Filminera urges next DENR secretary to lift moratorium on new mining projects
AROROY, MASBATE — With the mine life of its gold project here ending next year, Filminera Resources Corp. is hoping the next Department of Environment and Natural Resources (DENR) chief can lift the moratorium on new mining projects imposed by then-Environment Secretary Regina Paz L. Lopez in July 2016.
Raymond Neil Mead, president and general manager of Phil. Gold Processing & Refining Corp. (PGPRC) which owns the processing facility, said the mine life of its Masbate gold project will end by mid 2018, which means the company will need another exploration area to continue production.
“We need them to come on line and the moratorium stops, that so there will be no potential disruption to production,” Mr. Mead told reporters at Filminera Resources’ headquarters here on Friday.
Sulpicio B. Bernardo III, resident manager of Filminera Resources, said the company has already identified additional reserves in its approved exploration area that would extend the 9.5 years of its mine life with an additional five years. This means the project’s mine life would stretch until 2023, instead of 2018 as estimated by an initial feasibility study.
“Incidentally, the extension falls within another MPSA (mineral production sharing agreement) but the MPSA is not the subject of the approved DMPF ( declaration of mining project feasibility),” Mr. Sulpicio told reporters on Friday.
Mr. Bernardo said the company has already submitted to the Mines and Geosciences Bureau ( MGB) an application for the approval of an amended environmental compliance certificate (ECC), one of the requirements to start the process.
However, its application was put on hold after Ms. Lopez assumed office in July 2016 and issued a moratorium on new mining projects. Under the order, the moratorium “shall cover the acceptance, processing, and/or approval of mining applications and/ or new mining projects for all metallic and nonmetallic minerals.”
Filminera Community Relations Manager Ramon S. Velasco said the application, which covers around 15,000 hectares, would pave the way for exploration work to discover reserves that can stretch its mine life.
“We already have the mining design but we cannot move because of the moratorium,” Mr. Velasco added.
Mr. Mead said the company is hoping the next Environment Secretary can reverse the policies that were made “in a hurry without [the regulator] fully understanding the situation.”
“We assessed the mine site and we opened up with a certain belief that we would have the opportunity to expand and to continue to grow. We spend $ 5 million plus a year for exploration with the belief that we’re going to do something with that. We also have exploration leases again in the belief that eventually we will convert them,” said Mr. Mead.
“Now all of a sudden they sign something that says you can’t do anything about the money you invested and you’re not gonna get the chance to recoup it in any way,” he added.
The Commission on Appointments last week voted to reject the appointment of Ms. Lopez, a known environmental advocate who has already ordered the closure of more than half the mines in the country, canceled dozens of contracts for future projects and banned open- pit mining in her less than 10 months in office.
Mr. Mead said the next DENR chief should “understand the mechanics of the mining business.”
“They can be an environmental advocate but they have to understand how mining can fit to it. As long as they understand that there are mines there who do the right thing, then we will be happy with whoever comes in. If we get someone else that comes in with just a chaotic view of the whole industry then we can’t recover,” Mr. Mead said.
Meanwhile, on the Masbate gold project’s forecast production for this year, Mr. Mead said the mine can yield around 175,000195,000 ounces higher this year.