PHL needs alternative law to address flaws in Mining Act, says lawmaker

By XIANNE ARCANGEL, GMA News

Published March 13, 2014 3:38pm

A lawmaker urged Congress on the last session day on Wednesday to pass an alternative mining law that will put a premium on protecting the environment and the local communities over the desire of large-scale mining companies to rake in profits.

Nueva Vizcaya Representative and House Deputy Speaker Carlos Padilla said in a privilege speech the enactment of an alternative mining law is needed to resolve the “glaring flaws” in Republic Act 7942, otherwise known as the Mining Act of 1995.

Padilla said despite being touted as a “world class mining law,” RA 7942 only “legitimized the plunder of our mineral resources, the destruction of our environment and displacement of communities” in the past 19 years.

He said it is high time lawmakers work on the passage of a new mining law in light of the growing negative public sentiment toward the industry because of various disasters involving large-scale mining operators.

“Congress [should] put premium in the human dignity of communities and biodiversity value of our country’s mineral resources. No less than an alternative minerals law will do this,” Padilla said.

Under RA 7942, mining companies that obtain the financial or technical assistance agreement (FTAA) – a mining right given to large-scale operation, development and utilization of minerals – are required to share half of their revenues with the government.

The law also mandates mining companies to pay the regular corporate income tax on top of a 2-percent excise tax, business tax, royalty for mineral products extracted from mineral reservations and royalty payments for indigenous peoples directly affected by mining operations.

More harm than good

But despite the P800 million in taxes the government collects yearly from the extractive industry, Padilla noted mining operators leave communities underdeveloped, with traditional sources of livelihood gone since the natural resources they are dependent on are already destroyed.

He cited the widespread destruction of forests in Nueva Vizcaya as proof that mining can bring more harm than good to the local communities it is supposed to benefit.

Two large-scale mining companies, Oceana Gold and FCF Minerals, have operations in Nueva Vizcaya.

“The two mining companies are all threats to my province’s mountains, water systems and agricultural products. This is true because at a broader scale the impacts of mining are not contained within the mining area but the use of explosives naturally results in deforestation and slope destabilization,” Padilla said.

The campaign against large-scale mining in Nueva Vizcaya has earned the backing of civil society groups and the local Catholic church, with Diocese of Bayombong Bishop Ramon Villena calling on residents to join and support anti-mining protests in the province.

Padilla said an increasing number of his constituents are putting up barricades to show their refusal to give up their ancestral lands.

Last February, the House approved on third and final reading House Bill 3667, which seeks to declare the province of Nueva Vizcaya a mining-free zone.

Under the bill, individuals or companies engaged in mining operations in the province will be penalized with six to 12 years’ imprisonment and a fine of P100,000 to P500,000.

Foreign business groups have urged President Benigno Aquino III to immediately institute reforms in the mining industry, saying the country needs to have a responsible, environmentally friendly mining regime that could create thousands of jobs. – VS, GMA News

Tags: miningactof1995, miningidustry, miningreforms, alternativemininglaw