The Exchange requested the company to make a clarification on the news article entitled “DENR’s Lopez bans open-pit mining” posted in Manila Bulletin (Internet Edition) on April 27, 2017. The article reported in part that:
“Department of Environment and Natural Resources (DENR) Secretary Gina Lopez ordered last Thursday the banning of prospective open pit mines to ensure the protection of the country’s environment.
The DENR issued last Thursday an administrative order ‘banning the open pit method of mining for copper, gold, silver and complex orders in the country,’ citing records that show ‘most of the mining disasters in the country were due to tailings spills associated with open pit mining.’
‘As a matter of policy, which is my prerogative as DENR Secretary, we’re banning open pit mining prospective, for the following reasons that pit is gonna be there forever and a day, eternally,’ she said during a press conference last Thursday.
‘Who is gonna take care of that? It’s a financial liability to government for life,’ she said. ‘I am doing this because I have no idea what’s going to happen on Tuesday,’ she added. . . . . According to DENR Undersecretary for Legal Affairs and Policy Planning Ipat Luna, the DENR Administrative Order will be effective 15 days after its publication in a newspaper.
‘The DENR Secretary has visited a lot of open pit mines and some have been abandoned for 20 years. She realized that we need to do something immediately to stop another damage from happening,’ Luna said, citing the Marcopper disaster, where mine tailings spilled into the Boac River in Marinduque in 1996.
‘The government has to keep taking care of the environment because we have no other choice otherwise it will threaten the communities,’ she said. ‘The government has to do something to stop that damage from happening,’ she added.
When asked whether Lopez has the power to issue such order, Luna said she believes so because ‘under the mining act she (the Secretary) has the authority to define the parameters of the mining activities in order to ensure that the environment is protected for the future generation.’ . . . .”
FNI wishes to clarify that DENR Administrative Order No. 2017-10 (the "Order") has not yet been published, and is not even made available to the public. The Order may still be open to changes. While FNI deems it premature to comment on the Order, suffice it to state that its group does not employ the kind of extractive processes envisioned in the Order to be destructive of the environment. The group's mining method and environment protection programs are above standards and have passed the rigors of both the DENR-initiated audits and international scrutiny.
Besides, DENR Secretary Gina Lopez explained at today's Senate hearing that nickel mining is not affected by the ban because it is conducted through surface mining. Hence, the Order is not applicable to the group’s business operations.
The Order needs to undergo thorough review and consultation with stakeholders to overcome potential legal challenges.
We hope the foregoing addresses the subject. |