Sec Ramon J. P. Paje -INSTITUTING POLICY REFORMS IN MINERAL RESOURCES DEVELOPMENT
INSTITUTING POLICY REFORMS IN MINERAL RESOURCES DEVELOPMENT RAMON J.P. PAJE Secretary Mining Philippines 2011 September 14, 2011, Sofitel Philippines Plaza Hotel Manila, Philippines
GROWTH HIGHLIGHTS 2010• Gross Production Value: up 39% - from PhP106.1B in 2009 to PhP144.4B in 2010. – Metallic Sector: 77% or PhP111.1B • Gold : PhP70.51B or 63% • Nickel: PhP22.99B or 21% • Copper: PhP15.78B or 14% • Others: PhP 1.81B or 1.6% – Non-Metallic Sector: 23% or PhP33.3B
PRODUCTION HIGHLIGHTS 2010 Metallic Sector• Volume: – Gold: up 11%; from 36.814 MT to 40.847MT – Copper: up 16%; from 49,060MT to 58,412% – Nickel: up 59% for DSO and 55% for concentrate; from 8.31M DMT to 13.21M DMT• Price: – Gold: up 25.6%; $1,222.02/oz from $973.01/oz – Copper: up 49%; $3.40/lb from $2.28/lb – Nickel: up 49.7%; $9.82/lb from $6.56/lb
GROWTH HIGHLIGHTS 1st Semester, 2011• Metallic Sector up 31%.• Gross Production Value: from PhP48.73B to PhP63.92B; up by PhP15.19B: – Gold : PhP42.18B or 66.13% – Nickel : PhP11.00B or 17.25% – Copper: PhP 9.19B or 14.42% – Others: PhP 1.41B or 2.20%
2011 PROJECTIONS• Minerals Industry conservatively projected to grow by 17%• Metallic Sector: projected to go up by 24% – Gold : 8% – Copper : 23% – Nickel : 56% for concentrate; 77% for direct shipping ore – Chromite : 10% – Zinc : 106%
• Protection of mining investments• New chapter in small-scale mining with DOJ Opinion 9
• Completion of the First Phase of implementation of the “Use It or Lose It” policy 10
“Use It or Lose It” Policy Implementation• Legal Basis: DENR Memo Order No. 2010-04• Period Covered: Oct 2010 to June 30, 2011• Target Applications: 2,196 (excluding 604 involved in cases)• Accomplishments: 97% or 2,136 applications: – Denied : 1,606 – Indorsed : 530• MRs/Appeals- 24%
Immediate Action PlanReview all Motions for ReconsiderationConduct Technical Assessment of freed areas todetermine which of the areas can be viablypackaged.Formulate Guidelines for Public Bidding and enterinto Joint Venture Agreements.Lift the moratorium on the acceptance and grant ofmining applications.
Upgrade ofenvironmentalstandards in miningAbsorption ofenvironmental cost 13
• Shift to value-adding activities• Encourage downstream processing of mine products 14
• Sustain information, education and communication program 17
• Request for clarification RE: Section 2.2 (Exemption from the ban on the issuance of tree cutting permits) of Executive Order No. 23 (Logging Moratorium) submitted to the Office of the President.• Administrative Order that will clarify the jurisdiction between the Mines and Geosciences Bureau and the Environmental Management Bureau being finalized.• “Codifying” corporate social responsibility.
• Completing the 1:10,000 scale geohazard maps of the entire country being fast tracked.• Providing full support to the Office of the Solicitor General in connection with the increasing cases being filed against mining projects (i.e., Writ of Kalikasan, Temporary Environmental Protection Order, Writ of Continuing Mandamus.