Title: Philippine Mine Safety and Environment Association and Philippine Society of Mining Engineers
1The Challenge of Mineral Wealth Promoting
Responsible Mining in the Philippines
- Horacio C. Ramos
- Director
- Mines and Geosciences Bureau
- Department of Environment and Natural Resources
- November 17, 2006
2Executive Summary
- INDUSTRY PERFORMANCE AND STATUS
- PRIORITY MINERAL EXPLORATION AND DEVELOPMENT
PROJECTS - INDUSTRY COMPETITIVENESS FROM THE POINT OF VIEW
OF SOME FOREIGN INVESTORS - DENR POLICY REFORMS AND DIRECTIONS
3INDUSTRY PERFORMANCE AND STATUS
4MINING INDUSTRY STATISTICS 2005
5OPERATING MINES
1 Polymetallic Mine Rapu rapu mine
2 Large scale Mines
Victoria Gold Mine
Padcal Copper Mine
4 Medium-scale Chromite Mines
Masinloc Project of Benguet Corp.,
Omasdang Project of Crau Minerals
Homonhon Project of Heritage Res.
Redondo Project of Krominco, Inc.
5 Medium-scale Nickel Mines
Rio Tuba Nickel Mine
Taganito Nickel Mine
Cagdianao Nickel Mine
Sigbanog Project of HMC
Tagana-an Project of HMC
4 Medium-scale Gold Mines
Canatuan Project of TVI
Acupan Gold Operations of Benguet
Diwalwal Direct State Development Project
Banahaw Gold Project, Philsaga Mining Corp.
15 Cement Plants and Quarries
1 Nickel Processing Plant (HPAL)
1 Copper Smelter (PASAR)
2000 Quarries and small scale mines
6APPROVED TENEMENTS (as of 09/06)
Area coverage (including other mining permits) is
515,413 hectares or around 1.7 of total
Philippine land area.
7PRIORITY MINERAL EXPLORATION AND DEVELOPMENT
PROJECTS
824 Priority Projects
9PRIORITY MINING PROJECTS
10PRIORITY MINING PROJECTS
11(No Transcript)
1241 Exploration Projects
13INDUSTRY COMPETITIVENESS FROM THE POINT OF VIEW
OF SOME FOREIGN INVESTORS
14THE FRASER INSTITUTE SURVEY PROFILE
15RP Score and Ranking (Fraser Surveys, 2001-2005)
1. Policy Potential Index -how attractive a
jurisdictions policies are from the point of
view of exploration managers)
2. Current Mineral Potential Index based on an
executives perception of geology under current
policy environment
3. Pure Mineral Potential assuming best
practices policy regime
16Summary of RP Ratings, By Factor (Fraser Surveys)
17MUCH REMAINS TO BE DONE
- The Survey acknowledges some anomalies (e.g.
conflicting beliefs) and a caveat that response
may have been influenced by personal experiences. - BUT the Survey is significant because ranged
against other mining jurisdictions, the
Government is given an idea of what it is doing
right or doing wrong. - The Survey identified areas where attention
should be focused.
18MUCH REMAINS TO BE DONE
- The Study affirmed the countrys geological
prospectivity, considered as the most important
criteria for investors. - On the local front
- The law is sufficient, implementation is the
key - DENR/MGB Cant effectively enforce the law, due
to lack of resources - - P. Wallace, July 2006, Briefing to ANZCham
- Potential FDI in Mining Per Year (2007 2010)
Pessimistic Scenario 125M Status Quo Scenario
375M and Optimistic Scenario 1.25B - - R.Blume, Workshop on FDI, October 2006
- a seeming policy shift from active promotion of
the previous two years to one of cautious
re-consideration of policy reforms - - Chamber of Mines of the Philippines, 29
August 2006 letter to H.E., President
Gloria Macapagal-Arroyo -
19MUCH REMAINS TO BE DONE
- Reforms are not easy no straight path
- Differing perspectives and interests to balance
- The Government is just part of the equation
- Putting principles into practice is a task of the
company
20MUCH REMAINS TO BE DONE
- We realize the need to transform these
minerals into economic wealth to make them useful
for our development as a nation and to enhance
the quality of life of our people. - We know that these minerals will not have
any significant value for as long as they are not
converted into their commercial form to generate
the necessary revenues for driving the national
economy and developing our communities. - - ENR Secretary Angelo T. Reyes during the
Indaba Conference - That is the CHALLENGE OF MINERAL WEALTH that the
Government has COMMITTED itself to do.
21DENR POLICY REFORMS AND DIRECTIONS
22DENRS 12-POINT AGENDA
II. SUSTAINABLE EXPLORATION AND DEVELOPMENT OF
THE COUNTRYS NATURAL WEALTH 6. Revitalize
responsible mining through the development of 24
medium and large-scale mining projects and the
clean-up and rehabilitation of abandoned and idle
mines especially the Bagacay mines in Samar and
Marcopper mines in Marinduque. Generate
US1.8 billion in investments over the next five
years.
23REVITALIZATION PROGRAM
- Revisiting of the 24 Priority Mining Projects to
include new projects that have potentials of
contributing to the goals of the program and to
de-list projects that have already commenced. - Institute the Use It or Lose It Policy to weed
out non-performing mining tenements and focus on
serious, technically competent and financially
capable mining contractors. - Review of the Mineral Action Plan to track down
accomplishments and to review and identify
gaps/concerns that need attention. - Development of an Industrialization Plan to find
ways to promote the development of upstream and
downstream industries. - Invigoration of the Minerals Development Council
(MDC). - Touching base with civil society groups (e.g.
Bishops-Businessmens Conference) for stakeholder
dialogues.
24CONTINUING POLICY REFORMS
- FURTHER AMENDMENTS TO DAO 96-40
- Increase in the amount to implement the Social
Development and Management Programs of mining
companies. - Development of the guidelines for Joint Venture
Agreements and Co-Production Agreements. - Review of the Fiscal Regime of FTAA to ensure
equitable Government Share in mining operations. - Streamline the procedure in the grant of mining
tenements. - STRENGTHEN PERMITTING PROCEDURES
- Institution of mandatory Notice To Proceed
after approval of Declaration of Mining Project
Feasibility or MPP but prior to commercial
operation - Strengthen current mechanism in the evaluation of
Mining Project Feasibility Studies - Increase fines and penalties for violations of
various environmental standards
25CONTINUING POLICY REFORMS
- IMPROVE ENVIRONMENTAL MONITORING SYSTEMS AND
STANDARDS - Institute 3rd party Environmental Audits
- Update and expand coverage of DENR Standards
- Providing for Resident Government Mine Inspectors
- CAPACITATE THE DENR TO BETTER PERFORM ITS
FUNCTIONS - Develop technical capability of DENR Regional
Offices in regulating and monitoring mining
operations - Conduct on-the-job training in all aspects of
mining operations - Formulate and implement a comprehensive training
module for mine inspectors - Set-up and upgrade DENR laboratory facilities in
all regional offices
26IN CLOSING
(W)e are promoting a revival of mining in the
Philippines to take advantage of the economic
benefits that can be derived from the development
of these resources, especially at this time when
mineral demand is historically high and prices
are in favor of mineral producers.
HOWEVER, (T)he Philippine Government is
revitalizing mining not purely for the expected
economic benefits but with due and equal regard
for the environment and the communities.
27Maraming salamat po!
www.DENR.gov.ph Department of Environment and
Natural Resources
www.MGB.gov.ph Mines and Geosciences Bureau