What is the Mining Act of 1995?
Republic Act 7942 or the Philippine Mining Act of 1995 is a comprehensive
legislation on mining which replaced Presidential Decree 463 or the
Miniral Resrouces Utilization Act. RA 7942 was passed under the Ramos
administration to maximize the potential of the country's estimated
30.8 billion metric tons of metallic and non-metallic minerals and to
globalize the Philippine mining industry.
What is the most salient feature of the Mining Act?
The law removes the constitution restriction on foreign equity participation
in the mining industry by allowing 100% foreign ownership of corporations
engaged in "financial and technical assistance agreements"
(FTAAs) in relation to large scale mining exploration and utilization.
What is a "financial and technical assistance agreement"
or FTAA?
A class of contracts that allows 100% foreign equity is referred to
as "financial and technical assistance agreements" or FTAAs.
Some say that the term "financial and technical assistance
agreement" or FTAA is a misnomer. Why?
This is the inevitable conclusion for a reading of the provision of
RA 7942. The Mining Act effectively equates FTAAs with ordinary mining
agreements. It extends the same substantive rights, privileges, and
incentives accorded to Filipino citizens and contractors to foreigners.
What are the legal arguments for the scrapping of RA 7942?
The Philippine Mining ACT allows 100% foreign-owned companies to participate
in the exploitation and utilization of our natural resources in clear
violation of our national constitution.
The 1987 Constitution is very clear in allowing the government enter
into "either financial or technical assistance agreements"
but not both at the same time.
Are there other arguments, aside from legal argument, for scrapping
the Philippine Mining Act and similar predecessor laws?
Yes, there are other arguments concerning the impact of current government
policy on mining on affected communities. The legal and policy framework
on mining as contained in the Philippine Mining Act promotes large-scale
mining. This has historically caused a lot of economic, social, cultural
and environmental damage to the communities where they are located.
What are the specific damages or costs brought about by the
Mining Act?
The damages or costs of large-scale mining include displacement, threat
to food security, pollution, diminished water supply, and competition
for energy supply and distribution. These damages or cost can be seen
more clearly in communities that are directly dependent on natural resources
such as forests, agricultural areas, natural water irrigation systems
and where basic services are lacking or totally absent.
-From TAN-awan Volume 5, No. 1, 2002. Published by the LRC--KsK/FOE-Phils
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