Bayan Muna condemns DENR order to resume large-scale mining in Rapu-rapu

June 14, 2006

Bayan Muna condemns DENR order to resume large-scale mining in Rapu-rapu

Bayan Muna Rep. Joel Virador condemned the recent government decision to allow Australian-backed Lafayette Philippines to resume large scale mining operations in Rapu-rapu island in Albay province.

"The decision of Department of Environment and Natural Resources (DENR) Secretary Angelo Reyes allowing Lafayette Phils Inc. (LPI) to resume large-scale mining operations in Rapu-rapu Island is a high crime against the environment. This decision sacrifices the people�s health and welfare in favor of foreign mining companies," Rep. Virador said.

"The DENR decision signals President Arroyo's bias toward foreign companies that will plunder our resources, destroy our rivers and seas, and violate national and international environmental laws," he added.

DENR Sec. Reyes announced yesterday the decision to allow LPI to resume open pit mining operations "with stringent monitoring by the DENR" in Rapu-rapu Island, Albay.

LPI was suspended in November 2005 due to the two spill incidents that resulted to cyanide contamination and fish kills.

Sec. Reyes issued a 30-day temporary lifting of its suspension order though it validated that Lafayette is guilty of technical, management and operational lapses that violate "responsible mining" standards.

"The Arroyo government has totally ignored the recommendations of the Rapu-rapu Fact-Finding Commission (RFFC). In fact, the Commission cited the DENR has been consistent in allowing LPI to violate the environmental protection requirements of its approved Environmental Protection and Enhancement Program (EPEP) and Environmental Compliance Certificate (ECC). This shows that the decision actually favors Lafayette," Virador said.

The RFFC found out that the government stands to receive a two 2 percent (2%) production share in Lafayette�s large-scale mining operation in the form of excise tax.

"The RFFC revealed that government only received P2.086 million in excise tax collections out of Lafayette�s gross revenues of P134.4 million in 2005. Government also greatly reduced its total expected tax revenues from Lafayette from US$20.48 million to US$8.68 million due to the tax incentives and economic privileges that it granted to the Australian company under the 1995 Mining Act and the Philippine Export Zone Authority. Essentially, government and Lafayette are deceiving the public that billions of investments will be lost if mining is stopped. Rapu-rapu is expected to produce copper, gold, silver and zinc valued at only US$350 million over six years," Virador said.

"We continue to support the RFFC recommendation to cancel Lafayette's ECC, a moratorium on mining in Rapu-rapu and even work for the immediate repeal of the 1995 Mining Act," he added.

The militant solon is principal author of House Bill 3846 repealing the 1995 Mining Act as a "definitive first step to stop the far-reaching consequences of foreign exploitation of the nation�s natural resources."

The Catholic Bishops� Conference of the Philippines (CBCP), environment groups, people�s organizations and lawmakers have been calling for the scrapping of the Mining Act of 1995 and cancellation of all pending applications for mining permits.

"Foreign corporations in large-scale mining operations will never help the economy progress nor will they accede to our spotty justice system. The 1995 Mining Act will only bring a fleeting upsurge in a few indicators, unstable seasonal jobs and the massive degradation of the environment," Virador ended. #