UPDATE 1-Philippine lawmakers postpone vote on embattled resources minister

Published 14/03/2017, 07:06 pm
© Reuters.  UPDATE 1-Philippine lawmakers postpone vote on embattled resources minister

* Further confirmation hearings expected in May after break

* Congress panel has more questions for minister

* Minister has ordered closure of over half the country's mines

* Philippines is world's top nickel producer (Adds comment from mining group, analyst)

By Enrico Dela Cruz and Manolo Serapio Jr

MANILA, March 14 (Reuters) - Philippine lawmakers on Tuesday deferred a decision to confirm or reject an ardent environmentalist as the country's resources minister, stoking uncertainty over the outlook for mining in the world's top nickel ore supplier.

Regina Lopez last month ordered the closure of more than half the nation's mines to protect watersheds, a bold step backed by President Rodrigo Duterte who has said the Philippines can survive without mining.

Duterte appointed Lopez in June, but confirmation hearings in the country usually take place long after ministers start work and members of Congress have this month been debating whether to confirm Lopez in her role.

On Tuesday, they opted to postpone a vote, saying they were unable to reach a clear decision without more information.

Under government procedures, Duterte will need to 'reappoint' Lopez, with further confirmation hearings not expected until May, when Congress returns from recess that begins in a few days.

"In May, we will re-open the hearing. We still have a lot of questions for her," Senator Manny Pacquiao told reporters after a televised meeting with other lawmakers on Lopez's appointment.

The Chamber of Mines of the Philippines, which groups large-scale miners, said it was unfortunate the congressional panel had failed to vote and that it hoped Duterte would not reappoint Lopez, instead finding somebody "more moderate".

"Our call is for the president to choose somebody that government and industry can work with because Secretary Lopez has caused so much division," Ronald Recidoro from the Chamber of Mines told Reuters by phone.

Duterte has supported Lopez's Feb. 2 order to shut 23 of the country's 41 mines to protect watersheds. She suspended another five for environmental infringements and also cancelled 75 contracts for undeveloped mines.

Miners have contested Lopez's mine closure orders, saying they are baseless, did not follow due process and would affect 1.2 million people who depend on mining for their livelihood.

The uncertainty surrounding Lopez's appointment could ease some concerns in the global nickel market of disruptions in Philippine supply, at least in the short term, said Daniel Hynes, commodity strategist at ANZ Bank.

"At first glance it does potentially lower the probability that we'll eventually see the closure of the nickel mines that were announced," he said.

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