Phl wants more mining investments

BAGUIO CITY ,Philippines  – Mining has been one of the biggest contributors to economic growth in several countries, foreign diplomats said here.

Former Foreign Affairs Secretary and now Special Envoy of the President for mining Delia Albert said it is necessary for the nation to compete with other countries in luring investors, “otherwise we will lose the opportunity.”

“The Philippines has to compete with investors and get their interest, if we do not, investors will go to other countries where they will have better value for their money,” she said during the 58th Annual National Mine Safety and Environment Conference held here.

This as anti-large scale mining groups staged parallel activities with the mining industry’s annual gathering here to propose a new Peoples Mining Law that seeks to nationalize the mining industry.

But Louie Sarmiento, president of the Philippine Mine Safety and Environment Association (PMSEA) said RA 7942 or the 1995 Mining Act “is already a very good law which gives premium on protecting the environment.”

Even Ambassadors Roderick Richard Campbell Smith of Australia, Brazil’s Alcides Gastao Rostand Prates, Chile’s Roberto Mayorga, South Africa’s Agnes Nyamande-Pitso and United Kingdom’s Stephen Lillie agreed mining laws in the country are attractive for investments.

“We need, however, only to harmonize conflicting national and local laws,” added Mines and Geosciences Bureau director Leo Jasareno, pointing out this particular “hitch” with the mining industry as among the issues being ironed out by the Aquino government in crafting its policy direction on mining that is supposed to be out by December this year.

“The country is endowed with mineral reserves and a firm legal framework for an investment guide. These are among the reasons people want to come here to invest,” Albert said.

Albert was named special envoy for mining and has been overseeing procedures that will speed up the mining business.

She organized a Minerals Development Council, patterned after similar institutions in other mining countries, but tailoring its functions to the unique Philippine situation. It aims to ensure responsible mining practices, including transparency, environmental concerns and safety measures.

“There is a tremendous potential for more mining in the country with three companies from the United Kingdom doing business here,” Ambassador Lille said.

All five foreign envoys encouraged the delegates of the mining conference to appreciate their countries’ experiences in mining.

For instance, in Brazil mine operations contributed 40 percent (roughly $70 billion) to its economy in 2008, and 20 percent ($27.7 billion) to its total exports for the same year.

Jasareno said although 2010 figures showed that the industry performed fairly well in 2010, with a 1.4 percent contribution to the GDP, “it takes at least 30 Tampakan projects to equal mining in Chile which contributes to that country’s 30 percent contribution to their GDP.”

The Tampakan copper gold mine in Gen. Santos City, operated by Sagittarius Mines, is the largest undeveloped copper-gold resource in the Southeast Asia.

Ambassador Mayorga, who also came during last year’s mining conference, said both private and government-run mines in Chile coughed in 62 percent ($44 billion) to their exports last year.

Mining in Australia, Ambassador Smith said, had been contributing 20 percent to the country’s annual exports since the boom in 2003. From 2009 to 2010, Australia exported $139.5 million in energy commodities and metal ores. Even going beyond its borders, the country-continent have been giving foreign direct assistance to Africa worth $9 billion. To date, the Australian envoy said, there are 230 Australian mine firms developing 650 projects in 43 African countries.

London, which became the center of the world metal trade, came as such because UK focused on the coal monopoly in the 19th and 20th century, Amb. Lillie said.

Meanwhile, Ambassador Pitso said her country had been the top mineral resource area and they were with mining for a hundred years. Estimates have it that there are 36,000 tons of undeveloped resources which constitute about one-third of the world’s unmined gold in South Africa, including strategic minerals like platinum, vanadium, chrome and manganese.