TUBA,
Benguet – Provincial, municipal and barangay officials in the host and
neighboring communities of the Philex Mining Corporation urged concerned
government agencies and the Mineral Investment Coordinating Council (MICC) to
grant the mining company permit to permanently operate as the country’s largest
gold and copper producer to sustain its significant contribution to mining industry.
Gov. Nestor B. Fongwan said
Presidential Adviser on Environmental Protection Nerius Acosta said he was
impressed on how Philex management repaired its tailings pond No. 3 and the
cleaning of the Balog creek.
Earlier, the MICC tasked a
multi-agency technical working group led by Secretary Acosta to evaluate,
validate and make the appropriate recommendations to the government whether or
not to allow Philex Mining Corporation to permanently operate after the
accidental leak in its tailings pond No. 3 due to record-breaking rainfall
causing tons of non-toxic sediments and water to flow down the Balog creek and
Agno river forcing management to voluntarily shutdown its operation from August
1, 2012 to March 8, 2013.
“We are optimistic that Secretary
Acosta and the TWG members will consider all possible avenues in crafting their
recommendations so that the local and national economy will not be
significantly affected,” Fongwan said.
Fongwan, together with Tuba Mayor
Florencio Bentrez, Itogon Mayor VictorioPalangdan, and Philex officials led by
its president, Engr. Eulalio Austin and resident manager Engr. Libby Ricafort,
accompanied Acosta and his team in inspecting the mine camp to personally
assess development and implementation of measures to prevent similar incidents
in the future.
According to Fongwan, around 3,000
permanent and contractual Philex employees and their dependents and hundreds of
thousands of residents living in host and neighboring communities who are
dependent on the mining company’s operations will be displaced once the
government decides to suspend its operations.
The governor said denial of the
request for permanency of mining operations will also result to losses on the
part of the local and national governments considering that Philex will no
longer continue paying its obligations in terms of taxes among other fees .
During the inspection, he said
Acosta’s team witnessed that water coming out of the tailings pond No. 3 was
already clear and that the spillway constructed by the company to redirect the
flow of water was working well aside from the environmental protection and
preservation projects that were completed in the different parts of the mine
camp.
Last March 8, 2013, the Mines and
Geosciences Bureau granted the request of Philex Mining Corporation to
temporarily operate in order to generate around 2.5 million tons of fresh
tailings that will be used to complete repair of the tailings pond to prevent
leaks.
Philex management requested the
government to grant its request to permanently operate complete rehabilitation projects in its tailings pond
while constructing another tailings pond until prescribed end of its mine life
in 2020.
Fongwan said Philex has consistently
proven its commitment as a responsible mining company through the benefits that
it had given to its host and neighboring communities while sustaining the good
state of environment within the mine site as well as providing added sources of
livelihood to the people in their working areas.
Some misinformed sectors would have us believe that the loss from mining taxes are minimal, citing 'only'the 2% excise tax. But that isn't the only revenue from the mining industry in general and Philex in particular. The 'other fees' mentioned here are business taxes, royalties from mineral reservations, and payments to affected indigenous people as mandated by the Mining Act of 1995, cited as being world-class, and even more advanced than similar legislation. There is also the so-called Multiplier Effect cited by economist Dr. Bernardo Villegas wherein the industry generates other benefits, especially in the region, such as employment, medium- and small-scale industries and increased consumption. As an example, Dr. Villegas cites the 2011 figures where in addition to the P10.4B in taxes from the industry, there was an additional P37.4B from this Multiplier Effect.
ReplyDeleteFinally, Philex has consistently shown its dedication to accepting responsibility, voluntarily shutting down the mine before anyone outside even learned of the accident. They have never hesitated to pay billions for the cleanup, not to mention the hefty fines. And as the MICC visit has shown, their remediation efforts have not only been effective but extra precautionary measures were taken, like increasing the breadth of the tailings beach.
There can be no question that Philex must be allowed to operate permanently as an example of how responsible mining can be.
Some misinformed sectors would have us believe that the loss from mining taxes are minimal, citing 'only'the 2% excise tax. But that isn't the only revenue from the mining industry in general and Philex in particular. The 'other fees' mentioned here are business taxes, royalties from mineral reservations, and payments to affected indigenous people as mandated by the Mining Act of 1995, cited as being world-class, and even more advanced than similar legislation. There is also the so-called Multiplier Effect cited by economist Dr. Bernardo Villegas wherein the industry generates other benefits, especially in the region, such as employment, medium- and small-scale industries and increased consumption. As an example, Dr. Villegas cites the 2011 figures where in addition to the P10.4B in taxes from the industry, there was an additional P37.4B from this Multiplier Effect.
ReplyDeleteFinally, Philex has consistently shown its dedication to accepting responsibility, voluntarily shutting down the mine before anyone outside even learned of the accident. They have never hesitated to pay billions for the cleanup, not to mention the hefty fines. And as the MICC visit has shown, their remediation efforts have not only been effective but extra precautionary measures were taken, like increasing the breadth of the tailings beach.
There can be no question that Philex must be allowed to operate permanently as an example of how responsible mining can be.