Group wants to defend mining law before high court THE CHAMBER of Mines of the Philippines (CoMP) yesterday asked the Supreme Court (SC) that it be allowed to defend the Philippine Mining Act of 1995 during the second round of oral arguments next week. In a statement, the mining group said petitions challenging Republic Act (RA) 7942 should be dismissed as the high court has established its constitutionality in 2004 in the landmark case La Bugal-B’laan vs. Ramos. Posted on June 19, 2013 On Dec. 1, 2004, the SC, in a full court session, reversed its Jan. 27, 2004 decision that nullified the Mining Act of 1995 and the Financial and Technical Assistance Agreement between the Republic of the Philippines and Western Mining Corp. Philippines, a wholly-owned subsidiary of Australian mining and exploration firm Western Mining Corp. Holdings Ltd. The high court ruled there was nothing unconstitutional regarding the mining law’s implementing rules and regulations as issued by the Department of Environment and Natural Resources (DENR), noting that the state, through the President, retains and exercises full control over the mining operations. Should the SC reverse its earlier decision, the CoMP claimed the mining industry will suffer "significant loss of investors’ confidence." "To have the Supreme Court revisit its ruling so soon after the [La Bugal] decision became final in 2005 will definitely shake investor confidence and destabilize a critically needed industry… An adverse ruling by the Supreme Court on the petitions will be seen as once again changing the rules in the middle of the game," read the statement. Further, the group argued that "there is no compelling reason" for the SC to abandon its earlier ruling, adding that some ₱173 billion in mining investments have been poured into the country since 2004 making the industry a significant contributor to national development. Moreover, it noted that the petitions filed by former Akbayan Rep. Ana Theresia Hontiveros-Baraquel, Bayan Muna Rep. Teodoro A. Casiño, Jr., Quezon Rep. Lorenzo R. Tañada III (4th district) and several others raise issues which can be resolved by the Executive and Congress as the SC is already "overly burdened with more important cases for its consideration." Critics maintained that two provisions of the mining law -- Sections 80 and 81 -- placed the government at a financial disadvantage with the limited share in revenues to 2% excise tax and 5% royalty. During the first round of oral arguments in Baguio City last April 16, Christian S. Monsod, counsel for the petitioners, told justices that "the mining law is unconstitutional since the government is not getting its equal share in the mining contracts it enters into." Based on the justices’ inquiries, however, it appeared that the SC is not inclined to strike the mining law down, saying the DENR and Congress can just improve on the law by introducing amendments. "DENR has control over mining contracts. In fixing the terms and conditions of the contract, DENR has the upper hand. It can or cannot agree on the terms stated in the contract," Associate Justice Presbitero J. Velasco, Jr., told Mr. Monsod during the session. The SC had set a second round of oral arguments for June 25. The CoMP said if allowed to intervene the group will be represented by former Chief Justice Reynato S. Puno and former Associate Justice Vicente V. Mendoza. Mining has become of interest with the administration moving to overhaul the mining policy. Executive Order (EO) 79 -- the government’s new mining policy signed in July last year -- set stricter environmental standards for the monitoring and regulation of the industry and sought to increase the government’s share in the industry’s revenues. A bill which will set the new revenue-sharing regime for the mining industry will be filed once the 16th Congress opens in July. Relevant agencies are also working to operationalize EO 79 by drafting no-go zone maps for areas closed to mining, establishing more mineral reservations, as well as rationalizing rules for small-scale miners. Mining contributed ₱72.8 billion to the economy in 2012. -- Daryll Edisonn D. Saclag - See more at: bworldonline/content.php?section=Nation&title=Group-wants-to-defend-mining-law-before-high-court&id=72111#sthash.wtZmewrJ.dpuf
Posted on: Thu, 20 Jun 2013 00:01:45 +0000
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