Philex Mining to put Silangan mine on hold

Philex Mining Corp., the mining company chaired by Manuel V. Pangilinan, will put on hold its next big mining project, Silangan Mine in Surigao del Norte, after investing P17 billion following Environment Secretary Gina Lopez’s order banning open-pit mining.

Pangilinan said the company would abide by the order and is hesitant to file legal action against it.

“She issued an order so we’ll have to hold muna. We have to follow government,” he told reporters on the sidelines of the ASEAN Prosperity for All Summit on Friday.

Lopez on Thursday ordered a ban on prospective open-pit mining just days before her confirmation hearing on Tuesday, making sure of putting the policy in place in case she does not get appointed next week.

In industry parlance, open pit mining is a surface mining technique of extracting rock or minerals from the earth by their removal from an open pit or borrow.

Lopez said each open pit is a financial liability for government for life. The move is part of her controversial crackdown on mining, which has led to the permanent closure of 22 out of 41 mines in the country, citing violation of environmental laws.

Pangilinan said there has already been some initial development on the project but nothing significant.

“We are on the stage of completing feasibility study which upon completion, we would submit to government for approval and confirmation but for now it’s on hold,” he said.

The Silangan project combines the development of the Boyongan and Bayugo gold, copper and silver deposits.

In issuing the ban, Lopez cited several reasons including financial and environmental liability; deprivation of economic use of the area; continuing adverse impact on the environment; and its high risk to host communities.

She said it was within her prerogative to issue an order to ban the practice, which is allowed under the Philippine Mining Act.

“Open-pit mining is too much of a risk. I have the mandate to evaluate and I have the duty to put a stop to it,” Lopez has said.

Lopez, widely criticized by mining industry players, have not been able to secure her appointment from the Commission on Appointments.