1) The document discusses responsible mining and the role of open pit mines. Several proposed and upcoming mining projects in the Philippines will use open pit extraction methods. 2) Open pit mines can later be rehabilitated and reforested, or left as man-made lakes to create economic opportunities for fishing, water sports, irrigation, and hydropower. 3) The document argues mining taxation in the Philippines is already high, providing more than six times the average taxes per hectare of land nationally. It cautions that any tax increases should be balanced by cuts to other mining fees and regulations.

1. Responsible Mining and the Role
of Open Pit Mines
Focus Group Discussion, Mining Conf. 2017
Sofitel Philippine Plaza, Manila
September 05, 2017
Bienvenido Oplas Jr.
President, Minimal Government Thinkers
Columnist, BusinessWorld, “My Cup of Liberty”
Fellow, SEANET, Stratbase-ADRi
https://miningasia.blog/
http://funwithgovernment.blogspot.com/

2. “The Philippines has an
estimated $1 trillion worth of
untapped mineral reserves…
Sagittarius Mines, Inc.’s $5.9-
billion Tampakan project is
proposing an open pit method of
extraction. Other projects such
as Silangan Mindanao Mining
Co., Inc.’s $32-million copper-
gold project in Surigao del Norte
and Kingking Mining’s $145-
million copper-gold project in
Compostela Valley —
respectively expected to start
operations in 2018 and 2020 —
will also involve open-pit
methods.”
 Good development. After
almost a year with ex-Sec.
Lopez at the DENR, MGB has
become timid. Things have
changed since Lopez was
ousted by the CA.

4.  “Open pit forever” not true if the pit is reforested and rehabilitated. True but as a
lake, creates a new econ. potential for fishing, water sports, hydro power, irrig.,...

5. “Severe water shortage by 2030”  crystal-ball reading and alarmism.
“Strength of … earthquakes”  has zero relationship with CC, which is cyclical
(warming-cooling) and natural (nature-made, not man-made)
“Strength of typhoons… not diminishing; rather escalation”  wrong. See next
slide…

6. 30 Nov 1912 – DEADLY TYPHOON.
HOLOCAUST IN PHILIPPINES WASHING…
http://trove.nla.gov.au/
1912 reports on Tacloban storm ‘killing’
15,000 resurface | Headlines, News, The
Philippine Star | philstar.com
“Strength of typhoons escalating…”
Really?
PH typhoon Nov. 2013 vs. typhoon Nov.
1912 (101 years apart), same prov. Leyte…

7. Large mining is not sole and most erosion-inducing activity in the country.
Very often, it is deforestation or conversion of forest land into pasture land, agri land, comm’l
land, or simply regular cutting of trees in public forest land.
Left photos: mountains in Aguilar-Bugallon-Labrador, Pangasinan, then a mountain behind the
NGCP station in Labrador, Pangasinan.
Right photos: sugarcane farm in Negros, a river in our barrio in Cadiz City, Negros Occ. Was a
wide river but siltation from eroded soil of sugarcane farms narrowed the river to only 1/3 to ½
of its width some 30 years ago.

8. Open pit mines are done in developed countries.
5 biggest and deepest open mines in the world:
1. Bingham Canyon, Utah, USA -- roughly 4 kms wide
and over 1.2 kms deep. 
2. Mir Diamond mind, E.Siberia, Russia – 1.2 kms.
diameter and reaching depths of 525 meters.
3. Kalgoorlie Super Pit, Australia -- roughly 3.8 kms long,
1.5 kms. wide and approx. 600 meters deep.
4. Kimberly Diamond Mine, S. Africa -- perimeter 1.6
kms., 200 meters deep.
5. Diavik Diamond Mine, Canada.
Big communities develop around the pit. The pit came
first, the communities follow, not the other way around.

9. http://notrickszone.com/
2017/08/01/new-study-
by-germany-physicists-
concludes-we-can-
expect-climate-cooling-
for-next-50-years/
* Sum of these 3
dominant cycles
(red curve)
reproduces the
measured
climate (blue
curve) with a
remarkable
correl. of 0.84.
* Dominant
cycles have
persisted for an
extended time,
“This allows to
predict cooling
until 2070 AD.”

10. “Summation of these periodicities for the future
(after 2015) allows us to forecast the next few
decades. The solid heavy line in Fig. 1 shows
that cooling (a drop in ΔTvalues) is expected in
the next few decades.”
https://link.springer.com/article/10.3103/S1062873817020411
https://www.thegwpf.com/russian-scientists-predict-global-
cooling-in-the-next-few-decades/

11. Abandoned open pit mines become lakes.
Mining is destructive only in extraction stage. After the minerals are mined out, the area is
rehabilitated. Another option – keep open pits open, do not cover with soil and plant
trees. Keep them as new lakes: tourism, water sports, fishery, irrigation, hydro power,
other uses.

12. “AN OLD mining pit in western
Cebu has turned into a popular site
for social media-worthy selfies and
groufies. Trees dot the slopes of the
Biga Pit, providing a refreshing
contrast to the barren, rocky slopes
of two other open pits within the
vast mines of Carmen Copper
Corp. in Toledo City, Cebu.….
Biga Pit is one of three mining pits
at the Toledo copper mines,
currently the biggest in the country.
The mines, sprawled across four
villages, are situated about 50
kilometers west of Cebu City…
Biga Pit has been decommissioned
and currently serves as the mine
tailings storage facility, with an
estimated operating life of 11 years.
Underneath that turquoise water
are tons of tailings, or the materials
left after the valuable elements are
extracted from the ores.
On its website, Carmen Copper said water at the Biga
lake has a pH level of 7.5 to 8, which is within the normal
range for surface water and safe enough for fish like
tilapia to thrive in. In general, surface water with a pH level
of more than 7 is considered basic while a pH level of less
than 7 is considered acidic.”

13. National taxes
* Corporate income tax (CIT)
* Personal income tax of personnel & officers
* Value added tax (VAT)
* Withholding tax (WHTs) on dividends, WHT on
interest, WHT on royalties, on service fees
* Excise tax on minerals and imported goods
* Customs duties
* Capital Gains tax
* Documentary stamp tax
* Improperly accumulated earnings tax (IAET)
* Wharfage fees
* Royalty for Indigenous People (IPs)
* Royalty in mineral reservation
* Vehicle registration tax
* Special allowance under the Mining Act
* Various documents/permits required by MGB,…
Local taxes & fees
* Local business tax
* Real property tax (basic and SEF)
* Registration fees
* Occupation fees
* Community tax
* Mining operations tax
* Environmental fees
* Local wharfage fees
* Regulatory/Administrative fees
* Extraction fees on mineral lands
* Rental fees
* Mine waste and tailing fees
* Mayor’s permit fee
* Barangay permit
* Fire department permit, sanitation permit
* Provincial permit, other local taxes and fees
Mandatory Expenditures
* Annual Env’l Protection & Enhancement Prog. (EPEP)
* Social development and management prog. (SDMP)
* Community development program
* Environmental work program (EWP)
* Safety and health program
* Special allowance to claim owners & surface right
holders
Environmental funds
* Rehabilitation cash fund
* Mine monitoring trust fund
* Mine waste and tailings fees reserve fund
* Final mine rehab. & decommissioning fund
* Environmental trust fund
* Mine rehabilitation fund (MRF)
* Others
Digression – on mining tax…

14.  Of PH’s 30 M has.
total land area, only
700,300 has. have
mining permits from
314 MPSAs & 5
FTAAs, of which only
81,000 has. are in
active mining.
 These 81,000 has.
or 0.27% of land area
gave an est.
P420,000/ha. in taxes,
fees, and royalties in
2016. More than 6x
overall national taxes
per hectare.
http://bworldonline.com/comparing-overall-versus-mining-taxes-per-hectare-land/

15. Source: Dr. Roy Spencer, UAH
Conclusions: (1) CC means warming-
cooling cycle. After global warming,
prepare for cooling, we need more man-
made dams and lakes, open pits will help.

16. (2) Mined out or decommissioned open pit mines should as much as possible be
left as is, not covered with soil then reforested. Multiple purposes: (a) as man-
made dam and lake to catch excess water and flash flood, (b) reduce flooding
downstream during heavy rains, (c) use the lake water for fishery, irrigation,
hydro-power, even possible drinking water source someday, (d) or simply for
eco-tourism.
(3) Current mining taxation (incl. royalties, regulatory fees, mandatory
contributions) are high and plentiful. Any tax hike like raising mining excise tax
from 2% to 10% should be compensated by a cut or abolition of other taxes and
fees.