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
Bulatlat
|
THUMBS DOWN TO MINING:
Indigenous people’s leaders
from various regions protest
large-scale mining in a conference
in Baguio City, March 13
PHOTO BY
ACE ALEGRE |
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
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