NEW CONSTITUTIONAL CHALLENGES

THE PHILIPPINE MINING ACT

In 2008, petitioners (Riza Hontiveros et al)
challenged the constitutionality of the Mining
Act before the Supreme Court; this is the same
Act the Supreme Court declared constitutional
only a few years earlier in 2004. The petitioners
are challenging the Act for allegedly allowing
an inequitable sharing of wealth, contrary to
Article XII of the Constitution.
The Chamber of Mines of the Philippines (COMP),
by filing a petition to intervene before the Supreme
Court, is supporting the argument for the dismissal of
the two petitions challenging the constitutionality of
the Mining Act of 1995 (RA 7942) on the following
grounds:
1

There has been no material change to the

operating environment of the Philippine mining
industry since the Supreme Court declared RA
7942 constitutional in a landmark decision (La
Bugal-BLaan vs. Ramos) in 2004
The separation of powers in government,
as enshrined in the Constitution, confirms
that equitable revenue sharing is a question
for the Executive and Legislative branches of
government to decide.

COMP supports an equitable fiscal regime that will

lead to a continuous and sustained development
for future generations through a stable platform for
responsible minerals development in the Philippines.
We are currently working with the Mining Industry
Coordinating Council (MICC) in determining the
nature of equitable sharing going forward.
Room 809 Ortigas Building, Ortigas Avenue
Pasig City 1605 Philippines
Tel Nos.: (632) 635-4123 to 24; 635-4159
Telefax: (632) 635-4160
E-mail: info@chamberofmines.com.ph
Website: www.chamberofmines.com.ph

A prospective fiscal regime for the mining industry

will be submitted to the Legislative body of
government by the opening of the 16th Congress in
July 2013.
A stable regulatory regime is the foundation upon
which to encourage business investment. COMP
member companies have established viable mining
operations under RA 7942 and have existing
agreements with the Philippine Government.
We expect these to be honored. Our members
investments under these agreements support job
creation, inclusive growth and poverty alleviation,
at the same time protecting the environment and
upholding human rights.
An adverse ruling will be seen as changing the rules
of the game midstream. This will lead to a significant
loss of investors confidence not only in the mining
industry but broadly across all industries, negatively
impacting the investment climate and harming the
countrys credibility.

For questions or more information,

please contact COMP through Atty. Ronald S. Recidoro, Vice President, Legal & Policy
Tel No: (632) 635-4123, (+63917) 561-3177, Email: ron.recidoro@chamberofmines.com.ph

ABOUT THE RESPONSIBLE MINING

INDUSTRY IN THE PHILIPPINES
survive and thrive in their original habitat with the
help of experts and local communities. This is backed
by funds our members contribute to the Annual
Environmental Protection and Enhancement Program
(AEPEP) that in 2010 reached over P6 billion.
Free health and education facilities: Quality schools
and hospitals are among the first facilities built by
responsible mining companies in the remote locations
where they operate, apart from the projects under their
respective Social Development Management Programs
(SDMP). In six years up to 2010, the total amount spent
by COMP members on health and education projects
combined reached over P322 million.

The Chamber of Mines of the Philippines (COMP) is the association

advancing the interest of mining, quarrying and mineral processing
companies in the country for the efficient exploration, development,
and utilization of minerals in consonance with sound economic,
environmental, and social policies.
COMP consists of members coming from the exploration, mining,
minerals processing and services industries, including professional
associations. They are united by a shared commitment to the principles
of economic growth and sustainable development, and as governments
partners in local and national development.
Apart from its advocacies of business leadership, policy development,
environmental management and mining information and education,
COMP members also engage in the following social activities:
The National Greening Program (NGP): COMP members are
among the most prolific reforesters in the country under the
NGP supervised by the Department of Environment and Natural
Resources, having planted over 15 million tree and plant seedlings
from year 2000 to 2010. Its members have committed to plant 25
million more seedlings to cover 300,000 hectares in 2013 and a
total of 1.5 million hectares from 2011 to 2016.
Environmental protection, enhancement, and rehabilitation:
COMP members not only restore forests and fields after mining,
they help ensure that the flora and fauna native to a mining area

Room 809 Ortigas Building, Ortigas Avenue

Pasig City 1605 Philippines
Tel Nos.: (632) 635-4123 to 24; 635-4159
Telefax: (632) 635-4160
E-mail: info@chamberofmines.com.ph
Website: www.chamberofmines.com.ph

Basic community infrastructure: COMP members

build roads, potable water systems, electrical and
communications facilities, sports venues, and
other important structures in and around mining
communities as part of their community development
programs. From 2005 to 2010, the cost of these
infrastructures built by our members reached a total of
P217 million.
Employment and livelihood opportunities:
The mining industry directly employs over 250,000
workers and indirectly benefits over 1.2 million
Filipinos. Thousands more benefit from businesses
that are supplying or related to the mining industry,
and beneficiaries of responsible mining companies
are provided skills for livelihood and capital for
entrepreneurship, supported by P152.7 million worth
of funds from COMP members as of 2010.
Partnership with indigenous peoples and host
communities. From exploration to operation and mine
decommissioning, IPs and community members of host
mining areas are consulted by COMP members and
made partners in programs that bring tangible, lasting
benefits for the present and future. Also, royalties from
mining revenue to indigenous peoples in mining areas
reached a total of P728 million from 2005 to 2010,
and COMP members spend an average of P115 million
a year in SDMP costs that substitute for government
expenditures in the hard-to-reach areas where they live.

For questions or more information,

please contact COMP through Atty. Ronald S. Recidoro, Vice President, Legal & Policy
Tel No: (632) 635-4123, (+63917) 561-3177, Email: ron.recidoro@chamberofmines.com.ph