Olongapo SubicBay BatangGapo Newscenter

Wednesday, May 21, 2008

Zambales defends small-scale mining vs gov't control

ZAMBALES, Philippines - Zambales province has earned P128 million in revenues from the operations of small-scale mining in a span of 9 months, the provincial governor has bared, as he criticized a bid by the national government to take control of such activities.

Zambales Governor Amor D. Deloso said the revenues came from extraction fees, Ore Transport Permits and other local mining taxes. Unexpectedly, the huge collection did not come from big mining companies such as Benguet Mining Corp. and Dizon Copper Silver Mines Inc.

"How much more revenues we can get if these big companies pay their share to our province?" Mr. Delso asked.

He said he will push for the amendment of the Philippine Mining Act to require the automatic retention of fees and mining taxes to the local government where the mines are extracted.

Mr. Deloso noted that the province has not gained anything from the 75-year operation of the Acoje mines in the town of Sta. Cruz, the more than 50 year-operation of the Coto Mine in Masinloc, and the Benguet and Dizon gold mining operations in the town of San Marcelino.

"Surely, we still need investors," Mr. Deloso told BusinessWorld, admitting that the province cannot enter large-scale mining due to lack of funds.

"But these investors should not just freely haul our minerals and leave us with nothing," Mr. Deloso added.

Mr. Deloso said small-scale mining, which is permitted by the law, should be supported by national government agencies particularly the Department of Environment and Natural Resources.

But the department has been critical of small mining operations in Zambales and has recently warned that their operations would soon be halted, he said.

The governor pointed out that laws such as the Local Government Code empower local governments to manage and operate mining projects.

As defined by the law, small-scale mining covers five to 20 hectares, with mining extraction volume of up to 50,000 metric tons per year.

Small-scale mining operators in Zambales have been selling their products such as chromite and nickel to common buyers who then sell them to foreign customers, mostly Chinese.

Small-scale mining has been the source of livelihood of more than 1,000 residents of Zambales, Mr. Deloso said. - Rey Garcia, BusinessWorld

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