Finance Secretary Carlos Dominguez III KING RODRIGUEZ/ Presidential Photo
YOKOHAMA, Japan—The rejection of Gina Lopez’s appointment as environment secretary will allow the government to implement mining laws fairly and in accordance with due process, the head of the Duterte administration’s economic team said on Thursday.
“I have to say this: ‘I fully support her [Lopez’s] actions to make sure that the rules are followed. And I’m fully supportive of closing mines that are noncompliant,’” Finance Secretary Carlos Dominguez III told reporters on the sidelines of Asian Development Bank’s 50th annual meeting.
“However, there are laws that govern the relations of mines with the government. And those laws and regulations have to be followed and they cannot be ignored,” he said.
Lopez in February ordered the closure of 23 mining operations as well as the suspension of five others in 10 provinces. A week later, she ordered the cancellation of 75 mineral production sharing agreements entered into by the government with mining companies.
Affected companies had complained that the orders of the Department of Environment and Natural Resources (DENR) were issued without due process, although Lopez had claimed that the agency had informed them of the audits.
The interagency Mining Industry Coordinating Council (MICC), cochaired by the finance and environment secretaries, is undertaking a three-month review of Lopez’s orders, on top of the review of all other mining contracts across the country as mandated under the law.
Dominguez, referring to Lopez, said: “You may not like them [laws and regulations], but you have to follow them because if you don’t follow, what happens is that these [mining companies] will go to court, and the court will read the rules within the complaint and say, ‘you did not follow the rules’ so [the mines] will open again. So all that effort is for naught.”
Company risk
“Plus, you take a risk that these [mines that] were closed outside of the rules and the due process will sue us. And you know, as the guy who has to worry about money, I’m really worried because these things involve enormous amounts of money. So we want to make sure that the laws are implemented fairly and in accordance with due process, that’s all. That’s nothing new,” Dominguez said.
The government will move forward with a second review of the country’s mines despite the removal of Lopez as environment secretary, a finance official said on Thursday.
The MICC ordered a review in February of the operations and the environmental and social impact of the country’s mines.
“Definitely, it will continue because it’s the mandate of the MICC to do just that regardless of who’s in the (DENR),” Finance Undersecretary Bayani Agabin said in a statement issued in Manila.
Independent experts
The MICC is hiring independent experts to reassess the operations of all 311 mining contracts in the country in keeping with the directive of President Duterte to conduct a comprehensive review during a Cabinet meeting in February.
Acting on that presidential order for a reassessment of the 2016 audit done by the DENR that led to the closure or suspension of the 28 mines, the council subsequently held two meetings that resulted in the unanimous adoption of MICC Resolution No. 6.
The resolution provides for a multistakeholder review of all mining operations, and an agreement to seek a P50-million allocation from the Department of Budget and Management to fund this activity over a three-month period.
Chamber of Mines
The MICC ordered the review following criticism from miners that Lopez’s decision was baseless and lacked due process.
The Chamber of Mines of the Philippines has said it will seek to undo Lopez’s moves when a new environment secretary is appointed.
Lopez earlier asked Mr. Duterte to halt the second mine review, challenging its legality despite initially supporting it. —WITH REPORTS FROM DAXIM L. LUCAS AND THE WIRES