RP seen becoming a ‘mining country’ by 2009

The Department of Environment and Natural Resources (DENR) is hoping  that the Philippines will attain the distinction of being a “mining country” as early as 2009, based on this year’s banner mining investments inflow.

Environment and Natural Resources Secretary Jose L. Atienza, in an interview with The STAR, expressed confidence that efforts of his department to attract, facilitate and encourage the continued stay of foreign investors would add to the continued economic development of the country.

Atienza forecasts that investment inflows up to 2011 would hit $10.467 billion.

Based on projections of the DENR’s Mines and Geosciences Bureau (MGB), this year’s projected banner investment inflow of $892 million will already result in higher mineral output and sales from at least seven mining firms by 2009.

The additional investments this year would be for construction and development with actual production expected the following year.

Thus, by 2009, total mineral sales value by the seven priority mineral development projects could reach $26.805 billion, which would be equivalent to about 6.15 percent of the country’s total exports.

Based on the World Bank’s definition of a “mining country”, such a status is attained when a country’s total mineral exports reach the equivalent of at least six percent of its total exports.

The projected investment inflow in 2009 of $1.845 billion is more than double this year’s $892 million.

By 2010, sales value from the same seven first tier priority mineral development projects is calculated to increase to  $33.844 billion.

The seven first tier priority mining projects are those of Atlas Consolidated and Mining Corporation subsidiary Carmen Copper Corp. Carmen (Toledo) copper project; Oceana Gold Phils. Inc.’s Didipio copper-gold project; Coral Bay Mining Corp.’s Palawan line 2 nickel project; Filminera Resources Corp.’s Masbate gold project; the Platinum Group of Metals Corp.’s Illigan and Manticao ferronickel smelter plants; and the Philsaga Mining Corp. gold project.

The projected doubling of inflow of foreign investments in 2010 of $4.141 billion would then translate to an even higher sales out put by 2011.

However, only projecting from the total sales value of the seven priority mining projects, sales would amount to $30.874 billion by 2011.

Projected investment inflows, however, may slow down by 2011 to just $2.21 billion, but projected total sales value by 2012 could still hit $31.05 billion.