Manila: A dozen more Philippine mines, mostly nickel projects, are in danger of being suspended in an ongoing environmental crackdown on the sector, an environment undersecretary said on Wednesday.
The audit committee recommended to halt the operations of 12 more mines because of environmental and legal violations, Environment Undersecretary Leo Jasareno told reporters.
"We will be ready with the final report on Monday," Jasareno said, adding that Environment and Natural Resources Secretary Regina Lopez will decide on the suspension.
The Southeast Asian nation is the world’s top nickel ore supplier, and is the top supplier of nickel ore supplier to China.
The new government launched a review of the country’s 40 metallic mines on July 8.
Eight of the 10 suspended by end-August produced nickel ore, and the closures and the risk of more mines being shuttered lifted nickel prices to a one-year last month.
Damage
President Rodrigo Duterte earlier warned he could cancel mining projects causing environmental harm, though he told business leaders he was not against mining per se.
"But in making money out of the precious metals of the earth that belongs to the Filipino people, you have to do it right," he told businessmen.
The country's mining sector, one of the world's largest in the 1970s, has since struggled partly due to tougher environmental rules and rebel attacks missing much of the mining boom in recent decades and now facing much lower commodity prices.
Lopez was earlier quoted as saying mining can cause suffering among the poor and has described it as "madness" even to consider open pit mining because of the environmental impact.
"We must stop killing our future for the interests of a few", said Lopez, a staunch environmentalist. The country has suffered mining disasters, including a 1996 tailings leak at Canadian-owned Marcopper Mining Corp's copper mine in Marinduque that contaminated rivers.
Ramon Adviento, senior vice president at Global Ferronickel Holdings Inc, the Philippines' second-biggest nickel ore miner, said the industry was "shell shocked" by Lopez' appointment.
"I don't think it means the death of the industry, but what we expect to see is the survival of the fittest," he said, adding that there could be a nationwide crackdown on irresponsible miners, likely targetting small-scale producers.
Miners say hardline policies could backfire particularly as the Philippines has become the biggest nickel ore supplier to China after previous top exporter Indonesia banned shipments of unprocessed minerals, shipping 34.3 million tonnes last year.
Mining contributes less than 1 percent to the Philippine economy. Of 9 million hectares identified by the government as having high mineral reserves, only 3 percent is being mined.
