Report

 on  Mining  Philippines  2011  

BENJAMIN  PHILIP  G.  ROMUALDEZ  

October  21,  2011  
President  
Chamber  of  Mines  of  the  Philippines  
1  
Attended  by:  

•     4  Cabinet  Secretaries  
•     1  Congressman  
•     2  Heads  of  NGOs  
•     12  Ambassadors  
•     More  than  a  dozen  industry  leaders  
•     52  Exhibitors  
•     21  Sponsors  
•     Over  400  Delegates  
•     Over  1,000  Visitors  
Reaffirmed  Aquino  
Administration’s  support  for  
Responsible  Mining.  
Commitment  to  design  CSR  
Scorecard  with  Philippine  
Business  for  Social  Progress  
and  other  development-­‐
oriented  NGOs.  
Commitment  to  design  
Environment  Scorecard  with  
World  Wildlife  Fund,  in  
cooperation  with  other  
environment  and  safety  
institutions.  
 MOU  
between  
DepEd  
and  
COMP  
for    
increased  industry  support  for  
Adopt-­‐a-­‐School  Program  
Other  Commitments:  

•     National  Greening  Program  

•     Extractive  Industry  Transparency  Initiative  
•     Continuing  Trade  and  Investment  
         Collaboration  with  China,  Chile,  Australia,  
         US,  and  South  Africa  
Industry  Updates,  Challenges  and    
Recommendations  

BENJAMIN  PHILIP  G.  ROMUALDEZ  

October  21,  2011  
President  
Chamber  of  Mines  of  the  Philippines  
9  
•  Potential  mining  wealth  in  the  Philippines  =  $840  
billion  or  P47  trillion  or  10  times  our  annual  GDP  

•       Globally,  we  rank:      

•         Third  in  gold  
•           Fourth  in  copper    
•           Fifth  in  nickel    
•           Sixth  in  chromite    
Philippine  Metallic  Mineral    
Resources  and  Reserves  

•  8.03  billion  tons  of  copper  

•  4.91  billion  tons  of  gold  
•  0.81  billion  tons  of  nickel  
•  480.26  million  tons  of  iron  
•  39.66  million  tons  of  chromite  
•  433.88  million  tons  of  aluminum  
 Unit   Jan-­‐Jun,  2011   CY  2010  
MINERAL  COMMODITY  
Used   Quantity   Value   Quantity   Value  

PRECIOUS  METALS   43,143,430,273   71,698,391,862  

Gold   KGS.   21,397   42,176,598,466   40,847   70,508,198,235  
Silver   KGS.   21,687   966,831,807   41,004   1,190,193,627  

BASE  METALS   20,781,751,694   39,389,031,066  

Copper  Concentrate   DMT   122,511   9,194,752,038   236,814   15,775,710,591  
Copper  Metal  Equivalent   MT   30,759   58,412  
Nickel  Concentrate   DMT   18,419   5,778,744,000   33,539   9,795,473,000  
Nickel  Content  of  Concentrate   MT   10,734   19,312  
Nickel  Direct  Shipping  Ore   DMT   5,200,115   5,366,670,504   13,172,543   13,198,076,764  
Nickel  Content  of  Ore   MT   58,374   153,679  
Metallurgical  Chromite   DMT   6,360   42,638,557   14,807   117,135,758  
Zinc   DMT   15,413   398,946,595   19,819   502,634,953  
63,925,181,967   111,087,422,928  
•  Operating  metallic  mines  =  27                                                                      
Nickel  processing  plant  =  1                                                                                  
Copper  Smelter  =  1                                                                                                                      
Gold  refinery  =  1  
•  Approved/registered  tenements  =  682  (FTAA,  
MPSA,  EP,  IP  and  MPP)  
•  Some  2,717  mining  applications  under  process  
•     1970s:  minerals  accounted  for  about  1/5  of  Ph  
exports;  at  its  peak,  contributed  24%  to  Ph’s  total  
exports.    

•     2010  Mining  Growth  Rate:  12.1%  

•     2010  Mineral  Exports  grew  by  27%  

•     In  1Q  2011,  Mining  accounted  for  4.3%  of  total  
 exports  (US  $513M)  

•     In  2H  2011,  Mining  helped  boost  economy  amidst  

 global  downturn;  Gross  Production  Value  up  from  
 P48.73B  to  P63.92B  
 PROJECT  NAME   TOTAL   TOTAL  DISCLOSED  
(2004-­‐2010)   PROJECT  COST  
(up  to  2016)  
                                                 in  million  US$  
A.  Operating/Expansion  Stage   2,204.07   2,305.66  
PRIORITY  MINERAL  DEVELOPMENT  PROJECTS  
B.  Construction  and  Development  Stage   1,010.64   2,014.86  
C.  Feasibility/Financing  Stage   548.46   12,478.05  
D.  Advanced  Exploration  Stage   15.63   1,343.63  
PMO  PRIORITY  MINERAL   4.79   315.79  
DEVELOPMENT  PROJECTS  
PRIORITY  EXPLORATION  PROJECTS   48.11   59.80  
GRAND  TOTAL   3,831.70   18,517.79  
1)  No2Mining  in  Palawan.  

2)  Alternative  Mining  Bills  in  Congress.  

3)  Ban  on  open  pit  mining  in  South  Cotabato.  

4)  Writ  of  Kalikasan  cases  vs.  mining  firms  in  

Zamboanga  Peninsula.  

5)  Bias  of  NCIP  vs.  legitimate  large  scale  mining.  

NCIP  BIAS  
WRIT  OF  
VS.  MINING  
KALIKASAN   OPEN  PIT   ALTE
RNATIVE   N
BAN   MINING  BILL O2  MINING  IN
S   PALAWA  
N  
1)  Align  Mining  Act  with  other  laws,  e.g.  Local  Gov’t  
Code,  IPRA,    and  Internal  Revenue  Code.  

 a)    Supervision  of  small-­‐scale  mining  should  be  with  

             national  gov’t,  not  LGUs  

 b)    Question  IP  “ownership  concept”  vis-­‐à-­‐vis      

     Regalian  Doctrine;  educate  the  NCIP.  

 c)    Rectify  delay  of  LGU  share  in  mining  excise  taxes.  
2)  Decisive  action  on  open  pit  mining  bans.  

3)  Gov’t  should  help  industry  communicate  with  

stakeholders.  

4)  “No  to  Irresponsible  Mining  in  Palawan”  

Areas  covered  by  exploration  applications  =    
14  million  hectares  (45%  of  total  Philippines)  

Total  Philippines  land  area  =  30  million  hectares  

Actual  footprint  of  30  operating  mines  nationwide  =      
60,000  hectares  (2%  of  total  Philippines)  

Total  Philippines  land  area  =  30  million  hectares  

Mining  is  an  extractive  industry  

•  Seen  by  many  as  destructive  

•  Sustainability  is  questioned    
•  Non-­‐renewable  
Mining  firms  should  operate  within  
Parameters  of  Responsible  Mining.  

1)  Social  Equity  

2)  Environmental  Protection  
3)  Economic  Growth  
4)  Good  Governance  
                       In   the   pursuit   of   projects,   mining   firms   should   uphold  
the  human  rights  of  all  stakeholders,  especially  those  in  host  
communities;   firms   should   guided   by   values   founded   on   the  
fundamental   principle   of   respect   for,   and   protection   of,  
human  dignity.  

The  benefits  of  mining  should  be  felt  by  host  communities.  
           Mining   firms   should   be   committed   to   continuous  
improvement   of   environmental,   health   and   safety  
performance;   they   should   strive   to   minimize   the   negative  
impact   of   their   activities,   products   and   services   on   the  
environment,   on   people   and   on   communities   where   they  
operate.      

Environmental  protection  measures  should  be  in  place:  

•       Environmental  Management  Systems  
•       Progressive  Rehabilitation  
•         Planning  for  closure  and  beneficial  land  use  should  be  
           undertaken  years  before  mine  ceases  operations  
                                Mining  firms  should  be  partners  in  progress  in  the  areas  
of   livelihood   promotion   and   job   creation,   educational  
advancement,   community   development,   health   and  
sanitation,   infrastructure,   increased   government   revenues,  
and  poverty  alleviation.  

Social  Development  and  Management  Plan  should  be  

implemented  in  consultation  with  host  and  impact  
communities.  
                    Mining  firms  should  aspire  to  be  good  corporate  citizens,  
working  within  the  framework  of  the  Philippine  Mining  Act  of  
1995,   among   others.   They   should   conducting   their  
businesses  with  respect  to  their  partner  host  communities  in  
a  consultative,  transparent  and  proactive  manner.  

No  shortcuts.    No  corruption.  

Mining  industry  can  be  a  catalyst  for  economic  growth.  

  Lever  for  greater  economic,  social  and  cultural  

development.      
  Can  increase  revenues,  reduce  budget  deficit  
  Can  increase  exports,  foreign  exchange  reserves  
  Can  provide  jobs  and  prevent  exodus  of  jobseekers  
that  affects  social  fabric  
  Can  reduce  poverty  that  remains  to  be  the  greatest  
challenge  of  the  government.  
THANK  YOU