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Philippine Mining Industry at a Glance:
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5th
most mineral resource-rich country in the world, 3rd richest
in world gold reserves, 4th in copper, 5th in
nickel, and 6th in chromite.
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Mineral
resources valued at almost $1 trillion – mining sector one of the growth
drivers of the economy.
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Chinese
steel firm, RockCheck Steel Group in Tianjin, invests $200 million in
Eastern Samar.
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Total
investments from mining to reach $10.387 billion by 2011.
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Mineral
exports grew to $2.06 billion in 2006.
Economic Indicators:
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Sustained
economic growth for 28 consecutive quarters.
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World
Bank quadruples loans for infrastructure and energy, cites strong
economic growth and relative political calm.
MINING: A RENEWED FRONTIER
Riding high on
President Gloria Macapagal Arroyo’s reform initiatives, the Philippine
mining industry has been rejuvenated and is “a key driver of our economy
and an important sector that is bringing in significant levels of
investment, creating jobs for the people and spurring exports,”
according to the President.
The passage of Republic
Act 7942 or the Philippine Mining Act of 1995, an all encompassing
legislation, revitalized the Philippine mining sector through fiscal
reforms and incentives. Not only does the law provide for the
maintenance of a viable inventory of mineral reserves to sustain the
industry through the infusion of fresh capital through direct
investments to finance mineral exploration and development activities,
but it also contains social and environmental safety nets far stronger
than previous mining laws, rules and regulations, such as: built-in
piece of protection for the Indigenous Peoples; a competitive fiscal
regime; equitable sharing of the benefits of mining among the major
stakeholders; and environmental and social provisions.
The Mining Act, deemed
constitutional by the Philippine Supreme Court in 1997, is a landmark
piece of legislation which for the first time in the history of the
mining industry in the country, incorporated social and corporate
responsibility for those awarded the tender to develop the vast mineral
resources of the Philippines.
To ensure that mining
will not degrade future generations, the Department of Environment and
Natural Resources, through the Administrative Order 96-40, was mandated
to make certain that the following considerations are taken into account
before a mining operation can be authorized:
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Local
government empowerment is encouraged
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Respect
and concern for the indigenous cultural communities
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Equitable
sharing of benefits and natural wealth
š Demands
of present generation while providing the foundation for future
generations
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Worldwide
trend towards globalization is adhered to
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Protection for and wise management of the environment by all
stakeholders
With all the necessary
safeguards and social safety nets in place, foreign direct investments
in the mining sector have increased over a span of six years. The surge
in investments is primed to turn the Philippines into a major “mining
country” by 2010. In the second quarter of 2007, foreign investments
from corporations from China, Japan, Australia, Canada totaling some
$880 million have been generated by eight new operating mines and thirty
priority minerals development and exploration projects. By the 3rd
quarter of 2007, some Php4.2 billion in foreign investments poured into
the Philippine mining sector, allowing the country’s metallic production
value to grow by 56%
Sitting atop mineral
reserves estimated at $1 trillion, making the Philippines the 5th
most mineralized country in the world, it is anticipated that total
investments from priority mining projects is expected to reach a little
over $10 billion by 2011.
Responsible mining is the key to sustainable economic growth.
President Arroyo
July 2007
The Philippines has a tremendous range of assets to draw upon for
its development – a relatively educated populace with proficiency in
English, plentiful managerial and entrepreneurial talent; global
demand for its labor force, and as confirmed by a huge number of
Filipino overseas workers (8 million, or 25% of active workforce
inside the country); abundant natural resources including mineral
and gas resources…
World Bank
Country Report
Source: "Updates" Issue 2 - 2008
Philippine Embassy in Washington
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