PHNO-HL; NEW MINING EO IN BAGUIO: NOY ALLY GLAD, INDIGENOUS PEOPLE UNHAPPY

NEW MINING EO IN BAGUIO: NOY ALLY GLAD,
INDIGENOUS PEOPLE UNHAPPY

[PHOTO - Philippine Environment Secretary Ramon Paje
gestures while explaining the government's new policy governing the mining
industry at the Malacañang Palace in Manila on Monday, July 9, 2012. The
government said it would not approve new mining permits until Congress passed a
bill increasing royalties on the industry as part of the new rules. AFP PHOTO/Jay DIRECTO]
BAGUIO CITY, JULY 12, 2012 (INQUIRER) Ifugao Rep. Teodoro
Baguilat Jr., chair of the House committee on national cultural communities,
welcomed President Benigno Aquino III's new executive order on mining, Executive
Order 79, on Monday, because it identified indigenous Filipinos as a stakeholder
in the mining sector.
Section 13 of the order, which establishes "a one-stop shop for all mining
applications and procedures," states that "no Mineral Production Sharing
Agreement (MPSA), Financial and Technical Assistance Agreement (FTAA), Joint
Venture Agreement (JVA), or Co-Production Agreement (CPA) shall be approved
without the FPIC (free, prior and informed consent) of the concerned IPs and
compliance with the social acceptability requirement of the communities
affected."
Baguilat said he was "glad" that Malacañang issued an official recognition of
the FPIC as a requirement for pursuing mining. "But let's put more safeguards on
the one-stop shop, which could be turned into an instant processing machine if
local stakeholders were not vigilant," he said.
Baguilat had campaigned for rationalized guidelines in enforcing government's
FPIC certificates, which all developers, including the mining sector, have been
required to obtain from indigenous Filipino communities before they can operate
in ancestral domain areas.

[PHOTO -UCCP-Baguio City · The Indigenous Peoples Rights Act of
1997]
But in Baguio City, advocates for indigenous peoples rights expressed
dissatisfaction with EO 79.
Beverly Longid, president of the party-list group Katribu, said the directive
offered "no considerations for IP rights," when the President's order asserted
national laws over local measures that banned open pit mines or which defined
their territory's environmental code.
Longid said aside from specific provisions benefiting IPs, many of these
local laws shielded IP communities from the impact of large-scale mining.
Baguilat said no executive order could make up for what he described as the
"flawed Mining Act of 1995," so lawmakers "are still asking Malacañang to
endorse the proposed Philippine Mineral Resources Act of 2012 (House Bill 5473),
which would rectify the flaws of the 1995 law."
In Nueva Ecija, Abi Aguilar, policy advocacy officer of the National Network
of NGOs and Indigenous Peoples Organizations, said they would still oppose
large-scale mining projects in ancestral domains.
"In essence, we want fair revenue sharing, guaranteed environmental
protection and that the rights of indigenous peoples are always upheld," Aguilar
said.
In Pampanga, Gov. Lilia Pineda said she has not signed a petition by
governors to challenge EO 79.
While she has not read the executive order, Pineda said the Pampanga
government has always followed and would always follow national mining laws in
regulating the quarry industry from which the province drew P510 million in fees
and taxes as of June. Vincent Cabreza, Inquirer Northern
Luzon, and Anselmo Roque and Tonette Orejas, Inquirer Central Luzon
FROM PHILSTAR
Mining ban expanded By Aurea Calica (The
Philippine Star) Updated July 10, 2012 12:00 AMComments (0)

MANILA, Philippines - Mining will be banned in protected areas and in tourism
sites – including Palawan and Boracay – while no new permits for mining
operations will be issued until Congress passes a new revenue sharing scheme
that is more advantageous to the government.
The new mining policy is contained in Executive Order 79 signed by President
Aquino on July 6.
Environment and Natural Resources Secretary Ramon Paje told a press briefing
yesterday that existing contracts would be honored, although under the EO, his
department would review existing mining contracts and agreements for possible
renegotiation of the terms and conditions, which "should be mutually acceptable
to the government and the mining contractor."
Paje also said the contract for the controversial mining operations in Rapu
Rapu in Albay would be respected.
"Basically, the EO intends to increase the revenue of government from mining,
intends to improve environmental standards and tries to put consistency in
national and local laws pertaining to mining. The EO also establishes the
Mineral Industry Coordinating Council," Paje said.
He said that under Section 1, a total mining ban will be implemented in at
least 78 ecotourism sites in the National Tourism Development Plan (NTDP),
including Palawan and Boracay. Other ecotourism sites being eyed for inclusion
in the mining ban are in Cebu, Iloilo, Davao and Subic in Zambales and Clark in
Pampanga.
The NTDP, according to Tourism Secretary Ramon Jimenez, is the product of a
thorough inventory of tourist attractions in the Philippines.
"It divides the county into 20 strategic thematic tourism destination
clusters covering 78 tourism development areas that will be the focus for
massive development in four years," Jimenez said.
Other areas closed to mining operations are those under Section 19 of the
Mining Act of 1995 or Republic Act 7942, including military and other government
reservations or those covered by the National Integrated Protected Area System
(NIPAS) under Republic Act 7586.
No mining operations will be allowed in prime agricultural lands, in addition
to lands covered by Republic Act 6657 or the Comprehensive Agrarian Reform Law
of 1988.
"We call them the 'no-go' zones. Before this EO, the no-go zones were
confined inside the protected areas. In addition to the protected areas as
provided for in Republic Act 7942 and the NIPAS Law 7586, there were three more
added by the President, one of which is the tourism destinations as provided for
in the NTDP," Paje said.
"I think based on the DOT 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. The other one is prime agricultural lands and fishery zones.
It will be completely banned for mining activities. And the other one is, of
course, other areas or island ecosystems as may be declared by the Department of
Environment and Natural Resources," he added.
"Mining contracts, agreements, and concessions approved before the
effectivity of this order shall continue to be valid, binding, and enforceable
so long as they strictly comply with existing laws, rules, and regulations and
the terms and conditions of the grant thereof. For this purpose, review and
monitoring of such compliance shall be undertaken periodically," the EO read.

"And, of course, with this, the local ordinances cannot be against national
policies. But if there are already issued local ordinances like the one in South
Cotabato, our take on that is that it remains valid because there is a process
in invalidating it. It remains valid until it is invalidated by competent
authorities or through the courts," Paje emphasized.
Under Section 6 of the EO, opening of mining areas will be done through
competitive public bidding and no longer on a first-come, first-served basis.

"The grant of mining rights and mining tenements over areas with known and
verified mineral resources and reserves, including those owned by the government
and all expired tenements, shall be undertaken through competitive public
bidding," the EO stated.
"The Mines and Geosciences Bureau (MGB) shall prepare the necessary
competitive bid packages and formulate the proper guidelines and procedures to
conduct the same, which shall include ensuring that the social acceptability of
the proposed project has been secured," it said.
Bigger revenue
On provisions in the EO for bigger government revenue share, Paje said the
instruction of the President was to study the "international practice, the best
practices."
"In fact, I was informed that the Department of Finance has already started
the study. And, if you will follow practices from abroad, it would range from
around five percent to around seven percent royalty. I think Australia is even
charging 18 percent royalty for specific minerals which would not require so
much processing like coal and iron ore. So it varies. But, on the average, we're
looking at around five to seven percent royalty based on gross," he said.
Paje said the new law, once passed, should cover even existing mining
contracts where the government was getting minimal benefits.
"That is precisely what we would like to correct here and, in fact, that is
one of the reasons why the President said 'put a break, stop issuing new mining
contracts if we cannot get the best or the optimal revenue for government.' And
hopefully the legislation that we will be getting from Congress will somehow
cover the ongoing or current mining operations nationwide," he said
Paje said the new policy should not turn off investors because "we are
telling them that you are paying this much in Australia, in Canada, in Chile, in
Brazil, why are you not willing to pay that in the Philippines? The answer
basically is that your law says two percent. So that I believe should be
understood."
"Before a mining company could actually start operating on the ground, it
takes around five years – from exploration, declaration of mining feasibility,
up to operation. It takes around five years and I'm quite optimistic it will not
take five years to pass this legislation for this particular purpose," he said.

Based on the EO, the government is also seeking higher occupational fees for
mining companies.
"We are targeting approximately P760 million, if we require occupational fees
to be charged upon filing of the mining claim. As of now, the mining companies
pay occupational fees once the mineral production sharing agreements are
approved," Paje said.
The government is also eyeing revenues in the form of mine wastes and mill
tailings.
The EO states that all valuable metals in abandoned ores and mine wastes and
mill tailings from defunct mining operations now belong to the state and can be
utilized through competitive bidding.
"This would run to the billions, around P50 billion, for abandoned tailings
and stockpiles but this is a one-shot income," Paje said.
At present, there are more than 300 contracts and only 33 actual operations.

"So we are barely utilizing 10 percent. I don't think it will affect the
mining industry. It will affect a few, those who are in the final stage of
exploration activities," he said.
About $12-billion worth of new projects planned in the next five years will
be affected by the new policy, including the $5.9-billion Tampakan copper-gold
project in southern Philippines by global miner Xstrata Plc and Australia's
Indophil Resources NL.
The EO, under Section 9, also calls for the creation of the Mining Industry
Coordinating Council (MICC) consisting of the Climate Change Adaptation and
Mitigation and Economic Development Cabinet clusters.
The MICC shall be headed by the chairs of the two clusters and shall have the
following additional members: secretary of the Department of Justice (DOJ),
chair of the National Commission on Indigenous Peoples (NCIP) and president of
the Union of Local Authorities of the Philippines (ULAP).
Small-scale mining
The EO also includes guidelines for small-scale mining, which shall comply
with RA 7076, or the People's Small-Scale Mining Act of 1991, and the
Environmental Impact Statement System requirements under Presidential Decree
1586. Small-scale mining operations should be undertaken only within the
declared People's Small-Scale Mining Areas or Minahang Bayan.
The EO also states that small-scale mining shall not be applicable for
metallic minerals except gold, silver, and chromite, as provided for in RA 7076.
The use of mercury in small-scale mining shall be strictly prohibited.
In addition, training and capacity building measures in the form of technical
assistance for small-scale mining cooperatives and associations shall be
conducted by concerned government agencies.
"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," the EO
said.
"Concerned government agencies, in particular the DENR, the Department of
Budget and Management (DBM), and the Department of Finance (DOF), are hereby
directed to ensure the timely release of the share of LGUs in the National
Wealth pursuant to Section 289 of RA 7160, or the Local Government Code of 1991.
These agencies are likewise directed to study the possibility of increasing
LGUs' share as well as granting them direct access similar to existing
arrangements with the Philippine Export Zone Authority (PEZA)," the EO read.

Meanwhile, at least 72 Catholic bishops have expressed their support for the
passage of the proposed Alternative Minerals Management Bill (AMMB) that would
identify "no mining zones."
"When the bishops decide on matters such as this, we do not consider the
political winability. What we consider is if it is right or wrong, moral or
immoral. So regardless of how they would accept our position, that depends on
the persons' conscience. But if they accept or reject it, if we win or lose, it
does not matter to us because we would always stand by what is right and what is
moral, regardless of political acceptability," CBCP vice president
Lingayen-Dagupan Archbishop Socrates Villegas said.
Manila Auxiliary Bishop Broderick Pabillo, for his part, said they have yet
to study EO 79 before making comments.
The bishops were holding their 105th Plenary Assembly yesterday. With Evelyn Macairan



Chief News Editor: Sol Jose Vanzi
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