The Market Monitor Minding the Nation's Business
By Luis Leoncio
Controversy surrounds the mining audit being conducted by the Department of Environment and Natural Resources (DENR) after Semirara Mining and Power Corp. (Semirara) obtained what appeared to be a “leaked report” on its mining operations on an island in Antique.
Environment and Natural Resources Secretary Regina Lopez said she was shocked by the “premature” disclosure of the audit report on Semirara by the regional director of the Environment and Management Bureau (EMB).
“I am shocked, and that’s an understatement, that the regional director of EMB sent a report, showed it to the mining company without the knowledge of the EMB director, or even the head of the audit for that matter,” Lopez told the media. “That’s so out of protocol and leaves to serious doubt the validity of that report. That report is absolutely premature. And that RD (regional director) is in hot water.”
In a report to the Philippine Stock Exchange (PSE), Semirara said it received copies of the result of the audit on its Molave expansion project from a regional unit of the EMB.
“The project was found to be technically sound considering that all aspects have been considered, such as slope-stability analysis, analyses of pumping tests of dewatering wells, GHG emission reduction project, etc.,” said the audit report, copies of which were attached to Semirara’s filing.
The report further said the Mining Audit Report on Semirara showed “full compliance with environmental laws based on the matrix presented therein.”
“Although there were complaints received regarding the operation of the mining project, it is recommended that a dialogue with the complainants be undertaken,” the report added.
The environmental audit was conducted last Aug. 30 to 31 by the DENR Audit Team composed of representatives from the EMB Central Office, EMB Region 6, Mines and Geosciences Bureau (MGB) Region 6, and Civil Society Organizations, among others.
Semirara is the country’s only large-scale coal producer and is engaged in surface open-cut mining of thermal coal from its Panian mine.
Last month, the DENR probed alleged violations in its Molave Coal Mine Expansion Project.
At least 12 mining operations, mostly nickel, were also recommended for suspension by the DENR audit team for alleged inadequate social-development efforts, mining practice, and siltation.
“The 12 (mining operations) were recommended for suspension (by the audit team), but we are reviewing that,” DENR Undersecretary Leo Jasareno said.
Jasareno, however, said the number could increase, as there are 30 mining operations in the country.
Despite a suspension order, Jasareno said the mining firm could still submit its comment on the report or explain why it should not be suspended.
So far, 10 mining companies have been suspended, namely, Citinickel, EMIR Mineral Resources Corp., Mt. Sinai Mining Exploration Corp., Claver Mineral Development Corp., Ore Asia Mining and Development Corp., Berong Nickel, BenguetCorp Nickel Mines, Inc., Eramen Minerals, Inc., LNL Archipelago Minerals, Inc., and Zambales Diversified Metals Corp.
Jasareno said that after the audit, the government hopes to have “a roster of responsible miners.”
Once the full report is out, the DENR will embark on a review of coal-fired power facilities to ensure that they pose no danger to the environment.
Jasareno said the agency is drafting the guidelines for the audit of coal plants with focus on the companies’ compliance with the conditions of the Environmental Compliance Certificate (ECC).
He said the ECC review would include not only the 13 operating coal-fired plants, but also the 12 undergoing construction and 13 new applications.
All applications for building new coal plants are made through the Department of Energy (DOE) but the ECC for plants comes from the DENR.
Coal accounts for about a third of the country’s current energy mix, alongside other sources like natural gas. Renewable energy still plays a minimal role in the mix.