Nickel miners upbeat as Supreme Court stops Mindoro ban
MANILA, Philippines — The Philippine Nickel Industry Association (PNIA) welcomed the Supreme Court’s decision to nullify the mining ban imposed by Occidental Mindoro as it clarifies the jurisdiction between local and national governments to provide a stable investment environment.
The PNIA considered this Supreme Court ruling “a pivotal win” for the mining sector. The group said this provides clarity on the regulatory framework governing the industry and enhances its competitiveness while fostering its sustainable development.
“It removes the uncertainty caused by local bans, creating a more secure investment climate,” the group said in a statement on Thursday.
Earlier, the high court ruled that the provincial government “exceeded its powers” when it enacted ordinances that completely banned large-scale mining within its area.
In a decision penned by Senior Associate Justice Marvic Leonen, the Supreme Court said the Philippine Mining Act does not authorize local government units to impose a blanket ban on large-scale mining, although they are involved in processing the application of mining projects.
LGU mandate
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“Local government units, in the exercise of their autonomy, cannot disregard Republic Act No. 7942 and completely ban altogether all large-scale mining activities within their jurisdiction,” the order read.
The court explained that local governments cannot regulate or prohibit activities already allowed by statute since they merely derive their authority from Congress.
The PNIA said the high court’s decision reaffirms that while environmental protection is essential to mining, it should be attained within the boundaries of national laws.
The group said that mining projects should undergo rigorous environmental assessments and consultations with stakeholders to ensure compliance with the highest environmental standards.
“Moreover, by emphasizing case-by-case evaluations and environmental impact assessments, the Court ensures that mining activities are balanced with necessary environmental safeguards that support sustainable national development,” it added.
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Harmonize policies
The PNIA expressed its readiness to engage with the national government, LGUs and other industry players to harmonize policies, strengthen regulatory oversight and ensure responsible mining.
It also said the court decision paves the way for a more consistent, sustainable and inclusive policy framework for the sector that fosters economic growth while protecting the environment.
The court ruling stemmed from a case filed by Agusan Petroleum and Mineral Corp., arguing that the province’s and the town of Abra de Ilog’s 25-year moratorium on large-scale mining activities violated its exclusive rights to mine in Mamburao and Abra de llog.
The government entered into a financial or technical assistance agreement (FTAA) with Agusan Petroleum to explore, mine, utilize and market minerals in Baco, San Teodoro and Puerto Galera in Oriental Mindoro, as well as Mamburao and Abra de Ilog in Occidental Mindoro.
The FTAA is a production-sharing agreement between the government and a mining firm involving the exploration, development and utilization of mineral resources in the country.
