A Second Chance for the Mining Industry in the Philippines

          The Philippines is so rich in natural resources that mining industry in the country could have been our cutting edge all over other countries in the world. However, it seems that this part of the industry has been used and abused by some irresponsible operation such that instead of it gearing towards the top, the industry have nowhere to go but down as in the past series of events.  Likewise, sentiments for anti-mining campaign persist because of all that has been happening.  And we cannot blame them.

          We have so much to offer to the world market.  We are among the largest producer of metallic products as gold, copper, chromium and nickel, the latter being one of our major export earner.

          Sadly though, its production and subsequent export alone does not constitute success to this industry.  There is just more than one major setback.  The decades-old problem such as illegal small-scale mining; combating graft and corruption beseeching the industry as well as the institution of reforms are just some of them and perhaps more.  These are in fact aside from the natural calamities as typhoons, earthquakes and power shortage.

             The most quite alarming to my mind perhaps as regards to the mining industry of this country is an international report that details about 800 abandoned mining sites in the Philippines that pose great risk not only to the environment but more so to human lives.  Perhaps this should not have been happening had we have stricter laws as regards to the industry.  Sadly, this country is so loose in terms of implementing laws, so much so that to some it is so easy to break a law even to the point of sacrificing human lives.  It is a reputation we have been carrying for so long now.

            The current leadership as in all other leadership in the past has its own set of program and a priority as far as the mining industry is concerned.  We could only hope that the current leadership has better to offer than his predecessor.

             Take for instance the Philippine Mining Act of 1995.  I see it as an act that surpasses any other act pertaining to the mining industry. It addresses among other things stable sustainable mining; environmental consciousness and the respect for the rights of indigenous people. Yes, better mining law such as this one is exactly what is necessary, one that is toughened and could be comparable to other countries in the world.  The act addresses the potential dangers to economic and social growth. Maybe it’s never too late if we, Filipinos should put our acts together. One fact is obviously apparent, our natural resources are disappearing, and our government has to act now.

           It is admirable that the Department of Environment and Natural Resources (DENR) accentuated the significance of the full implementation of the law as its priority.

With its full implementation, the exploitation of the potentially rich mineral resources is being safeguarded by this. I am for the law.  It provides incentives to ensure economic viability of the mining industry. It also aims for domestic company to rebuild its competitiveness by allowing them to obtain a permit to conduct exploration for a certain period of years in a specific area.  While the code promotes mining industry here to international market, it likewise promotes production sharing with domestic and small scale mining industry, co-production, joint venture, financial-technical assistance with a duration of up to 50 years.

A report from DENR Mines and Geosciences Bureau dated May 24, 2011 showed a 41% increase growth in production value in the first quarter of 2011 as compared to the 39% growth rate of the same period of the prior year.  This upbeat performance was due to the impressive levels of metal prices in the world market coupled with the country’s mine output particularly from  gold, copper and zinc.

Looking forward for another chance for the mining industry in the Philippines.

 Preliminary data showed that the metallic sector jumpstarts the Philippine minerals industry with a strong 41% growth in production value from PhP20.74 billion in Q1 2010 to PhP29.20 billion in 1st Quarter (Q1) 2011, a PhP8.46 billion increase. This record surpassed its 2010 year-end feat of 39% growth rate. The major drivers for the upbeat performance were the impressive levels of metal prices in the world market and the growing mine output of the country’s mines, particularly from the gold, eecopper and zinc sub-sectors.