Tampakan as model for investors

SINGAPORE - I came here to attend the 7th Asia Mining Congress to know more about mining and how other countries see it and deal with it. That would give me a background for the debate going on now in the Philippines. Is mining something we should pursue or abandon? My questions were adequately answered.

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The Asia Mining Congress has been the major forum for the mining and metals industry for the past six years. Participants come from every aspect of mining from exploration companies, investors, governments, funders, and industry experts.

They come from all over the world, some from countries I would not have thought of as being in mining. There are the veterans like Canada and Australia - the wealthy giants in the industry. China is a class by itself with its own mineral resources and money to tap the resources of other countries for its growing inventory. It is at once explorer, miner and funder.

Then there are the wannabes like Vietnam, Laos, Mongolia and what do you know - even Afghanistan (where, relying only on media, I would have thought only shooting takes place there).

In the middle are countries like Indonesia and the Philippines, already well known for some of the largest mineral resources in the world. But with the Indonesian government pushing for the industry, creating a friendly environment for investors, it has outpaced the Philippines. The Indonesian government is determined to move up to first world status using its vast mineral resources.

Still it was the Philippines at the center of attention in the conference because of the Xstrata project with the Sagittarius Mining Inc. in Tampakan, South Cotabato. Indonesia competes with the Philippines on resources but will soon overtake us because of our country’s reputation as a hardship post for investments.

On the morning when the conference opened the headline of the business section in the Financial Times was Glencore Holdings’ IPO. It was announced that it would not meet the demand from rich investors from Asia and the Middle East. One of the attractions of the Glencore IPO was its 34 percent stake in London-listed miner Xstrata.

This is the same Xstrata making its presence felt in South Cotabato. So you put two and two together and you find cause for both hope and despair. When a company like Xstrata puts stakes in a mining project to the tune of $ 5.9 billion this is big news and will be watched avidly by investors all over the world.   

The Tampakan Copper-Gold project is about the world’s largest undeveloped copper-gold deposits in the world. It is a joint venture managed by Xstrata Copper, a business unit of Xstrata plc. More interestingly it is also a global diversified mining group that is internationally respected as a leader in sustainability practices.

Although it is still in the exploratory stage, already the group has sunk in more than a billion dollars for operations and sustainable development in the communities around it.

Unfortunately, it has recently encountered difficulties with local government that threatens to scuttle the entire project. It is sad if this is allowed to happen. On the other hand, if approved, the mine is likely to be the largest in the Philippines and amongst the largest copper mines in the world. That means more jobs, education, health and infrastructure for Filipinos living in a god-forsaken region. In general, it also means more money for the Philippine government. It is an exceptional opportunity for the poor who have been neglected and for centuries untouched by progress.

Moreover it will establish the Philippines as a reliable destination for investments. I am writing this so more Filipinos understand that what is at stake in Tampakan is not only mining but also the capacity of the Philippine government to ensure progress and a better life for its people. I visited each and every booth in the exhibition, especially those who know how rich the Philippines is in mineral resources and all of them shake their heads with regret that such a rich country should be so poor.

Happily, DENR Secretary Ramon Paje, assisted by Acting Director Leo Jasareno, personally came to Singapore to assure investors that the Aquino government is committed to the Tampakan project and will see it through sooner than later.

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Tampakan is not the only mining project in the Philippines. There are smaller ones quietly doing their bit in development and sustainability practice. Indeed, three nominees for awards in “Uncover the Hidden Gems of Mining Sustainability” in Southeast Asia were from the Philippines - Carmen Copper in Cebu, Filminera in Masbate and TVI Pacific in Canatuan.

All of them invite media and concerned citizens to come to their projects and see for themselves what mining has done to the communities in their areas. In Carmen Copper they have started a shoemaking industry for those who are not employed in mining. It is a good example of development and sustainability. The people in Toledo City, Cebu will have a job-generating and wealth creating industry long after the copper mining is done with.

The Filminera Gold Project in Masbate at first was reluctant to talk or be written about on what they do for the communities there. “We have always been low-profile and do our work quietly,” says Chris Acosta, its president. Yet apart from full compliance with the legally mandated Social Development Management Program, they have done more. They were the most optimistic about getting the award because of their health-sanitation, education, infrastructure, livelihood and socio-cultural development of the inhabitants of eight barangays - Puro, Amoroy, Capsay, Lanang, Panique, Balawing, Sindicate and Bangon.

Their submission for the award was about helping farmers and showed pictures with huge piles of watermelons, eggplants, cucumbers and beans.

I was especially interested in the work of Canadian TVI Pacific who called their work in their mining areas - “The Quadrant of Development”. Quadrant refers to responsive education, health and sanitation, sustainable livelihood and infrastructure.

In implementing each quadrant TVI Pacific said it is guided by the United Nations Millennium Goals. They look at the water system, electrification, housing, livelihood, roads, and assist groups to organize themselves for literacy, vocational, agricultural and technical education.

I had long talks with Rhonda Bennetto, executive director for investor communications. She obviously loved the work in community development in the Philippines because Filipinos were so appreciative. She goes there as often as she can and invites everyone to see the progress of their community development work and as she said - all are invited.