Saturday, October 25, 2008 Mines body sets forum for funding of projects By Edwin G. Espejo
THE Chamber of Mines of the Philippines (CMP) has scheduled a forum with international banks and financial institutions next year to fast track the development of several mining projects in the country.
CMP president Benjamin Phillip Romualdez made the announcement after the 8th Asian Pacific Mining Conference drew to a close Thursday last week.
He said the focus has now shifted to funding and financing after they have presented the state of mineral development in the Asia and Pacific region amid global concerns over the financial crises hitting major economies in the West.
"We recognize that the financial market is in turmoil," Romualdez said.
In January next year, "a clearer picture of the world financial system would be in place," Romualdez added, citing the reason behind the January 20-21 forum to be held in Manila.
Among the issues to be tackled during the forum are equity funding, project and structural financing, political risk assessment and hedging.
"We will discuss how these (Philippine mining) projects can actually get funded and where the funding is coming from," Romualdez said.
At the same time, he also urged the Philippine government to address the question of liquidity issue "to ensure the development of these mining projects."
He said the ongoing financial crises should not prevent the government from pursuing its mining policy.
"Minerals do well in these times of financial crises," he said.
Several big ticket mining companies have reportedly put on hold their mineral development projects in the country due to financial uncertainties.
Industry players are also taking a guarded look at China, one of the biggest markets of commodities products.
Environment and natural resources Secretary Lito Atienza earlier said China remains to be the biggest market of mineral products due to its ever expanding economy.
The government has set its sight at attaining a "mining country" status by 2011.
It has shifted its policy from "tolerant to active promotion" of the development of the mining industry in the country.
But recent developments have experts warning that China's declining GDP growth will likely affect the global mining industry.
"China used to have a 12 per cent annual GDP growth. Now, it is down to something like eight per cent," security risk consultant Phil Carney earlier said in an interview.
Carney was one of the speakers during the mining conference held at the Sofitel Philippine Plaza.
But Romualdez said it is up for the government and industry players to sustain the momentum of mineral development in the country.
