Fast processing of mining agreements urged

Dexter A. See
Manila Bulletin / Provincial News
Wednesday, March 5, 2008


BAGUIO CITY — Government assistance to Filipino investors in the mining industry in the form of faster processing of applications for Mineral Production Sharing Agreement (MPSA) was sought yesterday by the Federation of Philippine Industries (FPI).

Jesus L. Arranza, FPI president, said one of the disincentives to investors, foreign or Filipino alike but specially Filipino, is the unreasonably long period it takes for their papers to get through the bureaucratic mill.

"It is not unlike motoring from one gridlock to another gridlock, and still another before hitting a total traffic standstill traffic," Arranza said.

"Cutting down red tape is where we need communal action," he also said.

Mining, Arranza said, is today the "flavor-of-the-month" industry because of the worldwide demand for mineral products.

This is the reason, he said, why there are now many foreign companies expressing interest in investing in the country’s mining industry.

"This is a welcome development, of course, but while we attract and welcome foreign investors, we should not lose sight of the fact that our primary interest should be that of our own people, and where and when it can be helped, Filipino investors should be ahead of the line for any government incentive or help," he said.

Arranza noted the plight of SR Metals Inc. (SRMI), a new Filipino firm whose application for MPSA has hit a snag in the bureaucratic tunnel.

The company, he said, has covered all the bases to ensure that its application for MPSA would have smooth sailing.

It has secured the endorsement of local officials and has won the consent of the people of the locality where it would operate, and above all it has secured an environmental compliance certificate, indicating that all environmental laws have been complied with, he noted.

"But still the important MPSA is nowhere to be found," he said.

"This is unusual, and surprising that it happens in the DENR under Secretary Lito Atienza. I’ve heard quite a lot of positive remarks from friends and business colleagues about Secretary Atienza and one that struck me is his insistence, according to them, for fast action on any matter brought to his office for decision," Arranza said.