The Philippines will need between $3 billion and $5 billion to revive the moribund mining industry and turn it into a major dollar earner again, a government commission said yesterday.
The Preparatory Commission on Constitutional Reforms (PCCR) said the assessment bolstered their argument that the country's Constitution would have to be amended to allow more foreign ownership in still-restricted sectors such as mining, utilities and the media.
The PCCR, which was created by President Estrada to look into the need to amend the Constitution, said the mining and quarrying industry has been steadily on the decline since 1993.
In the 1980s, mining generated $1.2 billion in exports yearly or about 20 percent of total exports with 69 operating mines.
By 1996, only seven mining companies were still operating with only $537 million in export earnings, or 4.11 percent of the total, the PCCR said according to a statement from the Presidential Palace.
The Philippines is second worldwide in terms of gold reserves per land area, fourth in copper reserves and sixth in chromite deposits, the PCCR said.
Developing a single gold, copper or nickel mine would cost between $200 million to $300 million, the commission said.
It estimated that over the next 10 to 15 years the industry would require $3 billion to $5 billion to revive.
"The projections of the government indicate that foreign sources will have to provide the major part of the needed funds," the PCCR said.
These arguments are in line with Mr. Estrada's campaign to amend the Constitution to remove provisions that limit the amount of foreign investment in certain sectors, particularly those affecting natural resources.
However, the local Catholic heirarchy and other critics of Mr. Estrada have strongly opposed the charter revision plan, fearing that it may be a ploy to allow Mr. Estrada to entrench himself in power.
Leftist groups have also opposed the entry of foreign capital, particularly into mining, saying this will lead to foreign domination of local resources.