Provincial governors are up in arms against an order of Environment and Natural Resources Secretary Lito Atienza which requires both large- and small-scale mining firms to secure export permits from his office before they can ship out mineral ores. While Atienza was still looking for ways to address their objections, the simmering conflict broke into the open this week when the governors put up a one-page advertisement in national  dailies a few days ago in which they urged President  Gloria Macapagal Arroyo to direct the environment czar to recall the order.

  The governors  say that the requirement,  spelled out in Department Administrative Order 2008-20, runs counter to the decentralization of functions  and the principle of local autonomy under the Local Government Code. They argue that the order virtually amends the Code as they accuse Atienza of usurping the legislative power of Congress.

Atienza says he was taken aback and disappointed over the newspaper ad because he is still fine-tuning the amendments to the order that the governors have been asking for. Being a three-term mayor of Manila and advocate of local autonomy, he maintains that the validity of the order rests on his stand that it should not contravene or undermine local authority and autonomy.

In fact, despite section 138 of the Code (Republic Act 7160), which limits the permitting power of the provincial governor only to “sand, gravel and other quarry resources,” the DENR  agreed, in support of local autonomy, to administratively devolve to the provincial governments the “enforcement of the small-scale mining law, subject to the policies, standards and guidelines of the DENR.”

Atienza calls on the local chief executives to respect the DENR’s mandate in protecting and conserving the country’s natural wealth. “Birds and other animals cannot be exported out of the country without a permit from the DENR. It has to be cleared with us. The same with trees, plants and flowers. But as to shiploads of minerals, they don’t want this to be cleared with us. We have to monitor all of these activities.  Our common concern is to prevent the abuse of our land and this can be done only if the DENR has a mechanism for keeping track of the minerals being shipped out of the country,” he explains.

  The DENR’s mandate to take care of the natural wealth is embodied even in the Local Government Code, the environment czar says. Under the Code, he points out that it is the governors empowered to approve the movements of mineral ores and the permits for small mining. But when it comes to moving these materials out of the country’s shores, the DENR is legally responsible for regulating this activity.

The order prescribes the guidelines for filing, processing and issuance of Mineral Ore Export Permit for transport or shipment outside the country, including tailings by permit holders and other mining rights holders, including those of small-scale mining permits. The order aims to eradicate the undervaluation, misdeclaration and red tape in the exportation of mineral ores and the improvement of tax collection.

The order was an offshoot of the rampant cases of smuggling of mineral ores and non-payment of taxes which have deprived the government of billions of pesos in revenues.  It was also in response to the urgent appeals of the Catholic Bishops Conference of the Philippines and environmental groups for the government to take forceful measures in curbing mining malpractices and environmental degradation.

Sometime last year, Atienza himself flew secretly to Sta. Cruz, Zambales where he led a team of DENR personnel and law enforcers that swooped down on a private port while about 200,000 tons of nickel ores were being loaded into three ships bound for China.  He ordered the confiscation of the hot cargo after confirming that it belonged to a small mining firm. He said that the volume of nickel ores being shipped out exceeded the maximum 50,000 tons that a small mining firm is allowed to export within a year.

Atienza decries that many areas in Zambales have been overmined as a consequence of the indiscriminate issuance of small mining permits by the local chief executives. About a thousand small mining firms are said to be operating in Zambales alone. As in other provinces, local residents have denounced the proliferation of small mining enterprises and poor enforcement of laws, causing irreparable ecological damage that has contributed to destructive landslides and floods.

The DENR head also shrugs off the governors’ criticism that the order will cause injury not only to the operation of large and small-scale mining firms.  On the contrary, he says this will make the mining operators more responsible because they know they are under constant watch and check by the DENR.  “We must protect our interest. These are irreplaceable materials.  It should not be that these minerals are being moved out of the country without effective control. What we are doing is to put things in order so that we can truly benefit from the utilization of our natural wealth not only for the present but also for future generations of Filipinos.”

Recognizing the role of local government officials as partners in environmental protection and natural resources management, the DENR has agreed to delegate the issuance of the MOEP to the governors.  This, according to Secretary Atienza, is consistent with section 7 of the Local Government Code which states that the DENR-devolved functions shall be “pursuant to national policies and subject to supervision, control and review of the DENR.’

Believing that the DENR chief has stepped beyond his authority, Zambales Gov. Amor Deloso has filed a petition with the Court of Appeals questioning the legality of DAO 2008-20 and asking the court to issue restraining order to suspend its implementation. Atienza says he welcomes the filing of the petition, confident that his position will be upheld by the court. “If what we are doing is wrong, it is up to the court to rule against us.  And I am sure and positive that we will win all these cases.  We are merely protecting our environment and natural wealth in accordance with our mandate.”

Assessing the performance and prospects of the mining industry in the face of the global financial crisis, the environment chief notes that industry players are shifting gears, especially for new entrants that are supposed to have started production this year, to adjust to the demand for mineral products in the export markets.  He foresees the demand to grow in the near future.   He reported that in his recent trip to China, a leading buyer of copper, iron  and nickel from the Philippines, he learned that “they are gearing up for the resumption of their production and development plans while their infrastructure is moving very fast which requires minerals from countries like ours.”

f_maragay@yahoo.com