to fund
the interagency Mining Industry Coordinating Council’s (MICC)
comprehensive review of all mining contracts, starting with the
ones subject to the DENR orders issued last month, of which 23 were
to be closed down and five to be suspended.
Dominguez co-chairs the MICC with Environment Secretary Regina Paz
Lopez.

Dominguez said Budget Secretary Benjamin E. Diokno told him that

the budget for the review to be undertaken by the MICC technical
working group would come from the government’s contingency fund.
The MICC earlier identified the lack of budget as a concern ahead
of the three-month review that will start within March.

Moving forward, the MICC will seek a permanent annual budget for
such reviews under the general appropriations act, Dominguez said.

“This MICC has never been funded so I think for the 2018 budget,
we will propose that we will do that,” Dominguez said. ““It’s been
done [with other similar councils] so we can do it.”

“It was only proper that the MICC be given a permanent allocation
under the national budget given its task under Executive Order No.
79 of reviewing all 311 mining contracts in the country once every
two years,” the finance chief added.

The MICC will begin selecting the members of the five

interdisciplinary technical review teams on Monday (March 6),
according to Dominguez.
The technical review teams will conduct an “objective, fact-
finding, science-based” review of mining operations nationwide,
starting with those covered by the DENR orders.

Dominguez said the technical review teams would be comprised of

“qualified, certified or licensed persons in their fields of
expertise and experienced in mining operations who shall be
independent and have no known conflict of interest.”

Dominguez said each of the five technical review teams would have
a geologist, mining engineer or metallurgical engineer; a lawyer;
a community relations officer; an environmental management officer;
as well as economic representatives of the local government unit
hosting the mining operation, the Department of Finance, the
Department of Labor and Employment, the Department of Social Welfare
and Development; the Department of Trade and Industry, and the
National Economic and Development Authority, among other concerned
government agencies.

The review will primarily focus on the economic, environmental,

legal, social and technical aspects of the mining activities,
according to Dominguez.

This review would be “in accordance with existing guidelines and

parameters set forth in the specific mining contracts concerned and
other pertinent laws rules and regulations,” Dominguez said.

Besides the technical review teams, an ad hoc management unit “will

manage the review through the provision of office space, provide
administrative and financial services, hire individual experts and
consolidate documents and reports for submission to the [MICC],”
Dominguez said.

Under guidelines approved by the MICC, “the review shall refer/take

off from the existing reports (such as audit reports and checklists)
prepared/developed by the DENR audit team and technical review
committee.”

“The DENR will provide and make available the copies of the
documents in the DENR data room for easy reference/access during
the conduct of the review. Ocular inspections may also be conducted,
if deemed necessary, by the technical review teams and if funds
permit,” the guidelines said.

Under the guidelines, the technical review teams “will go over the
compliance of the 28 mine sites with applicable agreements,
submissions, laws and regulations and impact of their operations.”

Also, the five teams “will tap the academe and engage experts from
state universities and colleges to help conduct the review,”
Dominguez said.
“The MICC will present the findings and submit its recommendations
to the Office of the President, which shall make a final decision
on the DENR’s closure and suspension orders,” the guidelines said.

Mining in PH: What Gina Lopez, Duterte have said

MANILA, Philippines - Since President Rodrigo

Duterte appointed Gina Lopez secretary of the Department of
Environment and Natural Resources, mining has become one of the
most talked about issues in the country. (READ: Investors in mining
panic over Gina Lopez appointment)

During their term, the Dutertes banned mining in Davao City.

Meanwhile, Lopez, a known anti-mining advocate, has been
involved in spats with big mining companiesbecause of her strong
statements against mining.

Coming from the Aquino administration, which created an executive

order that stressed the need to raise government's share in mining
revenues and which imposed a moratorium on new mining contracts,
what possible changes could be seen in this sector in the next 6
years?

Here’s a rundown of what the Duterte administration has said so

far about the mining industry.

1. 'Responsible' mining only

In the middle of his campaign sometime in February, Duterte

expressed support for it, provided that companies follow
"responsible" mining. He said mining companies should follow the
environmental standards set by countries like Australia and
Canada, or else, suffer sanctions. (READ: If elected, Duterte to
allow responsible mining)

After being elected, he has since reiterated his stance.

Lopez, on the other hand, has been quoted as saying there is no

such thing as responsible mining.

“If there is responsible mining why is it that wherever there is

mining, there is poverty?” she said. “The poorest sites in the
country are mining areas,” Lopez said in an Inquirerarticle.
In a separate interview, Lopez said that for mining to be called
responsible, "you have to have the highest standards," referring
to the mining companies' supposed adherence toISO 14001
Certification as a measure of responsible mining.

2. Philippine Mining Act of 1995 is unfair

In one of her interviews, Lopez said of the Philippine Mining Act

of 1995, it is “unfair” because it is "skewed towards the mining
sector, and not towards our people." (READ: Gina Lopez: Philippine
Mining Act an 'unfair' law)

"You cannot build an economy, a company based on suffering. I will

not allow it to happen in DENR," she said.

3. Fair audit of mining companies

When she ordered an audit of all mining companies in the country,

Lopez gave assurances everything will be based on fairness.

"The audit will be fair. I commit to the truth," she said, warning
companies that violate the law they will "face the consequences."

The audit team, she added, will not only be technical, but also
social and environmental, since it consists of agriculturists,
fishery experts, water experts, and those involved in community
development.

On her first day in office, Lopez ordered an audit of all mining

companies in the country and has since suspended at least 4 of
them.

When Duterte delivers his first State of the Nation Address on

Monday, July 25, what will he say about his administration's mining
policies? (READ: Duterte's 1st SONA: What we know about the awaited
speech) –Rappler.com

AN OVERVIEW OF LARGE SCALE MINING LAWS IN THE PHILIPPINES

Contributor: Aislyn Janelle L. Yao (October 2016)

Exploration, development and utilization (“EDU”) of the mining
resources of the Philippines has always been a source of conflict
for the government, non-governmental organization (“NGOs”) and the
private sector because of economic and environmental reasons.
Though the economic viability of the mining industry cannot be
denied with the PHP 22.1 billion it has generated for the second
quarter of year 2016,[i] its environmental impact also cannot be
ignored. Massive siltation of rives, toxic waterways and
agricultural fields, and loss of livelihood in mining affected
areas resulted from large-scale mining activities. As such, there
is clear need to revisit and amend current mining laws to address
and balance the growing environmental concern with the economic
benefits the mining industry brings.

At Present

Currently, the large scale Philippines Mining Industry is guided

by Republic Act No. 7042 or the Phillipine Mining Act of 1995 (“the
Mining Act”), its Implementing Rules and Regulations (“IRR”) and
Executive Order No. 79 entitled Institutionalizing and
Implementing Reforms in the Philippine Mining Sector, Providing
Policies and Guidelines to Ensure Environmental Protection and
Responsible Mining in the Utilization of Mineral Resources, and
its IRR.

The Mining Act is the primary law that governs large scal-scale
exploration, development and utilization of natural resources.
Together with its IRR issued by DENR Administrative Order no. 96-
40, the Mining Act is geared towards Sustainable
Development.[ii] As such, ten percent (10%) of the government’s
share in royalties and revenues are alloted for special projects
and other administrative expenses related to the exploration and
development of mineral reservations.[iii] Further, environmental
safeguards such as mining limitations, establishment of Mining
Rehablitation Fund and Contingent Liability and Rehabilitation
Fund (“CLRF”),[iv] and more stringent requirements for obtaining
Environmental Compliance Certificate (“ECC”) were also introduced.
The Mining Act also requires contractors to undertake
environmental protection and enhancement program or the
Environment Work Program (“EWP”) for the duration of the mining
agreement. This means contractors are obligated to integrate the
rehabilitation, regeneration, revegetation and reforestation of
the mineralized areas into their work program. They are also
mandated to allocate ten percent (10%) of their intial capital
expenditures for environment-related activities and three to five
(3-5%) of the direct mining and mining costs to implement an Annual
Environment Protection and Enhancement Program (“EPEP”). To ensure
compliance with the Mining Act, the Mines and Geosciences Bureau
(MGB) of the DENR was given the authority (1) to enforce and
monitor the EWP and EPEP, (2) establish and operate the CLRF and
(3) to issue Cease-and-Desists orders (“CDO”). It was likewise
given the authority to cancel mining applications and mining rights
violating the provisions of the Mining Act. To encourage mining,
fiscal and non-fiscal incentives such as duty free capital
equipment imports, value added tax exemptions, income tax
deductions (when operations are posting losses) are granted to
mining contractors of Mineral Production Sharing Agreements and
Financial or Technical Assistance Agreements(“FTAA”). An
additional incentive of an income tax holiday are also granted to
FTAA contractors for a period not exceeding five (5) years from
the start of construction.

Subsequently, in 2012, Executive Order No. 79 (“EO 79”) was enacted

and introduced reforms to the Mining Act such as expanding the the
areas closed to mining operations[v] establishment of mineral
reservation and one-top shop for all mining related applications
and introduction of measures to improve small-scale mining
activities. Compliance to environmental standard also became a
shared responsbility between MGB of DENR and the local government.
The Mining Industry Coordinating Council (“MICC”) was also created
to help enforce mining laws and coordinate with stakeholders. Prior
consent of the concerned indigenous people and compliance with the
social acceptablity requirement of the affected communites were
also required before Mineral Production Sharing Agreement, FTAA,
Joint Venture or Co-production agreement can be entered into. The
more interesting features of the EO 79 are the public bidding
requirement and the moratorim imposed on the grant of mineral
agreements. Pursuant to Section 6 of EO 79, the grant of mining
righs and tenements shall now be given through public bidding
instead of the first-come-first-serve policy under the Mining Act,
while Section 4 of EO 79 prevents the government from entering
into new mineral agreements “until a legislation rationalizing
existing revenue sharing schemes and mechanisms” are enacted.

Moving Forward

With newly appointed Environment Secretary Gina Lopez, a known

anti-mining advocate spearheading the country’s natural resources
development, pro-environment changes are expected in the large-
scale mining industry.

For one, mining companies are now being audited. Since the start
of Secretary Lopez’ term, four (4) mining companies have already
been suspended for violating environmental standards.[vi]Second,
amendments to the Mining Act can also be expected. In a radio
interview on July 12, 2016, Secretary Lopez explicitly stated that
she found the Mining Act an unfair law as it is “skewed towards
the mining sector, and not towards [the] people.” In the same
interview, she also indicated her disappointment with the revenue
share the government receives from mining activities. Thus, mining
companies can expect an increase in government share and a stricter
implementation of environmental standards.

[i] Department of Environment & Natural Resources, Mines &

Geosciences Bureau, Mining Industry Statistics available at
http://mgb.gov.ph/attachments/article/162/MIS
(2015)%20(1)%20(1).pdf (last accessed September 30, 2016)

[ii] Highlights of the Mining Act of 1995 (RA 7942) and its Revised
Implementing Rules and Regulations, available
at http://www.mgb10.com/policies/REVISED%20IRR%20OF%20MINING%20
ACT%20OF%201995.pdf (last accessed: September 30, 2016)

[iii] An Act Instituting A New System of Mineral Resources

Exploration , Development, Utilization and Conservation,
[Philippine Mining Act of 1995] Republic Act No. 7942 (1995)

[iv] Department of Environment and Natural Resources, Amendments

to Chapter XVIII of DENR Administrative Order No. 96-40 as Amending
Providint for the Establishment of a Final Mine Rehabilitation nad
Decommissioning Fund Administrative Order No. 2005-07] [DENR-
Administrative Order No. 05-07], (April 14, 2005).

[v] Office of the President, Institutionalizing and Implementing

Reforms in the Philippine Mining Sector Providing Guidelines to
Ensure Environmental Protection nad Responsible Mining in the
Utilization of Mineral Resources, Executive Order No. 79 [E.O. No.
79] (July 6, 2012)

[vi]Geronimo, Jee Y., Gina Lopez: Philippine Mining Act an

‘Unfair’ Law, rappler,July 12, 2016 available at
http://www.rappler.com/nation/139424-gina-lopez-philippine-
mining-act-unfair (last accessed September 30, 2016)