Pangilinan: Separate promotion, regulation of mining for 'sustainability'

Businessman Manuel V. Pangilinan, chairman of Philex Mining Corp., is proposing to separate the regulatory and promotion functions of the Department of Environment and Natural Resources’ (DENR) to make the mining industry sustainable.

In his remarks at the Mining Philippines 2023 International Conference and Exhibition organized by the Chamber of Mines of the Philippines (COMP) on Wednesday, Pangilinan cited his recommendations.

Among them is “separating the functions of regulation and the promotion of the mining industry.”

The business leader said the Mines and Geosciences Bureau (MGB) and the Environmental Management Bureau (EMB) have “conflicting goals” which places the DENR in a “policy dilemma.”

“MGB is charged with the promotion, development, and supervision of mining. EMB’s mandate is to enforce environmental laws on mining. Both fall under the supervision of the DENR,” Pangilinan said.

“Our suggestion is to spin off the EMB into a separate and independent body, similar to the Environmental Protection Agency in the US. We don’t need to create a new department with a separate budget,” he said.

Pangilinan also said that the mining sector must address health-related and safety concerns and the exploitation of women and child workers.

He also emphasized the lack of clarity of plans and actionable post-mining rehabilitation, “which can restore mine sites to their original natural state.”

The Philex Mining chairman said the private sector should help the government raise its supervisory capabilities through funding of scholarships and training here and overseas, procurement of equipment, and hiring of requisite personnel.

Philex, Pangilinan said, is also open to a profit-based fiscal regime “to assure the government that an appropriate share of the benefits derived from the resources it owns.”

“We welcome the recent Congressional approval on 2nd reading of House Bill No. 8937, which proposes a royalty rate calculated against margins realized by mining companies, as well as windfall profits tax,” he said.

“Finally, the mining benefits between host LGUs and the national government should be shared more equitably. The national government must ensure the timely remittance of taxes due LGUs,” he said.

In a separate statement, Alyansa Tigil Mina national coordinator Jaybee Garganera slammed COMP for “using intentionally-vague language such as ‘sustainable’ or ‘responsible’ mining, mining corporations would have us believe that they care for the environment and communities even when their acts speak otherwise.”

“In a number of sites of struggles, mining companies have been found to be operating illegally, violating regulatory laws, and disregarding people’s resistance to large-scale mining,” said Garganera.

COMP chairman Mike Toledo, in his opening remarks during the mining conference, said the industry should be able to address the divided public opinion on mining. 

“These issues include conflicting local and national laws, our country’s high power costs, a protracted permitting process, and a fiscal regime that will not only enhance our country’s competitiveness as a mining investment destination, but equally important, reflective of the government’s designation of mining from being merely a ‘beneficial’ industry to one that is ‘essential’ and ‘critical’,” Toledo said.

Pangilinan, moreover, said that choosing between sustainability and mining is “a false dichotomy —it is a false choice.”’

“The supreme irony is that, in the midst of all this, lie some of the world’s richest natural resources, a gift of providence for our people to make use of— and not abuse,” the Philex chairman said. —VAL, GMA Integrated News