(Updated) -- Fifteen mining companies out of the 20 facing suspension by the Department of Environment and Natural Resources (DENR) are based in Caraga region.
Environment Secretary Regina "Gina" Lopez, with Undersecretary Leo Jasareno, made the announcement Tuesday, September 27, as a result of the mining audit the environment bureau conducted shortly upon the assumption of President Rodrigo Duterte and Lopez subsequent appointment.
These mining firms will be given a show cause order and will be asked to answer within seven days upon receiving the order, Jasareno said.
The following are the mining companies based in Caraga region:
The other five companies are based in Leyte and Benguet and one in Nueva Vizcaya:
"We'll provide such firms results of our audit on respective operations," Jasareno said Tuesday.
He noted such move aims to give the mining companies a chance to dispute the audit results and explain if they indeed failed in complying with relevant laws and regulations.
Jasareno said upon receipt of the audit results, the firms have seven days to respond and explain themselves.
Failure to respond will result in suspension, he said.
"If violations we cited carry penal provisions, these will be applied as well to firms concerned," he said.
Should the firms' explanations be adequate and satisfactory, Jasareno said Department of Environment and Natural Resources (DENR) will allow them to continue operating.
"We'll issue the suspension order if there's strong basis to do so," he clarified.
Jasareno further said suspended firms must address environmental degradation arising from non-compliance with laws and regulations before DENR allows them to operate again.
"There's no deadline in completing such work," he said.
Lopez said the suspension does not mean she is against mining but insisted on strictly following environmental regulations to sustain the ecology and life.
"I have no beef against mining. I am vehemently against the adverse effects that may happen, that are happening in some of the situations," Lopez said.
"If we want to have a mining industry, that's either at par with or even better than the world's best, we must be very strict with our rules," she said.
The DENR chief plans to meet the audit-failing firms this week to determine how these can truly undertake responsible mining.
"I think some of those companies hold promise," she said.
Earlier, DENR suspended 10 metallic mines also for failing to comply with relevant laws and regulations.
Jasareno identified the mines as BenguetCorp. Nickel Mines Inc., Eramen Minerals Inc., LnL Archipelago Minerals Inc., Ore Asia Mining & Dev. Corp., Zambales Diversified Metals Corp., Berong Nickel Corp., Citinickel Mining & Dev. Corp., Emir Mineral Resources Corp., Claver Mineral and Mt. Sinai Mining Explo & Dev. Corp.
He said such firms are already undertaking work to address environmental degradation due to such non-compliance.
Lopez said she also plans to meet firms that passed DENR's audit to see how respective operations can be enhanced further.
The audit passing firms are:
Investor concern
If the 20 companies will not be able to explain why they committed the violations, it will eventually be closed. If this happens, a total of 30 mining companies will shut down.
"Due to the government's emphasis on responsible mining, social and environmental standards are becoming more stringent and compliance will remain a major challenge," said Eufracia Taylor, Philippines analyst at global risk consultancy Verisk Maplecroft.
Investor concerns over nickel production are unlikely to abate, especially as Congress prepares to review mining laws and mulls the possibility of a nickel ore export ban, Taylor said.
(VLA/Sunnex/PNA)
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