Miner says firms closed by DENR to seek reparation from government

A mining executive, whose company was closed by Department of Environment and Natural Resources, intends to seek financial reparation from the government as a way of recovering investment.

Global Ferronickel Holdings President Dante Bravo said this is now the next step for miners.

"Under the law, there is an investment guarantee, and this amounts either to expropriation, cancelling and all that," Global Ferronickel Holdings President Dante Bravo said during a forum in Quezon City on Wednesday.

"That's an option for the companies, we have to look into different legal remedies on this issues, but I'm not saying that everyone will use that option," Bravo said.

Platinum Group Metals Corp., a subsidiary of Global Ferronickel, is among the 23 mining companies ordered shut by Environment and Natural Resources Secretary Gina Lopez last week.

Section 94 of Republic Act 7942, or the Philippine Mining Act of 1995, provides for investment guarantees in favor of mining companies.

Under Sec. 94 (d), the contractor has "the right to be free from expropriation by the government of the property represented by investments or loans, or of the property of the enterprise except for public use or in the interest of national welfare or defense and upon payment of just compensation.

"In such cases, foreign investors or enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance," it read.

Bravo claimed that taxpayers would eventually bear the brunt of the reimbursement, as the foregone revenue may be passed to them as a way of compensating for the liability.

"The Congress has to pass a law to pay for these damages, for the return of investments of the mining companies. And, eventually, it will be collected thru taxes," the mining executive further claimed.

"It's going to be the Filipino who will shoulder it all," he further alleged. "As to what extent? I just can't imagine".

Apart from seeking to get back their investment capital, miners may ask the government to pay for their damaged reputation, Bravo said.

"It should be shouldered by the state. You know, we did not violate ... and we are labeled as irresponsible and as violators," the mining executive further claimed.

Early this month, Lopez revealed during a press conference that she ordered to close and suspend mining operations for regulatory and environmental infractions.

On Tuesday, she canceled 75 mining contracts covering operations in watersheds. — VDS, GMA News