by Edwin Espejo
Two prominent people representing the richest families in the country let their hairs down and let loose scathing remarks against each other in front of national television in a forum Friday that could spell the difference of the future of the mining industry in the Philippines.
Manny Pangilinan, whose vast business empire made him one of the most influential persons in the country, traded barbs with Regina Lopez, she of the old rich Lopez family who are into mass media and communication, real estate and utilities.
While the two shared the same table during the mining conference, they are as diametrically opposed to each other as the west is to the east as far as mining issues are concerned.
Lopez, whose anti-mining advocacy has rubbed off members of her own elite class, claimed the Philippines is better off developing its agriculture and tourism industries than destroying the forests and timberland in the name of mining.
Pangilinan retorted that the country cannot move out of its backward economy without harnessing its mining potential even rattling off the precious metal components of one’s indispensable mobile phone.
Pangilinan owns Smart Communications Inc., the country’s largest mobile communications provider with over 60 million subscribers (including that of its recently acquired Sun Cellular Inc.), and is also into the television industry where the Lopezes hold sway and are the acknowledge industry leader. Pangilinan is also the president of Philex Mining, one of the country’s largest operating mining companies today.
Beyond their personal differences and rhetoric, Pangilinan and Lopez represent two contrasting and opposing camps on the mining issue in the country today.
Pangilinan took the cudgels for the mining industry, which has traditionally drawn support from the country’s chamber of commerce, also offered middle ground where both government and the industry could resolve issues on revenue sharing and strict monitoring of the environment.
Government wants more
Department of Environment and Natural Resources Secretary Ramon Paje had earlier stated that the government wants to increase royalty fees on mining from 2 percent to 5 percent on top of the 2 per cent excise taxes.
The Chamber of Mines however fears the government is moving towards a confiscatory policy which could drive away foreign investors.
Mines and Geosciences Bureau director Leo Jasareno, in setting the tone of the conference attended by well over 600 delegates, said the choice is between mining “that significantly contributes to the economic growth in a manner that mitigates impact on environment and improves the lives of the people or no mining at all.”
In 2011, the metallic mining sector posted a gross production value of P122 billion, a 9 percent hike from the 2010 production.
But Jasareno said despite the increase, the mining sector has not increased its share in the gross domestic product beyond 1.5 percent over the last few years.
Paje also said the government loses about P5 billion a year for failure to collect royalty fees.
The government said it is looking into other options and models and may adopt possible imposition of mineral resources rent as well as carbon tax.
