Presentation on theme: "PROMOTING A RESPONSIBLE AND SUSTAINABLE MINERALS INDUSTRY"— Presentation transcript:
1 PROMOTING A RESPONSIBLE AND SUSTAINABLE MINERALS INDUSTRY HORACIO C. RAMOSDirectorMines and Geosciences BureauDepartment of Environment and Natural ResourcesRepublic of the PhilippinesMining ForumFrankfurt, GermanyJune 28, 2007
2 Some Key Dates in Philippine Mining 1974: Parity Rights expired; “Filipinization” of Philippine mining operations; 70’s considered as the “boom years”1986/87: People Power; Freedom Constitution; general lack of exploration activities.1991: Enactment of Local Government Code providing for local autonomy and wealth sharing from mining.1995: Passage by Congress of the Philippine Mining Act of 1995 (RA7942); initial foreign investors interest; rise in environmental activism.1996/97: Marcopper incident; challenge to the Constitutionality of the Mining Act; enactment of the Indigenous Peoples Rights Act.2003: Start of Revitalization Program for the Philippine Minerals Industry; renewed investor interest.2004/05: Affirmation by the Philippine Supreme Court of the Constitutionality of the Mining Act.2008: Start of a new mining boom?
3 Mining Industry Indicators (2006) 3PhP68.4 billion in 2006; up by 36.25% from 2005
4 Mining Industry Indicators (2006) 4Highest in early to mid-70’s; 24.56% in 1973Gradual growth since 2003; 4.46% for 2006
5 Mining Industry Indicators (2006) 5Preliminary figure for 2006 is PhP4.9 billion1992: The excise tax for metallic minerals was reduced from 5% to 2% of the gross value.
6 Mining Industry Indicators (2006) 2006: 141,000 directly employed or 0.43% of total labor force
7 Mining Industry Indicators (2006) 72006: PhP59.7 billion at current prices
8 OPERATING MINES 1 Polymetallic Mine – Rapu rapu mine 2 Large – scale Mines:Lepanto’s Victoria Gold MinePhilex’s Padcal Copper Mine4 Medium-scale Chromite MinesMasinloc Project of Benguet Corp.,Omasdang Project of Crau MineralsHomonhon Project of Heritage Res.Redondo Project of Krominco, Inc.6 Medium-scale Nickel MinesRio Tuba Nickel MineTaganito Nickel MineCagdianao Nickel MineSigbanog Project, Hinatuan MiningTagana-an Project, Hinatuan MiningBerong Nickel Project of TMM5 Medium-scale Gold MinesCanatuan Project of TVIAcupan Gold Operations of BenguetDiwalwal Direct State Development ProjectBanahaw Gold Project, Philsaga Mining Corp.Masara Mine, Apex/Crew Minerals15 Cement Plants and Quarries1 Nickel Processing Plant in Palawan1 Copper Smelter (PASAR) in Leyte82000+ Quarries and small scale mines
9 Philippine Mineral Potential METALLIC MINERAL RESOURCES/ RESERVES 2005 MINERAL ENDOWMENT3rd for gold4th for copper5th for nickel6th for chromite9
10 Philippine Mineral Potential Construction and cement raw materials predominateNON-METALLIC MINERAL RESOURCES/ RESERVES 200510
11 Philippine Mineral Potential PHILIPPINESTHE CIRCUM-PACIFIC RIM OF FIREPORPHYRY COPPERBELTS11
12 Philippine Mineral Potential Mineral Land Distribution(As % of Total Philippine Land Area)30% or 9 Million HectaresApproximately 2% currently covered by permitsHigh-PotentialLow-Medium Potential70%
14 NEAR-COAST AND OFFSHORE RESOURCES MagnetitePhilippines offshore area including EEZ is 2.2 million Km2GoldChromitePotential offshore mineral resources:ManganesePlacer minerals including gold, chromite, magnetite, silicaOffshore Palawan also holds resources of manganeseAggregate resources (sand & gravel)Decorative stones, manganese nodules/encrustrations with associated copper, gold, zinc, cobalt
15 Philippine Mineral Potential Global exploration expenditures bottomed in 2002 at US$1.9 billion but with better metal prices, improving investment conditions and “awakening’ of junior companies as risen to the current high of US$7.5 billionExploration Expenditures ( ):≈ US$200 millionRecent Discoveries:Far Southeast Copper OrebodyTampakan Copper-Gold OrebodyBoyongan Gold Orebody
16 Philippine Mineral Potential NICKELThe Philippine nickel resource is the biggest in Southeast AsiaImproved technology makes low-grade lateritic ore viableImproving chromite prices could revive Philippine chromite mines in Zambales, Palawan, Samar, Dinagat and Zamboanga.CHROMITEIRONThe increasing demand for iron is reviving exploration for the commodityin the PhilippinesThe spatial relationship of carbonate rocks with younger intrusives in the Philippines offers the possibility of finding new skarn depositsLEAD and ZINCOphiolitic and Early Tertiary arc terranes in the Philippines holds much promise for deposits similar to those of Lafayette in Rapu-Rapu island.
18 A. Philippine Mining Act and RIRR Enshrined the principles of sustainable mining and concept of planning for mine closure/integrated mine closure planning;Strong focus on life of mine environmental and social responsibilities
19 Major Types of Mining Tenements Exploration Permit (EP)Mineral Agreement (MA)Mineral Production Sharing Agreement (MPSA)Joint Venture AgreementCo-Production AgreementFinancial or Technical Assistance Agreement (FTAA)Mineral Processing Permit (MPP)
20 SHES Monitoring and Audit SAFETY AND HEALTH, ENVIRONMENTAL AND SOCIAL REQUIREMENTSPRE-EXPLORATION Certificate of Satisfactory Environmental Management and Community Relations Record (CEMCRR)Prepare Social Development and Management Program (SDMP)Implement Annual SDMPImplement Final Mine Rehabilitation & Decommissioning Plan (FMR/DP)DecommissioningRehabilitationSocialMaintenance and MonitoringPrepare Safety and Health Program (SHP)Implement Annual SHPEnvironmental Work Program (EnWP)Safety and Health Program (integrated with the EnWP)Host Community Devt. (voluntary)Environmental Protection and Enhancement Program (EPEP) with Final Mine Rehabilitation and Decommissioning Plan (FMR/DP)Implement Annual EPEPEstablish the Contingent Liability and Rehabilitation Fund (CLRF)Preparation of Environmental Impact Statement (EIS) as basis for an Environmental Compliance Certificate (ECC)POST CLOSURE - Implement Site Management Plan (SMP)SHES Monitoring and AuditExploration/FeasibilityPeriodSTAGEDevelopmentand ConstructionOperating PeriodMineClosure
21 Other Relevant Laws Affecting Mining Indigenous Peoples Rights Act of 1997Local Government Code of 1991National Integrated Protected Areas SystemEnvironmental Laws, Rules and RegulationsSmall Scale Mining Laws
22 The National Policy Agenda on Revitalizing Mining in the Philippines B. Executive Order No. 270The National Policy Agenda on Revitalizing Mining in the PhilippinesBased on the policy declaration of H.E. President Arroyo in 2003;Product of a 10-month consultation process among the 3 key stakeholders;Called for the development of the Mineral Action Plan, the current industry roadmap; andLed to the Creation of the Mineral Development Council .
23 Objectives of EO No. 270 ECONOMIC Fair and equitable sharing of benefits among the company, government and the mining communitiesSOCIALRecognition of the rights and participation of the communities and indigenous peoples in mining operationsECONOMICENVIRONMENTGOVERNANCEAdequate protection of the environment, not only before and during mining operations but even long after mining has ceasedCompetitive investment climate and adequate protection of the rights and privileges of mining investors
26 Economic Potential US $ 6.5 B - Foreign direct investments US $ B - Annual sales/foreign exchangeUS $ 61.4 M - Annual excise tax on mineralsUS $ 432 M - Annual corporate income tax200, Additional direct and indirectemployment
36 Policy ReformsRevisiting of the 24 Priority Mining Projects to include new projects that have potentials of contributing to the goals of the program.Review of the Mineral Action Plan to track down accomplishments and to review and identify gaps/concerns that need attention.Preparation of an Industrialization Plan for the development of upstream and downstream industries.
37 Policy ReformsFull activation of the Minerals Development Council (MDC); establishment of regional MDCs;Conduct of legal study by MDC on the mining moratoriums;Touching base with civil society groups (e.g. Bishops-Businessmen’s Conference) for stakeholder dialogues.Further amendments to DAO (e.g. Increase in SDMP Allocation and Simplification of Procedures) and FTAA Fiscal Regime.Addressing investor’s concern on exploration/mining area availability and non-performing mining tenements.
38 Concluding StatementCombined with positive developments in the local scene and the so-called period of prosperity for the global minerals industry that resulted in increased exploration spending and higher demands and prices for metals, the Philippines is both bullish and cautious.Bullish about prospects for an industry take off next year and cautious of the challenges that comes with increasing mining activities.But in the bottom-line, the Philippines believes that, for as long as done responsibly, mining can be pro-people and pro-environment in creating wealth and improving the quality of life of the Filipinos consistent with the principles of...
39 Mines and Geosciences Bureau Maraming salamat po!Mines and Geosciences Bureau