Department of Environment Natural Resources MINES AND...

MINING IN THE PHILPPINES

Now & Future Prospects

Department of Environment Natural Resources

MINES AND GEOSCIENCES BUREAU

Regional Office No. XIII, Surigao City

Now and Future ProspectsMining in the Philippines:

ENGR. FRANCIS GLENN SUANTEOIC-Chief, Minining Environment & Safety Division

Presenter

PRESENTATION OUTLINE :

Benefits of Mining

Legal Framework

Caraga Mining Tenement Statistics & Maps

Sustainable Development through Mining

Environmental Protection & Enhancement Program

Social Development & Management Program

Economic Viability

Commercialization of Mineral Commodities

Revenue & Shares of LGUs and Ips

• Benefits of Mining

Bicycle or Skateboard?

Car?

Alarm Clock?

Pencil or Computer?

Stove, Microwave,

Cupboards, Countertops?

Coins? Video Games?Musical

Instruments?

Toothbrush

and

Toothpaste?

Cellphone

Flatware or Television?

Do the items in the

photographs have

anything in common?

Thousands of things we use

every day are made from rocks

and minerals.

If you guessed “rocks and

minerals,” you are right!

The world, as we know it today, can’t survive without minerals.

It is estimated that every newborn will need:

2.9 million pounds of minerals, metals and

fuel in their lifetime

How do you think we get

all those rocks and

minerals?

If you said “Mining,”

you are right!

A mine is a place

where rocks and

minerals of value are

extracted.

Mining

-Is the Art and Science of

Extracting valuable mineral

resources/deposits like gold,

copper, silver and others, from

the Earth’s crust for purposes of

human consumption.

Imagine the world

without MINING

“ What would our lives be like without mining?

Imagine a world without transportation such as

jet planes or railroads, without communications

such as cell phones or radar, without

decorative items such as art or jewelry, without

buildings such as skyscrapers or parking

garages, without defense systems items such

as missiles or submarines, without medical

care items such as X-rays or surgical tools. We

wouldn’t have any of these things without

mining and minerals.”

www.mineralseducationcoalition.org

Mining is the basis of civilization. The

breakthroughs and progress we enjoyed in agriculture,

construction, manufacturing, transportation,

electronics, art and science – almost every area of

human activity– stemmed from mining.

Mining is very crucial to man’s life as food and

water. Not all of man’s needs can be grown nor

reproduced, others have to be mined.

Every Filipino uses minerals in his daily life from

the smallest aspirin to the biggest church buildings.

Legal Framework

REPUBLIC ACT (RA) NO. 7942

Consolidated DENR Administrative Order No. 2010-21 - Revised

Implementing Rules and Regulations of R.A. 7942

REPUBLIC ACT (RA) NO. 7076

DENR Administrative Order No. 2015-03

Revised Implementing Rules and Regulations of Republic A

No. 7076, Otherwise known as the “People’s Small-Scale

Mining Act of 1991”

EXECUTIVE ORDER (EO) NO. 79

DENR Administrative Order No. 2012-07 –A

The implementing rules and regulations of EO No. 79

The Mines and Geosciences Bureau (MGB) is

the primary government agency under the

Department of Environment and Natural

Resources (DENR), responsible for the

conservation, management, development and

proper use of the country’s mineral resources

including those in reservations, and lands of

public domain.

MINING CONTRACTS/AGREEMENTS/PERMITS

1. Financial or Technical Assistance Agreements (FTAA)

2. Mineral Agreement (MPSA, CA, JVA)

3. Forms of Mining Permits

a. Exploration Permit (EP)

b. Quarry Permit (QP)

c. Sand and Gravel (SAG) Permit

d. Small-Scale Mining Permit

e. Mineral Processing Permit

CARAGA Mining

Tenement Statistics

and Maps

TYPEMineral Production

Sharing Agreement

MPSA

Under

Process29

Approved 53

SUMMARY EP

1. Under Process 29

2. Total Approved 53

Approved and registered 53

Approved but for

registration 0

3. Withdrawn 0

4. Denied / Rejected 0

5. Approved but Expired or

Wholly Relinquished to Gov't. 0

TOTAL

APPLICATIONS FILED 82

TOTAL AREA COVERAGE (To Date)

1. Hectares covered by

applications

under process 72,772.88


approved applications 129,148.16

a. Registered129,148.16

b. For Registration 0.00

TOTAL ha. 201,921.03

TYPE Exploration Permit

(EP)

Under

Process94

Approved 24

SUMMARY EP

1. Under Process 94

2. Total Approved 24

Approved and registered 24

Approved but for

registration 0

3. Withdrawn 22

4. Denied / Rejected 98

5. Approved but Expired or

Wholly Relinquished to

Gov't.

10

TOTAL

APPLICATIONS FILED 248

TOTAL AREA COVERAGE (To Date)


applications

under process

334,041.68


approved applications

47,590.81

a. Registered 47,590.81

b. For Registration 0.00

TOTAL ha. 381,632.49

PROVINCE NO. OF APPROVED

MPSA

NO. OF APPROVED

EP

Surigao del Norte 17 11

Surigao del Sur 8 2

Dinagat Islands 19 1

Agusan del Norte 6 5

Agusan del Sur 3 5

TOTAL 53 24

APPROVED TENEMENT DISTRIBUTION

PER PROVINCE

MINING COMPANY LOCATION

SR Metals, Inc. Tubay, Agusan del Norte

PNPI/Shuley Mine, Inc. Nonoc Island, Surigao City

Adnama Mining Resources, Inc. Claver, Surigao del Norte

Taganito Mining Corp. Claver, Surigao del Norte

Platinum Group Metals Corp. Claver, Surigao del Norte

CTP Construction & Mining

Corp. – Adlay ProjectCarrascal, Surigao del Sur

CTP Construction & Mining

Corp. – Dahican ProjectCarrascal, Surigao del Sur

Carrascal Nickel Corp. Carrascal, Surigao del Sur

Marcventures Mining

& Dev’t. Corp.

Carrascal and Cantilan,

Surigao del Sur

2014 Operating Mining Companies in Caraga Region

Nickel Ore: ADN = 1; SDN = 4; SDS = 4


Cagdianao Mining Corp. Cagdianao, Dinagat Islands

Libjo Mining Corp. Dinagat Islands

Oriental Vision Mining Philippines

Corp.Tubajon, Dinagat Islands

Oriental Synergy Mining Corp. Loreto, Dinagat Islands

Century Peak Corp. - Casiguran Panamaon, Loreto, Dinagat Islands

Century Peak Corp. – Rapid City Esperanza, Loreto, Dinagat Islands

Sinosteel Philippines H.Y. Mining Corp.Loreto, Dinagat Islands

AAM-

Phil Natural Resources Exploration and

Development Corporation

Loreto, Dinagat Islands

Basilisa, Dinagat Islands

Wellex Mining Corp. – Parcel 1 Basilisa, Dinagat Islands

Wellex Mining Corp. – Parcel 2 Tubajon, Dinagat Islands


Nickel Ore: Dinagat Islands = 11


Philsaga Mining Corp. Bunawan, Agusan del Sur

Mindanao Mineral Processing

and Refining Corporation –

Mineral Processing Permit

(MPP)

Rosario, Agusan del Sur


Gold & Silver

Greenstone Resources Corp.

with 1 shipment from its gold plant recovery

Tubod, Surigao del Norte


Krominco, Inc. Loreto, Dinagat Islands

Chromite

Sustainable

Development

According to Brundtland

Commission, Sustainable

Development is a “development

that meets the needs of the present

without comprising the ability of

the future generations to meet their

own needs.”

SUSTAINABLE DEVELOPMENT PRINCIPLES

ARE ENSHRINED IN THE PHILIPPINE MINING

ACT OF 1995. WE ARE BANKING ON

RESPONSIBLE MINING, TO BRING ABOUT

NATIONAL GROWTH IN A MANNER THAT

SAFEGUARDS THE ENVIRONMENT AND

PROTECTS THE RIGHTS OF AFFECTED

COMMUNITIES, INCLUDING THE

INDIGENOUS PEOPLES.

AS WE IMPROVE THE INVESTMENT CLIMATE IN

THE PHILIPPINES, THE GOVERNMENT, UNDER

THE OVERARCHING PRINCIPLE OF

SUSTAINABLE GROWTH AND DEVELOPMENT, IS

ALSO UPGRADING THE ENVIRONMENTAL

STANDARDS IN MINING. IT ASCERTAINS THAT

ALL MINING INVESTMENTS CAN ABSORB THE

ENVIRONMENTAL COSTS. ENVIRONMENTAL

STANDARDS, WHICH ENSURE THE MITIGATION

OF THE IMPACTS OF MINING, ARE BEING

DEFINED CLEARLY AND APPLIED IN ALL

MINING OPERATIONS, NATIONWIDE.

( Sec. RJP Paje-DENR)

FACTORS TO ATTAIN SUSTAINABLE

DEVELOPMENT THROUGH MINING

1. Physical sustainability of mining, which

includes geological knowledge, technology and

economics.

2. Protection and rehabilitation of the

environment.

3. Promotion of social and community stability.

4. Preservation of options for future generations.

5. Competitiveness of the minerals industry.

Environmental

Protection and

Enhancement

Program

The work program shall include not only plans relative to

mining operations but also to rehabilitation,

regeneration, revegetation and reforestation of

mineralized areas, slope stabilization of mined-out and

tailings covered areas, aquaculture, watershed

development and water conservation; and

socioeconomic development.

covering the period of the mineral agreement or permit

be prepared and approved prior to commencement of

mining or exploration

DAO No. 2010-21

Section 187. Final Mine Rehabilitation/ Decommissioning Plan

Integrated in EPEP, shall cover the full extent of work

necessary to achieve the objectives of mine closure

such as, but shall not be limited to, decommissioning,

rehabilitation, maintenance and monitoring and

employee and other social costs, including residual care,

if necessary, over a ten-year period.

The FMRD Fund shall be deposited as a trust fund in a

Government depository bank and shall be used solely for

the implementation of the approved FMR/DP

CNC’s Land Restoration Process

BIODIVERSITY NURSERY OF

TAGANITO MINING CORPORATION

Social Development

and Management

Program

Social Development and Management Program

refers to comprehensive five year plan towards

the sustained improvement in the living

standards of the host and neighboring

communities by creating responsible, self-

reliant and resource-based communities

capable of developing, implementing and

managing community development programs,

projects, and activities in a manner consistent

with the principle of power empowerment.

PROVINCE AMOUNT (₱)

Surigao del Norte 274,501,546.21

Surigao del Sur 69,252,118.00

Dinagat Islands 52,220,025.66

Agusan del Norte 17,303,747.20

Agusan del Sur 17,183,058.18

TOTAL 430,460,495.25

CY-2014 SDMP IMPLEMENTED COST

PROVINCE AMOUNT (₱)

Surigao del Norte 365,212,884.47

Surigao del Sur 84,327,766.61

Dinagat Islands 91,596,258.63

Agusan del Norte 21,652,173.00

Agusan del Sur 39,812,460.75

TOTAL 602,601,543.46

CY-2015 SDMP BUDGET

SDMP Project Highlights

TESDA 2014 Kabalikat Awards

Regional Winners:

Industry Category

*Coca Cola Philippines (Central Office)

*Delta Earthmoving Inc. (Region II

*RA HAO Training Development Center

Foundation (Region XI)

*Hinatuan Mining Corporation

(Caraga Region)

*Sumi Philippines Wiring Systems

Corporation (Region III)

*Toyota Motors Philippines Foundation Inc.

(Region IV-A)

Economic Viability

CY-2014 Nickel Ore Shipments


PROVINCE VOLUME

in WMT

GROSS VALUE

(in US$)

GROSS VALUE

(in Php)

Surigao del Norte 14,497,538.44 293,993,831.22 12,593,951,408.64

Surigao del Sur 11,890,115.29 242,366,074.42 10,081,291,616.17

Dinagat Islands 3,910,507.87 63,714,465.61 2,568,398,999.73

Agusan del Norte 3,494,858.25 59,057,932.23 2,504,119,803.62

TOTAL 33,793,019.85659,132,303.4

827,747,761,828.16

PROVINCE VOLUME

in Oz.

GROSS VALUE

(in US$)

GROSS VALUE

(in Php)

Surigao del Norte

Greenstone Resources, Inc.50.46 65,620.00 2,873,069.80

Agusan del Sur

Philsaga Mining Corp.87,870.51 111,138,266.99 4,783,574,889.53

TOTAL 87,920.97111,203,887.8

14,786,447,959.33

CY-2014 Gold Bullion Sales


Revenue & Shares of LGUs

and IPs

Royalty tax collections of MGB Regional Office 13

from the mining operations within the mineral reservation.

CY-2013 = ₱1,241,666,646.15

CY-2014 = ₱2,652,267,928.09

Reason: The price of nickel ores tripled in the months of

May and June year 2014 making the royalty tax

collections doubled and to reach up to ₱2.6Billion at

the end of the year 2014.

NATIONAL TAXES & FEES

Excise Tax

Value added tax

Doc Stamp Tax

Annual Registration Fees

LOCAL TAXES & FEES

Local Business Tax

Real Property Tax

Occupation Fees

Registration Fees

Wharfage Fees

Extraction Fees

Other Local Taxes & Fees

WITHHELD TAXES

Withholding Tax on Payroll

Expanded withholding Tax

Other taxes required in mining

2,652,267,928.09 Royalty Tax Collection

265,226,792.81 10% for Fund 151

2,387,041,135.28 90% for Fund 101

The 90% will be distributed to the National &

Local Government

1,432,224,681.17 60% for the National

954,816,454.11 40% for the LGUs

The 40% will be distributed to the LGUs

334,185,758.94 35% for Barangay

429,667,404.35 45% City/Municipal

190,963,290.82 20% Provincial

Royalty tax collections distribution:

SCHEDULE OF SHARE OF ROYALTY

COLLECTED BY MGB Regional Office No. 13

UNDER MINERAL RESERVATION (Fund 101)

FOR THE YEAR ENDED DECEMBER 31, 2014 (value in Php)

LOCATION 45% SHARE FOR

MUNICIPALITY/ CITY

20% SHARE FOR

PROVINCE

Surigao del Sur Provincial Share = 44,714,053.44

a. Carrascal 100,606,620.24

Surigao del Norte Provincial Share = 108,076,826.49

a. Claver 183,117,147.70

b. Surigao City 16,945,366.79

c. Taganaan43,110,345.12

Dinagat Islands Provincial Share = 38,172,410.89

a. Cagdianao 29,084,680.22

b. Basilisa 1,382,221.70

c. Libjo 7,363,728.15

d. Loreto 20,016,691.19

e. Tubajon 28,030,603.25

Projects from the Shares of

National Wealth

– Taxes & Fees derived from mining

LGU CARRASCAL, Surigao del Sur

Executive Bldg. = ₱11,827,204.57

Legislative Bldg. = ₱10,840,522.09

Project Cost = ₱23,808,107.42

2-storey building Project Cost: ₱6,425,830.07

Equipment for Dialysis = ₱500,000.00

PHASE 1 CARRASCAL EXTREME ADVENTURE PARK

900m CABLE CAR & 1.1km. ZIP LINE

Project Cost: ₱13,490,000.00

As we carry out the government’s thrust to establish

good public relations and strengthen ties with all our

mining stakeholders regardless of social status, religion

or political affiliation, integrity and the rule of law will

never be compromised by accommodating the self-

serving intentions of unlawful people.

With this presentation, it is our hope that people will be

informed of the importance of responsible mining in

order to fully understand its essence and appreciate its

significant benefits to mining communities and

contributions to national progress and sustainable

development.

SALAMAT KARAJAW !!!

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