Mining 101: The Basics of Mining and the Philippine Industry by Ron Recidoro, Executive Director, Chamber of Mines Philippines

1. Mining 101: The Basics of Mining
And the Philippine Mining Industry.

2. Mining affects all of us.
This baby will use some 3.7M lbs of
minerals, metals and fuels in his lifetime.
911 lbs of lead
773 lbs of zinc
1,398 lbs of copper
5,417 lbs of
aluminum
32,654 lbs of iron
ore
20,452 lbs of clay
31,909 lbs of salt
578,956 lbs of coal
1.72M lbs pounds of
stone, sand, gravel
and cement

3. Mining makes modern life possible.

4. The Mining Cycle
Exploration
MiningReclamation

5. Exploration.

6. Opencast Mining

7. Open Pit Mining

8. Underground Mining

9. Reclamation/Rehabilitation.

10. • Other countries have used their
mineral wealth to jumpstart their
economies.
• The United States of America;
• The United Kingdom;
• Australia;
• Canada.

11. Kennecott Utah Copper

12. Hibbing Taconite Company

13. The Fimiston Open Pit, aka The Super Pit

14. The Argyle Diamond Mine

15. The Diavik Diamond Mine

16. The Ekati Diamond Mine

17. The Philippines: A Poor Man Sitting
on a Pot of Gold?
• 3rd in GOLD;
• 4th in COPPER;
• 5th in NICKEL.

18. Our country’s mineral resource

19. Low-Medium Potential
High-Potential
• O n l y 2 % a r e
covered by mining
c o n t r a c t s /
permits;
Our Total Land Area: 30 million hectares
Our Mining Potential

20. Our Estimated Inventory
• 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.

21. PhP47,000,000,000,000.00
(Yes, that’s TRILLION, with a T.)

22. The Philippine Mining Industry
• In 2014, all mines in the Philippines
h a d a t o t a l G R O S S M I N E R A L
PRODUCTION of Php177 Billion;
• Large-scale mines accounted for
Php102 Billion;
• Small-scale mines and non-metallic
mines produced Php74 Billion;

23. Mining’s Contribution to the Economy
Mining’s contribution to GDP:
! 2016: Php80.9 Billion (0.6% of GDP)
Mineral Exports
! 2016: US$ 2.853 Billion (4.8% of Total
Exports)
Direct Employment in Mining & Quarrying
! 2016: 236,000
Taxes, Fees & Royalties from Mining
! 2016: Php33.426 Billion

24. Philippine Mining Now
! Operating metallic mines = 43 !
Nickel processing plant = 2
Gold refinery = 1
Copper Smelter = 1
! Approved/registered tenements = 730
! Some 1,818 mining and exploration applications
are currently under process.
-------------------------
!
As of December 2017, based on MGB data.

25. THE MINING INDUSTRY
GOLD (5)
▪ Lepanto Cons. Mining
Co.
▪ Benguet Corp.
▪ Philsaga Mining Corp.
▪ Greenstone
Resources Corp.
▪ FCF Minerals
▪ Filminera
COPPER (3)
▪ Philex Mining Corp.
▪ Carmen Copper
Corp.
▪ OceanGold Phils. Inc.
NICKEL (11)
▪ Cagdianao Mining
▪ Hinatuan Mining
▪ Rio Tuba Nickel
Mining Corp.
▪ Taganito Mining Corp.
▪ Berong Nickel
▪ Platinum Group
Metals Corp.
▪ CTP Construction
▪ Marcventures
▪ Pacific Nickel
▪ Eramen Minerals
▪ LNL Archipelago
GOLD (2)
▪ Johnson Gold Mining
Corp.
▪ Apex Mining Co. Inc.
IRON (3)
▪ Techiron Resources
Inc
▪ Krominco Inc.
▪ Ore Asia Mining &
Dev't. Corp.
NICKEL (15)
▪ Zambales Diversified
Metals
▪ Carrascal Nickel
▪ SR Metals Inc.
▪ Minahang Bayan ng
Mamamayan
▪ Claver Minerals
▪ Benguet Nickel
▪ AAM-PHIL Natural
Resources
▪ Adnama Mining
Resources Inc.
▪ Sinosteel Philippines
H.Y. Mining
▪ Libjo Mining Corp.
▪ Agata Mining
Ventures, Inc.
▪ Wellex Mining Corp.
▪ Oriental Vision Mining
Phils. Corp.
▪ Century Peak Corp.
▪ Citinickel
7 25

26. Other Contributions of Mining: It’s not
just the money.
NON-FISCALFISCAL
"

27. Mining’s Non-fiscal Contributions
• Social Development Management Programs.
• Environmental Protection and Enhancement
Programs.
• Corporate Social Responsibility Projects.

28. Mining’s Contribution to Community
Development
SDMP IP ROYALTIES TOTAL
2010!
368.57 191.08 559.65
2009 268.16 247.11 515.26
2008 187.73 170.33 358.06
2007 127.54 74.37 201.90
2006 82.82 31.94 114.76
2005 76.48 14.02 90.50
TOTAL 742.72 537.76 1.280B

29. Community Infrastructure Support

30. Schools and Educational Programs

31. Health Services and Facilities

32. Enterprise development

33. Environmental Protection

34. COPPER PROJECTS
Far Southeast Project 2018 $1.5B
Philex (Operating)
Oceana Project 2013 $320m
Atlas Copper Project (Operating)
Maricalum Project 2016 $250m
Boyongan Project 2014 $1.5B
TVI (Operating)
Kingking Project 2016 $1.3B
Tampakan Project 2017 $5.9B3 operating mines
6 large scale projects in the pipeline

35. GOLD PROJECTS
Victoria Gold Project (Operating)
Runruno Gold Project 2014 $150m
Masbate Gold Project (Operating)
RED5 Gold Project 2014 $83M
Philsaga Mining (Operating)
Apex Gold Project (Operating)
4 operating mines
2 gold projects in the pipeline

36. NICKEL PROJECTS
Eramen Nickel Project 2011 DSO/EAF
Sta. Cruz Nickel Project 2011 DSO
Mindoro Nickel Project 2015 $1b
Philnico Nickel Project 2016 $1b
Berong Nickel (Operating)
Coral Bay (Operating)
Nickel Asia Project 2013 $1.3b
Marcventures 2011 DSO
Pujada Nickel Project 2015 $500m
10 medium scale and DSO operations
and projects in the pipeline

37. Potential Growth for 17 New Projects
Philippine Metallic Investments and Revenues
2011 2012 2013 2014 2015 2016 2017 2018
Total
Investment
(Million $)
730 1,369 2,072 3,302 3,995 2,892 812
Total
Revenues**
(Million $)
2,820 2,820 3,955 4,954 7,163 9,248 11,171 12,114
Total investments from 2011 to 2018: US$15.2 billion
Total Annual Revenue: U S $ 2 . 8
billion in 2011, ramps up to $12.1 billion in 2018;
Mining contribution to GDP: 1.7% in 2011,
increases to 5-6% in 2018

38. THANK YOU.
The Chamber of Mines of the Philippines.
Working for responsible mining.