No legal basis for DENR’s open-pit ban, miners say

MINERS said the Environment department has no legal basis for a new policy banning open-pit mining by metal mines.

In a regulatory filing on Tuesday, Nickel Asia Corp. said it stands firm that the recently signed Administrative Order “is not in accordance with the law and is therefore legally questionable.”

The country’s top nickel supplier added that its operations will not be affected by the order.

For its part, Lepanto Consolidated Mining Corp. said the new policy was “beyond the authority of the DENR (Department of Environment and Natural Resources) Secretary.”

“The Philippine Mining Act does not prohibit open-pit mining as it allows mining in general, whether underground or open-pit (or surface),” according to a statement to the stock exchange on Tuesday.

Lepanto explained that Section 3 of the Philippine Mining Act of 1995 states that “mine wastes and tailings” are defined as the “soil and rock materials from surface and underground mining and milling operations with no economic value to the generator of the same.”

The definition is “a clear indication that the law contemplates open-pit mining as an acceptable method of mining. It should be noted that open-pit mining is the only appropriate manner of mining shallow deposits,” it added.

Manila Mining Corp. made a similar point, saying the mining law does not prohibit open-pit mining “as it allows mining in general, whether underground or open-pit.”

Century Peak Corp., a whollyowned subsidiary of Century Peak Metals Holdings Corp., United Paragon Mining Corp., Atok Big Wedge Co., Inc., Apex Mining Co., Inc., and Dizon Copper-Silver Mines, Inc. said the order is not expected to have an immediate impact on their operations as they do not have new mines using the banned method.

NiHAO Mineral Resources International, Inc. and GEOGRACE Resources Philippines, Inc., added that they will comply with all environmental laws, rules and regulations and administrative orders promulgated by appropriate government agencies specially the (DENR)

Meanwhile, Omico Corp. noted that its operating agreement with Macawiwili Gold Mining and Development Co., Inc. was terminated in August 2012.

However, Omico still maintains a 2.5% interest in Macawiwili Gold Mining and Development which may affect Omico only to the extent of its 2.5% stake. Environment Secretary Regina Paz L. Lopez signed on April 27 an administrative order banning prospective open pit mines from extracting metal ores.

Ms. Lopez cited the damage of such mines to the environment as the basis for the order. —