By: Joselito R. Bacani

Transcription

1 CHALLENGES AND OPPORTUNITIES IN ENVIRONMENTAL MANAGEMENT: PERSPECTIVES ON EIA COMPLIANCE AND RELATED INITIATIVES OF THE CHAMBER OF MINES OF THE PHILIPPINES By: Joselito R. Bacani Since its inception, the Philippine Environmental Impact Statement (EIS) System has already identified major resource extractive industries like mining as an environmentally critical project (ECP) that requires an EIA. Proponents of largescale mining projects prepare an Environmental Impact Statement (EIS), which, after review by a multi-disciplinary committee, stakeholder consultations, and other processes, an Environmental Compliance Certificate (ECC) is expectantly issued by the DENR. Apart from the EIS System, large-scale mining is also governed by the 1995 Mining Act. Its environmental protection chapter complements the EIA through regulations that ensure that mining projects are managed in an environmentally responsible manner. Thus, large-scale mining companies, depending on their phase of development, are further guided by their approved Environmental Work Program, Environmental Protection and Enhancement Program, and Environmental Monitoring and Audit. Mining companies also set up a Contingent Liability and Rehabilitation Fund a unique Environmental Guarantee Fund mechanism that extends beyond the mine s life. Notwithstanding the challenges in complying with EIA and related regulations, the Chamber of Mines continues to work towards strengthened environmental management that is consistent with EIA objectives by taking initiatives (e.g., Corporate Social and Environmental Responsibility Guidebook: Compliance and Beyond, and Industry Scorecard which gauges, among others, progress on environmental management) and seizing opportunities (e.g., International Council on Mining and Metals or ICMM that seeks improvement in environmental performance and sustainability reporting using the Global Reporting Initiative framework) for improved compliance and responsibility. *Former Chairperson, Environment Committee, Chamber of Mines of the Philippines; Occupied management posts in ENK, LCMC, and WMC mining companies.

2 CHALLENGES AND OPPORTUNITIES IN ENVIRONMENTAL MANAGEMENT: PERSPECTIVES ON EIA COMPLIANCE AND RELATED INITIATIVES OF THE CHAMBER OF MINES OF THE PHILIPPINES By Joselito R. Bacani Chairperson, Environment Committee, Chamber of Mines of the Philippines Introduction The Chamber of Mines of the Philippines is an association of large-scale mining companies, service industries, and professional associations that promotes efficient exploration, development, and use of minerals in consonance with sound economic, environmental, and social policies. As of this date, the Chamber of Mines has 25 member companies that are operating; and 41 exploration companies in its roster. This paper is a consolidation of the inputs from its membership, particularly the representatives of the Environment Committee who are mostly involved in the social development and environmental management aspects of their respective companies. Mining and the Philippine EIS System Since its inception, the Philippine Environmental Impact Statement (EIS) System has already identified major resource extractive industries like mining as an environmentally critical project (ECP) that requires an EIA. Proponents of large-scale mining projects prepare an Environmental Impact Statement (EIS), which, after review by a multidisciplinary committee, stakeholder consultations, and other processes, an Environmental Compliance Certificate (ECC) is expectantly issued by the Department of Environment and Natural Resources (DENR) upon recommendation of the Environmental Management Bureau (EMB). The ECC, if and when this is secured, is not just a permit to proceed with a proposed project. It is a planning and management tool, a document that will ensure that a project attains the desired levels of environmental compliance. ECC s, by experience, contain specific measures and conditions that the proponent needs to undertake before, during, and even after the operation of a proposed project. Other permits may be issued by other government agencies using these ECC conditions as guide. ECC s are thus distinct and separate from other consent and process requirements mandated under other laws, such as, the Local Government Code and the Indigenous Peoples Rights Act. 1

3 Environmental Management under the Philippine Mining Act Apart from the EIS System, large-scale mining is specifically governed by the provisions of the Philippine Mining Act of 1995, which contains a chapter on environmental protection. The law attempts to complement the EIA system through rules and regulations that seek to ensure that mining projects are managed in an environmentally responsible manner. Thus, large-scale mining companies, depending on their phase of development, are further guided by their approved Environmental Work Program (EWP), Environmental Protection and Enhancement Program (EPEP), and Environmental Monitoring and Audit. Mining companies are also required to set up a Multi-partite Monitoring Team (MMT) and Contingent Liability and Rehabilitation Fund (CLRF) a unique mix of funds that cover environmental monitoring, rehabilitation activities, mine wastes and tailings fees, as well as final mine rehabilitation and decommissioning as the sector s environmental guarantee mechanism that extends beyond the mine s life. These aspects are primarily handled by the Mines and Geo-Sciences Bureau (MGB) of the DENR, although we understand that MGB and EMB (which has the primary mandate over EIA) have already entered into a Memorandum of Agreement to harmonize the provisions of the Mining IRR and that of the EIA system. Perspectives on EIA Compliance and Environmental Management As a highly-regulated industry, large-scale mining companies have to step up to demonstrate its compliance with different environmental management standards and processes. Opportunities The EIS system has been a vehicle that facilitates such compliance in each of the phases of mining - from development, operation, and production to final mine closure. The EIA, for instance, through baseline data gathered during exploration, serves as a reference to the inventory of flora and fauna as well as the conditions of varied ecosystems during the development phase. EIA enables companies to study well the project s components, including its impacts to the environment and people, thus, best technology and practices in mitigation could be adopted. The ECCs provide a multitude of guidance points, quite encompassing as to cover social development and management, community relations, and best practices on mine closure. Scoping in EIA is also significant in delineating stakeholder concerns. 2

4 While exploration activities technically do not require an ECC, mining companies already implement comprehensive Environmental Work Programs that address environmental management issues during exploration. For large-scale companies, mining per se is a very technical undertaking. The involvement of a pool of experts in the EIA Review Committee lends ample credibility to the review of EIS of mining projects. While multi-disciplinary, such expertise focuses on the EIA s scientific aspects and strengthens technical acceptability of proposed mining projects. One feature of the EIA system that provides opportunity for mining companies to improve environmental management is its participatory approach. EIA facilitates the involvement of relevant stakeholders, including members of indigenous communities, from scoping and review to monitoring of operations and eventual closure. During this time, significant information is exchanged between companies and their stakeholders on the different facets of mine life. EIA thus contributes not only to increasing awareness and transparency about the mining project; stakeholders inputs likewise become critical to the continuing social acceptability of mining projects. As the EMB and MGB strive to harmonize its rules on EIA for the sector, mining companies regard frequent compliance monitoring by the Bureaus as opportunities to sustain and improve their environmental management performance. In the same manner, the Contingent Liability and Rehabilitation Fund (CLRF) - a far more comprehensive version of the typical environmental guarantee fund (EGF) - is positively seen as ensuring the availability of adequate fund mechanisms and remedies throughout the mine life. The EIA s reference to the setting up of a Final Mine Rehabilitation and De- Commissioning Plan (FMRDP) finally makes mine closure easier by requiring mining companies to deposit closure funds during operational stage to ensure the availability of funds for decommissioning activities. In some instances, best practices in mine closure are even suggested in the EIA process. Challenges While the current EIA system propels satisfactory compliance by large-scale mining companies, several challenges need to be addressed in order to maximize its full potential as an effective tool for environmental planning and management: 3

5 First, some concepts and processes need to be further clarified. These include: direct and indirect impacts, understanding the parameters of social acceptability, and mapping-related concerns. Along this line, mining companies would like to comprehend the scope and nature of possible conditions that may be imposed by the DENR when it issues an ECC. Second, roles and responsibilities of relevant government entities need to be clarified and made coherent. Within the DENR Mining investors enter into a mining contract with the government, usually in the form of a Mineral Production Sharing Agreement (MPSA) or Financial and Technical Assistance Agreement (FTAA). As government contractor, companies interact with DENR through MGB and looks to it as a partner in executing the contract provisions. On the other hand, the companies also interact with the DENR through EMB and looks to it as a regulator in the EIA process. Having two offices under one Department looking at the environmental performance of mining companies demonstrates the need to establish a clearer interface between the MGB and EMB. Experience of some companies related to the EMB and MGB s involvement in the technical review of the EIS as well as in requiring reports from the multi-partite monitoring teams (MMT) shows the need to improve coherence in EIA implementation for the mining sector. It is also critical that regional offices of these Bureaus understand their roles in EIA. Among other government entities Outside of the DENR, there is a perceived need to clarify the role of other government agencies, such as the National Commission on Indigenous Peoples (NCIP), local government units (LGUs), and other special bodies, such as the Palawan Council for Sustainable Development (PCSD) in the EIA process. While it is recognized that other government offices have their respective focus (e.g., indigenous peoples and ancestral domain for NCIP; Palawan province for PCSD), experience of some companies show some duplication or overlaps in the entities review and monitoring mandates of the companies EIA and environmental management performance. Third, EIA rules and regulations need to be more stable and consistent. 4

6 An important consideration for mining companies is a set of simple, stable, and consistent EIA rules and regulations. Policy or process rule-making is understandably dynamic as it needs to be relevant and attuned to current realities. However, too frequent changing of the rules may be counter-productive. It may have repercussions, not just on the project s resources and timeline, but more importantly, on the level and quality of compliance with the EIA system. Related initiatives Notwithstanding the challenges in complying with EIA and related regulations, the Chamber of Mines of the Philippines continues to work towards strengthened environmental management that is consistent with EIA objectives by taking initiatives (among its members) and seizing opportunities (internationally-recognized standards and practices) for improved compliance and responsibility. Within its own ranks, the Chamber of Mines developed the Compliance and Beyond: A Corporate Social Responsibility Guidebook for the Philippine Mining Industry which seeks to encourage its members not only to comply with the law, but to undertake voluntary initiatives that demonstrate our recognition of our responsibility to mitigate the social and environmental impact of our activities, and to foster community growth and development. Based on the CSR Guidebook, the Chamber of Mines, in partnership with the Philippine Business for Social Progress (PBSP), World Wildlife Fund (WWF), and the Institute for Development Econometric Analysis (IDEA), has moved forward with the development of the Mining Industry Scorecard - a tool that will measure the progress of the industry in the areas of environmental management, community engagement and development, safety and health, labor, security and human rights, and management and governance. This can be construed as a self-regulatory tool of the mining industry. In 2012, the Chamber of Mines has also been accepted as a member of the International Council on Mining and Metals (ICMM). The ICMM principles seek to guide the mining industry in continually improving its environmental performance, contributing to biodiversity conservation and integrated approaches to land use planning. Initiatives related to this are urged to be measured, monitored, managed, and disclosed in a Sustainability Report using the Global Reporting Initiative (GRI) framework. While the mining industry is admittedly still in a pioneering stage in terms of actually demonstrating the results and outcomes of its environmental management efforts, through the EIA process and other best practices tools, and particularly after mine life the Chamber of Mines remains positive that the country s evolving mining industry, with its stronger commitment toward bringing progress that is also socially and environmentally sustainable, will reach that point where mining matters. 5

7 CHALLENGES AND OPPORTUNITIES IN ENVIRONMENTAL MANAGEMENT: By Joselito R. Bacani

8 An association of large-scale mining companies (including service industries & professional associations) Efficient exploration, development & use of minerals In consonance with sound economic, environmental & social polices Membership profile (as of June 2013) Operating 25 Exploration (Metallic & Non-Metallic) 41

9 Mining as a resource extractive industry covered by the Philippine EIS System Environmental Impact Statement Multi-disciplinary EIA Review Committee MGB represented Stakeholder consultations Environmental Compliance Certificate (ECC) Conditions Other government permits/process requirements DENR-EMB as primary agency

10 Mining governed by RA 7942 Environmental Protection chapter Environmental Work Program Environmental Protection and Enhancement Program Environmental Monitoring & Audit Contingent Liability & Rehabilitation Fund (CLRF) Environmental monitoring and rehabilitation Mine wastes and tailings fee Final mine rehabilitation and de-commissioning Multi-partite monitoring team DENR-MGB as primary agency

11 Exploration Pre- Development Construction & Development Operation Mine Closure 2-8 years No ECC required EWP under RA years Assessment & approval process ECC 2-3 years EPEP/FMRDP under RA 7942 MMT CLRF 10 + years AEPEP Self Monitoring MMT CLRF/MRFC FMRDF Reports Annual Environmental Audits 10 years FMRDP Implementation

12 EIA as a good planning & management tool Guides companies in gathering baseline data during exploration Allows reference to such data during operation that aids companies in addressing impacts Scoping helps in dealing with stakeholder concerns

13 Participatory approach in EIA Facilitates involvement of relevant stakeholders (IPs) Increases awareness & transparency (IEC) Expertise in EIA review Strengthens technical acceptability of proposed projects

14 Continuing harmonization of mining & EIA policies Enables frequent monitoring (quarterly per MGB, semi-annual per EMB) Requires CLRF that goes beyond EGF & EMF

15 A driving force to achieve satisfactory compliance in each phase of mining Gives guidance on techniques & environmental management procedures (ECC, EWP, EPEP), including social development & management Promotes self-monitoring & self-regulation

16 Prepares for efficient mine closure Makes mine closure easier by requiring deposit of closure funds during operational stage to ensure availability of funds for decommissioning activities (FMRDP) Suggests best practices in mine closure

17 Some concepts needing clarification Direct & indirect impact areas Parameters of social acceptability Scope of ECC conditions that may be imposed

18 Roles requiring clarity and coherence MGB and EMB roles and responsibilities contract vis a vis process technical review, MMT reporting requirements critical that regional offices understand their roles Role of other government agencies (e.g. NCIP), LGUs, and other special bodies (e.g. PCSD) in EIA EIA in relation to other processes (review & monitoring)

19 Rules demanding further stability Simple and predictable rules Stability and consistency of rules Effects on project investments & timeline

20 Compliance and Beyond: A Guidebook on Corporate Social Responsibility for the Philippine Mining Industry Pillars: Environmental management Community engagement and development Labor Security and human rights Management and governance Mining Industry Scorecard

21 International Council on Mining and Metals (ICMM) continual improvement of environmental performance conservation of biodiversity integrated approaches to land use Sustainability Reporting initiatives measured, monitored, managed, and disclosed using the Global Reporting Initiative (GRI) framework towards improved compliance & responsibility

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