RP mining sector to generate $10 B by 2011 Palace

MANILA, Philippines – The Philippine mining industry has generated some $1.4 billion in investments in the last three years and is expected raise over $10 billion by 2011, a Malacañang official said yesterday.

Press Secretary Ignacio Bunye said there have been 40 mining processing and exploration projects and 23 other exploration projects in the last three years based on a Department of Environment and Natural Resources (DENR) report.

“These have generated investments totaling $1.4 billion and we see potential additional investments of another $9 billion by 2011 generated by these projects alone,” Bunye said.

He said the bulk of the projected investments are expected to come in between 2008 and 2010 when these projects progress to the construction and development stages.

“So our mining industry has the potential to grow by as much as five times to $10 billion by 2011. This will support our bid to become a mining country defined by the World Bank, with exports from the minerals industry expected to grow to 6.5 percent of our country’s exports by 2011,” Bunye said.

He noted that here has been a significant interest and investment from foreign mining companies since the Supreme Court ruling in 2005 that opened up the mining sector to foreign investors.

Some of the world’s biggest players in the mining sector including Xstrata, Anglo-American, and BHP Billiton are active players in the country’s mining sector.

“Regardless of what some might say, the fact is that mining continues to be a key driver of our economy and an important sector that is creating jobs for the people and spurring exports,” Bunye said.

Irresponsible mining has been noted to be a scourge on the environment, with the effects of mine tailings the subject of litigation between local governments and departed mining companies.

Bunye witnessed how mining has transformed several towns particularly in the municipality of Carrascal in Surigao del Sur, when he tagged along President Arroyo during her visit there last week. 

Local officials noted the mini-boom generated by the mining industry, with close to 3,000 new jobs created by nickel mining operations. Officials estimate the number to double within the next two years.

“But President Arroyo wishes to emphasize that while we are focused on achieving a significant growth in the mining sector, we are also very concerned about how development is done; it has created a lot of controversy in the past, and it is in the best interest of the mining companies to work closely with our civil society organizations and local government representatives to make sure investments work for the community, not just for the company,” Bunye said.