Mining
From The Report: The Philippines 2012
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Mining companies have flocked to these islands for years to take advantage of the country’s vast mineral resources. The Philippines ranks third in gold reserves, fourth in copper, and fifth in nickel worldwide. However, an upsurge in anti-mining and environmental awareness has contributed to a difficult regulatory environment, with some jurisdictions imposing local mining bans. Investment in the sector at present is a high-risk, high-reward venture, which has pushed some multinationals to countries with looser restrictions.
This section features interviews with Ramon J P Paje, Secretary, Department of Environment and Natural Resources (DENR); and Artemio Disini, Chairman, Chamber of Mines of the Philippines.

Articles from this Chapter

Overview

What lies beneath: High commodity prices and incentives bring a surge in investment, although local opposition in some areas remains an issue
OBG
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Located on a belt of volcanic activity, the archipelagic nation of the Philippines is the fortunate beneficiary of millions of years of violent volcanism and tectonic plate convergence, which have left behind a fortune in mineral wealth just beneath the surface. The attraction of these potential riches has drawn in some of the world’s preeminent mining companies over the years including BHP Billiton, Japan’s Sumitomo Metal Mining, Brazil’s Vale, Norway’s Intex Resources, CGA Mining, Canada’s…

Interview

OBG talks to Ramon Paje, Secretary, Department of Environment and Natural Resources (DENR)
OBG
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Interview:Ramon Paje Is the mining industry’s current regulatory environment sufficient to attract investment in the sector? RAMON PAJE: Mining regulations in the Philippines are among the most favourable in the world. To begin with, the government demands only a 2% excise tax from mining companies, which is among the world’s lowest rates. If you consider tax holidays and other incentives, especially those offered to organisations operating in areas designated by the Philippine Economic…

Interview

OBG talks to Artemio Disini, Chairman, Chamber of Mines of the Philippines
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Interview:Artemio Disini How can the Philippines encourage the development of more downstream and value-added activities within its mining sector? ARTEMIO DISINI: There is significant potential for the further development of downstream mining operations in the Philippines. A tonne of refined nickel gets three to four times more on the market than a tonne of raw nickel ore, a premium that cannot be ignored. For this industry to develop, government support is necessary. The Philippines should…

Analysis

Turning on the flow: A range of incentives are attracting investors to the sector
OBG
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With the Mining Act of 2005 finally helping to bring stability to the sector and stronger incentives putting investors’ minds at ease, money has begun to flow into the sector in recent years. After a decade of limited foreign investment into mining, averaging $43.13m per annum from 1999 to 2009, according to statistics from Bangko Sentral ng Pilipinas, the central bank, 2010 produced a windfall of $277.5m. This represented roughly one-third of all total foreign direct investment (FDI) in the…

Analysis

Nickel into dimes: Regional demand drives expansion of domestic output
OBG
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While the nickel rush brought about by the commodity price spike in 2006-08 has largely subsided, nickel mining remains by far the largest metallic commodity by weight and value produced in the Philippines. EXTRACTION: Through the first half of 2011 nickel mines extracted 5.2m dry tonnes (DT) of ore worth P5.37bn ($121.9m), according to data from the Chamber of Mines of the Philippines. This was 8% less than the 5.68m tonnes produced over the same period in 2010, with a corresponding 9% dip…