Miner wants Zambo del Norte ordinance on open-pit mining nullified

TVI Resource Development (Phils.) Inc., which operates the Canatuan, Zamboanga del Norte copper-zinc project, is set to file cases to nullify an ordinance banning new open-pit mines in the province, the company said Wednesday. TVI’s external counsel said the ordinance is unconstitutional and against the Philippine Mining Act of 1995, which allows the use of open-pit mining methods approved by the Mines and Geosciences Bureau (MGB), said TVIRD president Eugene Mateo. “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 TVIRD also said the provincial government ignored the Aquino administration policy supporting responsible and sustainable mining in the Philippines. The ordinance will require TVIRD to begin remediating its operations of the Canatuan mine in November 2012. The company is then set to prepare to seek other forms of relief, including damages whenever appropriate, against those responsible for its allegedly undue enactment. TVI has a mineral production sharing agreement (MPSA) with government for whom it serves as a contractor under the Mining Act. The company’s contract, as conferred on it by the government, permits open-pit mining methods with its operations regularly inspected and approved by the MGB. “TVI 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," Mateo said. “We will do this even as we continue to engage Zamboanga del Norte officials to seek rectification for this legally infirmed ordinance," he added. — PE/VS, GMA News