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BENJAMIN  PHILIP  G.  ROMUALDEZ  President  

Chamber  of  Mines  of  the  Philippines  

October  21,  2011  

Report  on  Mining  Philippines  2011  

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  

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BENJAMIN  PHILIP  G.  ROMUALDEZ  President  

Chamber  of  Mines  of  the  Philippines  

October  21,  2011  

Industry  Updates,  Challenges  and    Recommendations  

•  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    

•  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  

Philippine  Metallic  Mineral    Resources  and  Reserves  

MINERAL  COMMODITY   Unit  Used  

Jan-­‐Jun,  2011   CY  2010  

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  (2004-­‐2010)  

TOTAL  DISCLOSED  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  DEVELOPMENT  PROJECTS  

4.79   315.79  

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.  

NO2  MINING  IN  PALAWAN  

ALTERNATIVE  MINING  BILLS  

OPEN  PIT  BAN  

WRIT  OF  KALIKASAN  

NCIP  BIAS  VS.  MINING  

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”  

Total  Philippines  land  area  =  30  million  hectares  

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)  

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