The show still goes on

Local mining investments are likely to reach half of the total $694-million investments placed in the country in the past two and a half years, Environment and Natural Resources Secretary Angelo Reyes said yesterday.

At the same time, Reyes announced a projected rise in the industry with “significant inflow anticipated in 2008 to 2010.”

In a speech before participants of the JP Morgan Philippines Corporate Access Days forum in Makati City over the weekend, Reyes said the country’s rich mineral deposits would salvage the Philippine economy.

“The Philippines is a logical choice for many prospective mining investors because of the country’s highly potential mineral wealth, and the country should take advantage of this interest to generate funds needed for economic development,” he noted.

According to Reyes, the government expects local mining investments to reach $348 million this year due to expansions and developments in various existing and new mining projects under the government’s mining revitalization program.

Specifically, Reyes mentioned that among the expected investments, the expansion of the HPAL facility of Coral in Palawan would bring in about $154 million into the country, while the construction of the base metal plant of TVI in Zamboanga del Norte is worth $23 million. There is also the development of the Didipio copper-gold project in Nueva Vizcaya amounting to $21 million; the continuing rehabilitation of the Carmen copper project in Cebu; and $36 million from the Masbate Gold Project in Masbate island.

Reyes also asserted that the value of metallic and non-metallic minerals is projected to grow to $1.385 billion this year compared to last year’s $1.282 billion, and to around $6 billion by 2010.

He said that mining’s share to exports is also projected to rise to around nine percent of total exports.

“These levels, to the DENR’s belief, are reflective of the country’s mineral wealth and will elevate the Philippines to a ‘mining country,’” he claimed.

DENR mining statistics showed that in 2006, mining gross production value reached P68.4 billion, which is almost double from 2002’s P35.2 billion.

However, the same data indicated that last year, mining’s contribution to gross domestic product (GDP) dipped to P14.1 billion or 1.1 percent of the national GDP compared to 2005’s P14.8 billion.

Reyes said this should be attributed to the general expansion of the Philippine economy.

Meanwhile, total exports of mineral and mineral products in 2006 was recorded at $2.06 billion, which is more than double of 2005’s $820 million, increasing the local mining industry’s percentage share from just 2 percent to 4.5 percent, the DENR mining statistics said.

Further, the DENR data showed that employment in mining was pegged at 141, 000, which is up from 2002’a 101,000.

Mining taxes, fees, and royalties, on the one hand, totaled to P3.1 billion, which is slightly higher than 2005’s P2.9 billion.

“The country’s rich mineral wealth cannot be just left untapped on the ground but has to be developed and exploited in order to generate the capital wealth needed for the development of our communities and country,” Reyes said.

The government has 24 priority mining projects nationwide, but has still been seeking new investments that are seen to contribute to the goals of the mining revitalization program.

The Philippines has been touted as a country rich in minerals such as gold, copper, iron, chromite, nickel, cobalt, and platinum.