Mining to remain a bright spot in RP economy

The Philippine mining sector is expected to remain a bright spot for investments and economic activity despite the current financial turmoil resulting from the US subprime meltdown.

This optimism was expressed by Australian Trade Minister Simon Crean and Chamber of Mines of the Philippines president Benjamin Philip Romualdez.

In separate interviews with The STAR, Crean and Romualdez expressed continued optimism for the mineral sector as growth is still expected, albeit slower, for economic powerhouse China, India and the Middle East.

Crean, citing projections from the International Monetary Fund, foresees continued growth for China and some ASEAN countries such as Malaysia.

For China, Crean said, that growth is expected to be around nine percent to 9.5 percent, while for Malaysia, it would be around 4.5 percent to five percent, slightly lower than the projected seven-percent growth.

“There will still be strong growth that will demand resources,” Crean pointed out.

Romualdez, likewise, projected a much needed and even desired cooling down of the Chinese economy from its double digit growth to a more comfortable eight percent to nine percent this year and perhaps down to six percent to seven percent in 2009.

“That is still strong, robust growth,” Romualdez stressed, with China, thus, continuing to invest in infrastructure which would, in turn, require continued production of base metals.

Furthermore, Romualdez added, India and the new players in the Middle East continue to invest in infrastructure.

“They will pick up the slack left by the US and Europe given their current financial difficulties,” Romualdez assured.

The Philippines, then Romualdez said, would be “well positioned” with its mineral resources.

However, Crean, for his part, reiterated the need for the Philippines to address the concerns of investors in the mining sector, particularly in the granting and processing of mining licenses and permits, as well as the distribution of royalties and dividends to the local governments where the mining activities are located.

According to Crean, “there are opportunities, if we get the process right.”

The timing, thus, of the five-day 9th ASEAN Senior Officials Meeting on Minerals (ASOMM) and 2nd ASEAN Ministerial Meeting on Minerals (AMMin) and other related meetings hosted by the Philippines from October 13 to 17 at the Sofitel Philippine Plaza Hotel in Manila, Romualdez said, would enable the mining sector to assess the effect of the current financial turmoil and plan a future for the mineral sector.

The five-day meet is aimed at drawing up regional policies that will promote regional cooperation among ASEAN member countries and develop the ASEAN mineral sector as an engine for economic growth and social progress.

To be held also on the same date and venue is the five-day mining conference of the private-sector-led ASEAN Federation of Mining Associations (AFMA).

Environment and Natural Resources Secretary Jose L. Atienza said the events, the biggest mining activities in the country this year, are significant in shaping up the immediate and long-term future of the minerals industry for the region to be able to cope with the effects of the financial crisis in the United States and other parts of Europe.

The meeting is expected to both enhance trade and investments in the ASEAN mineral sector, as well as promote environmentally sound and socially responsible mineral development practices in the management and utilization of mineral resources.

The ASEAN countries include the Philippines, Indonesia, Malaysia, Singapore, Thailand, Brunei Darussalam, Cambodia, Lao PDR, Vietnam, and Myanmar.

A consultative meeting on minerals cooperation with the ASEAN+3 nations (China, Korea and Japan) will also be held. The three nations are the major consumers and investors in mining in the region.