Wednesday, June 20, 2012

Aquino's proposed six point agenda on mining


The following are the points considered in the proposed Executive Order, we don't have a copy of the one which has been submitted to President Aquino.

What can you say?

THE SIX-POINT AGENDA TO ENSURE RESPONSIBLE MINING

Agenda 1: Ensure responsible mining's contribution to the country's sustainable development (i.e. economic and social growth and environmental protection);

Agenda 2: Adopt international best practices to promote good governance and integrity in the sector

Agenda 3: Ensure the protection of the environment by adopting technically and scientifically sound and generally accepted methods as well as indigenous best practices

Agenda 4: Enforce the primacy of national laws over local issuances and harmonize laws, policies, and regulation

Agenda 5: Ensure a fair, adequate, and equitably shared economic benefit for the country and the people

Agenda 6: Deliver efficient and effective management of the mining sector, both large and small scale

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Office of the executive Secretary – Strategic Initiatives and Monitoring Office (SIMO) 1

Six-Point Agenda on the Aquino Administration's Mining Policies with Specific Recommendations

PROPOSED ACTIONS TO IMPLEMENT THE 6 POINT AGENDA ON RESPONSIBLE
MINING

Agenda 1: Ensure responsible mining's contribution to the country's sustainable development (i.e. economic and social growth and environmental protection)

o Create an inter-agency council on mining and ensure participation and transparency in the mining industry

o Conduct public bidding/public auction of mining rights/tenements (abandon "first come, first serve" policy) for areas with known mineral resources

o Create an entity that will formulate standards, technicalities and financial framework of identified "frontier land" or "greenfields."

o Demand operational and financial reports from the mining contractors at all stages of the mining cycle

o Maintain revenue baseline data and properly account for all taxes and fees generated from mining

o Conduct verification at the national, regional and local levels of taxes and fees payable to Government, and monitor all existing and possible entry and exit points

o Provide alternative livelihood for displaced mining workers (especially in illegal mining operations)

o Properly account for and make public the Social Development and Management Programs (SDMPs) and the Environmental Protection and Enhancement Program (EPEPs)

o Ensure appropriate social protection measures are in place for vulnerable and marginalized sectors affected before, during, and after mining activities (i.e., labor-market programs, social and health insurance, and social safety nets)

o Explore the possibility of compulsory and mandatory insurance coverage for the affected environs and communities, as well as perpetual liability for the maintenance and rehabilitation of post mining sites (i.e., setting up trust funds or heritage funds with specified uses)

o Study the possibility of adopting the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of the USA commonly known as the Super Fund

o Include in the Final Mine Rehabilitation and Decommissioning Plan (FMRDP) the determination of the final land use of the area once mining has been completed and the provision of funds by the mining companies for the said development Increase penalties for all mining-related offenses and enforce strict measures (including labor related laws) aimed at catching and penalizing offenders (including foreigners actually doing mining)

o Craft a definition of Medium Scale Mining and the rules that will govern its operations

o Clarify the definition of small-scale mining and its scope, including who can apply for SSM contracts (should allow for mining associations and not be limited to individuals and cooperatives only).

o Provide for regulatory rules over traders and middlemen in the sector

o Enact a Comprehensive Mineral Code to cover the mining sector

Agenda 2: Adopt international best practices to promote good governance and integrity in the sector

o Create a Task Force Against Illegal Mining ( i.e. go after foreigners who are mining illegally)

o Implement a 'One-Stop-Shop' process for mining applications

o Provide additional staff and equipment to concerned government agencies (i.e., MGB, BOG, NCIP, BIR)

o Determine individual roles of agencies concerned and fix overlapping tasks and functions (i.e., MGB v. NCIP, MGB v. LGUs, etc.)

o Support the participation of the Philippines in the Extractive Industries Transparency Initiative (EITI)

o Formulate mechanisms to monitor Human and Labor Rights Violations and develop operational linkages with the Commission on Human Rights (CHR) and DOLE to assist victims

Agenda 3: Ensure the protection of the environment by adopting technically and scientifically sound and generally accepted methods as well as indigenous best practices

o Identify additional areas closed to mining (i.e., prime agricultural lands as determined by the Department of Agriculture, priority eco-tourism sites as determined by the National Ecotourism Council, critical areas and island ecosystems, among others)

o Create a separate environmental protection commission/agency to handle environmental regulation functions of the DENR

o Adopt Programmatic and/or Sectoral Environmental Impact Assessment (EIA) in the Philippine Environmental Impact Statement System (PEISS)

o Use the geo-hazard maps/mufti-hazard maps for the country and forecast of climate change impacts to determine "go" and "no-go" areas for mining based on areas reserved by law and executive issuances

o Consider the impact of the New Rules of Procedure for Environmental Cases for mining operations

o Strictly and consistently enforce environmental laws, rules and regulations.

Agenda 4: Enforce the primacy of national laws over local issuances and harmonize laws, policies, and regulation

o Enforce primacy of national laws over LGU issuances

o Push for the amendment of laws to remove gaps and conflict (i.e., conflicting jurisdictions of MGB with NCIP, LLDA, and LGUs in certain mining areas, no clear laws for mining in island ecosystems, where to mine and not to mine, etc.

o Stipulate the utilization of LGU share in mining revenues in mining laws, rules and regulations

o Study direct access of LGUs to their shares and increase LGU share

Agenda 5: Ensure a fair, adequate, and equitably shared economic benefit for the country and the people

o Reinforce State ownership of all mineral resources including valuable miners s in mine wastes and mill tailings and get government's due share when utilized, without prejudice to liabilities of mining contractors for the said wastes and tailings facilities

o Establish mineral reservations for the development of strategic industries for the collection of royalties from mining contractors, which shall be prospectively applied

o Encourage and promote the use of foreign technical assistance (FTAA), joint venture and co-production agreements in mining contracts (with appropriate guidelines on formula to be used; to facilitate negotiation of better sharing schemes (e.g. 50-50 net of taxes)

o Study the possibility of applying appropriate Home State rules and regulations on foreign mining companies operating within the Philippines through bilateral agreements

o Develop with the participation of the private sector and the academe a road map for the establishment of value-adding and/or downstream processing of minerals in the country

o Ensure inter-agency coordination relative to Government share in mining revenues; and hasten LGU access to their share in mining revenues (similar to PEZA share)

o Study how LGUs can get direct access to their share (similar to PEZA)

o Review existing taxes, fees, and incentives being given to mining companies (Review the Omnibus Investment Code/IPP) and leveraging employment generation/jobs

o Update the mineral commodity profile, conduct studies and build database on new markets, products and available technologies towards the development of downstream industries

o Consider tapping 3`d party international auditors to validate the volume and value of mineral exports in the Philippines

o Study existing fiscal schemes, processes, and procedures being utilized for oil, gas, and other energy-related extractive industries being utilized by DOE (If found feasible, could lead to proposed legislation)

o Study possibility of imposing "windfall profits" tax or share on mining companies (If found feasible, could lead to proposed legislation)

o Amend provision of the Philippine Mining Act on incentives for the mining industry

Agenda 6: diver efficient and effective management of the mining sector, both large and small scale

o Provide additional staff and equipment to concerned government agencies (i.e., MGB, BOC, NCIP, BIR)

o Engage in training and capacity building measures for concerned NGAs and LGUs (i.e., DENR-MGB, BOC, NC{P. BIR, etc.)

o Establish a public, accessible, and comprehensible database which consolidates all relevant data from all concerned stakeholders and sources (which includes maps under the proposed one-map system for government of mining areas, protected areas, ancestral lands and domains, among others)

o Implement a 'One-Stop-Shop' process for mining applications

o Ensure the declaration of Minahang Bayan areas pursuant to RA 7076 and the operationalization of Provincial/City Mining Regulatory Boards (P/CMRBs) in all SS mining areas

o Complete cultural mapping to identify Indigenous Peoples (IP) areas to complete the ancestral domain delineation process and address IP concerns/recognition of {P rights

o Streamline and improve the EPIC and certificate precondition process Ensure proper working and safety conditions for mine workers and people from nearby communities/ensure that proper benefits are given to mine workers (i.e. PhilHealth, Pag-lbig, SSS. Hazard Pay and Insurance)

o Ensure the social preparation for !Ps who will be affected by mining

o Explicitly clarify the preferential rights of the IPs

o Create a Task Force Against Illegal Mining (i.e., go after foreigners who are fining illegally)

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