Cabinet members ‘very concerned’ on mines’ shutdown

Cabinet members are “very concerned” on the ordered shutdown or operations suspension of several mine sites across the country as it would result in hefty government revenue losses, the Department of Finance (DOF) yesterday.

Initial estimates by the DOF’s Bureau of Local Government Finance (BLGF) revealed that the affected mininghost local government units (LGUs) in 10 provinces could incur at least R653.6 million yearly in foregone revenues.

The BLGF said the provinces affected either by the closure or suspension order are Benguet, Nueva Vizcaya, Palawan, Cebu, Bulacan, Zambales, Eastern Samar, Dinagat Islands, Surigao del Norte, and Surigao del Sur.

“The Cabinet members are obviously also very concerned about unemployment and people not having income, so we will put our shoulder to the wheel to address that issue first,” Finance Secretary Carlos G. Dominguez III said.

To resolve the issue on the controversial order by the Department of Environment and Natural Resources (DENR), Dominguez has called for a meeting of the Mining Industry Coordinating Council (MICC), which he cochairs, to assess the impact of the directive.

Dominguez said that initially, he had discussed with the heads of the Office of the Cabinet Secretary, the Departments of Labor and Employment (DOLE), Social Welfare and Development (DSWD), Public Works and Highways (DPWH), and Trade and Industry (DTI).

He said that during their discussion, DSWD Secretary Judy Taguiwalo said that her department will carry out a census to determine the extent of the jobs displacement, while Cabinet Secretary Leoncio Evasco suggested providing jobs under the government’s national greening program.

DOLE Secretary Silvestre Bello III informed Dominguez that emergency employment can be provided to displaced workers but only for a temporary time and in limited volume, while DTI Secretary Ramon Lopez said he will also pitch in proposals on how to generate jobs in the affected areas.

DPWH Secretary Mark Villar, meanwhile, said he will look into additional projects in communities hardest hit by the closure of mining operations so that jobs for the laid-off workers can be provided under a proposed supplemental budget.

Dominguez said his primary concern is the negative impact of the DENR directive on jobs, second on municipal finances and third on the country’s gross domestic product (GDP) growth.

“The national impact, the impact on the GDP — that, of course is a concern. But the people’s welfare is our first concern," he said.

Meanwhile, amid clamor from many stakeholders, the Department of Environment and Natural Resources (DENR) will finally release the mining audit results together with the cancellation and suspension orders for 28 mining companies. Environment Secretary Gina Lopez said that all suspension and cancellation orders for the 28 mining companies have already been signed and released yesterday.

She also said that she will release to the mining industry the committee recommendations submitted to her by the technical committee.

“When the presscon was done, the evaluations have been completed days before. What happened was an omnibus directive. It was prepared for all mining companies and our lawyers have decided it should be issued to individual mining companies. That’s why there’s been a delay,” Lopez said.

Just two days ago, Chamber of Mines of the Philippines (COMP), which is comprised of the country's biggest mining companies, said it is set to file a Freedom of Information (FOI) request to the DENR for the said reports.

In a statement issued after the closure order was announced by Lopez, the Chamber of Mines of the Philippines called by the DENR action as "illegal and unfair," and jeopardizes an industry that has paid a large amount in taxes and fees to the government.

"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.

The decision 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.