Mr. Benjamin Philip G. Romualdez, President, Chamber of Mines of the Philippines Philippine Mining Luncheon -Shangri La Hotel Makati Entrance Fee: Php 1,500 pre paid early bird OR Php 2,000 at the door (Includes a 2-course lunch) 21 October, 2011

1. Report
on
Mining
Philippines
2011
BENJAMIN
PHILIP
G.
ROMUALDEZ
October
21,
2011
President
Chamber
of
Mines
of
the
Philippines
1

3. 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

4. Reaffirmed
Aquino
Administration’s
support
for
Responsible
Mining.

5. Commitment
to
design
CSR
Scorecard
with
Philippine
Business
for
Social
Progress
and
other
development-­‐
oriented
NGOs.

6. Commitment
to
design
Environment
Scorecard
with
World
Wildlife
Fund,
in
cooperation
with
other
environment
and
safety
institutions.

7. MOU
between
DepEd
and
COMP
for
increased
industry
support
for
Adopt-­‐a-­‐School
Program

8. Other
Commitments:
•
National
Greening
Program
•
Extractive
Industry
Transparency
Initiative
•
Continuing
Trade
and
Investment
Collaboration
with
China,
Chile,
Australia,
US,
and
South
Africa

9. Industry
Updates,
Challenges
and
Recommendations
BENJAMIN
PHILIP
G.
ROMUALDEZ
October
21,
2011
President
Chamber
of
Mines
of
the
Philippines
9

10. • 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

11. 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

12. 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

14. • 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

15. •
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%

16. •
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

17. 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

18. 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.

19. NCIP
BIAS
WRIT
OF
VS.
MINING
KALIKASAN
OPEN
PIT
ALTE
RNATIVE
N
BAN
MINING
BILL O2
MINING
IN
S
PALAWA
N

20. 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.

21. 2) Decisive
action
on
open
pit
mining
bans.
3) Gov’t
should
help
industry
communicate
with
stakeholders.
4) “No
to
Irresponsible
Mining
in
Palawan”

22. Areas
covered
by
exploration
applications
=
14
million
hectares
(45%
of
total
Philippines)
Total
Philippines
land
area
=
30
million
hectares

23. Actual
footprint
of
30
operating
mines
nationwide
=
60,000
hectares
(2%
of
total
Philippines)
Total
Philippines
land
area
=
30
million
hectares

24. Mining
is
an
extractive
industry
• Seen
by
many
as
destructive
• Sustainability
is
questioned
• Non-­‐renewable

25. Mining
firms
should
operate
within
Parameters
of
Responsible
Mining.
1) Social
Equity
2) Environmental
Protection
3) Economic
Growth
4) Good
Governance

26.
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.

27.
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

28.
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.

29.
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.

30. 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.

31. THANK
YOU