MANILA – Philex Mining Corp said Monday it has told the Department of Environment and Natural Resources that mining contracts for its five projects should not be cancelled because these did not violate regulations.

The DENR had issued “show cause” orders against 75 mining projects, including those owned by Philex units Silangan Mindanao Mining and Philex Gold Philippines, saying they could not operate in watersheds.

Philex told the stock exchange that it replied to the DENR in writing last Friday and said that the mineral production sharing agreements (MPSAs) were “valid and legal” because these cover areas outside “proclaimed forest watersheds, forest reserves or critical watersheds.”

The company said disputes over mining contracts should be settled within a one-year “cure period,” under a three-man tribunal. It said it would reserve the right to explore legal remedies.

Lopez has cracked down on destructive mining to save the environment while uplifting the lives of the poor. She earlier ordered 28 mines closed or suspended citing similar violations.

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“Water is life, and by saying, by today, doing show cause to all mining companies that were granted MPSA, there should be no mining in watershed areas,” she said on Feb. 14.

In a Feb. 10 interview with ANC, Lopez said she followed due process during her audit of the mining industry’s compliance with environment laws.