Lopez says money from mining investment goes out of the country

Environment Secretary Gina Lopez belittled the claims of mining companies that the Philippines stands to lose P1 trillion of investments from her closure and suspension orders, saying most of the money does not benefit the economy.

“To whatever they invest, most of the net income goes to them. They get a seven-year tax holiday, and at the end of the mine they can sell all their equipment and keep the money ... So how are we benefitting here?” Lopez said in a text message to GMA News Online.

“They rape the country and the money goes out of the country ..." Lopez noted. "They get 82 percent of the net income and 95 percent of this goes out of the local economy," she said.

Lopez was reacting to the latest claim by the Chamber of Mines of the Philippines (COMP) that P62.5 billion will be wiped out from mining companies directly affected by the DENR decision to close and suspend them.

The group also said the Philippines also stands to lose some $22 billion or around P1 trillion from companies that were supposed to invest in the country but have deferred the plan for the meantime.

“They keep on talking about what they do. They should give the complete picture and state what was the cost to get them – the money that they make – the cost to health, the social costs, the opportunity-lost cost,” the Cabinet official emphasized.
 
Studies have found that the Philippines is losing hundreds of millions from irresponsible mining practices, she said. “Each open pit mine near rivers and streams is a financial liability to government for life ... for eternity and a day,” Lopez noted.

“I have been around. I have seen abandoned open pits and the studies show that they have hot even been putting the funds they promised for rehabilitation … which means they have been raping the country without the funds to rehab. It's really a very, very, very unfair situation,” Lopez added. — VDS, GMA News