Arab Environment Watch
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Lebanon: Lack of quarry licensing, regulation 'costs Treasury $500,000 a day'

By Hani M. Bathish and Maher Zeineddine
Daily Star staff

BEIRUT: The numerous unregulated sand and rock quarries dotting Lebanon's picturesque landscape make up the single largest local source of income for many political parties, according to Habib Maalouf, head of the Lebanese Environmental Party. Many politicians themselves own quarries, he says.

Maalouf told The Daily Star that, aside from the inestimable environmental damage that results from quarry activity, the Treasury loses around $500,000 of potential revenue per day due to a lack of licensing and regulation of the mining sector, with all of the earnings from mining going into private pockets.

Thus, unlicensed and unregulated work continues unabated as politicians turn a blind eye.

Maalouf said each rock or sand quarry makes an estimated $80,000 per day.

"They continue to make astronomical profits as a result of the lack of regulation and organization, which has denied the Treasury billions of dollars of potential revenue," he added.

The party's estimates put the amount of lost revenue over the last 15 years at $2.5 billion.

A Cabinet decision issued on January 4 extended a six-month grace period to quarry owners, allowing them to continue mining until June 30.

A statement issued by the Environment Party Thursday called for an investigation into the quarry file due to the Environment Ministry's failure to regulate the sector, and in view of the "historic" accusations of complicity leveled against the [ministry's] administration.

Repeated attempts to contact Environment Ministry officials were unsuccessful. 

The Environment Party statement said the Cabinet had once more failed to specify where quarries were forbidden and where they were permitted, lamenting "another lost opportunity" to regulate the sector.

Maalouf said successive governments had ducked the licensing issue over the past 15 years, each government extending the previous "administrative" grace period allowing quarries to continue operating unabated.

"No one knows exactly how many rock and sand quarries there really are in Lebanon," he said. "Estimates range between 300 and 400, but there are no accurate statistics."

"Some quarries operate under the guise of a land survey. Others, known as roving quarries, excavate new roads and conduct quarrying as part of road-excavation activities," Maalouf added.

The Environment Party accused the Cabinet of ignoring the role of the Environment Ministry and its guidelines concerning quarries. "The Cabinet's and the interior minister's decision only serves to prolong this chaotic situation," Maalouf said.

Instead of drafting legislation for the sector, in addition to implementing licensing and operating fees to generate income, the Treasury allows quarries to operate free of any official regulation or concern for environmental standards, he added.

Maalouf said the most recent Cabinet decision merely refers the file of each "investor" to the "concerned section at the Internal Security Forces," which then must conduct a survey and evaluate each quarry individually.

Such studies must be carried out by qualified technicians and geologists, "which we doubt are available at the Interior Ministry," the party statement added.

A study conducted in 1996 to organize quarries and establish technical and environmental standards identified permissible locations for mining and determined the national demand for stone. Political bickering has prevented the plan from being implemented.

In 2005, a controversial judicial decision ordered the state to pay $250 million in compensation to MP Nicholas Fattoush's family for having shut down their quarries.


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