Philippine mining industry says closures illegal

MANILA – The Philippine mining minister’s decision to close over half of the country’s mines and suspend others is ‘illegal and unfair,’ and jeopardises an industry that has paid a large amount in taxes and fees to the government, the country’s mining industry body said yesterday.

“She violated due process, which is an inherent part of the rule of law, and did not give proper notice by consistently refusing to release the results of the audit to the affected parties,” the Chamber of Mines of the Philippines said in a statement.

A team which reviewed an audit of Philippine mines recommended the suspension of operations and the payment of fines for environmental violations, rather than the closure of 23 mines ordered by the minister overseeing the process, two people with knowledge of the matter said.

Environment and natural resources secretary Regina Lopez last week ordered the mines shut, saying many were operating in watersheds. The mines to be closed account for half of nickel ore output by the world’s top supplier of the metal. Another five mines were suspended.

The decision, which president Rodrigo Duterte said he supports, has angered the country’s mining industry, with miners saying the shutdowns will affect 1,2 million people, and some vowing to overturn the ruling.

“She has created an unstable policy environment, resulting in the stalling of economic growth momentum under the Duterte administration,” the chamber said, citing the industry’s 62,5 billion pesos (US$1,26 billion) worth of investments.

The group said it was apparent there was ‘widespread chaos’ in Lopez’s department following her decision to close some mines, which was not part of the recommendation of the audit team.

Lopez said her decision was consistent with her ‘non-negotiable’ stance against irresponsible mining. –

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