* Incoming mining minister is a passionate environmentalist
* Says open-pit process is "horrific" for environment
By Manolo Serapio Jr
MANILA, June 23 (Reuters) - The incoming minister in charge
of Philippine mining has slammed the use of open pits to extract
minerals, describing it as "madness" even to consider the method
in the resource-rich country because of the environmental
impact.
The stance by Regina Lopez, an environmentalist who on
Tuesday accepted President-elect Rodrigo Duterte's offer to head
the Department of Environment and Natural Resources, could set
her on a collision course with the mining industry.
"Open-pit mining as in the use of explosives is horrific for
the environment. It's a cheap way to extract. And for the top
most country vulnerable to climate change it's madness to even
consider it," Lopez said in a text message to Reuters.
"We must stop killing our future for the interests of a
few."
News of Lopez' appointment sent Philippine mining stocks
tumbling.
The Philippines sits on mineral reserves worth $1.4
trillion, but mining accounts for less than 1 percent of GDP, as
policy bottlenecks and an anti-mining lobby led by the Roman
Catholic Church hamper development.
The biggest stalled venture is the $5.9 billion gold-copper
Tampakan project on Mindanao island.
Glencore GLEN.L last year quit the project which has
failed to take off after the province where Tampakan is located
banned open-pit mining in 2010.
The Philippines' mining law allows open-pit mining.
While not saying she would stop any form of mining, Lopez
said we "will not allow any activity that causes suffering."
"I will not allow any activity that disadvantages our
farmers and fishermen. Food security and the quality of life of
our people are the topmost priority," Lopez said.
Among those using the open-pit method is top nickel ore
producer, Nickel Asia Corp NIKL.PS . The Philippines is the
biggest nickel ore supplier to China, shipping 34.3 million
tonnes last year.
The country has previously suffered mining disasters. In
1996, a tunnel leak at the Canadian-owned Marcopper Mining
Corp's copper mine in Marinduque dumped 1.5 million cubic metres
of tailings into surrounding waters, contaminating rivers.
Duterte, who starts his term on June 30, has warned he will
cancel mining projects causing environmental harm.
Lopez would have to recognize the need to compromise, said
business consultant Peter Wallace.
"We can't have no mining, that's just completely untenable,"
said Wallace.
Philex Mining Corp PX.PS Chairman Manuel Pangilinan said
the industry needed to give Lopez the chance to "articulate her
policies."
"For us we have to take the view that it is business as
usual," Pangilinan said.