BusinessWorld - November 4, 2011THE CANADIAN embassy has held a dialogue with the Department of Environment and Natural Resources (DENR) regarding a recently passed mining ban that has affected a Canadian mining firm, but it expects Canadian miners will remain in the country for now.
"I don’t think anybody is considering pulling out at this stage," Canadian Ambassador to the Philippines Christopher Thornley told reporters at the sidelines of a hospitality school launch in Mandaluyong City.
The ambassador noted that while the Philippine government’s approach to investments in mining was positive, there were also certain negative factors that Canadian mining firms in particular have to deal with.
"Basically, Canadian miners are experienced with that. The Philippines is certainly not the most difficult country they have had to deal with," Mr. Thurnley said.
This comes as the Zamboanga del Norte government earlier passed a provincial ordinance banning open-pit mining in the province, affecting the Pangilinan-led Philex Mining Corp. and TVI Resource Development (Philippines) Inc. (TVIRD), the local arm of Canada-based miner TVI Pacific, Inc.
TVIRD, which operates the Canatuan copper mine, will contest the ordinance in court, an earlier report said.
In response, the Chamber of Mines of the Philippines criticized the ordinance, taking issue with the ruling’s conflict with the Philippine Mining Act of 1995 which permits open-pit mining operations under the government’s Mines and Geosciences Bureau.
"We appeal to our political leaders to stop penalizing legitimate and responsible enterprises and stop believing false and anti-development propaganda disguised in the name of the environment or ancestral domain," Rocky G. Dimaculangan, Chamber of Mines of the Philippines vice-president for communications, said in an earlier statement.
Mr. Thornley had hinted at a similar sentiment. "We are discouraged that on a certain front, our mining investments are being frustrated by actions which are not in the jurisdiction of the parties taking those actions," he said.
He confirmed that the Canadian embassy has consulted with the DENR, which oversees and regulates mining operations in the country. "So the government of the PH is aware of that and we are very satisfied with their response so far," he said.
"It’s now up to them to take the necessary action, but clearly, we’ve raised this on a government to government level, and we support whatever action that is being taken by the national government," Mr. Thornley added.
Further, the Department of Finance announced on Thursday possible plans to impose new mining taxes: a 5% royalty on atop a 2% excise tax from mining firms’ gross sales, an earlier report said. Mr. Thornley declined to directly comment on the issue.
"As long as the Philippine government provides the conducive environment for investments, Canadian miners will continue to go where the minerals are," Mr. Thornley said.
"Mining is a big part of the Canadian economy, and we’ve been doing it for many years," he added.
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