Press Release
September 14, 2008

Mining policy to be reviewed with adoption of federal system

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today said the move to amend the l987 Constitution for the adoption of a federal system of government will provide an opportunity to review and modify the country's mining policy in view of the paramount need to protect the environment and welfare of the people as laws and rules are liberalized to lure foreign and local investors into the mining industry.

Pimentel said Joint Senate Resolution 10, which embodies the federalism proposal, not only requires the upgrading of industry practices and safety standards that mining firms must comply with but also calls for a review of existing agreements and contracts involving the utilization of mineral and other natural resources.

"Based on Joint Resolution l0, the executive branch may enter into mining agreements with firms according to the conditions provided by the Constitution and by law. But the agreements must be subjected to Senate confirmation before implementation and the mining firms must follow the best international practices," he said.

Pimentel said the opening up of more mineral-rich areas in various parts of the country -- in line with government policy to make mining a major engine in spurring economic growth -- has caused restiveness among the people in the affected communities due to the deleterious consequences of free-wheeling or indiscriminate mining activities.

As a result of the December, 2004 decision of the Supreme Court overturning its earlier decision declaring the Mining Act of l995 as unconstitutional, he said the rights of foreigners investing in the mining industry have been broadened and in effect, they may now "fully own and operate mining firms."

The senator from Mindanao said the controversial high court decision also set forth a hitherto unheard of principle by recognizing the President's "full control" of mining operations.

"I do not see that principle justified by the provisions of the 1987 Constitution nor by existing legislation. It looks like the Supreme Court engaged in an unwarranted act of judicial legislation," he said.

Because of that folly, Pimentel said a non-government organization called Defend the Patrimony, warned: "The world's largest mining firms - many of which are notorious in other parts of the globe - will bring this country into a state of calamity and will unleash an environmental tsunami that would engulf the people in a tide of unparalleled hardship."

Pimentel said there is much wisdom in what Caloocan Bishop Deogracias Iniguez said: There is a need to reassess the cost and the benefits of mining in the Philippines, taking into consideration the tragedy it brings in the name of economic development, before opening the doors to more mining firms.

To address these concerns, he said Joint Resolution 10 contains provisions related to mining activities and exploitation of natural resources that seek to strengthen the safeguards against environmental degradation and to uphold the rights of the people in the surrounding communities.

Pimentel said a section of Resolution 10 provides "The federal government, the states, provinces, municipalities and barangays shall ensure that international best practices are observed in exploration, utilization and development of natural resources to safeguard the people from toxic waste and pollution and to protect the environment from degradation. To that end, the well being and welfare of the residents of the locality where the exploration, utilization and development of natural resources are undertaken are paramount and shall be protected by appropriated federal or state legislation."

"Subject to the above proviso and the approval of the Senate before their implementation, the President may enter into agreements with foreign-owned firms investing either in technical or financial assistance for large-scale exploration, development and utilization of minerals, petroleum and other mineral oils according to the terms and conditions provided by law and based on real contributions to the economic growth and general welfare of the country. In such agreements, the State shall promote the development and use of local scientific and technical resources."

Pimentel also underscored the need to amend the Mining Act of l995 or to repeal it and replace it with a more environment-friendly legislation.

In this regard, he said Resolution 10 also calls for the creation of a committee to review the agreements or contracts on the use and development of natural resources. The recommendations of the committee shall be used by Congress as a basis for enacting the necessary corrective legislation.

The committee shall be composed of the secretary of justice as chairman, a representative of the National Commission on Indigenous Peoples and a representative of the Commission on Human Rights as members.

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