Sen. Robin Padilla yesterday pushed for amendments to Republic Act No. 7942, or the Philippine Mining Act of 1995, to ensure that the country’s environment is protected and for the government to maximize revenues from the mining sector, among others.
Padilla made the pitch as the Department of Environment and Natural Resources briefed the Senate committee on finance on its proposed P23-billion budget for next year.
Padilla noted, for one, the “very low penalties” for violators of the law, saying it is high time that these be increased to discourage people from destroying the environment.
Under the current law, Padilla said violators of the Environmental Compliance Certificate face up to six years imprisonment and/or a fine of up to P200,000 only.
In response, DENR Sec. Ma. Antonia Loyzaga said it is timely to revisit the mining law not only for the country’s development, but for the government to be able to attract more investments as well.
Padilla also said improvements are needed in the mining sector such that it can follow the example of Sweden where the government earned 26 million krona (P135.422 billion) from mining.
He said if the government can replicate what Sweden did, the Philippines can pay off a huge chunk of its P13-trillion debt since the country has metallic mineral reserves amounting to $1.4 trillion and other mineral reserves of up to $7 trillion, including non-metallic ones.
He also floated the idea to return to the time when foreign companies could invest more in the Philippines so that the benefits of workers are properly addressed, to include housing for their family and education for their children.
Padilla asked if there is a need to amend some provisions in the 1987 Constitution, particularly on the limitation of foreign investments which is presently at 40 percent.
“Do you think we need to amend the Charter? Does the 60-40 provision affect the exploitation, development and utilization of our mineral resources,” he asked in Filipino.
Wilfredo Moncano of the DENR’s Mines and Geosciences Bureau said while foreigners can have more than 40 percent share in investments under the Financial Technical Assistance Agreement setup, the capital requirement is so large that Filipinos with foreign partners do not avail of this.