TVI Pacific - Accomplishments & Challenges - December 2011
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TVI Pacific Inc. is a publicly-traded Canadian company that is focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is pre-developing its Balabag gold and silver project, and is carrying out exploration programs on its other North Zamboanga tenements. TVI also has an interest in an offshore Philippine oil property. (TSX: TVI) (OTCQX: TVIPF). More at www.tvipacific.com
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TVI Pacific - Accomplishments & Challenges - December 2011
- 1. Mining in the Philippines Our Accomplishments and Our Challenges
- 2. Our Properties North Zamboanga Tenement Area = 162,403 hectares (401,307 acres) Dipolog City 0 Kilometres 25.0 Tamarok & Tapisa Manila 0 Miles 15.5 Copper / Gold Projects Bonbon Gold Prospect Zamboanga del Norte Gutalac Zamboanga del Sur Municipality Baliguian Municipality Zamboanga Sibugay Balabag Gold / Silver Project Canatuan Siocon Copper / Zinc Municipality Mine 2
- 3. TVIRD Timeline 1994 Signs an Exploration Agreement with Option to Purchase 1996-1998 Exploration commences under approved MPSA 2001 Executes MOU with Siocon Subanon Association, Inc. Buys and processes tailings from illegal small-scale miners (the “Environmental 2002 - 2004 Cleanup”) 2004 Gossan Project begins 2005 Recommences definition drilling/development program Completes Gossan Dam, applauded by Canadian Ambassador and DENR 2006 Secretary 2008 Gossan Project ends – Construction begins for Sulphide Project 2009 Commercial operations at Sulphide Project commence 2010 Presidential Mineral Industry Environmental Awards 2010 Platinum Achievement. 2011 Presidential Mineral Industry Environmental Awards 2011 Titanium Award for Excellence in Environmental Management Safest Mine Award 2011 Ordinance Banning New Open Pit Mining Filed 3
- 4. Canatuan Before… The area was an ecological disaster with a degraded water supply as a result of small- scale mining 4
- 5. Canatuan Before… Crude, leaky small-scale mining tailings ponds pouring mercury and cyanide into the watershed 5
- 6. Canatuan Before… Young children, with no access to basic education, often labour along with their families 6
- 7. Child Labor A 12-year old child here is shown unloading goods
- 8. Canatuan Today - Mining, Production & Shipment PIT PLANT PORT PRODUCT PROCESS 8
- 9. Canatuan Today 9
- 10. Canatuan Today Today, children from Canatuan and surrounding communities go to school to learn and play
- 11. What we had to contend with… Actions and Attacks Allegations Actors • Blockades of company • Human Rights abuses • Local government officials equipment and personnel • IP Rights violations • DIOPIM Committee on • Protest actions and rallies • Harassment Mining Issues (DCMI) and • Complaints lodged in other Roman Catholic • Encroachment on Philippine Congress, Church-based groups such ancestral domain Senate, Provincial Board, as CAFOD • Lack of social acceptance and Canadian Parliament • Philippine Indigenous • Militarization People’s Links • Complaint filed with the UN Committee on the • Environmental destruction • Mining Watch Canada Elimination of all forms of (e.g. “collapse” of tailings • Christian Aid Racial Discrimination dam) • Rights and Democracy • Report: “Mining or Food” • Cyanide poisoning • Alyansa Tigil Mina • Philippine and • Former illegal small-scale International media miners in Canatuan • Internet • National government executives and legislators
- 12. Mining in the Philippines Our Accomplishments
- 13. Strong Indigenous leadership support Canatuan before… Canatuan today… Subanon Chieftain Timuoy Jose Anoy (right) with Subanon Chieftain Timuoy Jose Anoy (far right) Subanon Seven Rivers Overall Chieftain Timuoy with Mansaka Chieftain Datu Cristante Alfons Noval Lambo protesting against mining. and B’laan Chieftain Folong Motom Madule leading the opening ceremonies of Coalition for Responsible Mining in Mindanao launching program in September 2010.
- 14. Social Development & Management Program Health, Sanitation and Fresh Water Sustainable Livelihood: Demo Farms 14
- 15. Corporate Social Commitment Health and Sanitation Sustainable Livelihood Built health clinic that Focused on sustainability, economics provides free 24/7 healthcare and social well-being of community and ambulance service to including micro-finance, technical impact communities skills, training & apprenticeship programs Responsive Education Royalty & Support for Ancestral Domain Built 6 schools, currently 2,500 students, 56 high Extended technical & financial school graduates & 48 assistance for crafting of Ancestral college scholarships Domain Sustainable Development & Protection Plan Infrastructure Development for Impact Communities Built or improved 85 kilometres (52.8 miles) of Initiated projects in areas outside roads, including 4 bridges Canatuan: & a spillway Built Sta. Maria water system Built 11 kilometres (6.8 miles) of farm- to-market road 15
- 16. Environmental Commitment Biodiversity Tailings Management 50% of mining area remains in Four tailings storage facilities original habitat condition constructed with three undergoing reclamation Watershed Management Monitoring Programs More than 25 locations subject Monitoring by third party professionals to daily, weekly and quarterly completed on weekly, quarterly and water quality monitoring annual basis Reclamation and Research Programs Rehabilitation Onsite research and studies for More than 200,000 trees have passive wetland acid mine treatment been planted since 2004 using indigenous plants 16
- 17. We are Transparent • Mine Tours – “Our Doors Are Open” • Quad-Media Information Campaign • Strategic Industry IEC Alliance 17
- 18. “Best of the best” – and No Fatalities Safety & Environmental Awards National Mine Safety and Environment Conference (November 2011) Number 1 Priority 2011 Presidential Mineral Industry Environmental Awards • Titanium Award for Excellence in Environmental Management • Safest Mining Operation • Safest Surface Mining Operation • Safest Mineral Processing, Concentrator Category 18
- 19. “Best of the best” – and No Fatalities Safety & Employer Awards Department of Labor and Employment Department of Labor and Employment, (May 2011) the Rotary Club of Zamboanga City- Number 1 Priority • Outstanding Employer of Zamboanga del East and the Zamboanga Peninsula Norte, Industrial Category Tripartite Industrial Peace Council (June 2011) National Mine Safety and Environment • Most Outstanding Employer in Region 9 Conference (Zamboanga Peninsula) (November 2010) 2010 Presidential Mineral Industry Philippine Bureau of Working Environmental Awards Conditions Awards, Department of Labor • Platinum Achievement Award, Surface (Sept 2010) Mining Category • TVI Safety for its 2009 performance of zero • First runner-up in the Safest Mines lost-time accidents Awards, Concentrator Category • Top Occupational Safety & Health Manager, • Runner-up in the Mining Forest Mining Category Award, Metallic Category Over 6 million man hours worked Over 4 million man hours worked with only one lost-time incident with no lost-time incidents 19
- 20. TVI’s Contribution to the Economy TVI has provided all of these to the local and regional communities advancing Siocon from a Class 4 to a Class 1 municipality: Jobs Roads, transportation across the peninsula Power & Communications (cell tower) Multiple levels of Education Hospitals, 24/7 Ambulance Security, peace & order Port facilities Water purification systems Training –agriculture, crafts, apprenticeship programs Environmental cleanup from pre-illegal small scale miners Taxes and royalties to Subanon and others 20
- 21. TVI’s Contribution to the Economy 2004-2008 2009 2010 2011 As of Sept Total Excise Tax Paid (PhP) 77.8 M 62 M 68 M 53.6 M 261.4 M Royalties Paid to IP (PhP) 1%, now 1.5% of gross revenue 39.6 M 30.6 M 35 M 41.7M 146.9 M Actual SDMP (PhP) Expenses 23.2 M 7.4 M 11.5 M 25.9M 68.0 M Business Permit (PhP) (Siocon) 6.7 M 0.35M 4.4 M 11.5M 22.9 M Real Property Tax (PhP) (Siocon / Baliguian) 0.7M 0.3 M 1.5M 4.1M 6.6 M CONTRIBUTION 148 M 100.6 M 120.4 M 136.8 M 505.8 M Operating Costs (PhP) 4.0 B 1.3 B 2.0 B 2.1 B 9.0 B CapEx 1.8 B 0.2 B 0.3 B 0.3 B 2.6 B 21
- 22. Mining in the Philippines The Challenges Ordinance Banning New Open Pit Mining
- 23. The Ordinance The Ordinance was approved by the Sangguniang Panlalawigan (Provincial Board) of Zamboanga del Norte Bans open pit mining – but expressly permits small-scale mining, and mining by tunneling (i.e. underground) Gives current open pit operations one year to operate, after which they have to cease operations and become completely rehabilitated After 60 days, it requires existing open pit operations to have “totally curtailed” any siltation, erosion and mudflows
- 24. The Ordinance • GIVES THE GOVERNOR EFFECTIVE CONTROL OVER MINING • IS DRACONIAN Governor is entitled to issue cease and desist orders, and to seize the mining assets, as well as the inventory of product produced, and of course, throw management in jail. Requires that for any new application for mining (non open-pit) tenements, the Governor must give clearance of consultation – and there must be approval by all LGUs including the Province. Gives any SEC accredited NGO the power of citizen’s arrest against any officer of a mining company if the NGO believes there is a violation of any provision of the Ordinance. Levies 10% Environment Fund on new projects
- 25. The Ordinance Is Invalid and Unconstitutional Ordinance violates the due process, equal protection and non- impairment of contracts clauses of the 1987 Constitution Ordinance is contrary to the applicable provisions of the Local Government Code and the Mining Act, and runs counter to the public policies espoused in these laws. Ordinance would adversely affect the successful environmental protection and enhancement programs and the positive socio- economic impact that TVIRD operations has had on the community
- 26. The Ordinance What It REALLY Means Good Mining versus Bad Mining • Designed to promote irresponsible small-scale mining Enforcement versus Non-Enforcement • Removes National Government Responsibility to ensure responsible mining Accountability versus Non-Accountability • Removes National Government Responsibility for a clean environment versus destructive small-scale mining devastation to the environment
- 27. The Ordinance Will shut down an operation that has become a major contributor of economic benefit to the Province. a. Cleaned up the toxic waste of previous, illegal small-scale miners; b. Extensively rehabilitating impact and non-impact areas (230,000 trees to date); c. Invested US$60 million in exploring and developing Canatuan; b. Invested US$23 million in the construction of world-class dams; c. In operation for seven years with full accountability; c. We employ ~1,000 people and positively affect the lives of thousands more;
- 28. The Negative Impact If the Ordinance is Not Stopped….. Corporate Social Commitments Health and Sanitation Sustainable Livelihood Built health clinic that Focused on sustainability, provides free 24/7 economics and social well- healthcare and being of community including ambulance service to micro-finance, technical skills, impact communities training & apprenticeship programs Royalty & Support for Responsive Ancestral Domain Education Extended technical & financial Built 6 schools, assistance for crafting of currently 2,500 Ancestral Domain Sustainable students, 56 high Development & Protection Plan school graduates & 48 college scholarships Infrastructure Development for Impact Communities Built or improved 85 kilometres (52.8 Initiated projects in areas outside miles) of roads, Canatuan: including 4 bridges Built Sta. Maria water system & a spillway Built 11 kilometres (6.8 miles) of farm- to-market road
- 29. The Negative Impact If the Ordinance is Not Stopped….. Environmental Commitments Safety & Security Biodiversity Tailings Management 50% of mining area Four tailings storage facilities remains in original habitat constructed with three undergoing condition reclamation Have earned tremendous, widespread community support Security personnel participate in Watershed Management Monitoring Programs Creating models for community livelihood More than 25 locations Monitoring by third party projects subject to daily, weekly and professionals completed on Backyard poultry raising and marketing quarterly water quality weekly, quarterly and annual basis Farm products supply food for mine monitoring personnel 20 medical missions since 2009 Professionalizing the security organization Reclamation and Research Programs Integrated with the community Rehabilitation Commitment to Voluntary Principles on Security Onsite research and studies for More than 200,000 trees passive wetland acid mine and Human Rights training have been planted since treatment using indigenous plants Formed Emergency Response Team for the 2004 community’s safety
- 30. The Negative Impact If the Ordinance is Not Stopped….. Health, Sanitation and Fresh Water Sustainable Livelihood: Demo Farms 30
- 31. Our Action Plan Legal Initiatives November 2, announces preparation of legal challenge to nullify the Ordinance November 8, launched an action in court for a temporary restraining order (TRO) and/or a preliminary injunction against any officers, agents, employees, representatives and anyone acting on behalf and within the control of Zamboanga del Norte from implementing an ordinance banning open pit mining in the province. November 17, first of four hearings November 24, second of four hearings December 1, third of four hearings December 8, final hearing to present our evidence to support permanent injunction
- 32. Our Action Plan 1. Key National Initiatives • Enlist support of Canadian Ambassador/Embassy • Plan meetings with key National Government Secretaries • Lobby DENR/MGB for support • Chamber of Mines, CoreMin2, Joint Foreign Chambers, Jaycees 2. Key Provincial Initiatives • PR campaign in ZdN detailing benefits of TVIRD operations • Mobilizing regional support from affected: • Municipalities, Indigenous People, businesses 3. Municipal Initiatives • Working closely with the Siocon Town Officials • Assisting concerned voters from Impact Barangays • Petition from voters in Impact Barangays • Mobilizing municipal IPs, affected municipal businesses
- 33. TVI Recommendations 1. Decisive action by the National Government o Intervene – LGU’s cannot overturn an Act of Congress like the Mining Act o DENR needs to use its powers of supervision over LGU’s on Mining/Environment 2. Enhance the revenue base and capacities of LGU’s o Allow excise tax to be paid directly o Increase revenue share of LGU’s from existing mining taxes 3. Streamline the administration process for mining o A heavy, expensive, time-consuming process o Coordination of NCIP - DENR o Reinstitute the Minerals Development Council
- 34. Our Continued Commitment We are Proud of what we’ve achieved Expressly proud of our social and environmental success Our Continued Commitment WE WILL VIGOROUSLY FIGHT THE ORDINANCE We will continue to invest in mineral development for the benefit of the Philippines We will continue working with all of our stakeholders – including the LGU’s, but we need strong National Government support, now.
- 35. The Negative Impact If the Ordinance is Not Stopped….. Mining projects in Zamboanga del Norte will revert to what Canatuan was before… The area was an ecological disaster with a degraded water supply as a result of small-scale mining 35
- 36. This presentation should be read in conjunction with the Ordinance and associated TVI issued news releases that can be found here http://bit.ly/tvvkcq Disclaimer There can be no assurance that any litigation commenced by TVIRD in the Philippines courts or negotiations with Zamboanga del Norte officials will result in nullification or retraction of the Ordinance or otherwise mitigate the effects of the Ordinance on the operations of TVIRD at Canatuan.
- 37. Connect With Us Rhonda Bennetto Ian McColl VP IR & Corporate Relations Investor Relations Analyst 403.265.4356 403.265.4356 rhonda.bennetto@tvipacific.com ian.mccoll@tvipacific.com www.twitter.com/tvipacific www.facebook.com/tvipacific Create your own news links 37
Editor's Notes
- Good morning and thank you for joining me here today. Due to recent events, I’ve decided to not go with our typical TVI corporate presentation… there are far more important things going on which I’m sure you want to hear about…and I want to speak aboutWhat I want to talk to you about today are the accomplishments and more importantly, the challenges of mining in the Philippines.
- I first rode into Canatuan on a motorcycle in 1993 and we’ve come a very long way since then. We have numerous obstacles to overcome, and I’m proud to say we haveElaborate here.
- These are photos of Canatuan BEFORE TVI got active in the area… describe…TVI, despite all the challenges, stayed the course BECAUSE of National Government support
- These are photos of Canatuan BEFORE TVI got active in the area… describe…TVI, despite all the challenges, stayed the course BECAUSE of National Government support
- These are photos of our operations, (describe them)…. And because of this operation … flip to next slide…
- this is Canatuan today. A vast difference from the environmental and social atrocities that were present when the illegal small scale miners were operating. (name some)
- We have made life better for thousands of indigenous people within and outside of our host community. Name some
- This is only a short list of the challenges we had to face over the years (read a few)… and, I stress, TVI stayed the course because of National Government Support.
- At the beginning of November, TVI woke up one morning to the publication in a Zamboanga del Norte newspaper of an Ordinance banning open pit mining. The Ordinance purports to be for the protection of the Environment, but in reality it is designed to shut down large-scale or industrial mining – controlled by the national government – in favour of small-scale mining controlled by the Province. And further – to amend the rules for the approval of all mining applications such that any mining will have to have the express approval of the Governor.
- Today, we have the full support of our communities.
- Social development, clean water filtrations systems, hospitals and healthcare for everyone.
- read
- read
- read
- And in 1020 and 2011 our efforts were rewarded with (read award)
- About the same time as we were waking up to the Ordinance, we and the rest of industry also woke up to the news that Malacañang believes the government’s share from mining is too small..But what I believe the government is overlooking, is that there are major differences that need to be understood, between the Philippine investment environment and that of other jurisdictions. Investing in a developed country, or in a mining-developed country, which provides considerable infrastructure and support at all levels to both the company and the communities involved, is dramatically different from the prospects of investing in a largely underdeveloped country like the Philippines, as it is in the hinterland. Mining companies operating in the Philippines have to allocate enormous resources to the public sector – not just in taxes – in order to operate; and I would argue that Malacañang may not be completely sensitive to this issue.I’ll draw from our successful project in Canatuan to illustrate the expenditures to the public sector that have to be made in support of a mining operation. READ SLIDE POINTS
- Starting with a holistic view
- At the beginning of November, TVI woke up one morning to the publication in a Zamboanga del Norte newspaper of an Ordinance banning open pit mining. The Ordinance purports to be for the protection of the Environment, but in reality it is designed to shut down large-scale or industrial mining – controlled by the national government – in favour of small-scale mining controlled by the Province. And further – to amend the rules for the approval of all mining applications such that any mining will have to have the express approval of the Governor.
- To give you a quick summary of the Ordinance:It bans open pit mining – but expressly permits small-scale mining, and mining by tunneling (i.e. underground).It gives current open pit operations one year to operate, after which it has to cease operations and become completely rehabilitatedAfter 60 days, it requires existing open pit operations to have “totally curtailed” any siltation and mudflows
- Failing which, the Governor is entitled to issue a cease and desist order, and to seize the mining assets, as well as the inventory of product produced, and of course, throw management in jail.It gives any SEC accredited NGO the power of citizen’s arrest against any officer of a mining company if the NGO believes there is a violation of any provision of the Ordinance. And finally, It requires that for any new application for mining (non open-pit) tenements, any Local Government Unit other than the province must have the Governor’s written approval before endorsing any proponent; failing which, the municipal or barangay official goes to jail.
- The last provision makes the ultimate objective of the Ordinance clear: It is for the Provincial Government to take control of mining approvals – and mining itself – away from the national government. Small-scale mining is already under provincial control and regulation. It is the source of revenues that go exclusively to provincial governments and provincial politicians around the country.If it is left to stand – I guarantee that a similar ordinance will crop up in every province in the country where mining and small-scale mining take place.At what cost? What the Ordinance will do is to shut down an operation that has actually become the major contributor of economic benefit to the southern half of Province, and arguably the whole province.We believe the Ordinance is invalid and unconstitutional and we are fighting it in court.
- The last provision makes the ultimate objective of the Ordinance clear: It is for the Provincial Government to take control of mining approvals – and mining itself – away from the national government. Small-scale mining is already under provincial control and regulation. It is the source of revenues that go exclusively to provincial governments and provincial politicians around the country.If it is left to stand – I guarantee that a similar ordinance will crop up in every province in the country where mining and small-scale mining take place.At what cost? What the Ordinance will do is to shut down an operation that has actually become the major contributor of economic benefit to the southern half of Province, and arguably the whole province.We believe the Ordinance is invalid and unconstitutional and we are fighting it in court.
- At what cost? What the Ordinance will do is to shut down an operation that has actually become the major contributor of economic benefit to the southern half of Province, and arguably the whole province.READ SLIDE FACTS
- We don t want to see our hard work all for not… if this ordinance is passed – all the benefits I mentioned earlier, like our contribution to the economy, or corporate social commitments… next page…
- Our environmental and safety and security…
- And our livelihood project would all be cancelled. This is unacceptable for us and for the thousands of people who’s lives we have enriched.
- The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.
- The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.We need strong National Government support….. now.
- The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.
- In the meantime, TVI is continuing to invest and to try to go forward: — we are proud of what we’ve achieved; we’re committed to the Philippines and to its potential; we want to continue to be able to invest and we want to continue contributing to the country’s development. We are challenging the ordinance in the courts. It is illegal and unconstitutional in our view, and we’re confident that the case will be decided properly – if not at the provincial level, at least in the Supreme Court. BUT we need strong National Government Support, again… NOW!At the same time, we want to be able to work with the Province. We understand that they’re concerned about their tax base and the environment. So are we; and by working together we can continue to provide the kinds of benefits to their community that I’ve described
- And our livelihood project would all be cancelled. This is unacceptable for us and for the thousands of people who’s lives we have enriched.
- The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.