“Specific reforms agreed upon are: the embedding of a DENR personnel in each mining project to assist in monitoring compliance with various DENR rules and guidelines”
In the recent Mining Conference organized by the Stratbase ADR Institute, in partnership with the Department of Environment and Natural Resources, Secretary Maria Antonia Yulo-Loyzaga underscored a resounding message the Philippines must leverage its status as one of the world’s most mineral-rich nations to drive economic growth and the urgency to develop its mineral resources to match the pace and trajectory towards clean energy.
In her keynote speech, Yulo-Loyzaga said, “It is thus our high priority both government and industry work more constructively together and adopt the mitigation hierarchy to ensure no ecosystem and no community will be left behind, even if this will entail working towards net positive impacts through offsets.”
This statement by the environment Secretary marks what she aptly called a positive and a “transformative pivot” to seize this great opportunity that will benefit the whole country.
Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs in his statement during the conference said the Philippine government “recognizes that mining holds the greatest potential to be a key driver in the Philippine economy and also secure the country’s long-term growth” and their goal to put in place cohesive and long-term policies so that the mining industry can contribute not only to the country’s economic development, but also to improving the lives of Filipinos.
National Economic and Development Authority Secretary Arsenio Balisacan, however, said the mining industry has “yet to harness its potential fully.”
He pointed out the Philippines’ “underutilized” mineral resources are valued at 1.6 trillion US dollars, only less than one percent (or 0.17 percent) of the known mineral deposits have been developed for production with the mining industry modestly contributing a mere half percent (0.5 percent) of our gross domestic product by the end of 2023.
In an unprecedented move during the Mining Conference, the DENR, and the mining industry, represented by the Chamber of Mines of the Philippines, Philippine Nickel Industry Association, Philippine Mine Safety and Environment Association, and Philippine Mining and Exploration Association, signed a joint declaration to initiate policy reforms to address the regulatory roadblocks that have chained down the Philippine mining potential for decades.
Grounded on the commitment to sustainable and responsible mining practices, specific reforms agreed upon are: the embedding of a DENR personnel in each mining project to assist in monitoring compliance with various DENR rules and guidelines.
Other reforms included the streamlining of the administrative process in the evaluation and issuance of mineral agreements, the digitalization of Exploration Permits and Mineral Production Sharing Agreement applications; development of parallel instead of linear processing of applications with other government agencies to shorten the permitting timeline; explore the possibility of honoring IP-initiated Free, Prior, and Informed Consent, develop a mining project prospectus, and provide guidance on lands suitable for exploration.
The DENR committed to coordinate with other government agencies to address industry concerns like exploring the possibility of establishing a fixed royalty rate for IPs and appointing a senior public official from the National Government to assist mining companies.
The DENR will also work towards representation of the mining industry in the MICC.
A joint monitoring and evaluation mechanism on the impact of mining activities on the environment and the socio-economic conditions of affected communities will be developed as well as the documentation and inventory of all the CSR projects of mining companies done beyond the Social Development and Management Program to fairly account for the total ESG contributions to the host communities.
Stratbase ADR Institute President, Prof. Victor Andres “Dindo” Manhit told the news briefing, “From a policy point of view, I think we need to look at all these geoeconomic opportunities. Given, as some would say, the derisking, the globalization, and see ourselves as a possible major player.”
He said “If we transform ourselves from one that is consumption-driven to one that is investment-led growth, which will create jobs, address livelihood for our people” which would need a stable, responsive policy environment in the eyes of ease of doing business and easing trade tariffs to bring in investments.
“We need government, the private sector, and investors to really work together and find a common interest, find the common ground to achieve that investment goal for the Filipino nation.”
This was indeed a pivotal event wherein the government represented by the DENR, NEDA, DTI, DILG, DOE, and OSAPIEA; the diplomatic community represented by the Ambassadors of Australia, Canada, Japan, and Delegation of the European Union to the Philippines; the leaders of the mining industry and stakeholders have unanimously committed to accelerate the revitalization and transformation of the Philippine mining sector into the thriving and sustainable economic driver of the country.