Philippines' Duterte keeps

open pit mining ban in

policy clash
Manolo Serapio Jr
3 MIN READ



MANILA (Reuters) - Philippine President Rodrigo Duterte

has not lifted a ban on open pit mining, his spokesman said
on Monday, going against the stance of a government panel
and the environment minister who are seeking to reverse the
policy.

Philippines' President Rodrigo Duterte Rodrigo Duterte gestures during a news conference on the sidelines of
the Association of South East Asian Nations (ASEAN) summit in Pasay, metro Manila, Philippines, November
14, 2017. REUTERS/Dondi Tawatao
Open pit mining is allowed under the laws of the Southeast
Asian country, the world’s top nickel ore exporter. But, the
former environment minister Regina Lopez banned it during
her 10 months in office, saying the environmental
degradation ruined the economic potential of places where it
was done.

The Mining Industry Coordinating Council (MICC), an inter-

agency panel that makes recommendations on mining policy,
last month asked the Department of Environment and Natural
Resources to lift the ban. Roy Cimatu, the new Environment
and Natural Resources Secretary, supports removing the ban.
Cimatu replaced Lopez when she stepped down in May after
the Philippine Congress voted not to confirm her.

“I assure you that this is one of the instances when I

personally asked the President if there’s been a change in
policy. And he says that’s there’s still no new policy on this,
there’s still a ban on new open pit mining,” Harry Roque,
Duterte’s spokesman, told a media briefing.

Roque said he was unsure whether the MICC

recommendation has reached Duterte. The MICC is co-
chaired by Cimatu and Finance Secretary Carlos Dominguez.

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Calls and messages to Cimatu seeking comment were not
immediately returned.
 But Finance Undersecretary Bayani Agabin, who is an
alternate for Dominguez on the MICC, said the policy on
open pit mining is under Duterte’s authority.

“The President has the final say on the matter,” Agabin told
Reuters in a text message.

The ban would only affect new projects. Lifting the ban
could open the door for some big-ticket ventures including
the $5.9 billion Tampakan copper and gold mine.

The Tampakan project in South Cotabato province on the

island of Mindanao is the nation’s biggest stalled mining
venture.

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Operator Glencore Plc to quit the project in 2015 but
development was first halted after South Cotabato banned
open-pit mining in 2010.

Lopez has said the project would cover an area the size of
700 soccer fields in what otherwise would be agricultural
land.

Duterte said in September he agreed with the open-pit

mining ban given the environmental damage it causes, but
would give mining firms time to find other ways to extract
minerals.
 Philippines bans open-pit
mining as minister
toughens crackdown
Enrico Dela Cruz, Manolo Serapio Jr
3 MIN READ
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

MANILA (Reuters) - Philippine Environment Secretary

Regina Lopez said on Thursday she will ban open-pit mining
in the country, toughening a months-long crackdown on the
sector she blames for extensive environmental damage.

FILE PHOTO: A view of nickel ore stockpiles at a port in Sta Cruz Zambales in northern Philippines February
8, 2017. REUTERS/Erik De Castro/File Photo
The ban comes just days before the outspoken
environmentalist-turned-regulator faces a confirmation
hearing in Congress that could lead to her removal as
minister after a storm of complaints from pro-mining groups.

Lopez, who has already ordered the closure of more than half
the country’s operating mines and has previously described
open pit mines as “madness”, said it was within her
prerogative to ban the practice, which is allowed under
Philippines mining law.

RELATED COVERAGE

Philippines open-pit ban will not apply to existing mines: minister

“Each open pit is a financial liability for government for

life,” she told a media briefing. “It kills the economic
potential of the place.”

The ban will take effect immediately but will not cover
existing mines, she said.

Mining is a contentious issue in the largely underexplored

Southeast Asian country after past examples of
environmental mismanagement.

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Lopez in February ordered the permanent closure of 22 of 41

operating mines in the world’s top nickel ore supplier and
 later canceled dozens of contracts for undeveloped mines to
protect water resources.

Miners have argued her actions are illegal and no mine has
yet been closed as companies pursue an appeals process that
can only be settled by President Rodrigo Duterte.

The Chamber of Mines of the Philippines described her latest

move as “absurd.”

“With this open-pit ban, she is essentially banning the mining

of shallow ore deposits that can only be extracted using
open-pit mining,” said Chamber spokesman Ronald
Recidoro.

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WANTS DUTERTE AS SUCCESSOR

The ban would halt the $5.9 billion Tampakan copper-gold

project in South Cotabato province in Mindanao island, the
nation’s biggest stalled mining venture.

Tampakan failed to take off after the province where it is

located banned open-pit mining in 2010, prompting
commodities giant Glencore Plc to quit the project in 2015.

Lopez has said the project would cover an area the size of
700 football fields in what otherwise would be agricultural
land.

Philippines' Environment and Natural Resources (DENR) Secretary Regina Lopez gestures during a
Commission on Appointment hearing at the Senate headquarters in Pasay city, metro Manila, Philippines
March 9, 2017. REUTERS/Romeo Ranoco
There are currently 14 open pits in the country, 10 of them
abandoned, said Lopez, who flew to several mining sites in
recent weeks to inspect them.

Lawmakers will resume hearings on Lopez’s appointment on

May 2 after sessions in March when pro-mining groups
assailed her capacity as minister.

Lopez said she was imposing the ban now because she was
unsure of the outcome of the hearings.
If lawmakers reject her appointment, Lopez said she wants
Duterte to succeed her.

“That’s the kind of person you really need at DENR,” she

said, referring to her agency. “Brave, cannot be bought,
everyone will be scared.”
Gov’t won’t lift ban on open-pit mining
Published June 8, 2018, 12:00 AM
by  manilabulletin_admin
By Madelaine B. Miraflor

It is now the job of mining companies to look for an alternative to open-pit mining method
as ordered by Environment Secretary Roy Cimatu — who, for the nth time, said the
government is not keen to lift the ban on the destructive method.

“We have to reinvent mining in the Philippines or  we will shut you down by the end of the
year,” Cimatu told mining companies during the Philippine Mining Club Luncheon in
Makati yesterday.

During the meeting, Cimatu said miners should prepare for a scenario where there is no
longer open-pit mining in the country.

“We will discuss what will be the alternative to this mining method,” Cimatu said.

“I’m asking you to form a working group to find out what’s the alternative to open-pit
mining and you should be prepared to present this,” he added.

Before flying to China in April, President Rodrigo Duterte said he would extend the ban on
open-pit mine if mining firms will fail to conduct progressive rehabilitation and plant trees.

To recall, it was former Environment Secretary Regina Paz Lopez who placed the ban on the
use of the open-pit mining method for the extraction of copper, gold, silver and complex
ores in the country.

Even if he has the power to repeal the order himself, Cimatu said it’s now up to the
President whether he will keep the order or not. Open-pit mining is an internationally
accepted method for mining where you extract minerals from the surface.

Passed into law in 1995, the Philippine Mining Act, the main legislation that governs all
mining operations in the country, currently allows open-pit mining.

Former Mines and Geoscience Bureau (MGB) director Leo Jasareno, however, said before
that the law is actually “silent in terms of the mining method that can be used.”

Cimatu said that moving forward, miners should adopt new technology to maximize mineral
ore utilization and environment protection

Meanwhile, mining companies which will fail to comply with a soon-to-be released
Department of Environment and Natural Resources (DENR) order on Progressive
Rehabilitation may face permanent disqualification to acquire and take hold of mining
permits.

During the luncheon, Cimatu presented new MGB proposed regulations, which provide
guidelines for additional environmental measures for operating surface metallic mines and
the setting of the maximum disturbed area for nickel mines.
 

SouthCot provincial board bans open-pit mining

Mindanews
4 June 2010

KORONADAL CITY - The Sangguniang Panlalawigan [Provincial Board] of South Cotabato has
voted to ban open-pit mining in the province, a move that merited praises from the staunchly
anti-mining Catholic church.

"[It's] Divine intervention!" declared Fr. Romeo Q. Catedral, social action director of the Diocese
of Marbel who is leading the church's opposition to large-scale mining. "This is a triumph for the
people not only of South Cotabato but also nearby provinces," he added.

Catedral and anti-mining groups have been closely following deliberations of the environment
code the past two weeks as they urged the politicians leave a legacy that would protect the
people and environment from the harms of open-pit mining.

Tampakan town in South Cotabato is at the center of a proposed large-scale mining operation,
mainly for copper and gold, by the foreign-backed Sagittarius Mines, Inc. The copper deposits in
the area are said to be the largest undeveloped resource in Southeast Asia.

On Wednesday, the SP, after a marathon session to deliberate on the province's environment
code, voted 5-4 banning open pit mining. There was one abstention while two other board
members were absent.

The debate focused on the sentence "mining in any form shall not be allowed in the province of
South Cotabato." The board members eventually settled on "open pit mining method and all
other forms of mining shall not be allowed in the province of South Cotabato."

But in a special session on Thursday, the provincial board voted anew, 6 to 5, to ban only the
open-pit mining method, according to Fr. Catedral, who still considers the development a victory.
Open-pit mining has been considered by environment groups as the most destructive method.

Catedral said they will continue watching closely the deliberations - which has been going on for
the last few years - until the environment code becomes an ordinance before June 30 as
promised by the provincial legislators.

Sagittarius, however, seems unfazed over the development.

"The Philippine Mining Act [Republic Act 7942] allows open pit mining. A local law cannot
supersede a national law," said John B. Arnaldo, Sagittarius corporate communications manager.

The provincial environment code, thus, "won't have a bearing in as far as the plans of the
company to pursue the Tampakan project" is concerned, he said.

But Arnaldo said the company will continue the dialogues with the stakeholders.

Tampakan owners step up pressure vs open-pit ban

Business World

16 June 2010

SHAREHOLDERS in the $5.2-billion Tampakan copper and gold project in Mindanao are building
up pressure on the governor of South Cotabato to overturn a provincial ban on open-pit mining,
which could derail the country's largest single investment.

The house of South Cotabato Governor Daisy P. Avance-Fuentes, whose term ends on June 30,
was picketed by supporters of Tampakan operator Sagittarius Mines, Inc. hours before a meeting
with executives of Switzerland's Xstrata Copper, the main shareholder.

Ms. Fuentes said she would veto the open-pit ban in the province's new environment code if
Sagittarius Mines presents proof the Tampakan project won't be disastrous to the environment
and the livelihood of thousands of farmers.
The Mines and Geosciences Bureau (MGB) yesterday backed the Tampakan project, reiterating
its position against any ban on open-pit mining.

"We strongly believe that the local law cannot supersede the national law or the Philippine Mining
Act of 1995," Edwin G. Domingo, MGB director, told BusinessWorld in a telephone interview.

Mr. Domingo said the mining method is dictated by the position of mineral deposits in an area.
The Philippine Mining Act of 1995 does not ban open-pit or any other mining method.

Indophil Resources NL, which holds a 37.5% stake in the Tampakan copper-gold project in
Mindanao, said yesterday trading of its shares in the Australian bourse would remain suspended
until the air is cleared over the impending local government ban on open-pit mining.

The Australian miner, the subject of a takeover bid by China's Zijin Mining Group, had announced
a trading halt from June 11 to 16 following the passage of a provincial ordinance in South
Cotabato banning the mining practice. The trading halt has been extended to June 23. Indophil
Resources said it wants a clarification from officials of South Cotabato and mine operator
Sagittarius Mines.

"Continued media reports, emanating from the Philippines, predict that the outgoing governor of
South Cotabato is considering approving a local government unit proposal to introduce an
Environmental Code which contains a ban on open-pit mining in the area. These same reports
also confirm that any such ban is beyond the scope of authority of local legislation," Indophil
Resources said in a disclosure to the Australian Securities Exchange.

Members of the South Cotabato provincial board approved last week the new environment code
that would become law once signed by Ms. Fuentes, who won a congressional seat in the May 10
elections.

The Tampakan copper-gold project which is located within the municipalities of Tampakan in
South Cotabato, Kiblawan in Davao del Sur, and Columbio in Sultan Kudarat, uses the open-pit
mining method.

An estimated 3,000 people from communities within the Tampakan mining site picketed the
residence of Ms. Fuentes yesterday in a bid to stop her from signing the provincial environment
code.

Ms. Fuentes said she's giving Sagittarius Mines one week to submit technical studies, particularly
one that will counter an earlier study that claims the Tampakan project will dry up a river system
traversing the lowlands of South Cotabato and neighboring areas.

The study by a British group and authored by Robert Goodland and Clive Wicks was published in
2008 in a book titled Philippines: Mining or Food?.

Ms. Fuentes noted that for five years that the environment code was under deliberation, the
company failed to provide technical details of its project despite repeated demands from the
provincial government.

"Perhaps the British study is accurate [that's why the company is keeping their technical study
from us]," Ms. Fuentes said. The British study shows a map where Sagittarius Mining operates,
covering a thickly forested area traversed by rivers, she said.

Excavating mineral resources using open-pit method would effectively kill the watershed source
and eventually dry up rivers in the lowlands, said Ms. Fuentes.

She said she was leaning toward signing the environment code because the risk of open-pit
mining to the province was too high, pointing to the location of mineral resources vis-a-vis the
water sources and chemicals to be used in the operation. She noted that 90% of Sagittarius
Mines' profit "will go out of the country."

Dalina Samling, tribal chieftain of Barangay Danlag in Tampakan, South Cotabato, said they
were not aware the company has not submitted the technical study requested by the provincial
government for a long time.

"We will hold a rally so that [Sagittarius Mines] will submit what the provincial government
wants," Ms. Samling said, appealing to Ms. Fuentes repeatedly during a dialogue to junk the
environment code.

Ms. Fuentes said Sagittarius Mines had submitted reports to the provincial government but these
are all on economic aspects of the Tampakan project.
John B. Arnaldo, Sagittarius Mines corporate communications manager, could not be reached for
comment.

Ms. Fuentes said the official copy of the new environment code has not yet been submitted to
her, although she has read a draft of it.

The outgoing governor and incoming representative of the second district of South Cotabato said
that following the Sangguniang Panlalawigan's approval of the environment code last week, she
met with top officials of Sagittarius Mines, including general manager Mark Williams.

Peter J. Forrestal, Sagittarius Mines president and Xstrata Copper executive general manager for
Asia Pacific, was to meet the governor yesterday.

Xstrata Copper, the world's fourth-largest copper producer, has the controlling equity in the
Tampakan project.

-- Kathleen A. Martin and Romer S. Sarmiento

Zijin Says Open-Pit Ban Adds ‘Uncertainties' to Indophil Mine

Bloomberg

11 June 2010

Zijin Mining Group Co., buying Indophil Resources NL, said a ban on open-pit mining by a local
government in the Philippines adds "uncertainties" to the Tampakan mining project partly owned
by the Australian company.

Zijin in December agreed to buy Indophil Resources to gain a stake in Southeast Asia's largest
untapped copper and gold deposit in the Philippines. The bid is awaiting Chinese regulatory
approval.

"Since we are still awaiting approval for the bid, we can't say what we will do," Zhao Jugang,
head of board secretary office at Zijin, said by phone. "Certainly the ban would add uncertainties
to the project."

A unit of Xstrata Plc, the majority owner of the deposit, said yesterday it will consider "available
options" after the provincial government banned open-pit mining. Open-pit mining is the safest
and only economic method for mining the deposit, the unit said.

Zijin, China's largest gold producer, fell 0.2 percent to close at HK$5.62 in Hong Kong trading.

-- Helen Yuan. Editors: Tan Hwee Ann, Tony Barrett

Indophil Suspends Shares After Mining Ban Reports

By Jason Scott

Bloomberg

15 June 2010

Indophil Resources NL, owner of a third of the undeveloped $5.2 billion Tampakan copper project
in the Philippines, suspended its shares from Sydney trading following reports of a provincial ban
on open-pit mining.

The company is seeking clarification from government officials and partner Sagittarius Mines
Inc., a unit of Xstrata Plc, Melbourne-based Indophil said today in a statement. Media reports say
that the outgoing provincial governor of South Cotabato is considering approval of a ban, it said.

"These same reports also confirm that any such ban is beyond the scope of authority of local
legislation," Indophil said.
Xstrata and Zijin Mining Group Co., which agreed in December to buy Indophil for A$545 million
($471 million), have said they are concerned by the mooted ban. The Tampakan project is
Southeast Asia's largest untapped copper and gold deposit.

Shares of Indophil were halted on June 11. They fell 0.9 percent to A$1.095 the previous day,
giving the Melbourne-based company a market value of A$462 million. The stock will be
suspended until no later than June 23, today's statement said.

Sagittarius, which has a 62.5 percent stake in Tampakan, said last week it will consider
"available options" after the province's legislative council approved a ban.

The project will produce an average of 340,000 metric tons of copper and 350,000 ounces of
gold annually for 20 years, Indophil said in April 2009, citing a study by Xstrata, the world's
fourth-largest copper producer. First production may start in 2016, it said in October.

Fujian province-based Zijin is the largest gold producer in China, which is the world's biggest
metals consumer.

Editors: Keith Gosman, Andrew Hobbs

Indigenous And Environmental Groups Laud Open Pit Mining Ban In South Cotabato,
Philippines

http://indigenouspeoplesissues.com

15 June 2010

Various groups including indigenous communities lauded the Provincial Board of South Cotabato
for banning open pit mining in the province as stipulated in the newly passed environment code
of the province.

"Nalipay kami nga ginabawal na ang open pit mining sa prubinsya" said Daguil Capion, a B'laan
leader of Datal Biao community in Tampakan, South Cotabato. (We are happy that open-pit
mining will now be banned in the province)

Capion has been leading his fellow B'laans in opposing Swiss-owned SMI-Xstrata's Tampakan
Copper Gold Project in the tri-boundary of South Cotabato, Davao Del Sur and Sultan Kudarat
provinces.

Capion also criticized the company for bringing his fellow B'laans to a rally in Koronadal City to
oppose the passage of the new environment code but neglected them afterwards.

"Naluoy ko sa akong mga paryente kay nagbaktas lang sila pauli ug gipang gutom, mga alas
dose na sa gabii sila nakaabot sa Datal Biao. Ako na lang sila gipakaon ug gipakape." added
Capion. (I pity my relatives who walk their way home and hungry, and arrived at midnight here
in Datal Biao. I offered them food and coffee)

Jubilant yet vigilant

"The Environmental Code is a landmark legacy of the present Provincial Board of South Cotabato
and at the same time a victory of the people in Region 12" said spokesperson Sr. Susan Bolanio,
OND of SOCSKSARGEN CAN (Climate Action Now).

"The banning of open pit mining is a milestone in the 15-year people's campaign against the
Tampakan copper-gold project or what was then known as the Columbio FTAA" said Jean Marie
Ferraris of the Legal Rights and Natural Center (LRC-KsK/FoE Phils)

Ferraris added that the members of the Sangguniang Panlalawigan "have courageously exercised
their right to say no to large-scale mining that would only jeopardize the welfare of their
constituents in the province".

Bolanio however warns that the battle isn't over yet, saying that "there are powers that be who
will work hard to challenge and block the open pit mining ban provision of the code".

Tribute to Fulong Binuhay Masalon

Meanwhile, B'laan communities in Malungon, Sarangani Province were deeply saddened by the
death of Fulong Binuhay Masalon, the tribal chieftain of Barangay B'laan.
Masalon has led his people in fighting against the entry of SMI-Xstrata in their ancestral
domains. Before he died, the tribal chieftain told his people to continue defending their land.

"We will never allow SMI-Xstrata to destroy our lives and livelihoods" said one of the leaders in
the community.

Xstrata to go ahead with $5.2bn Philippines project, despite risk of ban

Manny Mogato

Reuters

11 June 2010

MANILA - A unit of global miner Xstrata vowed on Friday to proceed with public discussions and
technical studies on a $5.2 billion copper-gold project in the southern Philippines despite the risk
of a ban on the venture.

Manila has ambitious plans to pull the mining sector from its current moribund state by luring
billions of dollars of foreign investment for development, but analysts warn the ban could prove a
major test case of its policies, and derail such moves.

The Tampakan mine, considered Southeast Asia's largest undeveloped copper-gold prospect, was
opposed by local residents who feared the open pit mining method to be used by Xstrata's
Philippine affiliate Sagittarius Mines Inc would pollute a major river irrigating farms. Mine
production is set to start in 2016.

"We will continue with our engagements and with whatever studies," said John Arnaldo,
spokesman of Sagittarius Mines.

"Of course, our shareholders are concerned," he told Reuters. "We will respect whatever decision
the provincial board and the governor may have and we will take it a step at a time."

Xstrata could continue its pre-development work on the mine because the ban has yet to take
effect, state agency the Mines and Geosciences Bureau (MGB) said.

The agency also said it may question the ban with the courts as a last resort, adding the
measure could hinder investment in the mining sector.

On Wednesday, the legislative council of South Cotabato province in the southern Philippines
passed a law banning open pit mining due to environmental concerns, a move that directly hits
the Tampakan mine project of Xstrata -- the world's fourth largest copper producer.

Provincial governor Daisy Avance-Fuentes had told Reuters she was likely to approve the
measure because of its wide local support, adding the ban could take effect before local officials
step down on June 30.

Legal Route

The government would use all means to assure residents all necessary safety and environmental
safeguards would be in place around the Tampakan mine, MGB director Edwin Domingo said. He
added that Manila was hopeful the new local government taking over by the end of June would
reconsider and amend the ban.

"There's still the legal process because we sincerely think that national laws are superior over
local laws. As much as possible, we don't want to go into that angle," Domingo told Reuters on
Friday.

"We would rather exert and maximise all available efforts to really discuss further with the
stakeholders their various issues and concerns.

"This is going to have a negative impact on our future investors. A lot of our copper and gold
deposits can be technically and viably developed only through open pit mining."

Analysts criticised the local government's action, saying it ran counter to the Philippines' policies
and national interests.
"It's very bad," Peter Wallace, head of investment consulting firm Wallace Business Forum, told
Reuters. "To impose a restriction, it's short-sighted."

"You can write mining off because Xstrata has gone a long way and is now well known in the
mining community," he said. "People are watching that. What is happening here is an indicator of
the acceptability of other companies coming in as well. So it's a major test case."

Xstrata has completed a feasibility study of Tampakan, which has an estimated resource of 2.2
billion tonnes containing 12.8 million tonnes of copper and 15.2 million ounces of gold at a 0.3
percent copper cut-off grade.

Other analysts say the Philippine measure could prompt other countries to take similarly
stringent action to protect the environment.

Australia's Indophil Resources NL has a 34 percent stake in the Tampakan venture. The mine,
discovered in 1991, never left the drawing board because it was dogged by environmental woes,
communist insurgencies, and political instability.

(Writing by Rosemarie Francisco; Editing by Clarence Fernandez)