Two firms lose license to mine in Zambales

Environment Sec. Gina Lopez warns there could be more suspensions in the future for mining companies that would violate the law.

Metro Manila (CNN Philippines) — The government has suspended the licenses of two mining companies after finding several violations in their Zambales operations. Gina Lopez, the new Environment Secretary and a well-known anti mining advocate, said there could be more such suspensions in the future.

Operations of BenguetCorp Nickel Mines, Inc. and Zambales Diversified Metals Corp., were suspended in Sta. Cruz, Zambales on Friday. The Mines and Geosciences Bureau (MGB) said the joint suspension order was needed to "ensure that the environment, particularly the communities, farmlands and water bodies, are not in any way compromised as a result of the mining operations."
Based on its audit, the MGB said the miners had to rehabilitate the farms, fish ponds and bodies of water contaminated by the mine. Their owners must be compensated for the damage.

BenguetCorp Nickel Mines and Zambales Diversified Metals must also address issues with their tree-cutting and earth-balling operations. Moreover, their mined-out areas need to be rehabilitated and closed properly. They must set aside funds with the government as an assurance they will carry out the decommissioning of the mines as planned.

Lastly, BenguetCorp Nickel Mines and Zambales Diversified Metals were accused of leaving roads damaged and unfinished. Their mine haul road must be completed, and all other roads around their hauling operations must be fully repaired, the MGB said. The suspension order was based on a Writ of Kalakasan issued by the Supreme Court, as well as an Executive Order issued by the provincial
government of Zambales. They were prompted by repeated complaints of environmental degradation from various groups.

The parent firm of BenguetCorp Nickel Mines is listed on the stock exchange. Benguet Corp.'s share prices dove 5.47% onFriday, after the suspension was announced. The audit on BenguetCorp Nickel Mines and Zambales Diversified Metals began long before Lopez was appointed the new Environment Secretary. But the suspensions come at a time when the industry is feeling jittery
amid sweeping, anti-mining statements Lopez has made immediately upon assuming her post.

Lopez told CNN Philippines there would be more audits coming. She has signed an order to review all operating and suspended mines this month. "The audit is in line with [President Rodrigo Duterte's] pronouncement to review mining concessions, and in the interest of the common good, and to address the concerns of impoverished communities," she said in a text message on Friday. She assured, \] though, that the audits will be "done under the rule of law," following due process.

Mining shares fell another 1.7% on Friday.