DENR sees shutdown of more mines after audit

The government is set to release on Sept. 22 the results of the audit of the operations of the country’s 40 metallic mines, as the Department of Environment and Natural Resources (DENR) said more mines would be shut down.

The Philippines is the world’s top nickel-ore supplier, and the suspension of the operations of 10 mines, eight of them nickel producers, for violating environmental rules, has led to worries of a supply shortage and had sent nickel prices soaring in the world market.

The suspension of local nickel mines and the risk of more closures lifted global nickel prices last month to a one-year high above $11,000 a ton, although the metal has since eased to just above $10,000 a ton. Nickel is used to make stainless steel.

Environment and Natural Resources Secretary Regina Lopez, a committed environmentalist who opposes open-pit mining, said the delay in the release of the audit results was due to scheduling issues, while the operators of additional mines to be suspended had yet to be informed.

“We are doing three days of ‘show cause,’ then we suspend,” Lopez said.

The crackdown aims to enforce stricter environmental protection measures, with President Duterte saying in August that the nation could survive without a mining industry.

Miners have labeled the audit a “demolition campaign,” as they questioned the inclusion of anti-mining activists in the audit teams that completed their inspections at the end of August.

The Chamber of Mines of the Philippines (COMP), which groups 21 of the country’s 40 metallic miners, said it had “trouble appreciating” the inclusion in the mine audit teams of groups such as the Alyansa Tigil Mina (ATM), which literally translates to Alliance To Stop Mining.

“Why are they part of the audit team when they can hardly be expected to be impartial?” asked chamber Spokesman Ronald Recidoro.

“Our members are fairly confident that they have complied with the technical and legal requirements.”

ATM groups non-governmental organizations, Church groups and academic institutions working to protect Filipino communities and natural resources threatened by large-scale mining operations, according to its website.

The mining industry has powerful opponents in the Philippines, led by the influential Catholic Church, following past environmental disasters and the displacement of local communities.

Lopez, who has described open-pit mining as “madness,” said she had committed to involve civic groups in the audit teams along with government experts.

“Miners need to upgrade their operations so that people don’t suffer,” Lopez has said, adding that issues such as silt build-up on rivers, fishponds and rice fields around mining sites were “unacceptable.”

“The problem is that mining here has not followed rules,” she added.
ATM’s partners in local communities took part in the audit across the country, said Jonal Javier, advocacy officer for the organization.

They told the audit team what to look into and submitted the public’s complaints against mines, he said.

The COMP’s Recidoro said four of its members had been affected and the operations of all four remained suspended despite having addressed environmental violations.

“How long is this suspension? Because an indefinite suspension is tantamount to a cancellation,” he said.

COMP, however, remains optimistic on the result of the DENR audit.

“We expect the findings to be fair, anchored on the promise of President Duterte to give us a clean government. We expect that the audit was done with utmost objectivity and that the findings would be properly transmitted to the respective audited mining companies for them to be able to address the gaps in their operations,” said Nelia Halcon, COMP executive vice president.

Halcon is confident of positive results on its chamber members that have long been practicing responsible mining.

“We continue to abide by transparency, accountability and integrity in all that we do. We expect no less from the DENR,” she added.

The DENR indicated that it would also conduct an audit on non-metallic miners and 13 coal-fired power plants in the country to check their compliance with environmental compliance certificates (ECC).

The power plants are located in Iloilo, Bataan, Cebu, Misamis Oriental, Pangasinan, Pampanga, Batangas, Quezon province and Zambales.

Among the major mines suspended is Citinickel Mines and Development Corp. (CMDC), a unit of listed nickel miner Oriental Peninsula Resources Group Inc. (ORE).

Lopez said the government suspended the mining operations of CMDC in Palawan for causing huge environmental destruction estimated to cost millions of pesos.

ORE said it plans to take legal action to have the suspension of the mining operations of its subsidiary, CMDC, lifted.

ORE said CMDC was compliant with environmental laws and standards.

The miner pointed out that the suspension order dated July 22 from the Department of Environment and Natural Resources’ (DENR) Mines and Geosciences Bureau (MGB) was “prematurely and improperly” issued as there was no prior audit conducted on the operations of Citinickel.

“Two years ago, we already did a total economic valuation of their benefits and the damage done to the environment. It was a university that did the audit. It was very, very detailed,” Lopez told reporters. LUIS LEONCIO