TVI Pacific Inc. is a publicly-traded Canadian company that is focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is pre-developing its Balabag gold and silver project, and is carrying out exploration programs on its other North Zamboanga tenements. TVI also has an interest in an offshore Philippine oil property. (TSX: TVI) (OTCQX: TVIPF). More at www.tvipacific.com
TVI Pacific - Accomplishments & Challenges - December 2011
1. Mining in the Philippines
Our Accomplishments and Our Challenges
2. Our Properties
North Zamboanga Tenement Area = 162,403 hectares (401,307 acres)
Dipolog City
0 Kilometres 25.0 Tamarok & Tapisa
Manila
0 Miles 15.5 Copper / Gold
Projects
Bonbon Gold
Prospect
Zamboanga del Norte
Gutalac Zamboanga del Sur
Municipality
Baliguian
Municipality Zamboanga Sibugay Balabag
Gold / Silver
Project
Canatuan
Siocon Copper / Zinc
Municipality Mine
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3. TVIRD Timeline
1994 Signs an Exploration Agreement with Option to Purchase
1996-1998 Exploration commences under approved MPSA
2001 Executes MOU with Siocon Subanon Association, Inc.
Buys and processes tailings from illegal small-scale miners (the “Environmental
2002 - 2004
Cleanup”)
2004 Gossan Project begins
2005 Recommences definition drilling/development program
Completes Gossan Dam, applauded by Canadian Ambassador and DENR
2006
Secretary
2008 Gossan Project ends – Construction begins for Sulphide Project
2009 Commercial operations at Sulphide Project commence
2010 Presidential Mineral Industry Environmental Awards
2010
Platinum Achievement.
2011 Presidential Mineral Industry Environmental Awards
2011 Titanium Award for Excellence in Environmental Management
Safest Mine Award
2011 Ordinance Banning New Open Pit Mining Filed
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4. Canatuan Before…
The area was an ecological
disaster with a degraded water
supply as a result of small-
scale mining
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11. What we had to contend with…
Actions and Attacks Allegations Actors
• Blockades of company • Human Rights abuses • Local government officials
equipment and personnel • IP Rights violations • DIOPIM Committee on
• Protest actions and rallies • Harassment Mining Issues (DCMI) and
• Complaints lodged in other Roman Catholic
• Encroachment on
Philippine Congress, Church-based groups such
ancestral domain
Senate, Provincial Board, as CAFOD
• Lack of social acceptance
and Canadian Parliament • Philippine Indigenous
• Militarization People’s Links
• Complaint filed with the
UN Committee on the • Environmental destruction • Mining Watch Canada
Elimination of all forms of (e.g. “collapse” of tailings
• Christian Aid
Racial Discrimination dam)
• Rights and Democracy
• Report: “Mining or Food” • Cyanide poisoning
• Alyansa Tigil Mina
• Philippine and
• Former illegal small-scale
International media
miners in Canatuan
• Internet
• National government
executives and legislators
13. Strong Indigenous leadership support
Canatuan before… Canatuan today…
Subanon Chieftain Timuoy Jose Anoy (right) with Subanon Chieftain Timuoy Jose Anoy (far right)
Subanon Seven Rivers Overall Chieftain Timuoy with Mansaka Chieftain Datu Cristante Alfons
Noval Lambo protesting against mining. and B’laan Chieftain Folong Motom Madule
leading the opening ceremonies of Coalition for
Responsible Mining in Mindanao launching
program in September 2010.
14. Social Development & Management Program
Health, Sanitation and Fresh Water Sustainable Livelihood: Demo Farms
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15. Corporate Social Commitment
Health and Sanitation Sustainable Livelihood
Built health clinic that Focused on sustainability, economics
provides free 24/7 healthcare and social well-being of community
and ambulance service to including micro-finance, technical
impact communities skills, training & apprenticeship
programs
Responsive Education Royalty & Support for Ancestral
Domain
Built 6 schools, currently
2,500 students, 56 high Extended technical & financial
school graduates & 48 assistance for crafting of Ancestral
college scholarships Domain Sustainable Development &
Protection Plan
Infrastructure Development for Impact
Communities
Built or improved 85
kilometres (52.8 miles) of Initiated projects in areas outside
roads, including 4 bridges Canatuan:
& a spillway Built Sta. Maria water system
Built 11 kilometres (6.8 miles) of farm-
to-market road
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16. Environmental Commitment
Biodiversity Tailings Management
50% of mining area remains in Four tailings storage facilities
original habitat condition constructed with three undergoing
reclamation
Watershed Management Monitoring Programs
More than 25 locations subject Monitoring by third party professionals
to daily, weekly and quarterly completed on weekly, quarterly and
water quality monitoring annual basis
Reclamation and Research Programs
Rehabilitation
Onsite research and studies for
More than 200,000 trees have passive wetland acid mine treatment
been planted since 2004 using indigenous plants
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17. We are Transparent
• Mine Tours – “Our Doors Are Open”
• Quad-Media Information Campaign
• Strategic Industry IEC Alliance
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18. “Best of the best” – and No Fatalities
Safety & Environmental Awards
National Mine Safety and
Environment Conference
(November 2011)
Number 1 Priority
2011 Presidential Mineral
Industry Environmental Awards
• Titanium Award for Excellence in
Environmental Management
• Safest Mining Operation
• Safest Surface Mining Operation
• Safest Mineral Processing,
Concentrator Category
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19. “Best of the best” – and No Fatalities
Safety & Employer Awards
Department of Labor and Employment Department of Labor and Employment,
(May 2011) the Rotary Club of Zamboanga City-
Number 1 Priority
• Outstanding Employer of Zamboanga del East and the Zamboanga Peninsula
Norte, Industrial Category Tripartite Industrial Peace Council
(June 2011)
National Mine Safety and Environment • Most Outstanding Employer in Region 9
Conference (Zamboanga Peninsula)
(November 2010)
2010 Presidential Mineral Industry Philippine Bureau of Working
Environmental Awards Conditions Awards, Department of
Labor
• Platinum Achievement Award, Surface (Sept 2010)
Mining Category
• TVI Safety for its 2009 performance of zero
• First runner-up in the Safest Mines lost-time accidents
Awards, Concentrator Category
• Top Occupational Safety & Health Manager,
• Runner-up in the Mining Forest Mining Category
Award, Metallic Category
Over 6 million man hours worked Over 4 million man hours worked
with only one lost-time incident with no lost-time incidents
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20. TVI’s Contribution to the Economy
TVI has provided all of these to the local and regional
communities advancing Siocon from a Class 4 to a Class 1
municipality:
Jobs
Roads, transportation across the peninsula
Power & Communications (cell tower)
Multiple levels of Education
Hospitals, 24/7 Ambulance
Security, peace & order
Port facilities
Water purification systems
Training –agriculture, crafts, apprenticeship programs
Environmental cleanup from pre-illegal small scale miners
Taxes and royalties to Subanon and others
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21. TVI’s Contribution to the Economy
2004-2008 2009 2010 2011
As of Sept
Total
Excise Tax Paid (PhP) 77.8 M 62 M 68 M 53.6 M 261.4 M
Royalties Paid to IP (PhP)
1%, now 1.5% of gross revenue
39.6 M 30.6 M 35 M 41.7M 146.9 M
Actual SDMP (PhP)
Expenses
23.2 M 7.4 M 11.5 M 25.9M 68.0 M
Business Permit (PhP)
(Siocon)
6.7 M 0.35M 4.4 M 11.5M 22.9 M
Real Property Tax (PhP)
(Siocon / Baliguian)
0.7M 0.3 M 1.5M 4.1M 6.6 M
CONTRIBUTION 148 M 100.6 M 120.4 M 136.8 M 505.8 M
Operating Costs (PhP) 4.0 B 1.3 B 2.0 B 2.1 B 9.0 B
CapEx 1.8 B 0.2 B 0.3 B 0.3 B 2.6 B
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22. Mining in the Philippines
The Challenges
Ordinance Banning New
Open Pit Mining
23. The Ordinance
The Ordinance was approved by the
Sangguniang Panlalawigan (Provincial
Board) of Zamboanga del Norte
Bans open pit mining – but expressly permits
small-scale mining, and mining by tunneling (i.e.
underground)
Gives current open pit operations one year to
operate, after which they have to cease
operations and become completely rehabilitated
After 60 days, it requires existing open pit
operations to have “totally curtailed” any
siltation, erosion and mudflows
24. The Ordinance
• GIVES THE GOVERNOR EFFECTIVE CONTROL OVER MINING
• IS DRACONIAN
Governor is entitled to issue cease and desist orders, and to seize the mining
assets, as well as the inventory of product produced, and of course, throw
management in jail.
Requires that for any new application for mining (non open-pit) tenements, the
Governor must give clearance of consultation – and there must be approval by
all LGUs including the Province.
Gives any SEC accredited NGO the power of citizen’s arrest against any officer of
a mining company if the NGO believes there is a violation of any provision of the
Ordinance.
Levies 10% Environment Fund on new projects
25. The Ordinance
Is Invalid and Unconstitutional
Ordinance violates the due process, equal protection and non-
impairment of contracts clauses of the 1987 Constitution
Ordinance is contrary to the applicable provisions of the Local
Government Code and the Mining Act, and runs counter to the
public policies espoused in these laws.
Ordinance would adversely affect the successful environmental
protection and enhancement programs and the positive socio-
economic impact that TVIRD operations has had on the community
26. The Ordinance
What It REALLY Means
Good Mining versus Bad Mining
• Designed to promote irresponsible small-scale mining
Enforcement versus Non-Enforcement
• Removes National Government Responsibility to ensure
responsible mining
Accountability versus Non-Accountability
• Removes National Government Responsibility for a clean
environment versus destructive small-scale mining devastation
to the environment
27. The Ordinance
Will shut down an operation that has become a major contributor
of economic benefit to the Province.
a. Cleaned up the toxic waste of previous, illegal small-scale miners;
b. Extensively rehabilitating impact and non-impact areas (230,000 trees to date);
c. Invested US$60 million in exploring and developing Canatuan;
b. Invested US$23 million in the construction of world-class dams;
c. In operation for seven years with full accountability;
c. We employ ~1,000 people and positively affect the lives of thousands
more;
28. The Negative Impact
If the Ordinance is Not Stopped…..
Corporate Social Commitments
Health and Sanitation Sustainable Livelihood
Built health clinic that Focused on sustainability,
provides free 24/7 economics and social well-
healthcare and being of community including
ambulance service to micro-finance, technical skills,
impact communities training & apprenticeship
programs
Royalty & Support for
Responsive
Ancestral Domain
Education
Extended technical & financial
Built 6 schools,
assistance for crafting of
currently 2,500
Ancestral Domain Sustainable
students, 56 high
Development & Protection Plan
school graduates & 48
college scholarships
Infrastructure Development for Impact
Communities
Built or improved 85
kilometres (52.8 Initiated projects in areas outside
miles) of roads, Canatuan:
including 4 bridges Built Sta. Maria water system
& a spillway Built 11 kilometres (6.8 miles)
of farm- to-market road
29. The Negative Impact
If the Ordinance is Not Stopped…..
Environmental Commitments Safety & Security
Biodiversity Tailings Management
50% of mining area Four tailings storage facilities
remains in original habitat constructed with three undergoing
condition reclamation Have earned tremendous, widespread
community support
Security personnel participate in
Watershed Management Monitoring Programs Creating models for community livelihood
More than 25 locations Monitoring by third party projects
subject to daily, weekly and professionals completed on Backyard poultry raising and marketing
quarterly water quality weekly, quarterly and annual basis Farm products supply food for mine
monitoring personnel
20 medical missions since 2009
Professionalizing the security organization
Reclamation and Research Programs Integrated with the community
Rehabilitation Commitment to Voluntary Principles on Security
Onsite research and studies for
More than 200,000 trees passive wetland acid mine and Human Rights training
have been planted since treatment using indigenous plants Formed Emergency Response Team for the
2004 community’s safety
30. The Negative Impact
If the Ordinance is Not Stopped…..
Health, Sanitation and Fresh Water Sustainable Livelihood: Demo Farms
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31. Our Action Plan
Legal Initiatives
November 2, announces preparation of legal challenge to nullify the
Ordinance
November 8, launched an action in court for a temporary restraining order
(TRO) and/or a preliminary injunction against any officers, agents,
employees, representatives and anyone acting on behalf and within the
control of Zamboanga del Norte from implementing an ordinance banning
open pit mining in the province.
November 17, first of four hearings
November 24, second of four
hearings
December 1, third of four hearings
December 8, final hearing to present
our evidence to support permanent
injunction
32. Our Action Plan
1. Key National Initiatives
• Enlist support of Canadian Ambassador/Embassy
• Plan meetings with key National Government Secretaries
• Lobby DENR/MGB for support
• Chamber of Mines, CoreMin2, Joint Foreign Chambers, Jaycees
2. Key Provincial Initiatives
• PR campaign in ZdN detailing benefits of TVIRD operations
• Mobilizing regional support from affected:
• Municipalities, Indigenous People, businesses
3. Municipal Initiatives
• Working closely with the Siocon Town Officials
• Assisting concerned voters from Impact Barangays
• Petition from voters in Impact Barangays
• Mobilizing municipal IPs, affected municipal businesses
33. TVI Recommendations
1. Decisive action by the National Government
o Intervene – LGU’s cannot overturn an Act of Congress like
the Mining Act
o DENR needs to use its powers of supervision over LGU’s on
Mining/Environment
2. Enhance the revenue base and capacities of LGU’s
o Allow excise tax to be paid directly
o Increase revenue share of LGU’s from existing mining taxes
3. Streamline the administration process for mining
o A heavy, expensive, time-consuming process
o Coordination of NCIP - DENR
o Reinstitute the Minerals Development Council
34. Our Continued Commitment
We are
Proud of what we’ve achieved
Expressly proud of our social and environmental success
Our Continued Commitment
WE WILL VIGOROUSLY FIGHT THE ORDINANCE
We will continue to invest in mineral development for the benefit
of the Philippines
We will continue working with all of our stakeholders – including
the LGU’s, but we need strong National Government support,
now.
35. The Negative Impact
If the Ordinance is Not Stopped…..
Mining projects in
Zamboanga del Norte
will revert to what
Canatuan was before…
The area was an ecological
disaster with a degraded
water supply as a result of
small-scale mining
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36. This presentation should be read in conjunction
with the Ordinance and associated TVI issued
news releases that can be found here
http://bit.ly/tvvkcq
Disclaimer
There can be no assurance that any litigation commenced by TVIRD in the Philippines courts or negotiations
with Zamboanga del Norte officials will result in nullification or retraction of the Ordinance or otherwise
mitigate the effects of the Ordinance on the operations of TVIRD at Canatuan.
37. Connect With Us
Rhonda Bennetto Ian McColl
VP IR & Corporate Relations Investor Relations Analyst
403.265.4356 403.265.4356
rhonda.bennetto@tvipacific.com ian.mccoll@tvipacific.com
www.twitter.com/tvipacific www.facebook.com/tvipacific Create your own news links
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Editor's Notes
Good morning and thank you for joining me here today. Due to recent events, I’ve decided to not go with our typical TVI corporate presentation… there are far more important things going on which I’m sure you want to hear about…and I want to speak aboutWhat I want to talk to you about today are the accomplishments and more importantly, the challenges of mining in the Philippines.
I first rode into Canatuan on a motorcycle in 1993 and we’ve come a very long way since then. We have numerous obstacles to overcome, and I’m proud to say we haveElaborate here.
These are photos of Canatuan BEFORE TVI got active in the area… describe…TVI, despite all the challenges, stayed the course BECAUSE of National Government support
These are photos of Canatuan BEFORE TVI got active in the area… describe…TVI, despite all the challenges, stayed the course BECAUSE of National Government support
These are photos of our operations, (describe them)…. And because of this operation … flip to next slide…
this is Canatuan today. A vast difference from the environmental and social atrocities that were present when the illegal small scale miners were operating. (name some)
We have made life better for thousands of indigenous people within and outside of our host community. Name some
This is only a short list of the challenges we had to face over the years (read a few)… and, I stress, TVI stayed the course because of National Government Support.
At the beginning of November, TVI woke up one morning to the publication in a Zamboanga del Norte newspaper of an Ordinance banning open pit mining. The Ordinance purports to be for the protection of the Environment, but in reality it is designed to shut down large-scale or industrial mining – controlled by the national government – in favour of small-scale mining controlled by the Province. And further – to amend the rules for the approval of all mining applications such that any mining will have to have the express approval of the Governor.
Today, we have the full support of our communities.
Social development, clean water filtrations systems, hospitals and healthcare for everyone.
read
read
read
And in 1020 and 2011 our efforts were rewarded with (read award)
About the same time as we were waking up to the Ordinance, we and the rest of industry also woke up to the news that Malacañang believes the government’s share from mining is too small..But what I believe the government is overlooking, is that there are major differences that need to be understood, between the Philippine investment environment and that of other jurisdictions. Investing in a developed country, or in a mining-developed country, which provides considerable infrastructure and support at all levels to both the company and the communities involved, is dramatically different from the prospects of investing in a largely underdeveloped country like the Philippines, as it is in the hinterland. Mining companies operating in the Philippines have to allocate enormous resources to the public sector – not just in taxes – in order to operate; and I would argue that Malacañang may not be completely sensitive to this issue.I’ll draw from our successful project in Canatuan to illustrate the expenditures to the public sector that have to be made in support of a mining operation. READ SLIDE POINTS
Starting with a holistic view
At the beginning of November, TVI woke up one morning to the publication in a Zamboanga del Norte newspaper of an Ordinance banning open pit mining. The Ordinance purports to be for the protection of the Environment, but in reality it is designed to shut down large-scale or industrial mining – controlled by the national government – in favour of small-scale mining controlled by the Province. And further – to amend the rules for the approval of all mining applications such that any mining will have to have the express approval of the Governor.
To give you a quick summary of the Ordinance:It bans open pit mining – but expressly permits small-scale mining, and mining by tunneling (i.e. underground).It gives current open pit operations one year to operate, after which it has to cease operations and become completely rehabilitatedAfter 60 days, it requires existing open pit operations to have “totally curtailed” any siltation and mudflows
Failing which, the Governor is entitled to issue a cease and desist order, and to seize the mining assets, as well as the inventory of product produced, and of course, throw management in jail.It gives any SEC accredited NGO the power of citizen’s arrest against any officer of a mining company if the NGO believes there is a violation of any provision of the Ordinance. And finally, It requires that for any new application for mining (non open-pit) tenements, any Local Government Unit other than the province must have the Governor’s written approval before endorsing any proponent; failing which, the municipal or barangay official goes to jail.
The last provision makes the ultimate objective of the Ordinance clear: It is for the Provincial Government to take control of mining approvals – and mining itself – away from the national government. Small-scale mining is already under provincial control and regulation. It is the source of revenues that go exclusively to provincial governments and provincial politicians around the country.If it is left to stand – I guarantee that a similar ordinance will crop up in every province in the country where mining and small-scale mining take place.At what cost? What the Ordinance will do is to shut down an operation that has actually become the major contributor of economic benefit to the southern half of Province, and arguably the whole province.We believe the Ordinance is invalid and unconstitutional and we are fighting it in court.
The last provision makes the ultimate objective of the Ordinance clear: It is for the Provincial Government to take control of mining approvals – and mining itself – away from the national government. Small-scale mining is already under provincial control and regulation. It is the source of revenues that go exclusively to provincial governments and provincial politicians around the country.If it is left to stand – I guarantee that a similar ordinance will crop up in every province in the country where mining and small-scale mining take place.At what cost? What the Ordinance will do is to shut down an operation that has actually become the major contributor of economic benefit to the southern half of Province, and arguably the whole province.We believe the Ordinance is invalid and unconstitutional and we are fighting it in court.
At what cost? What the Ordinance will do is to shut down an operation that has actually become the major contributor of economic benefit to the southern half of Province, and arguably the whole province.READ SLIDE FACTS
We don t want to see our hard work all for not… if this ordinance is passed – all the benefits I mentioned earlier, like our contribution to the economy, or corporate social commitments… next page…
Our environmental and safety and security…
And our livelihood project would all be cancelled. This is unacceptable for us and for the thousands of people who’s lives we have enriched.
The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.
The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.We need strong National Government support….. now.
The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.
In the meantime, TVI is continuing to invest and to try to go forward: — we are proud of what we’ve achieved; we’re committed to the Philippines and to its potential; we want to continue to be able to invest and we want to continue contributing to the country’s development. We are challenging the ordinance in the courts. It is illegal and unconstitutional in our view, and we’re confident that the case will be decided properly – if not at the provincial level, at least in the Supreme Court. BUT we need strong National Government Support, again… NOW!At the same time, we want to be able to work with the Province. We understand that they’re concerned about their tax base and the environment. So are we; and by working together we can continue to provide the kinds of benefits to their community that I’ve described
And our livelihood project would all be cancelled. This is unacceptable for us and for the thousands of people who’s lives we have enriched.
The national government has said that minerals development is one of its core strategies for economic development for the country – provided such development is responsible. We agree, on both counts. Toward that end, I have some recommendations that I would pass on, based our experience, to the Policy Panel that is currently getting ready to make recommendations to the President. We recommend that the government decide to firmly implement the Mining Act that it already has, along with its appropriate powers under the Local Government Act. That means that DENR should use its powers to “supervise, control and review” [CHECK EXACT WORDING] the environmental regulation undertaken by Local Government Units. It should intervene forcefully to prevent a dichotomy of management, in which the policies and commitments of the national government are being thwarted by small groups of interested politicians. In addition to fulfilling its objective of promoting minerals development, this will achieve another stated objective of the provincial ordinances themselves: the protection of the environment. It is patently clear that LGUs do not have the technical expertise or resources properly to regulate mining – especially small-scale mining, which is where the LGUs make their money; but which is also where the real environmental and social destruction and damage takes place. However, (secondly), it should compensate the Local Government Units by allowing the mining companies to pay the LGU share of the excise tax directly to LGU treasuries – so that the LGUs do get financing from minerals development, and in a timely fashion.Third, I recommend a reinstitution of the Minerals Development Council to help streamline both the tenements application and administration process, and the resolution of conflicts. If we are serious about minerals development as a strategy, we have to get serious about fixing the administrative roadblocks that are impeding the achievement of the objective. It’s not because of ill will on anyone’s part; it’s because so much more can be done for coordination, integration, and getting everyone on the same page.