CMP Asks DENR to Regulate Small-Scale Mines from LGU

MANILA, Philippines — The Chamber of Mines of the Philippines (CMP) has pushed for the transfer of regulation of small scale mines to the Department of Environment and Natural Resources (DENR) from local government units to ensure strict environmental monitoring.

While rigid rules are imposed on environmental and social practices of large-scale mines, small-scale mines do not go through such stringent scrutiny. This has induced destructive environmental practices among some small mines, which impute a bad reputation on the entire industry, the chamber said.

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TITLE: DENR asked to regulate small mines
SOURCE: Manila Bulletin (online)
By: MELODY M. AGUIBA
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According to the CMP, this may be prevented through the transfer of their regulations from LGUs to DENR.

“The entire permitting process, regulation, control and supervision of small-scale miners should be given to the DENR instead of the LGUs which do not have the technical competence to deal with fiscal and environmental issues related to mining,” said CMP president Benjamin Philip G. Romualdez.

The loose regulatory system for small-scale mines also causes revenue loss for the national government, aside from the adverse environmental effects.

“Small-scale miners should likewise pay excise taxes and other taxes. They should be required to adhere to the same stringent environmental standards imposed on large-scale miners,” he said.

Large-scale mines are disadvantaged over small-scale mines when it comes to securing the support of LGUs since LGUs do not speedily receive their share in excise tax that directly go to the national treasury.

“The two-to-three year delay in the remittance to the LGUs of their shares in the excise tax from minerals has for many years now been one of the main reasons why the industry isn’t getting much support from LGUs,” Romualdez said.

“This explains the skeptical attitude of LGU officials towards the mining industry and their inability to fully appreciate the benefits. Ironically, the economic benefits of LGUs from small-scale mining are readily available because it is the LGUs that issue permits to small-scale miners.”

For the regulation of large-scale mines, CMP has proposed mandatory implementation by government of the Extractive Industry Transparency Initiative to monitor industry tax payments and how these are utilized for community development.

CMP recommended the EITI as a good governance strategy in the Philippine Medium-Term Development Plan 2010-2016.

“It will stamp out graft and corruption and improve transparency in permit issuances and tax payments,” he said.

Large-scale mines particularly for holders of a Financial and Technical Assistance Agreement (FTAA) are those that have a minimum investment of $50 million and have obtained approval to explore, develop, and mine 81,000 hectares of land.

Complete URL: http://www.mb.com.ph/articles/338026/denr-asked-regulate-small-mines