Lopez insists on additional P2-million mine trust fund

  • Monday, April 10, 2017
  • Source:ferro-alloys.com

  • Keywords:Philippines Philippines trust fund DENR
[Fellow]Environment Secretary Gina Lopez will not overturn her decision to require suspended mining companies who want to remove their stockpiles to allot additional P2 million for a trust fund.

www.ferro-alloys.com: Environment Secretary Gina Lopez will not overturn her decision to require suspended mining companies who want to remove their stockpiles to allot additional P2 million for a trust fund.

The DENR’s memorandum order requiring suspended mining firms additional trust fund of P2 million per hectare before they could be allowed to remove their stockpiles was met with strong opposition from the mining community as this would mean additional cost.

The trust fund is different from the existing rehabilitation trust fund that is required of mining firms under Article 71 of the Republic Act 7942 and Department of Environment and Natural Resources (DENR) Administrative Order 2010-10.

Lopez, however, pointed that the existing fund is only for the rehabilitated area.

“They (miners) have so much money. In my authority as DENR Secretary, why can’t I say that you’re going to make billions, why don’t you put aside a certain amount of money for the farmers who  have been disadvantaged because of your practices?” Lopez told reporters on Friday.

“They are going to make these money, they have a rehabilitation fund but that rehab fund is not going to be able to take care of the farmers that are out of the rehabilitated areas. Who’s going to take care of them?”

Lopez cited that in Zambales alone, mining companies are poised to make billions from their stockpile.

“In Zambales, you know how much stockpiles they have there? It’s 2.6 million tons. You know how much money they are going to make there? That’s P2 billion. Why can’t they give P2 million to the farmers who that have been disadvantaged because of their practices?” Lopez said.

She then clarified that all the money that will be collected because of her order will not go to the DENR but to the local government units (LGU) that are hosting certain mine sites.

Earlier this week, Chamber of Mines of the Philippines (COMP), which is composed of the country’s biggest miners, said they will contest the said order for being redundant as RA 7942 and DENR AO 2010-10 already sets up trust funds.

Under the Philippine Mining Act, Mine Rehabilitation Fund (MRF) shall be deposited as a trust fund in a government depository bank and shall be used for physical and social rehabilitation of areas and communities affected by mining activities and for research on the social, technical, and preventive aspects of rehabilitation.

Miners should also allot separate fund for Social Development Management Program, which is a comprehensive five-year plan that ensures there is a sustained improvement in the living standards of the mining host and neighboring communities.

At least eight suspended firms already complied with the order and were allowed to remove their ores and ship them out of the country.

Several suspended mining firms have reportedly been required to put up a trust funds ranging from as low as P150 million to as high as P300 million depending on the volume or area of affected mining sites before they can move their stockpiles and be granted Mineral Ore Export Permit (MOEPs).

Meanwhile, Lopez clarified that no DENR employee will be axed out of the office to pave the way for her chosen new staff.

Reacting to the issue that some DENR officials are even planning to file a complaint against her, she only said “it’s a free world”.

“But if they are filing something, there has been a miscommunication. Of course, they can talk to me. I’m easy to talk to. They are filing a case based on miscommunication. I talked to union heads already and they are okay,” she added.

  • [Editor:Licaixia]

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