MGB official says mining industry being ‘killed’

MINES and Geosciences Bureau (MGB) Acting Director Wilfredo G. Moncano said stakeholders in his industry have been thrown into “confusion” over the Department of Environment and Natural Resources’ (DENR’s) recent actions.

“Announcing to the media the closure or abrogation of the mineral production sharing agreements (MPSA) of 75 companies means that slowly the industry is being killed,” he said yesterday in a weekly media forum in Davao City.

“The direction of the country is for industrialization. Now what will happen to that direction if the mining industry, an important component, is slowly being killed,” added Mr. Moncano, who is concurrently the MGB regional director for Davao.

Mr. Moncano was designated to the top MGB post in September. His appointment letter was received by the DENR on Sept. 30, a few days before the release of the results of the mine audit that was undertaken by the bureau under the leadership of his predecessor, Leo L. Jasareno.

Mr. Jasareno, who headed the MGB for five years, has been designated to assist Ms. Lopez in the ongoing review of mining companies.

Mr. Moncano also said that he now expects mining companies that have not been suspended or ordered closed to have difficulty getting financing for their projects.

“Unfortunately, some of these companies are ready to start their operations, but right now they are facing diff iculties in securing financing,” said Mr. Moncano.

Meanwhile, lawyer Rodulfo A. Palma, president of the Alliance of Responsible Mining of Region XI, said in the same forum that his group will meet on Friday to discuss options for members, including those with orders of suspension or closure.

Region IX covers Davao City, four Davao provinces, and Compostela Valley.

Among those whose MPSA was cancelled were King-king Mining Corp.’s $ 145- million copper-gold project in Compostela Valley that was scheduled to start production in 2020, and Sagittarius Mines, Inc.’s $5.9-billion Tampakan coppergold project, which straddles four jurisdictions, including Kiblawan in Davao del Sur.

“We need to take action because this will impact not only our members, but the entire industry,” said Mr. Palma.

The group, he said, is hoping that President Rodrigo R. Duterte will reconsider the DENR’s orders.

However, should the government decide to implement the decisions of Ms. Lopez, Mr. Palma said, “we might be compelled to go to the courts to seek redress.”

The mining alliance leader also stressed that they “will always support” efforts to rid the industry of irresponsible practices, but “the government should also not generalize because there are responsible companies.” —