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Regional Political Context

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Regional Political Context

  1. 1. This material was presented in Events PWYP-Asia-Pacific Regional Forum In Manila, Philippines - March, 2014 By: Bantay Kita (Philipines)
  2. 2.  The East Asia and Pacific region (which includes Burma, Cambodia, China, East Timor, Indonesia, Japan, the Republic of Korea, Laos, Malaysia, Mongolia, the Pacific Islands, Papua New Guinea, the Philippines, Singapore, and Thailand) accounted for about 20% of total global economic growth in 2011 (World Bank). Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  3. 3.  Australia and China were among the world’s leading mineral producers in 2011. › Australia has large resources of bauxite, coal, cobalt, copper, diamond, gold, iron ore, lead, lithium, manganese, mineral sands, nickel, tantalum, and uranium. › China has large resources of antimony, arsenic, barite, coal, fluorspar, gold, graphite, iron ore, magnesium, rare earths, strontium, tin, tungsten, and zinc. › India also was one of the world’s significant mineral producers and has large resources of barite, bauxite, chromium, iron ore, manganese, rare earths, and salt. › Indonesia has large resources of coal, copper, gold, nickel, and tin; › Mongolia has large resources of copper, fluorspar, and molybdenum; › Papua New Guinea has large resources of copper, gold, and molybdenum; › Philippines, which has large resources of copper, gold, and nickel. Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  4. 4. ASIAAND THE PACIFIC: HISTORIC AND PROJECTED COPPER MINE PRODUCTION, 2005–20181 (Metal content in thousand metric tons) Country 2005 2010 2011 2014e 2016e 2018e Australia 930 870 958 1,100 1,200 1,250 China 762 1,160 1,270 1,300 1,400 1,450 India 27 36 38 43 46 48 Indonesia 1,064 878 543 600 800 1,000 Mongolia 127 125 122 550 750 740 Papua New Guinea 193 160 130 80 180 230 Philippines 16 58 64 65 70 100 Other -- -- 198 -- 140 240 Total 3,190 3,350 3,320 3,800 4,600 5,100 eEstimated. -- Negligible or no production. 1Estimated data and totals are rounded to no more than three significant digits; may not add to totals shown.
  5. 5. ASIAAND THE PACIFIC: HISTORIC AND PROJECTED GOLD MINE PRODUCTION, 2005–20181 (Metal content in kilograms) Country 2005 2010 2011 2014e 2016e 2018e Australia 263,000 261,000 260,000 280,000 300,000 320,000 China 225,000 345,000 362,000 400,000 420,000 430,000 Indonesia 130,620 106,316 96,100 115,000 120,000 125,000 Japan 8,300 8,544 8,691 8,300 8,100 8,000 Laos 6,232 5,061 3,984 7,000 8,000 8,000 Mongolia 24,120 6,037 5,703 17,000 27,000 27,000 New Zealand 10,583 13,494 14,324 12,000 12,000 12,000 Papua New Guinea 68,483 62,900 62,200 54,000 61,000 122,000 Philippines 37,490 40,847 31,120 34,000 35,000 35,000 Other 19,000 18,300 16,300 20,000 22,000 26,000 Total 793,000 867,000 860,000 948,000 1,010,000 1,110,000 eEstimated. 1Estimated data and totals are rounded to no more than three significant digits; may not add to totals shown.
  6. 6.  The 2011 exploration budget allocation for the Pacific region and Southeast Asia (excluding Australia) was about $1 billion, which was a 39% increase compared with that of 2010.  China maintained its 4% share of the total exploration budget in 2011 (excluding exploration activity conducted by Government- owned entities) (Metals Economics Group, 2011).  Indonesia, Papua New Guinea, and the Philippines together accounted for about 80% of the total mineral exploration budget for the Southeast Asia and Pacific Ocean Islands region when Australia is excluded.  The increase in this region can be attributed to › continued interest by companies from China and the Republic of Korea to expand sources of supply for strategic minerals › companies from Japan to develop regional copper and nickel deposits to supply Japan’s smelting industry. › increased interest among international companies in exploring for undersea minerals in the Pacific Ocean. Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  7. 7.  Papua New Guinea, the Philippines, and Indonesia, which together accounted for 68% of the active exploration sites in the region  Other countries with active exploration in 2011 included Fiji, Java, the Republic of Korea, Laos, Malaysia, New Zealand, and the Solomon Islands  Gold and silver exploration accounted for approximately 68% of all exploration interest in the Pacific region, base metals accounted for about 27%  Since 2008, the region’s share of the world exploration budget has generally increased. This trend is perhaps reflective of the increased interest by China in exploring for resources in the region. Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  8. 8.  The region’s total production of coal accounted for about 69.8% of the world total in 2011.  The region’s production of anthracite coal, accounted for about 93.2% of the world total, and its production of bituminous coal accounted for about 67.5%.  China, which was by far the world’s leading producer of anthracite and bituminous coals, accounted for 77.9% and 47.6%, respectively, of the world total.  In the Asia and the Pacific region, Australia, India, and Indonesia, and North Korea were also significant producers of the various grades of coal.  Australia was the world’s leading exporter of coal Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  9. 9. ASIAAND THE PACIFIC: HISTORIC AND PROJECTED SALABLE COAL PRODUCTION, 2005–20181 (Thousand metric tons) Country 2005 2010 2011 2014e 2016e 2018e Australia 370,000 520,000 533,000 530,000 540,000 560,000 China 2,260,000 3,240,000 3,520,000 3,500,000 3,700,000 3,900,000 India 360,000 507,000 528,000 570,000 580,000 590,000 Indonesia 192,920 256,789 260,000 275,000 285,000 290,000 Japan 1,114 1,000 900 600 300 -- Korea, North 23,500 41,000 41,000 40,000 40,000 40,000 Korea, Republic of 2,832 2,500 2,500 2,600 2,700 2,800 Mongolia 8,256 25,246 30,940 40,000 40,000 40,000 New Zealand 5,267 5,330 4,944 6,000 6,000 6,000 Pakistan 3,367 3,429 3,600 3,900 4,100 4,200 Philippines 3,165 6,650 6,881 7,000 9,000 9,000 Thailand 21,429 17,907 18,000 25,000 25,000 25,000 Vietnam 34,093 44,835 44,494 50,000 50,000 50,000 Other 1,450 3,950 4,570 4,800 4,900 4,900 Total 3,290,000 4,650,000 5,000,000 5,100,000 5,300,000 5,500,000 eEstimated. -- Negligible or no production. 1Estimated data and totals are rounded to no more than three significant digits; may not add to totals shown.
  10. 10. AUSTRALIA  In 2011, the Australian Parliament enacted a carbon tax of about $24 per metric ton of carbon.  Legislation expanded the definition for minerals exploration to include geothermal energy sources. Updating the tax law by expanding the definition of exploration was intended to ensure that exploration for geothermal energy received the same treatment as traditional hydrocarbon energy sources.  A proposal for a 30% mineral resource rent tax (a tax on profits generated from mineral resource revenues) passed the lower house of Parliament but had not passed the upper house by yearend 2011.  The Australian States of New South Wales and Western Australia had proposed to increase mineral royalty rates to compensate for anticipated job losses to the States when the Federal carbon tax is enacted.
  11. 11. AUSTRALIA  The government of the State of Queensland drafted interim legislation to restrict mineral exploration activities within a 2- kilometer buffer area surrounding urban areas with a population greater than 1,000, but provided local jurisdictions the option to exempt themselves from this legislation.  The government of the State of South Australia amended provisions of the Mining Act of 1971 that changed the mineral exploration application and assessment process; implemented programs for environmental protection, compliance, and enforcement; and modified landowner- related rights and obligations.  The government of South Australian also enacted legislation that would prohibit mining in the Arkaroola region but would open the Woomera area to development Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  12. 12. Mongolia In 2011, the Mongolian Parliament extended a ban on issuance of new mining exploration licenses, and a Mongolian court ordered the Government to enforce a ban on mining in forest and river areas. A new two-tier royalty plan was passed by the Parliament in 2010 and went into effect on January 1, 2011. Under this plan, exported minerals are assessed a surtax royalty in addition to a flat 5% royalty rate. For minerals other than copper, the surtax varies from 1% to 5%, depending on metal prices. The surtax on copper ranges between 22% and 30% for ore, between 11% and 15% for concentrates, and between 1% and 5% for final products. Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  13. 13.  India India’s Forest and Environment Ministry had implemented regulations requiring all Government- owned mining companies to adopt a Corporate Environmental Policy. Similar regulations were to be applied at a later time to companies operating in the private sector. Source: USGS The Mineral Industries of Asia and the Pacific in 2011
  14. 14.  Indonesia › banned exports of raw mineral ores › export duties on mineral concentrates of copper, iron, zinc, and manganese of between 20% and 25%, which would be progressively raised to 60% by late 2016. Source: Reuters 2014.
  15. 15.  The Philippines and Indonesia have rapidly introduced major structural, institutional, and fiscal reforms in response to a sudden and far-reaching political stimulus. These countries introduced the basic elements of a decentralization framework, sub-national democratic elections, and substantial resource sharing swiftly.  The incrementalist, like Vietnam, has taken a more piecemeal approach to decentralization. Decentralization has focused on administrative and fiscal reform, with modest political change and the retention of considerable central control over sub-national governments.  On the other hand, the cautious mover (such as  Cambodia) has established significant elements of decentralization at the formal policy but limited progress in terms of implementation Source: Triwibowo and Hanafi, 2014
  16. 16.  Compliant Country › Timor Leste  Candidate Countries › Indonesia › Philippines › Papua New Guinea › Solomon Islands  Pilot implementation › Australia › Vietnam  EITI applicant › Myanmar
  17. 17.  Australia  Bangladesh  People’s Republic of China  India  Japan  Malaysia  Indonesia
  18. 18.  Australia  Philippines
  19. 19.  Series of survey by CIVICUS show that civil society organizations continuously face unfavorable external environment as state aims to control their role through restrictive regulation, complicated permit bureaucracy, and direct intervention. Source: Triwibowo and Hanafi, 2014

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