Closed mining ops with multiple violations now in Cimatu’s hands

Former Environment Secretary Gina Lopez had ordered the closure of 22 mining companies in February after a controversial mining audit.

The technical audit memos of the Department of Environment and Natural Resources did not recommend any closure order, just fines and suspension at most. But Lopez did not agree with the recommended penalties and handed down the decision to close the 22 mining firms.

The Commission on Appointments’ rejection of her appointment has left the fate of these companies to the President’s next appointee, former Armed Forces of the Philippines Chief of Staff Roy Cimatu—now DENR secretary.

In an interview with GMA News TV’s News To Go on Tuesday (May 9), Cimatu said he will review what’s on the table and is planning to go to the mining sites to find out the situation for himself.

“I will look into the situation, the status, especially in the mining companies which were allowed to operate because they possess the best practice in the industry. I will also look into the other mining companies which were either suspended or (ordered closed), and find out the difference… Then we can make adjustments,” Cimatu said.

GMA News Research reviewed the mining audit reports and technical review committee memorandums of the firms which Lopez ordered closed.

ECC compliance

The DENR documents show that nearly all of the 22 mining companies facing closure violated more than one environmental law and/or issuance of the Department of Environment and Natural Resources.

The mining audit reports and memos show 18 firms were found to be non-compliant with Environmental Compliance Certificate (ECC) conditions. The ECC contains specific conditions that a company has to meet to prevent or mitigate the negative environmental impacts that its project may cause.

GMA News Research’s review includes the mining audit reports of 20 of the 22 mining firms and the DENR Mine Audit Technical Review Committee memos on 14 of the 22 companies.

The 20 mining audit reports were obtained from the DENR by request, while the memos are publicly available in DENR’s website.

DENR has yet to act on a follow-up request for a copy of the audit reports of the two other mining companies ordered closed, Claver Mineral Development Corp. and Eramen Minerals Inc., as well as on the technical review committee memos of eight mining companies.

The memos list the violations of each mining company after the committee led by the Mines and Geosciences Bureau went over the findings and recommendations of the mining audit teams in the audit reports.

17 laws and DENR orders violated

GMA News Research counted 17 environmental laws and DENR administrative and memorandum orders cited in the audit reports and technical review committee memos.

Presidential Decree 1586 or the law establishing the Philippine Environmental Impact Statement System is the most commonly violated law among the mining firms. PD 1586 and its implementing rules and regulations set the ECC as a requirement for proponents of projects that have a significant environmental impact. Non-compliance with ECC conditions is a violation of PD 1586.

Eighteen of the mining firms up for closure did not comply with their ECC conditions.

More than half of the mining firms up for closure notched violations of the Philippine Mining Act (Republic Act 7942) and mining safety standards, as well as other major environmental laws such as the Clean Water Act (RA 9275) and the Clean Air Act (RA 8749).

 

Some of the violations listed were administrative in nature including the non-submission or delayed submission of quarterly reports and environmental management work plans.

Other violations noted in the mining audit had to do with failure to secure permits and certifications from government agencies.

Waste disposal, tree cutting

But other violations were more serious such as improper waste disposal and illegal cutting of trees.

The mining audit noted that inadequate structures in some mining areas exposed bodies of water to siltation and contamination.

The audit reports called out some mining firms for their less than satisfactory reforestation programs in mined-out areas and for insufficient implementation of livelihood programs in communities affected by mining operations.

Based on the DENR audits, 20 of the mining companies facing closure violated more than one environmental law and/or DENR issuance.

The GMA News Research tally based on available mining audit reports and technical review committee memos shows that Libjo Mining Corp. and Wellex Mining Corp. each violated 12 laws and/or DENR issuances.

The audit recommendations for these companies based on the mining audit reports were not closure; it was suspension and payment of fines and penalties in Libjo’s case and suspension in Wellex’s case.

 

Libjo Mining Corp.

Libjo Mining Corp.’s mine site is located in the municipality of Libjo, Dinagat Islands. It mines nickel, chromite, and other associated minerals. It was issued an Environmental Compliance Certificate in 2013.

Libjo acquired its mining right to operate in the area in 2012, through an operating agreement with another company, the East Coast Mineral Resources Co. Inc. (ECMRCI). ECMRCI had earlier obtained the mining right over the area in 2007.
                    
According to the mining audit report, Libjo Mining Corp.’s major violations include:
improper benching practices (vertical and unstable bench slopes in some portions of the mine pit)
failure to maintain and protect all existing natural bodies of water
construction of settling ponds on the waterway, impeding the natural flow
failure to secure tree cutting permit from DENR prior to clearing of vegetation (violation entails criminal liability)
possession of forest products without permit from DENR; cutting of naturally-grown trees in the residual and natural forests (violation entails criminal liability)
late submission of quarterly Energy Consumption Reports

The audit report on the company recommended its suspension until all the required permits and mitigating measures are satisfactorily complied with, including the payment of fines and penalties.

The technical review committee pegged the fines at P18,000 to be paid to the Mines and Geosciences Bureau and P160,000 to be paid to the Environmental Management Bureau.

The technical review committee also recommended, among others, the filing of appropriate charges against the company for violating the forestry and water codes.

Wellex Mining Corp.

Wellex Mining Corp. has two mining projects in the Dinagat Islands: a nickel ore mining project in Libjo called Wellex Area I Mining Project and a chromite and other minerals mining project in the municipalities of Loreto and Tubajon called Wellex Areas II Mining Project. Both projects employ the open pit mining method.

Mining operations at both projects were temporarily stopped in 2015 due to low nickel ore prices; at the time of the mining audit in 2016, both projects were under a "Care and Maintenance Plan".

Violations common to both projects include:
failure to secure tree cutting permit from DENR prior to development stage of mining operation
failure to rehabilitate disturbed areas progressively during the development/construction stage and operating period
operating facility without valid wastewater discharge permit
failure or refusal to provide proper labeling of hazardous waste
failure to train staff and personnel on hazardous waste management and emergency contingency plan

The mining audit report found that the settling pond installed in the Wellex Area I project was located along the downstream of Madanlog Creek, which may cause water pollution during heavy rains and impede the natural flow of the creek.

The Wellex Area II Project on the other hand diminished the potable water source of Barangay Malinao.

Considering that the Wellex projects were not operational at the time of the audit, the mining audit team advised the company to refrain from resuming its operations. Alternatively, the mining audit team recommended indefinite suspension until such time that all violations and improper mining practices committed by the company were rectified.

The technical review committee memo fixed the fines to be paid at P130,000 to MGB and P990,000 to EMB for Wellex Area I and II mining projects. It also imposed additional penalties for forestry code violations and failure to secure tree cutting permits.

Non-operational

The mining projects of six of the mining companies for closure were already non-operational even before they were audited upon Lopez’s directive.

Mt. Sinai Mining Exploration and Development Corp., whose mine site was located in Homonhon Island, Guiuan, Eastern Samar, ceased operations after Super Typhoon Yolanda devastated the Visayas region in 2013 and remained inactive.

SinoSteel Philippines H.Y. Mining Corp., Oriental Synergy Mining Corp. and Wellex Mining Corporation—all with mine sites in Dinagat Islands—stopped mining operations in the province at least a year before the mining audit owing to poor market conditions in the pricing of nickel ore.

Strong Built (Mining) Development Corp.’s project in Leyte and Hinatuan Mining Corp.’s project in Eastern Samar were also not operational when the mining team conducted its audit. —With reports from Mary Anne Señir and Jamaica Jane Pascual, GMA News Research/NB, GMA News