Room 809 Ortigas Building, Ortigas AvenuePasig City 1605 Philippines

Tel Nos.: (632) 635-4123 to 24; 635-4159Telefax: (632) 635-4160

E-mail: info@chamberofmines.com.phWebsite: www.chamberofmines.com.ph

NEW CONSTITUTIONAL CHALLENGES THE PHILIPPINE MINING ACT

In 2008, petitioners (Riza Hontiveros et al) challenged the constitutionality of the Mining Act before the Supreme Court; this is the same Act the Supreme Court declared constitutional only a few years earlier in 2004. The petitioners are challenging the Act for allegedly allowing an inequitable sharing of wealth, contrary to Article XII of the Constitution.

The Chamber of Mines of the Philippines (COMP), by filing a petition to intervene before the Supreme Court, is supporting the argument for the dismissal of the two petitions challenging the constitutionality of the Mining Act of 1995 (RA 7942) on the following grounds:

There has been no material change to the operating environment of the Philippine mining industry since the Supreme Court declared RA 7942 constitutional in a landmark decision (La Bugal-B’Laan vs. Ramos) in 2004

The separation of powers in government, as enshrined in the Constitution, confirms that equitable revenue sharing is a question for the Executive and Legislative branches of government to decide.

COMP supports an equitable fiscal regime that will lead to a continuous and sustained development for future generations through a stable platform for responsible minerals development in the Philippines.

We are currently working with the Mining Industry Coordinating Council (MICC) in determining the nature of equitable sharing going forward.

For questions or more information, please contact COMP through Atty. Ronald S. Recidoro, Vice President, Legal & Policy Tel No: (632) 635-4123, (+63917) 561-3177, Email: ron.recidoro@chamberofmines.com.ph

A prospective fiscal regime for the mining industry will be submitted to the Legislative body of government by the opening of the 16th Congress in July 2013.

A stable regulatory regime is the foundation upon which to encourage business investment. COMP member companies have established viable mining operations under RA 7942 and have existing agreements with the Philippine Government. We expect these to be honored. Our members’ investments under these agreements support job creation, inclusive growth and poverty alleviation, at the same time protecting the environment and upholding human rights.

An adverse ruling will be seen as changing the rules of the game midstream. This will lead to a significant loss of investors’ confidence not only in the mining industry but broadly across all industries, negatively impacting the investment climate and harming the country’s credibility.

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Room 809 Ortigas Building, Ortigas AvenuePasig City 1605 PhilippinesTel Nos.: (632) 635-4123 to 24; 635-4159Telefax: (632) 635-4160E-mail: info@chamberofmines.com.phWebsite: www.chamberofmines.com.ph

ABOUT THE RESPONSIBLE MINING INDUSTRY IN THE PHILIPPINES

For questions or more information, please contact COMP through Atty. Ronald S. Recidoro, Vice President, Legal & Policy Tel No: (632) 635-4123, (+63917) 561-3177, Email: ron.recidoro@chamberofmines.com.ph

The Chamber of Mines of the Philippines (COMP) is the association advancing the interest of mining, quarrying and mineral processing companies in the country for the efficient exploration, development, and utilization of minerals in consonance with sound economic, environmental, and social policies.

COMP consists of members coming from the exploration, mining, minerals processing and services industries, including professional associations. They are united by a shared commitment to the principles of economic growth and sustainable development, and as government’s partners in local and national development.

Apart from its advocacies of business leadership, policy development, environmental management and mining information and education, COMP members also engage in the following social activities:

The National Greening Program (NGP): COMP members are among the most prolific reforesters in the country under the NGP supervised by the Department of Environment and Natural Resources, having planted over 15 million tree and plant seedlings from year 2000 to 2010. Its members have committed to plant 25 million more seedlings to cover 300,000 hectares in 2013 and a total of 1.5 million hectares from 2011 to 2016.

Environmental protection, enhancement, and rehabilitation: COMP members not only restore forests and fields after mining, they help ensure that the flora and fauna native to a mining area

survive and thrive in their original habitat with the help of experts and local communities. This is backed by funds our members contribute to the Annual Environmental Protection and Enhancement Program (AEPEP) that in 2010 reached over P6 billion.

Free health and education facilities: Quality schools and hospitals are among the first facilities built by responsible mining companies in the remote locations where they operate, apart from the projects under their respective Social Development Management Programs (SDMP). In six years up to 2010, the total amount spent by COMP members on health and education projects combined reached over P322 million.

Basic community infrastructure: COMP members build roads, potable water systems, electrical and communications facilities, sports venues, and other important structures in and around mining communities as part of their community development programs. From 2005 to 2010, the cost of these infrastructures built by our members reached a total of P217 million.

Employment and livelihood opportunities: The mining industry directly employs over 250,000 workers and indirectly benefits over 1.2 million Filipinos. Thousands more benefit from businesses that are supplying or related to the mining industry, and beneficiaries of responsible mining companies are provided skills for livelihood and capital for entrepreneurship, supported by P152.7 million worth of funds from COMP members as of 2010.

Partnership with indigenous peoples and host communities. From exploration to operation and mine decommissioning, IPs and community members of host mining areas are consulted by COMP members and made partners in programs that bring tangible, lasting benefits for the present and future. Also, royalties from mining revenue to indigenous peoples in mining areas reached a total of P728 million from 2005 to 2010, and COMP members spend an average of P115 million a year in SDMP costs that substitute for government expenditures in the hard-to-reach areas where they live.