The Philippines’ role in shaping the future of the global mining Industry
Speaker:
Hon. Ramon Paje
Secretary
Department of Environment and Natural Resources, Philippines
Ministerial keynote
RAMON J. P. PAJESecretary
Department of Environment and Natural ResourcesRepublic of the Philippines
ASIA MINING CONGRESS 2011April 5, 2011
Singapore
PHILIPPINES
PORPHYRY COPPER
BELTS
PORPHYRY COPPER
BELTS
MINERAL RESOURCES
DENR, Republic of the Philippines
Metallic• Gold• Copper • Nickel• Iron• Chromite
Non-Metallic• Sand & gravel• Limestone• Marble• Clay
3rd biggest producer of nickel ore in 2010
DENR, Republic of the Philippines
PRINCIPLES OF SUSTAINABLE DEVELOPMENT
DENR, Republic of the Philippines
RESPONSIBLE MINING
2008 2009 2010 (est)
Gross Production
Value
PhP 87.0 B
(US$ 1.95 B)
PhP 106.1 B
(US$ 2.23 B)
PhP 138.5 B
(US$ 3.08 B)
Contribution to GDP
(current prices)
PhP 89.5 B
(US$ 2.01 B)
(1.2%)
PhP 97.1 B
(US$ 2.04 B)
(1.3%)
PhP 110.4 B
(US$ 2.45 B)
(1.4%)
Total Exports of
Minerals and Mineral
Products
US$ 2.48 B
(5.2%)
US$ 1.47 B
(3.9%)
US$ 2.98 B
(5.4%)
Taxes, Fees and
Royalties
PhP 7.69 B
(US$ 0.18 B)
PhP 12.38 B
(US$ 0.26 B)
PhP 12.50 B
(US$ 0.27 B)
Employment in Mining
(incldg. Quarrying)158,000 166,000 212,000
DENR, Republic of the Philippines
INDUSTRY GROWTH
DENR, Republic of the Philippines
Gross Production Value 39%
Gold 11%
Copper 16%
Nickel 59%
1 Chromite Mine
• Redondo Mine (Krominco, Inc.)
6 Gold Mines• Victoria/Teresa Gold Project (Lepanto)
• Maco Gold Mine (Apex Mining)
• Banahaw Gold Project (Philsaga Mining)
• Masbate Gold Project (Filminera/CGA)
• Acupan Gold Operations (Benguet Corp)
• Paracale Gold Project (Johson Gold Mining)
3 Copper Mines• Padcal Copper Mine (Philex)
• Carmen Copper Mine (Atlas/CCC)
• Canatuan Copper Mine (TVI)
1 Polymetallic Mine
• Rapu-Rapu Mine
Copper
Gold
Chromite
Polymetallic
DENR, Republic of the Philippines
16 Cement Plants
11 Nickel Mines Rusina Mining- Sta
Cruz, Zambales
Berong Nickel-Quezon, Palawan
Rio Tuba Mining-Bataraza, Palawan
Cagdianao Mining -Dinagat Island
Hinatuan Mining -Surigao del Norte
CTP- Surigao del Sur
Platinum Group –Surigao del Norte
SR Metals - Tubay, Agusan del Norte
Carrascal Mining-Surigao Sur
Oriental Synergy –Surigao del Norte
Taganito Mining-Surigao del Norte
1 Copper Smelter (PASAR)2,500+ Non-metallic Mines/Quarries and
small-scale mines
• 1 Nickel Processing Plant
• Coral Bay Nickel Corporation
Nickel Processing Plant
Nickel Mine
Copper Smelter
DENR, Republic of the Philippines
√ From 2004 to 2010: $3.835 Billion
200.47
457.15
190.33
708.40
604.17
719.51
955.86
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
in M
$
DENR, Republic of the Philippines
OPERATING/EXPANSION PROJECTS• Lepanto Mining- Teresa Gold Project
• Philex Mining - Sto. Tomas II Cu Expansion Project
• Rapu-rapu Polymetallic Project
• PASAR
• Berong Nickel Project
• Coral Bay - Palawan Ni Project (Line 1 &2)
• Surigao Integrated Resources Corporation - PGMC
• Surigao Integrated Resources Corporation - CTP
• TVI – Silver-Gold & Base Metal Projects
• Apex Mining- Maco Mine
• Philsaga -Gold & Gold Expansion Projects
• SR Metals –Tubay Nickel Project
• Zambales Nickel Project- Rusina
• Carmen (Toledo) Copper Project
• Filminera Masbate Gold Project
• Carrascal Mining – Carrascal Nickel Project
• Minahang Bayan ng Dinagat Is., Inc.- Dinagat Nickel Project
• Oriental Synergy – Dinagat Nickel Project
• Benguet Corp- Sta Cruz Nickel Project
• Marcventures – Surigao del Sur Nickel Project
• Century Peak- Dinagat Nickel Project
FEASIBILITY/FINANCING STAGE
• Tampakan Copper Project
• Silangan Copper Project
• Acoje Nickel HPAL Project
• Runruno Gold Project
• Nonoc Nickel Project
• Mindoro Nickel Project
• Itogon Gold Project
• Far Southeast Gold Project
• King-King Copper-Gold Project
• Sta. Cruz Nickel Project-Eramen
• Balatoc Tailings Project-Benguet
• Rigid Lammin Iron Project
ADVANCED EXPLORATION STAGE
• Colet Mining – Colet Cu/Au Project
• MRL Gold – Agata Cu/Au/Ni Project
• TVI – Balabag Project
• Hallmark Mining – Pujada Ni Project
OTHER PROJECTS
• PMDC – Amacan Copper-Gold Project
• PMDC – Batong Buhay Copper-Gold Project
• PMDC – Diwalwal Direct State Utilization Project
CONSTRUCTION AND DEVELOPMENT STAGE
• Didipio Copper-Gold Project
• Iligan Ferronickel Smelter Plant
• Manticao Ferronickel Smelter Plant
• Akle Cement Project
• Surigao Sumitomo HPAL Project
• Siana Gold Project
• Isabel Nickel Project
• Tiboli Gold Project
DENR, Republic of the Philippines
Kingking Copper Gold
ProjectSumitomo Nickel Project
Tampakan Copper ProjectBoyungan Gold Project
Far Southeast Copper-
Gold Project
Runruno Gold-
Molybdenum Project
Didipio Copper-Gold
Project
16
ISSUES AND PERCEPTIONS
• Philippine mining
industry has been the
subject of intense
scrutiny by major
sectors of the
Philippine society
DENR, Republic of the Philippines
17
ISSUES AND PERCEPTIONS
• Industry continues to labor under the stigma of its “sins of the past” which is aggravated by indiscriminate mining practices
DENR, Republic of the Philippines
18
ISSUES AND PERCEPTIONS
• Lack of a unified information campaign to address misconceptions about mining
DENR, Republic of the Philippines
19DENR, Republic of the Philippines
Mining industry
PROGRAMS & REFORMS
Level the playing field
Remove graft and corruption
Improve environmental compliance
21
PROGRAMS & REFORMS
Protection of investments and removal of interferences
DENR, Republic of the Philippines
22
PROGRAMS & REFORMS
Establishment of mineral reservations Eliminate land use conflicts
DENR, Republic of the Philippines
23
PROGRAMS & REFORMS
Implementation of the “use it or lose it” policy Purge speculators Awarding of tenements through tendering
DENR, Republic of the Philippines
24
PROGRAMS & REFORMS
Upgrade of environmental standards in mining
Absorption of environmental cost
DENR, Republic of the Philippines
25
PROGRAMS & REFORMS
Shift to value-adding activities Limit the direct shipping of ores
DENR, Republic of the Philippines
26
PROGRAMS & REFORMS
Strengthen public-private partnership
DENR, Republic of the Philippines
27
PROGRAMS & REFORMS
Sustain information, education and communication program
DENR, Republic of the Philippines
28
PROGRAMS & REFORMS
Fight graft and corruption
DENR, Republic of the Philippines
29
THE PHILIPPINES IS TAKING A CRITICAL ROLE IN PROMOTING RESPONSIBLE MINING AS A MEASURE OF MAKING THIS PART OF THE WORLD A BETTER
PLACE TO LIVE AND INVEST IN
DENR, Republic of the Philippines
“WE WILL BE A PREDICTABLE AND CONSISTENT PLACE FOR INVESTMENT.”
DENR, Republic of the Philippines
31DENR, Republic of the Philippines
THANK YOU AND
MABUHAY!