Gov’t revises mining investment targets

MANILA, Philippines - The government has revised anew mining investment projections for the next four years after the lifting of the moratorium on the acceptance of new permit applications.

Data from the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources showed that investments from priority mining projects in various stages of development reached $791.69 million in 2012, surpassing revised expectations of $509.24 million for the year.

In November 2012, MGB slashed mining investment projections for  2012-2016 because of delays in the implementation of key projects.

In the same period, the government imposed a moratorium on the acceptance of new permit applications pending the legislation of a new revenue sharing scheme and the identification of the so-called “no-go zones” or areas where mining activities would be prohibited or restricted.

In March this year, however, the MGB lifted the moratorium on the acceptance of applications for Exploration Permit (EP) and Financial or Technical Assistance Agreement (FTAA) as it completes the mapping of the no-go zones.

The moratorium on the mineral production sharing agreement (mpsa), however, will remain because the  new mining policy-- Executive Order No. 79-- stipulates that “no new mineral agreements (MA) shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.”

The MGB grants three kinds of MAs: MPSA, Co-production Agreement, and Joint Venture Agreement.

An MA is a mining right exclusive to Filipino individuals and corporations.

Through MA, the government grants the contractor the exclusive right to mine the contract area.

The investment inflows projection for 2013 was revised to $758.47 million from $718.47 million as revised in November.

MGB director Leo Jasareno said there is still a possibility that investment inflows for 2013 may reach $1 billion.

For 2014, projection was revised to $901.75 million from $851.75 million.

Projections were retained for 2015 at $757.60 million and 2016 at $619.50 million.

Key mining projects that will have significant investment for 2013 year are the $50 million Toledo Copper Project of Atlas Consolidated Mining and Development Corp. the $50-million Surigao Sumitomo HPAL project, $200 million Tampakan copper-gold project, of Sagittarius Mines Inc.

Oceana Gold Corp, which operates the Dididpio copper-gold mine in Nueva Vizcaya will also invest $10 million this year.