In 2007, the initial report of the MGB also revealed that the government collected P5.029 million ($108,970.75) from the mining sector or a mere five percent of the total mineral production value.
Bautista surmised this as one of the reasons why some local government units (LGUs) have opposed the entry of large-scale mining corporations in their areas. He cited as an example the withdrawal of support to OceanaGold by the local government when the mining firm refused to pay its taxes worth P26 billion ($563,404,697).
Huge profits
Meanwhile, foreign mining firms rake in huge profits, said Bautista.
In 2007, mineral export value increased to $2.548 billion from $2.06 billion in 2006 and $820 million in 2005.
Overall value of production in 2007 reached P101.5 billion ($2.2 billion) compared to P68.4 billion in 2006 ($1.33 billion at the 2006 average exchange rate of $1:P51.31) and P35.2 billion in 2002 ($682.17 million at the 2002 average exchange rate of $1:P51.60).
The Philex Mining reported in 2006 that it earned a net income of P3.087 billion ($60.16 million) from P409.1 million in 2005 ($7.43 million). It reported a P1.03 billion net profit for the first quarter of this year alone ($23.87 million at the January-September 2008 average exchange rate of $1:P43.15). The Atlas Consolidated Mining and Development Corp. reported in 2007 that its income increased by more than 500 percent, from P47 million in 2006 ($916,000.78) to P289 million ($6.26 million). Canadian-owned mining firm TVI Pacific Inc. said its net income in the first quarter of 2007 was up by 67.3 percent to 2.4 million Canadian dollars, or about P102 million.
In 2006, mining giants BhP Billiton, Anglo American and Xstrata entered the local mining industry.
Other big mining firms Phelps Dodge, Rio Tinto directly formed or established partnership with local subsidiaries for exploration.
Bautista observed that some foreign corporations do not immediately start operations when they get the permits. He said that these companies primarily want to control the resources.
He cited several examples. The BHP Billiton’s Nicket project in Davao has postponed its operations in 2007 for 2019. The same is true with Anglo-American project in Surigao and Vale do Rio Doce exploration project in Masbate. Bautista said they just want to position themselves in mineral-rich areas in a competitive bid with other mining firms.
Financial oligarchs in mining
Bautista noted the entry of what he calls financial oligarchs in mining.
He said the Australia-New Zealand Bank (ANZ), together with the Commercial Bank of Australia provided Oceana Gold with $40 million in credit for its gold mining project in Didipio, Nueva Vizcaya.
The ANZ also funded the Rapu-rapu Poymetallic Mining Project (RRPM) of the Lafayette Mining Limited. Other banks involved in the RRPM were ABN–AMRO of the
Netherlands, Standard Chartered Bank of the United Kingdom, Standard Bank and Investika of South Africa, and Korea First Bank of South Korea. By the end of 2007, Lafayette has accumulated approximately $300 million in debt from these banks.
The Deutsche Bank, meanwhile, has given a $100 million loan to the Atlas Consolidated Mining and Development Corp. (ACDMC) for the reopening of the Toledo copper mine. The bank also gave a $40-million worth of credit to Platinum Group of Metals for two ferronickel smelter plants.
The Japan Bank for International Cooperation (JBIC) gave a $180-million support for the Rio Tuba Nickel Mining Project and the Hydromettalurgical Processing Plant in Palawan.
Insurance companies such as AXA SA, Investika Ltd, Baker Steel, Capital Managers LLP, and Barclays PLC are also stockholders of the Toledo Mining Corporation.
