1. PROMOTING A RESPONSIBLE AND SUSTAINABLE MINERALS INDUSTRY
HORACIO C. RAMOS
Director
Mines and Geosciences Bureau
Department of Environment and Natural Resources
Republic of the Philippines
Mining Forum
Frankfurt, Germany
June 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)3
PhP68.4 billion in 2006; up by 36.25% from 2005

4. Mining Industry Indicators (2006)4
Highest in early to mid-70’s; 24.56% in 1973
Gradual growth since 2003; 4.46% for 2006

5. Mining Industry Indicators (2006)5
Preliminary figure for 2006 is PhP4.9 billion
1992: 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)7
2006: PhP59.7 billion at current prices

8. OPERATING MINES 1 Polymetallic Mine – Rapu rapu mine
2 Large – scale Mines:
Lepanto’s Victoria Gold Mine
Philex’s Padcal Copper Mine
4 Medium-scale Chromite Mines
Masinloc Project of Benguet Corp.,
Omasdang Project of Crau Minerals
Homonhon Project of Heritage Res.
Redondo Project of Krominco, Inc.
6 Medium-scale Nickel Mines
Rio Tuba Nickel Mine
Taganito Nickel Mine
Cagdianao Nickel Mine
Sigbanog Project, Hinatuan Mining
Tagana-an Project, Hinatuan Mining
Berong Nickel Project of TMM
5 Medium-scale Gold Mines
Canatuan Project of TVI
Acupan Gold Operations of Benguet
Diwalwal Direct State Development Project
Banahaw Gold Project, Philsaga Mining Corp.
Masara Mine, Apex/Crew Minerals
15 Cement Plants and Quarries
1 Nickel Processing Plant in Palawan
1 Copper Smelter (PASAR) in Leyte 8
2000+ Quarries and small scale mines

9. Philippine Mineral Potential METALLIC MINERAL RESOURCES/ RESERVES 2005
MINERAL ENDOWMENT
3rd for gold
4th for copper
5th for nickel
6th for chromite 9

10. Philippine Mineral Potential
Construction and cement raw materials predominate
NON-METALLIC MINERAL RESOURCES/ RESERVES 2005 10

11. Philippine Mineral Potential
PHILIPPINES
THE CIRCUM-PACIFIC RIM OF FIRE
PORPHYRY COPPER
BELTS 11

12. Philippine Mineral Potential
Mineral Land Distribution
(As % of Total Philippine Land Area)
30% or 9 Million Hectares
Approximately 2% currently covered by permits
High-Potential
Low-Medium Potential
70%

13. Potential Areas and Deposits1 2 4 3 6 7 8 9 10 12 5 11
Luzon Central Cordillera – Au, Cu, Fe, Mn
Northern Sierra Madre – Cr, Ni, Cu
Zambales – Cr, Ni, Co, Pt, Cu, Au
Vizcaya-Aurora – Cu, Au
Bicol – Au, Fe, Cu
Southern Tagalog – Cu, Au, Ni, Co
Central Visayas – Cu, Au, Mn
Samar-Eastern Mindanao – Au, Cu, Fe, Cr, Ni, Co, Pt, Mn
North Central Mindanao – Cr, Cu, Au
Zamboanga Peninsula – Au, Cu, Cr, Fe
Southern Mindanao – Cu, Au
Palawan – Cr, Ni, Co, Pt, Au, Rare Earth Elements

14. NEAR-COAST AND OFFSHORE RESOURCES
Magnetite
Philippines offshore area including EEZ is 2.2 million Km2
Gold
Chromite
Potential offshore mineral resources:
Manganese
Placer minerals including gold, chromite, magnetite, silica
Offshore Palawan also holds resources of manganese
Aggregate 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 billion
Exploration Expenditures ( ):
≈ US$200 million
Recent Discoveries:
Far Southeast Copper Orebody
Tampakan Copper-Gold Orebody
Boyongan Gold Orebody

16. Philippine Mineral Potential
NICKEL
The Philippine nickel resource is the biggest in Southeast Asia
Improved technology makes low-grade lateritic ore viable
Improving chromite prices could revive Philippine chromite mines in Zambales, Palawan, Samar, Dinagat and Zamboanga.
CHROMITE
IRON
The increasing demand for iron is reviving exploration for the commodity
in the Philippines
The spatial relationship of carbonate rocks with younger intrusives in the Philippines offers the possibility of finding new skarn deposits
LEAD and ZINC
Ophiolitic and Early Tertiary arc terranes in the Philippines holds much promise for deposits similar to those of Lafayette in Rapu-Rapu island.

17. PHILIPPINE NATIONAL MINING POLICY FOUNDATIONS

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 Agreement
Co-Production Agreement
Financial or Technical Assistance Agreement (FTAA)
Mineral Processing Permit (MPP)

20. SHES Monitoring and Audit
SAFETY AND HEALTH, ENVIRONMENTAL AND SOCIAL REQUIREMENTS
PRE-EXPLORATION Certificate of Satisfactory Environmental Management and Community Relations Record (CEMCRR)
Prepare Social Development and Management Program (SDMP)
Implement Annual SDMP
Implement Final Mine Rehabilitation & Decommissioning Plan (FMR/DP)
Decommissioning
Rehabilitation
Social
Maintenance and Monitoring
Prepare Safety and Health Program (SHP)
Implement Annual SHP
Environmental 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 EPEP
Establish 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 Audit
Exploration/Feasibility
Period
STAGE
Development
and Construction
Operating Period
Mine
Closure

21. Other Relevant Laws Affecting Mining
Indigenous Peoples Rights Act of 1997
Local Government Code of 1991
National Integrated Protected Areas System
Environmental Laws, Rules and Regulations
Small Scale Mining Laws

22. The National Policy Agenda on Revitalizing Mining in the Philippines
B. Executive Order No. 270
The National Policy Agenda on Revitalizing Mining in the Philippines
Based 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; and
Led 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 communities
SOCIAL
Recognition of the rights and participation of the communities and indigenous peoples in mining operations
ECONOMIC
ENVIRONMENT
GOVERNANCE
Adequate protection of the environment, not only before and during mining operations but even long after mining has ceased
Competitive investment climate and adequate protection of the rights and privileges of mining investors

24. 23 Mining Development Projects
(Original – 2004)
11 Copper Projects
Tampakan Copper Project
Far Southeast Copper Project
Boyongan Copper Project
Carmen Copper Project
Batong Buhay Copper Project
San Antonio Copper Project
Amacan Copper Project
Rapu-Rapu Polymetallic
Didipio Cu-Au Project
Kingking Cu-Au Project
Padcal Expansion Project
6 Gold Projects
Itogon Gold Project
Masbate Gold Project
Teresa Gold Project
Diwalwal Gold Project
Siana Gold Project
Canatuan Au-Cu Project
5 Nickel Projects
Mindoro Nickel Project
Palawan HPAL Project
Nonoc Nickel Project
ACT Nickel Project
Pujada Nickel Project
1 Cement Project
Akle Cement, Project

25. 41 Exploration Projects 12 Copper/Copper-Gold Projects
(Original-2004)
12 Copper/Copper-Gold Projects
Ampucao Proj.(Benguet)
Paco Proj.(Surigao Norte)
Tabuk Proj. (Kalinga)
Gambang Proj.(Benguet)
Sogod Proj. (S. Leyte)
Tagpura Proj. (Compostela)
Hixbar Proj. (Rapu-Rapu Is)
Manat Proj. (Compostela)
Colet Proj.(Negros Occ.)
Claveria Proj.(Cagayan)
Papaya Proj.(N. Vizcaya)
Conner Proj. (Apayao)
24 Gold Projects
Kingking Proj. (Davao Or.)
Panag Proj. (Compostela)
Del Gallego Proj. (Quezon)
Negros Proj. (Negros Or.)
Alicia Proj. (Zamboanga Sur)
Kalaya-an Proj. (Surigao N.)
Pana-on Proj. (Leyte)
Tongonan Proj. (Leyte)
Surigao Proj. (Surigao N.)
Pao Proj. (Nueva Vizcaya)
Road 5 M Proj. (Davao Or.)
Camp 3 Proj. (Benguet)
Pantuyan Proj. (Leyte)
Batoto Proj.(Compostela)
Mabuhay Proj. (Surigao Norte)
Kematu Proj. (South Cotabato)
Archangel Proj. (Batangas)
Hinonangan Proj. (S. Leyte)
Labo Proj. (Camarines Norte)
Nalesbitan Proj.(Camarines Norte)
Cordon Proj. (Isabela)
Pantingan Proj. (Bataan)
Agata Proj. (Agusan del Norte)
TMC Proj. (Antique-Iloilo)
3 Nickel (-PGE) Projects
Acoje Proj. (Zambales)
Sta. Cruz Proj. (Zambales)
Berong Proj. (Palawan)
1 Bauxite Project
Samar Bauxite Project, (Samar)
1 Sulfur Project
Pamplona, Negros Oriental

26. Economic Potential US $ 6.5 B - Foreign direct investments
US $ B - Annual sales/foreign exchange
US $ 61.4 M - Annual excise tax on minerals
US $ 432 M - Annual corporate income tax
200, Additional direct and indirect
employment

27. UPDATES ON THE PRIORITY MINING PROJECTS

28. Mining Projects For Development
9 Copper Projects
Tampakan Copper Project
Far Southeast Copper Project
Boyongan Copper Project
Carmen Copper Project
Batong Buhay Copper Project
Amacan Copper Project
Didipio Cu-Au Project
Kingking Cu-Au Project
Colet Copper Project
6 Gold Projects
Itogon Gold Project
Masbate Gold Project
Masara Gold Project
Diwalwal Gold Project
Siana Gold Project
Canatuan Expansion Proj
5 Nickel Projects
Mindoro Nickel Project
Palawan HPP Expansion
Nonoc Nickel Project
ACT Nickel Project
Hallmark Nickel Project
1 Cement Project
Akle Cement, Project

29. STATUS PROJECT 2006 2007 2008 2009 2010 2011 REMARKS
OPERATING / EXPANSION
Palawan HPP
Rapu-Rapu Cu-Au-Zn
Canatuan Ag-Au
Teresa Gold
Sto. Tomas II Cu
Berong Nickel
Operating/Expansion
Operating
CONSTRUCTION & DEVELOPMENT
ACT Nickel
Didipio Cu-Au
For test shipment
Pre-development
FEASIBILITY / FINANCING
Masbate Gold
Carmen Copper
King King Cu-Au
Far Southeast Cu
Itogon Gold
Tampakan Copper
Colet Copper
Siana Gold
Nonoc Nickel
Akle Cement
Final feasibility
Rehabilitation
Financing
TechReview/financing
Mine rehab/financing
Final Feasibility
Pre-Feasibility
Under negotiation
Plant site preparation
EXPLORATION
Boyongan Copper
Mindoro Nickel
Hallmark Nickel
Drilling
Social Prep’n/Drilling
FOR BIDDING
Diwalwal Gold
Amacan Copper
BatongBuhay Cu-Au
Tech review/Bidding Q
By 2009
By 2010
By 2011 Q Q

30. THE MINING INDUSTRY TO 2011

31. Reported 31

32. Reported 32

33. ACTUAL AND PROJECTED COPPER, GOLD AND SILVER SALES VOLUME FROM EXISTING AND NEW PROJECTS (2007-2011)33

34. ACTUAL AND PROJECTED CHROMITE, ZINC AND NICKEL SALES VOLUME FROM EXISTING AND NEW PROJECTS ( ) 34

35. Actual

36. Policy Reforms
Revisiting 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 Reforms
Full 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 Statement
Combined 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