TVI to seek ification of the Ordinance Banning Open Pit Mining in Zamboanga del Norte

11/02/2011



Condemns Provincial assault on rights and benefits of communities, IPs

TVI Resource Development (Phils.) Inc. (“TVIRD”) is preparing to file a series of legal cases to ify an ordinance that will ban new open pit or open cut mines in the Province of Zamboanga del Norte and requireTVIRD to begin remediation of its operating Canatuan mine in November 2012. At the same time, the legal cases being prepared may seek other relief, including damages whenever appropriate, against all those responsible for its undue enactment.

TVIRD President Atty. Eugene Mateo said that the company’s external counsel is of the opinion that the ordinance is unconstitutional and runs counter to the Philippine Mining Act of 1995, which allows the use of open pit mining methods approved by the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR).

“It introduces sweeping new provincial regulatory powers over large mining operations, as well as over the process of making applications for new large mining tenements, which is presently vested in the national government. The ordinance unilaterally impaired duly executed and existing agreements and contracts between TVIRD and the government,” Mateo said

“On top of all these, the provincial government ignored the announced policy of the Aquino administration supporting responsible and sustainable mining in the country when it passed this unconstitutional ordinance,” he added.

TVIRD has a Mineral Production Sharing Agreement (MPSA) with the Government of the Philippines, for whom it acts as a Contractor under the Philippine Mining Act of 1995. TVIRD’s authority to operate, as conferred on it by the national government, permits open pit mining methods. TVIRD’s operations have been regularly inspected and approved by the MGB.

The company, already in its 7th year of operation in Canatuan, is considered by many as a “role model” of responsible and environment-sensitive mining operations located at the southwestern end of Mindanao.It has been a recipient of numerous awards on environment, safety and labor-friendly policies. The TVIRD facilities and plant have also hosted site visits from all over the country, especially from those who sought clarifications on various mining issues.

“TVIRD is deeply disturbed by the passage of this Ordinance. The company will exhaust all legal remedies to protect and uphold existing rights and contracts not only for the benefit of the company but equally importantly to uphold the rights and sustain the benefits of the indigenous peoples, the host communities, the local government units and other adversely affected stakeholders. We will do this even as we continue to engage Zamboanga del Norte officials to seek rectification for this legally infirmed ordinance,” Mateo stressed.