Foreign chambers seek clear policies on mining

The Foreign Chambers of the Philippines appealed yesterday to President Arroyo to issue a clear policy statement on mineral development to encourage foreign investors to invest in the local mining industry.

According to a joint position paper of the Foreign Chambers, which was presented by William Mason, president of ANZCham, encouraging foreign investments in the mining sector could result in potential investments of $3.2 billion over a five-year period.

The Foreign Chambers of the Philippines is composed of the American Chamber of Commerce, the Australia-New Zealand Chamber of Commerce, the Canadian Chamber of Commerce, the European Chamber of Commerce, the Japanese Chamber of Commerce and Industry, the Korean Chamber of Commerce and the Philippine Association of Multinational Companies Regional Headquarters Inc.

According to the group, such levels of new investment generation would make the Philippine mineral industry the second largest capital infusion sector following manufacturing.

The majority of investments, the group claimed, would be in less developed rural areas such as Mindanao and the Cordilleras of Luzon.

At the same time, they said, such mining projects will generate significant tax revenues estimated at P21 billion, with at least P12 billion going directly to local government units.

In terms of employment, a vibrant mining sector could have a multiplier effect on employment of as high as 40.

They also said mineral development will bring with it significant infrastructure, roads, power, services, housing, hospital and school development.

Aside from issuing a clear policy statement supporting "sustainable and responsible mineral development," the group suggested that the government classify mineral development projects as flagship projects.

Mason said the unfortunate "environmental mess" in Marinduque province by Marcopper has set an "unfortunate" and "bad example for the mining industry."

He said the Marinduque damage should be addressed once and for all so that confidence in the mining sector could be restored.

"In other countries, the mining sector does not have such a bad image as it does here in the Philippines. In fact, developing the mineral resources of the country, would directly benefit the indigenous people and the community," Mason said.

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