Environmentalist too much for the Philippines

Philippine Environment Secretary Regina Lopez reacts during a news conference after lawmakers on...
Philippine Environment Secretary Regina Lopez reacts during a news conference after lawmakers on Wednesday refused to confirm her appointment as minister. Photo: Reuters.
Some certainty has returned to Oceana Gold’s gold-copper operation in the northern Philippines, after lawmakers rejected  Regina Lopez’s appointment as environment secretary.

Ms Lopez had in less than 10 months in office ordered the closure of 22 of the country’s 41 operating mines, cancelled 75 contracts for yet-to-be-developed mines and last week banned any future open-pit mining.

Cabinet ministers in the Philippines must be confirmed by Congress, although voting often takes months after they are appointed and on Wednesday lawmakers voted 16-8 in favour of removing Ms Lopez, Reuters reported yesterday.

Oceana became embroiled in the escalating anti-mining sentiment when in mid-February  the  Department of Environment and Natural Resources issued it and four other miners suspension orders, citing environmental concerns.

However, that was immediately appealed by Oceana to the Office of the President, Rodrigo Duterte, which meant Oceana could continue operating.

Oceana’s Macraes mine in East Otago has been the mainstay of New Zealand’s largest gold-miner for the past 27 years.

However, for the last quarter production to March, its Didipio gold-copper mine on Luzon Island contributed the most gold to what was a record quarter of production for the company.

Ms Lopez’s rejection by the Commission on Appointments is final, meaning  Mr  Duterte must nominate a new minister.

Oceana was contacted for comment at its Melbourne head office yesterday, and asked about the implications of Ms Lopez’s removal from office, but  did not  respond by deadline. The Philippines is the world’s top supplier of nickel ore, used by China for steel production. Nickel futures on the London Metal Exchange slumped more than 2% as news of Ms Lopez’s ousting spread.

A Philippine mining group said it would seek to reverse her controversial measures which were largely supported by  Mr Duterte.

The Chamber of Mines of the Philippines said it would seek the reversal of Ms Lopez’s moves to close mines and ban open-pit mining as soon as a new minister was appointed.‘‘We feel that those have no legal foundation,’’ said chamber spokesman Ronald Recidoro. 

"There were no proper consultations held. And, more importantly, it’s really out to kill the mining industry."

It was understood, but not confirmed to the ODT, that due process would be followed over the closures, suspension orders and reviews previously initiated by Ms Lopez, a mining sector source said.

Last month, Ms Lopez said Mr Duterte had given her the go-ahead to work with communist rebel fighters to help rehabilitate and develop the country’s mining areas, Reuters reported.

"If nothing is done now to preserve the country’s environment and natural resources, it will not be done ever," Ms Lopez said on Tuesday, shortly after lawmakers concluded the confirmation hearing.

However, she had struggled at the hearing to explain the legal basis for requiring nickel miners that remove their ore stockpiles to set aside an additional two million pesos ($NZ58,000) per ha of disturbed land on top of funds already set aside to repair environmental damage.

Boxer  and now Senator Manny Pacquiao, head of the environment committee which held the hearings to determine Ms Lopez’s qualifications, announced the outcome "with sadness in my heart".

"I believe in my heart no matter how several big people may be against Gina, she will always stand on what is morally and environmentally right and righteous," Mr Pacquiao said, referring to Ms Lopez by her nickname.

Mining is a contentious issue in the resource-rich Southeast Asian country after past  environmental mismanagement, including a 1996 tailings leak at Canadian-owned Marcopper Mining Corp’s mine in Marinduque  contaminated rivers. Ms Lopez’s radical reforms eventually proved too radical even for a country with a strong anti-mining lobby led by the  Roman Catholic Church.

A visibly distraught Ms Lopez spoke  shortly after the vote outcome was announced.

"It was not my dream. It was a dream and a promise that we had for the country and it is unfortunate that business interests have in fact run the day."

Ms Lopez’s reputation as a fiery environmental crusader was the main reason why  Mr  Duterte appointed her secretary of the Department of Environment and Natural Resources on June 30 last year.

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