Foreign investors upbeat on long-term prospects of ASEAN minerals sector

Foreign investors in the Philippines and ASEAN mining sector generally remain buoyant about the long-term prospects of the minerals sector, even as they await a clearer picture of the global financial situation.

This was the conclusion at the joint closure yesterday of the 8th Asia Pacific Mining Conference and Exhibit, the 9th ASEAN Senior Officials Meeting on Minerals and the 2nd ASEAN Ministers Meeting on Minerals at the Sofitel, Philippine Plaza.

In their Manila Declaration, the ASEAN officials agreed to ensure continuous development and utilization of the mineral resources of the region which would serve as a safety net and shield from the current global financial and economic turmoil.

They also agreed to accelerate cooperation to work to harmonize their mineral policies, incentives and taxation, standardization of mineral resource information and adopt a systemized flow and exchange of resource and trade information.

Environment and Natural Resources Secretary Lito Atienza reported that the ASEAN ministers all agreed that demand for mineral resources would continue to grow in spite of the current financial turmoil with projections of a five-pecent increase in demand.

In fact, following a dialogue with the ASEAN’s three major trading partners – China, Japan and Korea – Atienza reported, China already indicated its desire to invest in the production of mineral resources, particularly in processing plants.

China, Japan and Korea also agreed to shoulder all costs for the further training of ASEAN personnel in minerals development.

For his part, Benjamin Philip Romualdez, concurrent president of the Chamber of Mines of the Philippines and the ASEAN Federation of Mining Associations, cited the continued “buoyant” outlook of almost all participants of the three-day 8th APMCE.

However, Romualdez admitted, the financing outlook for the mining sector remains unclear at this point in time. Romualdez said the outlook is expected to be clearer by January next year when the US presidential election is over and there is a clearer picture of the financial market.