PHL stands to lose over P1 trillion in mining investment, miners claim

The Philippines stands to lose more than P1 trillion of investments should the Department of Environment and Natural Resources (DENR) proceed to close and suspend mining operations in the country, the Chamber of Mines of the Philippines (COMP) claimed on Tuesday.

In a presentation before reporters in Pasig City on Tuesday, COMP said P62.5 billion will be wiped out from mining companies directly affected by the DENR decision to close and suspend them: P15.5 billion from closed mines, P47 billion from suspended companies operations and P11.7 billion from companies with no clear cut decision yet.

Those companies failed to pass the mining audit, according to the DENR chief.

COMP claimed the Philippines also stands to lose some $22 billion from companies that were supposed to invest in the country but have deferred the plan for the mean time.

"About $22 billion or P1 trillion mining investments which should add to the growth momentum of the Duterte Administration will definitely be put on hold judging from an unstable investment environment," COMP Chairman Artemio F. Disini said.

But Environment Secretary Regina Lopez is standing pat on her decision and does not intend to reconsider because the country is "unfit for mining." She ordered the mines permanently shut.

On Saturday, Lopez claimed the communities in mining areas affected by her decision were pleased. The government, she said, would also be helping those who would be losing their jobs.

According to COMP, the government also risks losing at least P4.1 billion in tax revenues from mining operations in the country.

COMP said it wrote a letter to Finance Secretary Carlos G. Dominguez III, co-chair of the Mining Industry Coordinating Council (MICC), on the implications of the latest closure and suspension orders issued by the DENR.

Among the points raised were the industry's contribution to the gross domestic product (GDP), mining investment, tax revenue, employment, exports earnings, human capital development, LGU operations and finances and social development progress that enrich rural development.

COMP also sent its letter to at least 17 members of the Cabinet.

The group said it is now waiting for the MICC to meet, and if the government would overturn the closure and suspension order based on the concerns raised by the industry.

On Thursday, President Rodrigo Duterte made it clear that he supports the latest move of his Environment secretary to close and suspend mining companies for violating mining and environmental laws.

“You know, I support her. And there was never a time that I called her to slow down a little bit, because … on one hand is the strict implementation of the mining laws,” Duterte said during his speech at the 38th National Convention of Philippine Association of Water Districts in Davao City. — VS, GMA News