“You have to do it right. If you cannot do it right, then get out of mining”

Canadian mining companies are jittery of a promised overhaul of laws and permits in The Philippines by incoming president Rodrigo Duterte, who wants to ensure

their operations are not destroying the environment.

Duterte has also offered the post of Environment secretary to Gina Lopez, chairperson of ABS-CBN’s charitable arm Lingkod Bayan Foundation and an outspoken critic of mining. Lopez, who campaigned against mining in Palawan, has accepted the post.

A day after Duterte announced his offer to Lopez, mining and oil stocks fell by more than 4 percent, a development attributed to investors’ anxiety over the next administration’s policies.

Duterte’s spokesman Ernesto Abella, however, maintained that the next president is not anti-mining.

There are more than a dozen Canadian companies with projects in the Philippines.

Asked if Duterte is keen on having the mining sector grow, Abella said the incoming administration is committed to promoting a robust and dynamic economy, with every sector contributing to its growth.

“Responsible mining plays a key role in the Philippines,” Abella said in a press conference in Davao City. “The key word here is responsible. And our president has made his position very clear: ‘You have to do it right. If you cannot do it right, then get out of mining,’” he added.

Abella said Duterte wants the standards of responsible mining in developed countries like Canada and Australia applied in the Philippines “to ensure the protection of the environment.”

“He (Duterte) supports each and every venture that contributes to the health of the economy but he is clear that for whatever venture we go into, it should be in a responsible manner. He is not anti-mining. Definitely not,” the incoming presidential spokesman said.

When asked how he can reconcile his pronouncement with the potential appointment of Lopez, who has been staunch critic of mining, Abella said: “The fact that she accepted it (post) means that she is willing to adjust her positions.”

In an earlier interview, Lopez said she is ready to dialogue with mining firms and to cleanse the ranks of the Environment department of people who accept bribes.

Duterte also defended his chosen Environment chief. He said Lopez is an “ardent (advocate) for responsible mining.”

Duterte announced that there would be a “comprehensive review” of all mining concessions to ensure that their operations are not destroying the environment.

He also asked mining firms to plant trees and wash away the chemicals they leave behind to avoid destroying the environment.

“If you don’t do it, I will cancel the permit,” Duterte said.

“When you’re spoiling the land, I’ll cancel it (permit) without hesitation. That’s the bottom line,” he added.

Duterte stressed that the mining players “have to do it right” because the precious metals belong to the Filipino people.

“If you cannot do it right then get out of mining,” the tough-talking leader said.

Regina Lopez, an environmentalist who on June 21 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 the news agency.

“We must stop killing our future for the interests of a few.”

The Philippines sits on mineral reserves worth US$1.4 trillion, but mining accounts for less than 1% of GDP, as policy bottlenecks and an anti-mining lobby hamper development.

The biggest stalled venture is the $5.9 billion gold-copper Tampakan project on Mindanao island, an unstable region that has battled for years with Islamic and communist insurgencies.

Glencore last year quit the project which has failed to take off after the province where Tampakan is located banned openpit mining in 2010.

The central government in Manila allows openpit mining, but in recent years has delegated more power to regional bodies in a bid to win popularity.

While not saying she would stop any form of mining, Lopez said we “will not allow any activity that causes suffering".

The country has been hit by mining disasters in the past. 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.

Risk management consultancies have described the Philippines as high risk for miners.

Now, it looks to be even higher risk, they said.

Canadian Ambassador Neil Reeder said commercial ties between Canada and the Philippines continue to grow, with new Philippine investments in Canada including in the property and food retail sectors by Ayala and Jollibee.

Reeder said there were more than 10 incoming trade missions from Canada bringing high quality Canadian goods and services to the Philippines in the past 12 months.

More than 100 Canadian companies participated in these missions, he said. This, in addition to two outgoing investment missions to Canada in the past year led by the Canadian chamber of commerce.

He said high Canadian technologies are being marketed here in infrastructure, aerospace, defense, renewable energy, ICT, agri-food, education, life sciences, and disaster management.

“We also continue to see new Canadian direct investments in the Philippines which will create new opportunities and jobs for Filipinos,” he added.

Reeder also said Canada’s development assistance will be targeted on the poorest and most vulnerable, including support for the women, the youth and for child health care.