This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. VI, No. 7, March 19-25, 2006
Gov’t Moves to Boost
Mining Industry
The recently concluded
Prospectors and Developers Association of Canada (PDAC) 2006 Mining Convention
held at the Intercontinental Toronto Centre proved to be an occasion for the
Philippine government to make its presence felt in the mining industry.
BY EDWIN C. MERCURIO TORONTO, Canada – Mining
can boost the country’s economy. In an interview,
Environment Secretary Angelo Reyes said that the Mining Act of 1995 whose
constitutionality was upheld by the Supreme Court is a boon to the Philippine
economy. He said that the country has “a strategic geographical location for
those looking to sell in Asian markets of Japan, China, Korea and neighboring
countries.” “Mineral reserves are
present in the country and we have gold, copper and nickel,” Reyes said. “We
have the workforce with competent skills to support the mining industry, legal
backing and framework with the Supreme Court legalizing the Mining Act and the
Presidential Executive Order 270 which sets a clear road map for the development
of the mining industry.” Reyes added that the RP
“government has targeted 24 major and medium mineral projects for development in
the next five years at a total investment of over $8 billion in 2013.” As of
December 31, 2005, the total number of mining rights issued by the national
government was 762. Indeed, the mining sales
pitch is now massive. According to media observers and participants of the
Prospectors and Developers Association of Canada (PDAC) 2006 Mining Convention
held at the Intercontinental Toronto Centre from March 5 to 7, “the Philippines
is all out campaigning and has lately made its presence felt in the mining
industry.” Is the Philippines up
for sale? If the government and
large-scale miners will have their way, the Philippines will be the “world’s
number 4 in gold, number 6 in copper and number 7 in nickel production,” said
Artemio Disini, chair of the Chamber of Mines of the Philippines and president
of Natural Resources Mining Development Corporation. “It will also uplift the
livelihood of lowland communities and highland indigenous communities who will
be benefit from the one (1%) share of the profits from these foreign
investors.” According to the March 2006
issue of the London-based Mining Journal, the Philippines is “well
endowed with mineral resources, and its long history and experience in mining
has demonstrated its very rich potential for copper, gold, nickel, chromite and
other metallic minerals. It has also abundant industrial minerals, such as
marble, limestone, clays, feldspar, rock aggregates and dolomite.” Among the major players in
the Philippines are Crew Minerals AS operating a nickel project on Mindoro
Island, Apex Mining Co (recently acquired by Crew Gold Corp and Mapula Creek
Mining Corp), Benguet Corporation (which operates under Ampucao Copper Porphyry
Project, Kingking Copper Gold Project, Kingking epithermal gold project, Santa
Cruz nickel project, Pantingan Epithermal Gold Prospect), Climax Mining Ltd.,
Coral Bay Nickel Corp., Indophil Resources NL (Tampakan copper-gold project),
Lafayette Mining Ltd. (Rapu-Rapu mining), Mindoro Resources Ltd and TVI Pacific
Inc., a Canadian Mining Company operating at Canatuan and Balabag. Gavan Collery,
Manager-Corporate Affairs of the Indophil Resources NL (Sagittarius Mines, Inc.)
said that his company recognizes that its Tampakan Mining Project in South
Cotabato is the “largest underdeveloped copper-gold resource in Southeast Asia
with 8.9 million tons copper and 11.6 million ounces of gold (0.3% copper COG)
with significant higher grade zones.” Indophil’s North
American Investor Briefing added, “There is excellent potential for
increased resources, new exploration initiatives are in place and
pre-feasibility study is in progress.” The Tampakan project is
situated some 50 kms. north of General Santos City in South Cotabato province
which is home to six tribal communities such as the T’boli, B’laan, Kalagan, Ubo,
Manobo and Tasaday with the mining sites presently situated in tribal ancestral
territory of the B’laans. “At least five B’laan
datus (tribal chieftains) have agreed to allow mining in their ancestral
abode, namely, datus in Pula Bato, S’bangken, Tablue, Datal Biao and Danlag,”
Collery said. The Indophil project locations are in Tampakan, Cu-Au Deposit,
Columbio FTAA, Hillcrest FTAA Aplication and Southcot EPA. Columbio FTAA is a
partnership agreement between Sagittarius Mines Inc. and the Philippine
government. Sagittarius equity includes 60% of Tampakan Group of Companies and
40% of Indophil and Alsons Corporation. Indophil has conducted 200
exploration holes from the surface and projects a development cost of $1
billion. The project, according to Collery, will last 40 to 50 years and will
have a payback after seven years. “With the market value of gold at $450/ounce
and copper at $2.50/pound, the Tampakan Project is a promising investment,” he
added. In October 2005, the company had five drill rigs on site and will start
production in 2010. Environmental problems Disini said that the danger
of toxic spills and pollution caused by mining is minimal. He handles all
government contracts with mining and his responsibility includes bidding out the
mining sites and calls this “a joint venture between the government and the
private sector – for profit.” His other responsibility, he said, is checking
the records of companies for adherence to sound environmental practices,
safeguards and commitment. With regard to the toxic
spill at the Rapu-Rapu mining site of La Fayette Mines, Ltd., Disini said,
“There where only 10 kilos of fish that were affected in Rapu-Rapu mine spill
and it was not a big health issue.” “Marcopper (Placerdome)
paid $70 million to clean up the toxic spills in Calancan Bay and nature has a
way of cleaning up the environment. When the rains came all the toxins and
pollutants were washed away downstream and into the sea,” Disini said. “The
Department of Health came out with something but it really was not a big issue.
Today, marine life has returned to Calancan Bay. Nature has a way of cleaning
the environment.” Will mining ease the RP
government budget woes?
Last September, President Gloria Macapagal-Arroyo,
signed the national policy agenda to revitalize mining in the country as
detailed in the Mineral Action Plan (MAP). According to Kalikasan – People’s
Network for the Environment (K-PNE), this is the start of a “frenzied rush to
mine all Philippine mineral resources.”
K-PNE national coordinator Clemente Bautista
scored government claims that MAP’s implementation would lead to a more
prosperous minerals industry that could help ease the government’s budgetary and
fiscal woes. “The liberalization of the mining industry, which MAP is all about,
will worsen the fiscal crisis.”
The MAP allows 100 percent repatriation of
capital and profits, a 10-year tax holiday, capital tax exemptions, duty-free
importation of equipment and machinery and other rights and privileges that tend
to trample upon rights of host communities and the wanton disregard of the
environment. It also shortens the processing time for mining applications by
downgrading the participation of local government units in approving mining
projects in their respective areas and harmonizing conflicting laws such as the
Indigenous People’s Rights Act (IPRA) with the Mining Act.
Bautista said that these erroneous economic
policies are one of the major reasons in the government’s low revenue collection
and a ballooning budget deficit.
The Bureau of Treasury records as of September
last year revealed that the Philippine has a budget deficit totaling P4.02
trillion ($78.76 billion, based on an exchange rate of P51.04 per US dollar).
Bulatlat © 2006 Bulatlat
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