PHNO-HL: 78 NO-MINING ZONES IN EO #79 / ANTI-MINING GROUPS CHEER NOY'S EO BUT...

78 NO-MINING ZONES IN EO #79 / ANTI-MINING
GROUPS CHEER NOY'S EO BUT...
[PHOTO - LIGHT IN THE
TUNNEL Under EO 79, small-scale miners like the one above in Itogon, Benguet,
will be confined to the "Minahan ng Bayan." They are also banned from using
mercury to process the mined ores. RICHARD BALONGLONG /
INQUIRER NORTHERN LUZON]
MANILA, JULY 12, 2012 (INQUIRER) By
Gil C. Cabacungan - President Benigno
Aquino has expanded the "no-go" mining zones in the country to include 78
tourism sites, and farms, marine sanctuaries and island ecosystems in response
to the public clamor to protect the environment from mining.
The identification of more mine-free areas in the country is the centerpiece
of the administration's mining reforms program under Executive Order No. 79,
which the President signed on July 6. A copy of the order was released Monday.

"One of the most important provisions here is Section 1, expanding in effect
the areas close to mining," Environment Secretary Ramon Paje said at a press
briefing in Malacañang. "We call them the 'no-go' zones. Before this EO, the
no-go zones were confined [to] the protected areas."
Other highlights of the executive order:
Moratorium on the grant of new mining agreements until Congress shall have
come up with a revenue-sharing scheme between the government and mining firms.
Consistency of ordinances with national laws. Confining small-scale mining to
designated areas to be called "Minahang Bayan."
Review and possible renegotiation of existing contracts. Awarding of areas
with verified reserves through public bidding. State ownership of mine tailings
and wastes upon expiration of contract.
Formation of a Mining Industry Coordinating Council to implement industry
reforms. Ban on the use of mercury in small-scale mining. On top of the
protected areas cited in the Philippine Mining Act of 1995 and the National
Integrated Protected Area System, EO 79 bans mining in these areas:
Tourism development areas identified by the National Tourism Development Plan
(NTDP); Prime agricultural lands such as plantations and other properties
devoted to valuable crops; Fisheries development zones and marine sanctuaries as
declared by the agriculture secretary; and Island ecosystems to be determined by
the Department of Environment and Natural Resources (DENR) through mapping
technology. "Based on the DOT (Department of Tourism) submission, there were 78
sites identified by the DOT in the NTDP as no-go zones. This, in effect, will be
completely banned for mining activities," said Paje.
The new EO also reiterated the government's commitment to fully enforce
environmental standards by setting up a multistakeholder team that will review
the performance of existing mining operations.
The team, to be led by the DENR, is tasked with recommending actions against
firms that do not fully comply with state regulations on mining and the
environment.
5-percent royalty
Aside from widening the areas banned from mining, Paje said the EO would seek
to boost state revenues from mining by including a 5-percent royalty in future
mining contracts and areas to be declared as mineral reservations by the
President.
The new order also seeks to increase occupational and application fees, and
to sell abandoned ores and valuable metals in mine wastes and mill tailings.

"You know, before, mine wastes (were) considered wastes. But, now, we found
out that based on recent technologies, we can extract other metals or other
forms of minerals from the mine waste so it is now a resource or input for new
processing. Therefore, we put in this EO that all mine wastes, all mill tailings
should be considered owned by the state and, therefore, should be disposed of
through competitive bidding," the environment secretary said.
Windfall
Paje said the government expected a windfall of P50 billion from the sale of
mining wastes; P760 million from occupational fees upon filing (it used to be
paid only when the Financial Technical Assistance Agreement [FTAA] was
approved); and up to P16 billion from royalty payments from the existing 33
mining operations in the country by 2016.
"We would like to somehow tell the investors, the business community that we
will respect existing contracts and, if they invest, we will protect their
investments.
Paje said there were 300 existing mineral production sharing agreements and
FTAAs of which only 33 were in operation. Of the 33, 11 are in mineral
reservations and have been paying royalties to the government.
"It (EO) will not affect, I think, the mining industry. It will only affect a
few—those who are in the final stages of their exploration activities," said
Paje. "This is the reason why the President said 'put a break. Stop issuing new
mining contracts if we cannot get the best or the optimal revenue for
government,'" the environment secretary said.
Moratorium extended
Paje said the new EO would extend the moratorium on the grant of new mining
agreements until Congress shall have finalized the proposed revenue-sharing
scheme between the government and mining companies, specifically the 5-percent
royalty government wants the mining firms to pay.
"Some people will be happy with this provision. Some of course will be
affected. We have to wait for the new legislation pertaining to revenues before
we can sign new agreements on mining. But, of course, this provision also
respects the existing mining contracts. It will respect existing mining
contracts," said Paje.
Exploration permits only
While Congress deliberates on the royalty formula, Paje said the DENR would
grant only exploration permits, review existing mining contracts for possible
renegotiation and remove idle mining rights holders.
Paje said that the EO would spur the government to renegotiate any mining
contract in order for the state to take a slice of the windfall profits of
mining firms, specifically from the steep rise in metal prices.
"We only get 2 percent in excise tax and that is somehow hurting government.
The instruction of the President is to copy best practices because these mining
companies are also operating in Canada or in Australia, for example. If they are
operating in Australia, they must be paying that same royalties and charges and
taxes, right? So the question is: 'Why don't you want to pay (the same) in the
Philippines?,"' he said.
To further help increase government revenue, Paje said areas with verified
reserves would be awarded through public bidding instead of the previous policy
of assigning these to certain groups on a first come, first serve basis.
Bidding, 'Minahang Bayan'
A provision of the EO also limits small-scale mining to "Minahang Bayan" or
people's small-scale mining areas. This provision effectively reins in local
government units, which are known to grant mining permits in their
jurisdictions.
Paje said the EO would straighten out the guidelines on small- scale mining
by declaring that only Republic Act No. 7076 or the People's Small-Scale Mining
Act of 1991 would be recognized.
"We also have a very comprehensive provision pertaining to small-scale
mining. With the opinion given to us by the Department of Justice, we will only
be using one law and that is RA 7076 which states that all small-scale mining
can only happen or occur inside what you call 'Minahang Bayan.' We have to
contain them in one place so that we can contain the wastes and we can treat
them properly," he said.
Paje noted that Presidential Decree No. 1899 had allowed local government
units to issue mining permits anywhere which made it difficult to contain and
treat effluents.
"With this provision of 'Minahang Bayan,' we will contain them in one place;
we can put one tailings' pond; and we can treat the wastes efficiently," he
said.
Conform to nat'l laws
The EO also directed the Department of Interior and Local Government to
ensure that governors and mayors conform with national regulations and policies.

The EO explicitly limited the LGUs to "confine themselves only to the
imposition of reasonable limitations on mining activities."
Paje added that the EO would ban the use of mercury by small-scale miners,
who are also prohibited from digging up metallic minerals except gold, silver
and chromite. With a report from Daxim Lucas
Anti-mining advocates cheer new Aquino policy,
but… By the Inquirer staff Philippine Daily Inquirer 2:18 am |
Tuesday, July 10th, 2012

[PHOTO -Gina Lopez, Managing Director, ABS-CBN Foundation. INQUIRER FILE PHOTO]
Ardent anti-mining advocate Gina Lopez cheered President Benigno Aquino for
making a stand to protect the environment by explicitly identifying in Executive
Order No. 79 the areas banned from mining.
However, Lopez said the President must address how existing mining contracts
not affected by the order would be treated "especially if they ran smack in the
middle of a tourism area or agricultural land."
"Whose interests will prevail—the miners or the farmers?" asked Lopez in a
phone interview.
Environment Secretary Ramon Paje said there were no existing mining
operations in the 78 tourism areas although there were applications.
Antimining activists, particularly in Palawan and Romblon provinces, and an
alliance of mining-affected communities and civil society organizations covering
30 provinces in the country welcomed the EO "with some reservations."
Even Albay Governor Joey Salceda, who earlier warned that 40 governors would
go to court to question the much-awaited EO, said "the final shape and
complexion of the mining EO has taken a very constructive approach toward the
LGU's (local government unit's) role."
He said the EO hardly had a trace of the erstwhile adversarial tone of the
draft.
Salceda said the EO showed the President had explored "the outer boundary of
executive discretion" but noted that the limits imposed by laws, especially
Republic Act No. 7942, preempted the kind of reforms that could make him change
his position against mining per se. "The EO is good but mining is bad," he said.

While the new policy guidelines stated that there would be no new mining
permits to be granted "in island ecosystems" until a law amending the Mining Act
was in place, the Palawan NGO Network Inc. (PNNI) urged Malacañang to clarify
the order pertaining to applications of large-scale mining firms in Palawan.

The PNNI, along with other antimining groups, is seeking a complete mining
ban in Palawan, citing its delicate ecosystems and biodiversity.
"There is a gray area in the guidelines pertaining to existing applications
of large-scale mining companies in southern Palawan, Elizabeth Maclang of PNNI
said.
She said PNNI would like the EO to categorically state Palawan's closure to
mining, in consonance with the order's stated policy to exempt important island
ecosystems.
The EO, the PNNI said, was not clear on mining companies which were
previously awarded MPSAs and similar legal concessions by the DENR.
Antimining advocates in provinces, particularly the Alyansa Tigil Mina (ATM)
challenged the effectiveness of the EO to address environment degradation.
Rodney Galicha, coordinator of the ATM, said the provisions in the new mining
policy failed to address issues concerning environment degradation, human rights
and protection of indigenous peoples' rights as the new policy would only cover
new mining applications.
In Romblon, Ronelio Fabriquer, a bishop of the Philippine Independent Church
and convenor of the Romblon Ecumenical Forum Against Mining, said the new policy
would weaken existing local ordinances.
Romblon, for instance, has been implementing its own indefinite ban on all
forms of metallic mining and declared the entire province a mining-free zone.

John Heredia, spokesperson of the Capiz Environmental Protection Alliance,
also feared that the EO could lead to the revocation of ordinances passed by
towns and provinces against mining.
"There is a provincial ban on large-scale mining in Capiz but there is none
at the national level. Does this mean that the province has to revoke the
ordinance?" Heredia said.
The Capiz provincial board passed an ordinance which imposed a 50-year
moratorium on large-scale mining in the province. The ordinance was considered
the first of its kind in the country.
Eleven provinces have passed ordinances declaring a moratorium on large-scale
mining. These include the provinces of Capiz, Guimaras, Negros Occidental,
Samar, Eastern Samar and Northern Samar.
Guimaras Gov. Felipe Nava who is on an official trip abroad said officials of
the province would study the implications of the order on an ordinance banning
large-scale mining in the island-province.
Danilo Lagos, who chairs the Save Isla Homonhon Movement, said the EO would
not solve the group's campaign against mining.
"We are strictly opposing any mining operations, particularly on Homonhon
Island. That executive order also allows mining activities. To us, it is no
different from any law allowing mining activity like that of the Mining Act of
1995," Lagos said.
His group has been opposing the exploration for nickel by Emir Resources
Corp. on Homonhon Island, off Guiuan, Eastern Samar, because its mining claim
includes the only secondary school on the island, farmlands and the island's
source of potable water.
Ifugao Representative Teodoro Baguilat Jr., chairman of the House committee
on national cultural communities, welcomed the EO because it identified
indigenous Filipinos as a stakeholder in the mining sector.
But Beverly Longid, president of the party-list group Katribu, said the
directive offered "no considerations for IP (indigenous people's) rights," when
the President's order asserted national laws over local measures that ban
open-pit mines or which define their territory's environmental code.
Longid said that aside from specific provisions benefiting IPs, many of these
local laws shield IP communities from the impact of large-scale mining.
Errol Gatumbato, vice president and managing director of the Philippine
Biodiversity Conservation Foundation Inc., said the temporary ban on mining
permits was good since it would give the ecosystem a rest from exploitation.

Reports from Redempto D. Anda, Maricar Cinco and Mar
Arguelles, Inquirer Southern Luzon; Vincent Cabreza, Inquirer Northern Luzon;
Anselmo Roque, Inquirer Central Luzon; Nestor P. Burgos Jr., Joey Gabieta and
Carla Gomez, Inquirer Visayas; Germelina Lacorte, Inquirer Mindanao; and Gil C.
Cabacungan and Leila B. Salaverria in Manila



Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
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