Mining group seeks SC dismissal of challenge to 1995 law

The Chamber of Mines of the Philippines (COMP) on Wednesday asked the Supreme Court to dismiss the peitions filed by former Akbayan partylist Risa Hontiveros and others challenging the constitutionality of the revenue-sharing provisions in the Mining Act of 1995. In its petition, COMP argued that that the Supreme Court had already decided on the constitutionality of the Mining Act through the landmark La Bugal-B’laan vs. Ramos case in 2004, a decision penned by former Chief Justice Artemio Panganiban. Furthermore, since the La Bugal ruling - which took the Supreme Court six years to decide on - there had been no material change in the circumstances of the Philippine mining industry. “There is no compelling reason for the high tribunal to abandon its previous ruling,” COMP said in its motion. SMI, OceanaGold, TVIRD, and AMCOR are all members of COMP, an association of exploration, mining, mineral processing, quarrying, cement, oil and gas, and service industries, as well as professional associations. The group was represented by former Chief Justice Reynato Puno and former Supreme Court Associate Justice Vicente Mendoza. Investment climate impact In their earlier petition, Hontiveros, along with Bayan Muna Rep. Teodoro Casino and others argued that the revenue sharing provisions in the mining law was disadvantageous to the government. They argued that Sec. 80 of the 1995 Mining Act limited that the govenrment's share in mineral production sharing agreements (MPSA) to excise taxes. Additionaly, Sec. 81 limited the govenrment's share in Financial and Technical Assistance Agreements (FTAA) to taxes, fees and royalties. Named as respondents in the Hontiveros petition were the  Secretary of the Department of Environment and Natural Resources (DENR), Sagittarius Mines Inc. (SMI), OceanaGold (Philippines) Inc., TVI Resources and Development Philippines Inc. (TVIRD), and Asiaticus Mining Corporation (AMCOR). COMP said about P173 billion ($4 billion) in mining investments were poured into the country since 2004 following the high court’s La Bugal ruling, making the industry a significant contributor to national development. They claimed that the investments included billions of pesos invested in the countryside. "An adverse ruling by the high tribunal on the petitions not only undermines mining investments but also 'leads to a significant loss of investors’ confidence, not only in the mining industry but broadly across all industries, severely impacting the investment climate and harming the country’s credibility,” stated the COMP argument. “To have the Supreme Court revisit its ruling so soon after the (La Bugal) decision became final in 2005 will definitely shake investor confidence and destabilize a critically needed industry,” it added. COMP also said the Hontiveros-led petition "challenges not only the stability of the decisions of the Supreme Court, but also the high tribunal’s institutional integrity.” — DVM, GMA News