Saturday, May 26, 2007 Mining investments to reach $348M
ENVIRONMENT Secretary Angelo Reyes sees brighter prospects for the mining industry this year with investments projected to reach US$348 million.
Reyes said the expansion of the HPAL facility in Coral Bay in Palawan would bring in $154-million, the continuing rehabilitation of the Carmen copper project in Cebu would bring in US$97 million, and a gold project in Masbate - US$36 million.
Another US$23 million investment was expected from the construction of the base metal plant of TVI in Zamboanga del Norte and US$21 million from the construction and development of the Didipio copper-gold project in Nueva Vizcaya, he said.
Since the mining industry was revitalized in January 2004, Reyes said a total of US$694 million in investments has been generated. These investments are expected to rise further between now and 2010 as ongoing projects advance in stage.
As the projects advance in their development, additional direct employment is created in the areas where the projects are located. This augurs well for the government’s employment and poverty reduction program, Reyes said.
Some 3,000 new jobs are expected to be generated this year on top of the 6,500 jobs created since 2004, Reyes added.
He said if the priority projects materialized, the value of metallic and non-metallic minerals would grow to US$1.385 billion this year, up from US$1.282 billion in 2006, while mining’s share to total exports would rise to 9 percent this year.
The levels, to the environment department’s belief, are reflective of the country’s mineral wealth and will elevate the Philippines to a mining country, he said.
In 2006, the mining industry’s gross production was valued at P68.4 billion. Total exports of mineral and mineral products amounted to US$2.06 billion, while taxes, royalties and fees from mining reached P3.1 billion. Employment from mining rose to 141,000.
The Philippines has 18 medium to large-scale mines, including the controversial polymetallic mine in Rapu-Rapu Island in Albay that was allowed to resume operations last February following months of suspension due to a mine tailing spill in late 2005.
On top of these, there are 23 projects in advanced stage and 41 others in a stage of exploration as per DENR records.
Reyes admitted that instituting reforms in the industry was never easy since there would always be two groups who would agree or disagree to these.
He said he expected to continue to tangle with non-government organizations over the adverse effects of the government policy to revitalize the industry, but said the best option was to engage them.
Reyes had come under criticism over his decision to lift the suspension on the operation of Lafayette-run mine in Rapu-Rapu Island.
While met differently by different sectors, the environment office believes it made the right decision in Rapu-Rapu, he said.
In view of the incidents that had tainted the image of the industry, Reyes said he expected the foreign mining investors to employ the best practices and comply with Philippine laws and standards when they operate here.
It was imperative, he stressed, for mining companies to build long-lasting relationships with the communities and local government units, and educate them on the risks and impacts of their projects.
Any effort to engage with the stakeholders should be anchored on sincerity and trustworthiness, not just for mere compliance with regulations or lip service, he said. In the bottom line, the mining operation must contribute to real community development not just provide dole-outs to communities. (Press release)
