Chamber of Mines Chairman Gerard Brimo lamented the various hurdles posing extended challenges for the Philippines' mining industry, despite enacting measures to meet standards and clean up its image.
In his Sept. 10 opening remarks at the Mining Philippines 2019 conference in Manila, Brimo, the chairman and CEO of Nickel Asia Corp., said the industry has not progressed since the 2018 conference, and local miners are facing additional hindrances.
Among those was an ongoing moratorium on new mining permits until a new tax structure is legislated, which was ordered by President Rodrigo Duterte. Brimo described the Department of Finance's push for the mining tax bill as "punishing."
"We were able to prove to Congress the onerous nature of such [tax] structure, though [House Bill 8400 that] passed in November [2018] is a progressive tax structure without additional imposition on gross revenues, which is already high," Brimo said, adding the measure did not pass the 17th Congress as the Senate failed to pass the measure due to a lack of time.
The mining industry chairman said it was back to square one for the tax bill, with similar measures pending under the 18th Congress.
Brimo expressed dismay over the ongoing open pit mining ban and inaction over its lifting, despite recommendations to remove the restrictions but with additional safeguards.
Despite the added workload brought about by new regulations — namely the guidelines on the approval of three-year work programs, guidance for compliance monitoring, and additional environmental measures on metallic surface mines — the chairman said they are a "good thing" as long as the new regulations are fair.
Meanwhile, Brimo said 24 of the 27 operations ordered shut under the Lopez regime passed the Mining Industry Coordinating Council's stringent independent audit. Some of those that passed the review were asked to complete remedial work. However, he questioned the lack of a formal presentation of the full report to the public.
Further, Brimo outlined that the Philippine mining industry will have to continuously push its ability to enforce responsible mining methods as the sector is still smarting from the "extremely damaging" crackdown by the late Regina Paz Lopez, who headed the Department of Environment and Natural Resources.
In the initial audit under Lopez's watch, more than half of the mines operating in the country were served with closure orders.
"Clearly, there is a need for us to prove that we operate responsibly. From a regulator's point of view, I will imagine that they feel there's a need for them to show that rules and regulations are adequate and they can well monitor the industry," Brimo said.
"The fact is, though, that our reputation as an industry has suffered tremendously by the attacks that we've gone through in the fairly recent past. The [Mining Industry Coordinating Council] audit certainly paints a better picture that we are not going to repair our damaged image in a short period of time. It will take some time and a concerted effort of the industry to prove that it operates responsibly and that it communicates its accomplishments."
In response, the local industry has pushed forward its implementation of the Towards Sustainable Mining protocol, a standard developed by the Mining Association of Canada and launched in 2004 that will serve as a guide for local miners in going beyond regulatory compliance.
A 12-person advisory panel to enact the protocol was formed. It plans to convene for an orientation with Mining Association of Canada President Pierre Gratton shortly after the Mining Philippines conference.
