Big push for sustainable mining

Sidelined during the previous administration, the mining industry is getting a much-needed boost under the Marcos Jr. regime. The Philippine Development Plan (PDP) 2023-2028, according to Undersecretary Rosemarie Edillon of the National Economic and Development Authority, prioritizes the revitalization of the Philippine mining sector. Such focus on mining is understandable. The Mines and Geosciences Bureau has earlier identified about nine million hectares nationwide as potential mineral-rich areas, but less than 3 percent of these are covered by mining contracts.

A month after President Marcos Jr. assumed office in July last year, his chief economic official had already noted that the mining industry “holds the greatest potential to be a key driver in our economic recovery and long-term growth.” Gracing the listing of Philex Mining Corp.’s shares at the Philippine Stock Exchange, Finance Secretary Benjamin Diokno said the mining industry could help ensure a sustainable recovery of the economy from the disruptions of the COVID-19 pandemic as this activity requires sizable investments that generate jobs, while demand for mine output is high, resulting in the current high metal prices.

But the government’s renewed interest in supporting mining comes with a caveat. The mining industry must strictly adhere to responsible and sustainable mining practices, and the sector must strike a balance between protecting the environment, uplifting local communities, and supporting the government’s socioeconomic agenda. There should be no repeating the mining disasters of the past, notably the likes of Marcopper’s ruining the ecosystem, and the livelihood, of its host community in Marinduque. In Diokno’s words: “This is a nonnegotiable condition, so we can guarantee the sustainability of the industry and the strong economic growth of its host communities.”

Evidence of such stricter governance on the industry can be seen in the recent case of Altai Philippines Mining Co., which was ordered by the Department of Environment and Natural Resources (DENR) to cease and desist mining operations on Sibuyan Island after vigorous opposition from the affected communities even led to a violent dispersal by police. The DENR specifically ordered the company to “cease and desist from the construction and operation of its causeway,” suspended its ore transport permit, and denied its application for a miscellaneous lease agreement. The order likewise urged the Romblon Provincial Environmental and Natural Resources Office to conduct an investigation of “the potentially damaged seagrass and other marine resources,” thus exposing the mining firm to potential legal actions. What is sad is that the DENR acted only after several days of protests against the company, when it should have known the compliance of mining firms during its periodic audits.

Another laudable thrust of the Marcos Jr. administration on the mineral sector is the urgent need to rehabilitate a number of mined-out areas. In doing so, the administration should look into correcting the wrong mining practices wherein companies abandon their mining sites after years of mineral extraction without being required to rehabilitate the areas, leaving the burden of fixing the mined-out areas on the government. Since such efforts now will likely be stalled by the government’s lack of funds, it can revisit the proposal of private stakeholders in 2014. The Chamber of Mines of the Philippines (COMP) is basically pushing for a public-private partnership approach to the rehabilitation of abandoned mines, expressing its members’ readiness to foot the bill if regulators give them the opportunity.

The government need not shoulder funding for these projects. As COMP pointed out, the private sector is more than willing to take on the challenge of rehabilitating abandoned mines, and the government just needs to allow it to be a viable business proposition. At that time, data from the Mines and Geosciences Bureau showed that of the 31 large-scale mines that have shut down since the 1960s, 16 were under initial assessment for rehabilitation. Of these mines, however, only the Bagacay mine in Samar was being restored. Indeed, work on rehabilitating abandoned mines has been terribly slow. The solution is for the Marcos Jr. administration to immediately cancel all prior rights or contracts of these mines and have these made available for mining application.

In the end, however, there is nothing that will convince those who view all mining activities as bad for the environment and are pushing for a total ban. But what is true here and elsewhere in the world is that governments have to balance the interests of the economy and the environment. For the Philippines, the rehabilitation of mined-out areas, with the help of the private sector, is a very sensible start. Moving forward, the government can learn lessons from Australia and Canada, touted as the leading countries when it comes to sustainable mining.