HONOLULU – President Aquino has hinted at amending Philippine mining laws if only to ensure that mining companies – whether local or foreign – would help protect the environment.
In a panel discussion here Friday with chief executive officers arranged by the Asia-Pacific Economic Cooperation, he noted that there also has to be some deterrent effect on firms that would violate environmental laws.
“Increasing fines for instance, versus the profit they make. The fine is such a pittance. I think in one instance, about a thousand dollars only and then they can have hundred of millions in terms of their exports. So it really is inconsequential,” he said.
The issue was raised after Richard Adkerson, president and CEO of Freeport McMoRan Copper and Gold Inc., expressed interest in mining in the Philippines, like the “exploration project” they have, but was concerned about government policy and security.
This prompted moderator Diane Brady, senior editor of Bloomberg, to ask, how would Aquino want to “tighten the rules” on companies that have mining industries, whose investments run in the millions of US dollars.
“We are in a period of having to, shall we say, tightening the rules. You know there’s one area – not their area – where, you take an area of shot, there seems to be a beach on the coastline,” Aquino explained.
“A closer shot will reveal that it’s run out from this open pit mining that some of the unscrupulous mining entities did not deem necessary to contain,” he said.
“There has to be stability, there has to be a rule of law, there has to be security for our people. These are long-term investments and they just cannot be made without that kind of assurances,” Adkerson remarked.
“There has to be a fair deal for the government, there has to be a protection of the environment; we have to provide for sustainable development in the area that we operate,” he stressed.
Amid rebel attacks against mining firms in Mindanao last month, Aquino said these firms have decided to stay.
“I met with the officers of Sumitomo group, and they assured us that they have no intentions of pulling out,” he earlier told officers and members of the Foreign Correspondents Association of the Philippines at Mandarin Oriental hotel in Makati City.
“So if that main victim of this whole issue has not indicated a lack of interest or lessening of interest, then perhaps I don’t foresee any other foreign investors undertaking the same,” Aquino said.
The only thing they requested was additional security which the government would provide, through the deployment of civilian armed forces geographical units who would all be under the supervision of both the military and police in their assigned areas.
Mining policy
Meanwhile, four members of the President’s cabinet have been tasked to craft the Philippines’ mining policy aimed at preserving the country’s natural resources and making use of minerals without sacrificing the environment.
Aquino said he tasked Environment Secretary Ramon Paje, presidential advisers Neric Acosta and Elisea Gozun and Climate Change Commission head Mary Ann Lucille Sering to come up with a comprehensive mining policy.
The President revealed this during the celebration of the 67 anniversary of the Leyte Gulf landing.
Aquino said he prefers allowing large-scale mining firms to operate rather than small ones that only tend to contribute to the pollution of the environment because they don’t have the means and capability to protect the country’s resources.
Small mining firms, he said, are also harder to regulate.
Panel discussion
The President is set on Saturday to have a “panel discussion” with chief executive officers of the world’s top companies, and have a dinner with fellow leaders of the 19th APEC Leaders’ Week.
He and other members of the Philippine delegation will be welcomed by a representative from the State of Hawaii, a senior US protocol representative, along with Ambassador Jose Cuisia and Consul General Leoncio Cardenas Jr.
In the afternoon, Aquino will be at Sheraton Waikiki where he is to meet with officials of JP Morgan, China National Cereals Oils and Foodstuffs Corp. and Freeport McMoRan Copper and Gold Inc., among others.
At 7 p.m. or during dinner, there will be an APEC CEO-Leaders’ Dinner dubbed “Taste of America Reception” at the home of couples Paul and Fredrica Cassiday.
Among the invited guests are CEOs from Hawaiian Airlines Inc., Kia Motors America and Kia Motors Manufacturing in Georgia, IM Systems Group Inc., Coldwell Banker Pacific, Principal Financial Group, Rinnai Corp., Formosa Plastics Group and the Raffo Group.
Craig Mundie, chairman of Microsoft, will host the APEC CEO-Leaders’ Dinner.
Aquino will visit today Pearl Harbor, hold bilateral talks with Australian Prime Minister Julia Eileen Gillard in the afternoon and have dinner later with APEC Leaders and their spouses at Hale Koa Maile Garden.
Tomorrow, he will attend the APEC Economic Leaders’ Meeting (AELM) at JW Marriott Ihilani, and have a “working lunch” with APEC Business Advisory Council members.
Topic for the heads of state is “Regulatory Reform and Competitiveness.”
There will also be an APEC Leaders’ Family Photo and another AELM session that will tackle “Energy Security and Energy Efficiency.”
After which, leaders of the 21-member countries will issue a “Joint Declaration.”
In the evening, there will be a Filipino community gathering at Hilton Village Hotel.
Shortly after the event, Aquino will leave for Manila through the Hickam Airbase here via a chartered Philippine Airlines flight PR001.
The Philippine delegation includes Ambassador Albert del Rosario, Transportation Secretary Mar Roxas, Trade Secretary Gregory Domingo, Energy Secretary Rene Almendras and presidential spokesman Edwin Lacierda.
Finance Secretary Cesar Purisima went abroad ahead of the Aquino delegation.
Business chambers, government agencies and other groups in Mindanao are throwing their support behind the proposed $5.9-billion Tampakan copper-gold project of Sagittarius Mines Inc. (SMI).
The groups cited benefits the project could bring to Mindanao.
Among SMI’s supporters are the Junior Chamber International-Durian City, Pagadian-ZDS Chamber of Commerce and Industry Foundation Inc. (PZCCIFI), Regional Development Council XII, the Dipolog Chamber of Commerce and Industry, the Mindanao Development Council and the Metro-Cotabato Chamber of Commerce and Industry Foundation.
The mining industry could help spur economic growth in the country by attracting new investments, creating jobs and reducing poverty, said JCI Durian City.
But JCI said mining companies must adhere to responsible mining practices that place great emphasis on environmental protection and preservation and on social equity.
JCI Durian City is part of the 6,000-strong Junior Chamber International chapter in the Philippines while
PZCCIFI, composed of business organizations and individuals in Zamboanga del Sur aiming to promote a positive investment climate in Mindanao, said the $5.9-billion proposed mining project had the potential to generate $5.4 billion in additional national taxes and $2.2 billion in local taxes and royalties.
Collectively, SMI’s backers appreciated the company’s support for education, community health and environmental programs in the areas covered by its mining project.
SMI data showed that the Tampakan project area had the potential to produce 13.5 million tons of copper and 15.8 million ounces of gold.
The copper-gold mine is also projected to generate $37 billion in export earnings and 2,000 full-time jobs. During the construction period, the project could provide employment to as many as 10,500 people, the majority of them members of the host communities.
