Ipilan Nickel Corporation (INC), a subsidiary of Global Ferronickel Holdings, reaffirmed its commitment to responsible mining and regulatory compliance following allegations raised against its operations in Brooke’s Point, Palawan, during a Senate hearing last Monday (March 9).
The company issued a statement in response to Brooke’s Point Vice Mayor Mary Jean Feliciano’s remarks during a Senate hearing, particularly her claims of their alleged violations in the municipality.
Amongst the issues raised were claims that the mining operations had led to flooding and environmental damage on nearby water sources, irrigation systems, and agricultural lands.
In response, Ipilan pointed out that the Department of Environment and Natural Resources (DENR) renewed its Mineral Production Sharing Agreement, authorizing the company’s operations until 2043 after evaluating its compliance with environmental and mining regulations.
The company also clarified that its Environmental Compliance Certificate remains valid, citing a DENR order issued in June 2020 which confirmed that the authorization had not been cancelled.
Ipilan said its operations are supported by a Certification Precondition issued by the National Commission on Indigenous Peoples following the conduct of a Free, Prior, and Informed Consent process with indigenous communities.
The company added that its mining activities are monitored through a multi-agency oversight system involving the DENR, the Mines and Geosciences Bureau, local government authorities, and other regulatory bodies.
Ipilan also addressed an alleged flooding incident reported in 2023. The company pointed out that an investigation carried out by the Mines and Geosciences Bureau had attributed the flooding to unusual rainfall and soil saturation and not mining activities.
Ipilan went on to further state that all other claims of their operations polluting water sources, irrigation systems, and agricultural lands remain unscientifically proven and thus are unsubstantiated.
Ipilan also added that the courts dismissed complaints related to alleged tree-cutting activities, noting that the activities were conducted under valid permits.
The company said it has consistently paid taxes and regulatory fees since beginning commercial operations in 2022. According to the statement, Ipilan has remitted PHP 1.73 billion to the national government in income taxes, excise taxes, and other statutory charges.
At the local level, the company reported paying PHP 322.1 million in taxes and fees, including PHP 299.4 million remitted directly to the Municipality of Brooke’s Point.
Despite accepting and creating a receipt of these payments, the company said the local government has not issued the corresponding Mayor’s Permit. Ipilan said it has brought the matter before the courts and maintains that the Philippine Mining Act does not require a Mayor’s Permit for its mining operations to continue.
The company also noted that it currently holds a valid Mayor’s Permit issued at its head office in Parañaque City.
Ipilan said its operations maintain an 87 percent social acceptability rating among host communities. The company currently employs 1,149 workers, including 274 members of indigenous communities, and said it has remitted PHP 80.8 million in indigenous peoples’ royalties.
It also reported allocating PHP 101 million for Social Development and Management Programs supporting livelihood, education, and infrastructure development in host and neighboring communities.
Ipilan added that responsible mining operations contribute to the protection and management of forest and watershed areas that could otherwise be vulnerable to illegal resource extraction and unregulated land use.
How should mining companies balance economic contributions with environmental protection and community concerns?
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