The Philippine government must realize that policy uncertainty can be extremely damaging to both investors and the host country and can hamper the successful exploitation of mineral endowments.
This presentation discusses about the impacts of resource nationalism on mining companies and the protective strategies adopted by mining companies to minimize the effects of resource nationalism, which in turn would benefit the host nation’s economy while ensuring sufficient returns to the Mining companies.
The document summarizes a report from the Competitive Enterprise Institute on the costs of federal regulations in the United States. Some key points:
- Regulatory costs in 2004 were estimated at $877 billion, exceeding corporate profits and personal income taxes.
- There were over 75,000 pages published in the Federal Register in 2004 setting new regulations, a 6.2% increase from the prior year.
- There are currently over 4,000 new rules and regulations in the pipeline from federal agencies.
Update of recent developments in zimbabwes extractive and mining sectorZELA2013
The document provides an update and analysis of developments in Zimbabwe's extractive sector from January to August 2011. Key developments include the outcomes of a Kimberley Process meeting on Marange diamonds, regulations requiring mining companies to dispose of 51% shares to locals, and the suspension of licenses issued to local diamond manufacturers. The Kimberley Process meeting failed to resolve issues around Marange diamond exports. The indigenization regulations aim to benefit local communities but could be abused and do not ensure transparency. Suspending diamond manufacturer licenses lacks transparency around the reasons for non-compliance.
Analysis of mines and minerals amendment bill 2007 versionZELA2013
The document discusses improving Zimbabwe's legislative framework for governing mining. It summarizes key issues in the draft bill, including license and contract awards. While the bill improves the process, it could be strengthened by introducing checks on executive power and specifying technical/financial qualifications. Adopting a standard model contract and single licensing authority would promote transparency and prevent abuse. Overall, developing a national mining policy would help define a shared vision and ensure coherent sector management.
The document discusses a Mining Revenue Taskforce created in Sierra Leone to help manage challenges related to governance of the country's mining sector. The Taskforce, comprised of representatives from relevant government institutions, aimed to improve revenue collection procedures, reconcile mining company payments with government records, increase transparency, and facilitate cooperation between departments. It analyzed mining governance challenges in developing countries generally and described the Taskforce's formation, objectives, and initial activities, which focused on establishing sound procedural practices for recording payments and sharing information between institutions.
Read our commentary on the Trinidad and Tobago budgetary measures delivered by the Minister of Finance, the Honourable Mr. Colm Imbert, in Parliament on 30 September 2016, available online at www.ey.com/tt.
Bus106 wk3 ch3 role of government in businessBhupesh Shah
BUS106 The Role of Government in Business- from UNDERSTANDING CANADIAN BUSINESS, 7th Cdn Edition
(custom publication for Seneca) ; - published by McGraw-Hill
This presentation discusses about the impacts of resource nationalism on mining companies and the protective strategies adopted by mining companies to minimize the effects of resource nationalism, which in turn would benefit the host nation’s economy while ensuring sufficient returns to the Mining companies.
The document summarizes a report from the Competitive Enterprise Institute on the costs of federal regulations in the United States. Some key points:
- Regulatory costs in 2004 were estimated at $877 billion, exceeding corporate profits and personal income taxes.
- There were over 75,000 pages published in the Federal Register in 2004 setting new regulations, a 6.2% increase from the prior year.
- There are currently over 4,000 new rules and regulations in the pipeline from federal agencies.
Update of recent developments in zimbabwes extractive and mining sectorZELA2013
The document provides an update and analysis of developments in Zimbabwe's extractive sector from January to August 2011. Key developments include the outcomes of a Kimberley Process meeting on Marange diamonds, regulations requiring mining companies to dispose of 51% shares to locals, and the suspension of licenses issued to local diamond manufacturers. The Kimberley Process meeting failed to resolve issues around Marange diamond exports. The indigenization regulations aim to benefit local communities but could be abused and do not ensure transparency. Suspending diamond manufacturer licenses lacks transparency around the reasons for non-compliance.
Analysis of mines and minerals amendment bill 2007 versionZELA2013
The document discusses improving Zimbabwe's legislative framework for governing mining. It summarizes key issues in the draft bill, including license and contract awards. While the bill improves the process, it could be strengthened by introducing checks on executive power and specifying technical/financial qualifications. Adopting a standard model contract and single licensing authority would promote transparency and prevent abuse. Overall, developing a national mining policy would help define a shared vision and ensure coherent sector management.
The document discusses a Mining Revenue Taskforce created in Sierra Leone to help manage challenges related to governance of the country's mining sector. The Taskforce, comprised of representatives from relevant government institutions, aimed to improve revenue collection procedures, reconcile mining company payments with government records, increase transparency, and facilitate cooperation between departments. It analyzed mining governance challenges in developing countries generally and described the Taskforce's formation, objectives, and initial activities, which focused on establishing sound procedural practices for recording payments and sharing information between institutions.
Read our commentary on the Trinidad and Tobago budgetary measures delivered by the Minister of Finance, the Honourable Mr. Colm Imbert, in Parliament on 30 September 2016, available online at www.ey.com/tt.
Bus106 wk3 ch3 role of government in businessBhupesh Shah
BUS106 The Role of Government in Business- from UNDERSTANDING CANADIAN BUSINESS, 7th Cdn Edition
(custom publication for Seneca) ; - published by McGraw-Hill
Is There Hope for Mining After the Aquino Administration?Fernando Penarroyo
Modest economic growth for the Philippines will continue in 2015 with low oil prices supported by increased government and election spending. Capital outflows in mining indicate the presence of a poor investment environment in the Philippine mining sector relative to the other ASEAN countries. Given the current volatility in metal prices and the onset of a new government following the presidential elections in 2016, it is difficult to predict if the worst is over for the industry. While the long-term fundamentals for metals remain strong, the industry is still in a limbo as it waits for the outcome of the 2016 elections. No amount of company restructuring or cautious optimism can reverse the tide of the industry’s demise if an anti-mining or a status quo president is elected.
The document discusses the Framework Agreement on the Bangsamoro signed between the Philippine government and the Moro Islamic Liberation Front. Key points include:
- The agreement is a major milestone for peace and reconciliation in Mindanao and will improve economic conditions by attracting investors to develop natural resources once the region is stabilized.
- It establishes the skeletal framework for creating a new autonomous political entity called Bangsamoro, which will have its own sources of revenue and ability to levy taxes, while remaining part of the Philippines.
- Questions remain around the agreement's constitutionality and how existing laws on natural resource exploration will interact with Bangsamoro's autonomous powers over its territory and resources.
With a population of almost 100 million people and annual economic growth averaging between 6 to 7%, the Philippines’ is anticipated to continue to have a robust energy demand. The Government’s refusal to subsidize power, heavy reliance on expensive fossil fuel imports, and added transmission cost because of the country’s archipelagic configuration have resulted in electricity prices being among the highest in the world. Thus, renewable energy projects present a viable business opportunity to resource developers.
The business community believes that the introduction of retail competition and open access is the logical move to bring the power industry to the next level and establish a competitive market structure. There is a need to further diversify the energy mix and the government is banking on renewable energy to wean the country from its dependence on fossil fuel. The government through the Renewable Energy Act of 2008 (“RE Act”) sought to address the issues on the absence of a ready and guaranteed market for the output of RE power plants and the recovery of investments through electricity tariffs.
The passage of the Philippine Renewable Energy Act of 2008 renewed interest in geothermal energy exploration and development in the Philippines. It established competitive bidding for exploration projects and provided fiscal incentives. Currently the Philippines has over 1,900 MW of installed geothermal capacity with a goal of increasing this to 3,467 MW by 2030. Several new projects are underway while existing fields are being rehabilitated and expanded. However, navigating environmental, social and regulatory requirements remains a challenge for developers.
Renewable Energy Act of 2008: Hits and Misses for the Philippine Geothermal I...Fernando Penarroyo
The document discusses legal and regulatory issues affecting the Philippine geothermal industry under the Renewable Energy Act of 2008. It identifies several key challenges, including the government's ambivalence towards foreign ownership, complex rules for obtaining consent from indigenous peoples, lack of transmission infrastructure, and delays in establishing clear feed-in tariff rates. It recommends that regulators address these issues to provide greater policy certainty and incentives to attract more private investment needed to meet the country's renewable energy targets.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness and well-being.
Legislative initiatives poised to make life more difficult for mineral explor...Fernando Penarroyo
Legislative initiatives in the Philippines aim to increase government revenue from mining and make the fiscal regime less attractive for projects with low profitability. Numerous bills have been proposed to repeal the Mining Act of 1995, increase taxes and royalties for mining companies, and disallow mining in certain areas. The government is also considering removing tax incentives for new mines. These measures are expected to force mineral exploration companies to reevaluate their strategies and investments in the Philippines.
Penarroyo Presentation Geothermal Resources Council 2014Fernando Penarroyo
The document discusses geothermal energy development in the Philippines. It notes that the Philippines has significant untapped geothermal resources and outlines the country's plans to add over 1,400 MW of new geothermal capacity by 2030. Some of the key challenges to geothermal development in the Philippines include issues around permitting, working with local communities and indigenous groups, environmental regulations, and tax policies. The speaker calls on the government to improve data sharing, support new technologies, and ensure a long-term and transparent regulatory system to promote sustained growth of the geothermal industry.
Land use is associated with human rights issue. Resource developers must respect the rights of host communities affected including farmers and indigenous peoples. They should obtain permission not only from landowners but also from occupiers or users before commencing development and be aware of the obligation to protect sources of food and water. In consultation with the community, both government and project proponents must engage a process to compensate fairly for adverse effects, identify strategies to manage environmental and social consequences, and if possible, avoid displacement or resettlement of people. Land and natural resource issues often times are the main causes of conflict. Land conflicts especially when related to access to land or insecurity of tenure commonly become violent when linked to wider processes of political exclusion, social discrimination, economic marginalization, and a perception that peaceful action is no longer a viable strategy for change. The globalization of economies has generated a surge in investments related to land and other natural resources.
After years of negotiations, the Philippine government and the Moro Islamic Liberation Front signed the Comprehensive Agreement on the Bangsamoro (“CAB”) on 27 March 2014 that seeks to end more than four decades of Muslim secessionist movements and violence in Mindanao. The CAB includes the Framework Agreement on the Bangsamoro earlier signed on 15 October 2012, the four annexes (normalization, revenue generation and wealth sharing, transitional arrangement and modalities), and other agreements signed by both parties during the course of the 17-year peace negotiations. Despite the assurance by the negotiating parties of its constitutionality, the Bangsamoro Basic Law ("BBL") bill is expected to encounter severe scrutiny in Congress. As soon as the BBL becomes law, its constitutionality or other legally controversial provisions will most likely be challenged before the Supreme Court. When the dust has settled, the Bangsamoro governance structure will surely pave the way for the region to realize its full economic and development potential utilizing the untapped mineral and energy resources.
Is the Philippine Mining Industry Ready to Adapt to Climate Change?Fernando Penarroyo
The Philippine mining industry should take a proactive approach to climate change adaptation or face the consequences of larger economic losses on productivity, health and safety, environmental damage to agriculture and ecosystems, and loss of social license to operate in the host communities.
Reasserting the Relevance of the Geology Profession Under the Duterte Adminis...Fernando Penarroyo
The document discusses recent global trends in mining and petroleum, China's activities in the South China Sea, and the implications of Trump's presidency. It then summarizes updates in the Philippine resources industry under Duterte, including developments in petroleum, coal, geothermal, and legal issues. Finally, it identifies opportunities for geologists, such as infrastructure projects, solutions to disputes over the West Philippine Sea, and work related to climate change and water management.
Geopolitical instability (petroleum), increased complexity of policy change (mining, petroleum), uncertainty over regulations (mining, petroleum), and technically challenging physical environments (geothermal) have aggravated existing risks for the Philippine resources industry. Nevertheless, a changing landscape provides opportunities for resources companies willing to embrace a degree of risk and gain access to future growth areas - technology, business optimization, etc. that will be the key to unlocking future potential.
The Philippine geothermal industry is described as a mature sector operating in a developed private investment market. Geothermal investments in the country will be driven by the combination of a strong clean energy supply imperative, increasingly liberalized energy sector, achievable capacity targets and a relatively stable regulatory framework with appropriate pricing or fiscal incentives, and off-take mechanism. Some of the remaining undeveloped geothermal resources pose special technical challenges, requiring development or adaptation of “emerging technologies” such as binary-cycle generation, ground source heat pumps, and corrosion-resistant alloys. With an appropriately structured feed-in tariff rate that will provide guaranteed payment to investors through a universal charge, these acidic and lower enthalpy resources can be developed to generate electricity. In order to address the barriers related to costs and resource exploration risks faced by geothermal energy developers, the National Geothermal Association of the Philippines calls for the coverage under the FIT program of geothermal emerging technologies currently not commercially viable under existing market and pricing structures.
This document discusses investment opportunities arising from water scarcity issues in the Philippines. It notes that while the Philippines has abundant water resources, uneven distribution and pollution have led to water access issues. Climate change is exacerbating conflicts between agricultural, industrial, and domestic water users. The document provides background on Philippine water usage and statistics on surface water and groundwater resources to argue that investments in water infrastructure and management could help address water scarcity problems and conflicts over this critical resource.
Lecture on Philippine Mining and Resources Law for 2014 Geology Board Examinees given at the University of the Philippines National Institute of Geological Sciences on 23 July 2014
West philippine sea dispute jeopardizes petroleum exploration and developmentFernando Penarroyo
The West Philippine Sea refers to that part of the South China Sea that President Benigno Simeon C. Aquino III declared as the maritime area on the western side of the Philippine archipelago when he issued on 05 September 2012 Administrative Order No. 29. The area is currently subject to a maritime dispute considered by geopolitical analysts as a key political risk to watch as the Philippines seeks a further credit rating update to attract more foreign direct investments.
The Philippine petroleum upstream industry has been facing a lot of challenges lately hugely affected by a combination of external and internal factors, which may result to a slow down in exploration and development activities. The volatility in oil prices, external security threats in the West Philippine Sea, and political risk perennially attached to the Philippine resource industry, may cause some explorationists to stay in the sidelines while waiting for the dust to settle.
Benham rise – the rising star of philippine resources Fernando Penarroyo
The inclusion of the previously unexplored Benham Rise into Philippine waters has stirred public interest as to the resources potential of this jurisdictional region.
This document summarizes key aspects of the legal and institutional framework for land use and resource development in the Philippines. It outlines the country's constitution, which establishes state ownership of natural resources, and laws governing energy development, including those allowing for foreign investment. The document also discusses important laws related to energy projects, such as those protecting indigenous peoples' rights and the environment. Overall, the legal framework emphasizes the state's control over natural resources and requirements for engaging communities and obtaining necessary permits.
Grant Thornton - Facing an uncertain future: Government intervention threaten...Grant Thornton
The document discusses increasing government intervention in the global mining sector that is adding complexity and uncertainty. It poses threats such as higher taxes, restrictive regulations, and potential nationalization of mining assets. This raises risks for commodity prices, valuations, and investment. Government interventions are motivated by desires for more revenue and responding to public pressures around environmental issues. The key areas discussed are taxation increases, nationalization/indigenization policies, and stricter environmental regulations being implemented around the world.
Miners are now recognizing the use of emerging digital technology to improve productivity. Mobile technology connectivity between workers and management facilitates communication in the mines, ensuring a safe and productive working environment. Mining companies are also revolutionizing data collection in the field with the help of the Internet of Things, which are smart data solutions that help management to relay important data such as water pressure, temperature, concentration of gases and other information. Cloud technology allows management and employees to quickly access and alter essential information, wherever and whenever needed.
Is There Hope for Mining After the Aquino Administration?Fernando Penarroyo
Modest economic growth for the Philippines will continue in 2015 with low oil prices supported by increased government and election spending. Capital outflows in mining indicate the presence of a poor investment environment in the Philippine mining sector relative to the other ASEAN countries. Given the current volatility in metal prices and the onset of a new government following the presidential elections in 2016, it is difficult to predict if the worst is over for the industry. While the long-term fundamentals for metals remain strong, the industry is still in a limbo as it waits for the outcome of the 2016 elections. No amount of company restructuring or cautious optimism can reverse the tide of the industry’s demise if an anti-mining or a status quo president is elected.
The document discusses the Framework Agreement on the Bangsamoro signed between the Philippine government and the Moro Islamic Liberation Front. Key points include:
- The agreement is a major milestone for peace and reconciliation in Mindanao and will improve economic conditions by attracting investors to develop natural resources once the region is stabilized.
- It establishes the skeletal framework for creating a new autonomous political entity called Bangsamoro, which will have its own sources of revenue and ability to levy taxes, while remaining part of the Philippines.
- Questions remain around the agreement's constitutionality and how existing laws on natural resource exploration will interact with Bangsamoro's autonomous powers over its territory and resources.
With a population of almost 100 million people and annual economic growth averaging between 6 to 7%, the Philippines’ is anticipated to continue to have a robust energy demand. The Government’s refusal to subsidize power, heavy reliance on expensive fossil fuel imports, and added transmission cost because of the country’s archipelagic configuration have resulted in electricity prices being among the highest in the world. Thus, renewable energy projects present a viable business opportunity to resource developers.
The business community believes that the introduction of retail competition and open access is the logical move to bring the power industry to the next level and establish a competitive market structure. There is a need to further diversify the energy mix and the government is banking on renewable energy to wean the country from its dependence on fossil fuel. The government through the Renewable Energy Act of 2008 (“RE Act”) sought to address the issues on the absence of a ready and guaranteed market for the output of RE power plants and the recovery of investments through electricity tariffs.
The passage of the Philippine Renewable Energy Act of 2008 renewed interest in geothermal energy exploration and development in the Philippines. It established competitive bidding for exploration projects and provided fiscal incentives. Currently the Philippines has over 1,900 MW of installed geothermal capacity with a goal of increasing this to 3,467 MW by 2030. Several new projects are underway while existing fields are being rehabilitated and expanded. However, navigating environmental, social and regulatory requirements remains a challenge for developers.
Renewable Energy Act of 2008: Hits and Misses for the Philippine Geothermal I...Fernando Penarroyo
The document discusses legal and regulatory issues affecting the Philippine geothermal industry under the Renewable Energy Act of 2008. It identifies several key challenges, including the government's ambivalence towards foreign ownership, complex rules for obtaining consent from indigenous peoples, lack of transmission infrastructure, and delays in establishing clear feed-in tariff rates. It recommends that regulators address these issues to provide greater policy certainty and incentives to attract more private investment needed to meet the country's renewable energy targets.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help boost feelings of calmness and well-being.
Legislative initiatives poised to make life more difficult for mineral explor...Fernando Penarroyo
Legislative initiatives in the Philippines aim to increase government revenue from mining and make the fiscal regime less attractive for projects with low profitability. Numerous bills have been proposed to repeal the Mining Act of 1995, increase taxes and royalties for mining companies, and disallow mining in certain areas. The government is also considering removing tax incentives for new mines. These measures are expected to force mineral exploration companies to reevaluate their strategies and investments in the Philippines.
Penarroyo Presentation Geothermal Resources Council 2014Fernando Penarroyo
The document discusses geothermal energy development in the Philippines. It notes that the Philippines has significant untapped geothermal resources and outlines the country's plans to add over 1,400 MW of new geothermal capacity by 2030. Some of the key challenges to geothermal development in the Philippines include issues around permitting, working with local communities and indigenous groups, environmental regulations, and tax policies. The speaker calls on the government to improve data sharing, support new technologies, and ensure a long-term and transparent regulatory system to promote sustained growth of the geothermal industry.
Land use is associated with human rights issue. Resource developers must respect the rights of host communities affected including farmers and indigenous peoples. They should obtain permission not only from landowners but also from occupiers or users before commencing development and be aware of the obligation to protect sources of food and water. In consultation with the community, both government and project proponents must engage a process to compensate fairly for adverse effects, identify strategies to manage environmental and social consequences, and if possible, avoid displacement or resettlement of people. Land and natural resource issues often times are the main causes of conflict. Land conflicts especially when related to access to land or insecurity of tenure commonly become violent when linked to wider processes of political exclusion, social discrimination, economic marginalization, and a perception that peaceful action is no longer a viable strategy for change. The globalization of economies has generated a surge in investments related to land and other natural resources.
After years of negotiations, the Philippine government and the Moro Islamic Liberation Front signed the Comprehensive Agreement on the Bangsamoro (“CAB”) on 27 March 2014 that seeks to end more than four decades of Muslim secessionist movements and violence in Mindanao. The CAB includes the Framework Agreement on the Bangsamoro earlier signed on 15 October 2012, the four annexes (normalization, revenue generation and wealth sharing, transitional arrangement and modalities), and other agreements signed by both parties during the course of the 17-year peace negotiations. Despite the assurance by the negotiating parties of its constitutionality, the Bangsamoro Basic Law ("BBL") bill is expected to encounter severe scrutiny in Congress. As soon as the BBL becomes law, its constitutionality or other legally controversial provisions will most likely be challenged before the Supreme Court. When the dust has settled, the Bangsamoro governance structure will surely pave the way for the region to realize its full economic and development potential utilizing the untapped mineral and energy resources.
Is the Philippine Mining Industry Ready to Adapt to Climate Change?Fernando Penarroyo
The Philippine mining industry should take a proactive approach to climate change adaptation or face the consequences of larger economic losses on productivity, health and safety, environmental damage to agriculture and ecosystems, and loss of social license to operate in the host communities.
Reasserting the Relevance of the Geology Profession Under the Duterte Adminis...Fernando Penarroyo
The document discusses recent global trends in mining and petroleum, China's activities in the South China Sea, and the implications of Trump's presidency. It then summarizes updates in the Philippine resources industry under Duterte, including developments in petroleum, coal, geothermal, and legal issues. Finally, it identifies opportunities for geologists, such as infrastructure projects, solutions to disputes over the West Philippine Sea, and work related to climate change and water management.
Geopolitical instability (petroleum), increased complexity of policy change (mining, petroleum), uncertainty over regulations (mining, petroleum), and technically challenging physical environments (geothermal) have aggravated existing risks for the Philippine resources industry. Nevertheless, a changing landscape provides opportunities for resources companies willing to embrace a degree of risk and gain access to future growth areas - technology, business optimization, etc. that will be the key to unlocking future potential.
The Philippine geothermal industry is described as a mature sector operating in a developed private investment market. Geothermal investments in the country will be driven by the combination of a strong clean energy supply imperative, increasingly liberalized energy sector, achievable capacity targets and a relatively stable regulatory framework with appropriate pricing or fiscal incentives, and off-take mechanism. Some of the remaining undeveloped geothermal resources pose special technical challenges, requiring development or adaptation of “emerging technologies” such as binary-cycle generation, ground source heat pumps, and corrosion-resistant alloys. With an appropriately structured feed-in tariff rate that will provide guaranteed payment to investors through a universal charge, these acidic and lower enthalpy resources can be developed to generate electricity. In order to address the barriers related to costs and resource exploration risks faced by geothermal energy developers, the National Geothermal Association of the Philippines calls for the coverage under the FIT program of geothermal emerging technologies currently not commercially viable under existing market and pricing structures.
This document discusses investment opportunities arising from water scarcity issues in the Philippines. It notes that while the Philippines has abundant water resources, uneven distribution and pollution have led to water access issues. Climate change is exacerbating conflicts between agricultural, industrial, and domestic water users. The document provides background on Philippine water usage and statistics on surface water and groundwater resources to argue that investments in water infrastructure and management could help address water scarcity problems and conflicts over this critical resource.
Lecture on Philippine Mining and Resources Law for 2014 Geology Board Examinees given at the University of the Philippines National Institute of Geological Sciences on 23 July 2014
West philippine sea dispute jeopardizes petroleum exploration and developmentFernando Penarroyo
The West Philippine Sea refers to that part of the South China Sea that President Benigno Simeon C. Aquino III declared as the maritime area on the western side of the Philippine archipelago when he issued on 05 September 2012 Administrative Order No. 29. The area is currently subject to a maritime dispute considered by geopolitical analysts as a key political risk to watch as the Philippines seeks a further credit rating update to attract more foreign direct investments.
The Philippine petroleum upstream industry has been facing a lot of challenges lately hugely affected by a combination of external and internal factors, which may result to a slow down in exploration and development activities. The volatility in oil prices, external security threats in the West Philippine Sea, and political risk perennially attached to the Philippine resource industry, may cause some explorationists to stay in the sidelines while waiting for the dust to settle.
Benham rise – the rising star of philippine resources Fernando Penarroyo
The inclusion of the previously unexplored Benham Rise into Philippine waters has stirred public interest as to the resources potential of this jurisdictional region.
This document summarizes key aspects of the legal and institutional framework for land use and resource development in the Philippines. It outlines the country's constitution, which establishes state ownership of natural resources, and laws governing energy development, including those allowing for foreign investment. The document also discusses important laws related to energy projects, such as those protecting indigenous peoples' rights and the environment. Overall, the legal framework emphasizes the state's control over natural resources and requirements for engaging communities and obtaining necessary permits.
Grant Thornton - Facing an uncertain future: Government intervention threaten...Grant Thornton
The document discusses increasing government intervention in the global mining sector that is adding complexity and uncertainty. It poses threats such as higher taxes, restrictive regulations, and potential nationalization of mining assets. This raises risks for commodity prices, valuations, and investment. Government interventions are motivated by desires for more revenue and responding to public pressures around environmental issues. The key areas discussed are taxation increases, nationalization/indigenization policies, and stricter environmental regulations being implemented around the world.
Miners are now recognizing the use of emerging digital technology to improve productivity. Mobile technology connectivity between workers and management facilitates communication in the mines, ensuring a safe and productive working environment. Mining companies are also revolutionizing data collection in the field with the help of the Internet of Things, which are smart data solutions that help management to relay important data such as water pressure, temperature, concentration of gases and other information. Cloud technology allows management and employees to quickly access and alter essential information, wherever and whenever needed.
Alternative Minerals
Management Policy
Legal Rights and Natural Resources Center-Kasama sa Kalikasan
(LRC-KsK/Friends of the Earth-Philippines)
February 2011
Philippine Department of Mines and Energy?.docxRonniePenarroyo
Every time there is a change in administration, the mineral industry always anticipate with bated breath the identity of the Department of Environment and Natural Resources (“DENR”) secretary. The presidential appointee is scrutinized whether he or she is either sympathetic to the mining industry or a staunch environmental advocate. This can be attributed to the ambiguous nature and function of the DENR. Under the present setup of the DENR, it is mandated to promote investments in the minerals industry through the Mines and Geosciences Bureau and at the same time, enforce national environmental laws through the Environmental Management Bureau. In many jurisdictions, the environment protection agency is totally independent from the administrative body regulating extractive industries. Perhaps it is now high time for Philippine legislators to remove the mining regulation function from the DENR and attach it to a super regulatory body called the Department of Mines and Energy.
Energy, Environment, Geology, Governance, Investments, Law, Mining, Petroleum
The document is a report on the Philippine Extractive Industries Transparency Initiative (PH-EITI) for 2014. It consists of two volumes: Volume I provides contextual information on the extractive industry framework, legal policies, licensing processes, payments, and governance. Volume II is the reconciliation report, comparing payments from companies to what was reported as collected by government agencies, identifying any discrepancies. The report aims to improve transparency and understanding of how natural resources are managed in the Philippines.
This document discusses issues around transparency and corruption in the allocation of oil contracts and licenses in Africa. It finds that governments in Angola and Nigeria often lack transparency in how they choose companies for oil contracts and licenses. In some cases it appears companies have been given special access, raising doubts about the integrity of the process. It also notes that governments sometimes award licenses to companies whose true owners, or beneficial owners, are hidden, raising suspicions that government officials or their proxies may own some companies. The document recommends measures like public disclosure of license allocation rationales and beneficial ownership to increase transparency and reduce corruption.
The document discusses opportunities for Africa's mining industry given the current global commodity super-cycle. It notes that sustained increases in mineral prices over decades provide opportunities to establish long-term tax regimes and partnerships between governments and companies. However, African governments have yet to fully capitalize on these opportunities and could learn from Latin American countries that have strengthened state institutions and ensured mining activity aligns with development priorities. The super-cycle may last for many years, providing African nations an extended window to develop their economies through strategic management of mineral resources.
This document provides an overview of mineral royalty stream financing. It discusses how streaming agreements allow mining companies to access financing by monetizing proven reserves. This provides an attractive alternative to equity financing for mining companies that avoids shareholder dilution. For financing companies, streaming agreements allow them to invest in resource projects and benefit from commodity upside while avoiding operational risks. Overall, streaming agreements create a "win-win" situation for both mining companies and financing companies.
Geo political analysis for an oil company- Keerthan GKeerthan G
This document discusses frameworks for assessing geo-political and regulatory risks in oil producing countries. It presents a scorecard that rates countries based on their oil reserves and geo-political stability. Most Middle Eastern and North African countries are rated, with Saudi Arabia, Iran, Iraq and UAE having the highest reserves. The document also outlines various strategies for mitigating political and regulatory risks, such as including stabilization clauses in agreements and providing for international arbitration. Finally, it proposes a matrix for evaluating regulatory risks based on the likelihood and consequences of non-compliance and determining appropriate mitigation approaches.
The document provides an overview of Kenya's mining sector and recent reforms. It discusses that mining contributes significantly to Kenya's GDP and exports. A new Ministry of Mining was created in 2013 to oversee the sector. The Mining Bill being passed will replace old legislation and establish new institutions to improve sector governance and competitiveness. It also outlines provisions related to mining rights, environmental regulations, taxation, and plans for regional harmonization of mineral policies.
The document summarizes a human rights impact assessment of oil exploration and extraction activities by Pacific Exploration & Production Corp. in Puerto Gaitan, Colombia. Key findings include:
1) Violations of labor rights and union rights, including obstacles to employment, restrictions on union membership, and widespread illegal outsourcing of workers.
2) Criminalization of social protestors and an imbalance in the justice system favoring oil companies over affected communities.
3) The distortion of indigenous prior consultation processes and social disarticulation of indigenous communities near oil installations.
4) Environmental impacts and land issues related to water contamination from oil extraction activities.
The document discusses the nature and purpose of mining contracts between governments and mining companies. It covers several key points:
- Mining contracts address issues like government revenue, social/economic impacts, and security of tenure. The most important is the Mine Development Agreement.
- Contracts become important where governments have weak institutions, corruption, and instability. Experts negotiate contracts to develop minerals responsibly.
- Contracts should be publicly accessible to build consensus on revenue use. They are guided by laws and policies on the environment, business, taxation, land, and water resources.
- Topics negotiated include equity participation, taxation, infrastructure, community development, dispute resolution, and termination. The goal is transparent and
An Appraisal on the Protection of the Rightto a Healthy Environment by the St...ijtsrd
With the political ambition to see Cameroon becomes an emerging economy by 2035, natural resource exploration and exploitation are a key developmental strategy. But these same activities have serious negative effects to both the human and physical environment. One may ponder whether the environment should continuously be sacrificed for the swelling of the state treasury In view of this some critical questions comes to mine what are the environmental commitments of the oil and gas industry, what are the mechanism put in place by the state to curb environmental hazards caused by this industry. To achieve this, the paper set out the following objectives to examine their relationship with the state, as well as to evaluate the level of control the state has over the operations of the petroleum industry in Cameroon. This was done using both the doctrinal and empirical research methods. The paper reveals that, though there are efforts made by the companies to curb environmental damage especially in their operation policies, there is still much to be done in order to match theory into practice. For the better protection of the right to a healthy environment of Cameroonians, this paper recommends that all the relevant stakeholders must be actively involved in the operations of the oil and gas industry in Cameroon. Abilabi Colbert Nicko "An Appraisal on the Protection of the Rightto a Healthy Environment by the State of Cameroon in the Oil and Gas Industry" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-1 , December 2020, URL: https://www.ijtsrd.com/papers/ijtsrd35806.pdf Paper URL : https://www.ijtsrd.com/humanities-and-the-arts/political-science/35806/an-appraisal-on-the-protection-of-the-rightto-a-healthy-environment-by-the-state-of-cameroon-in-the-oil-and-gas-industry/abilabi-colbert-nicko
The document discusses several approaches Tanzania has taken regarding its extractive industries, particularly oil and gas. It outlines the natural gas policy approach, legislation-based approach, contractual-based approach using production sharing agreements, transparency approach by joining the EITI, and a local content policy. It also discusses questions about when Tanzania will start benefiting from natural gas revenues, CCM and UKAWA's differing priorities around agriculture and education, and the potential for industrialization to create jobs under Magufuli's leadership.
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The Threat of Resource Nationalism to the Philippine Mining Industry
1. The
Threat
of
Resource
Nationalism
to
the
Philippine
Mining
Industry
Resource
nationalism
has
been
hounding
the
mining
industry
worldwide
as
governments
initiate
regulations
to
intervene
in
the
contractual
provisions
of
resource
development
agreements.
Resource
nationalism
ranges
from
outright
nationalization
of
resources
to
regulatory
and
fiscal
measures,
which
deprive
an
investor
of
the
value
of
the
resources
it
is
exploiting
thereby
increasing
the
host
government’s
“take”
(“regulatory
expropriation”).
While
resource
nationalism
is
largely
perceived
to
be
widely
practiced
in
developing
resource-‐rich
countries
in
Africa
and
South
America,
developed
economies
like
the
United
States,
Australia
and
Canada
have
also
joined
the
fray
in
adopting
resource
nationalist
policies.
According
to
Ernst
&
Young’s
report,
“Business
Risks
Facing
Mining
and
Metals
2011-‐2012,”
resource
nationalism
is
the
highest
ranking
risk
faced
by
resources
companies
with
many
governments
going
beyond
taxation
in
seeking
a
greater
take
from
the
sector
with
a
range
of
requirements
introduced
like
mandated
beneficiation,
export
levies
and
limits
on
foreign
ownership.
Resource
nationalism
can
also
manifests
itself
in
subtle
forms
like
special
treatment
for
domestic
companies
or
forcing
foreign
companies
to
use
favored
entities
for
transporting
or
processing
commodities.
Dr.
Oladiran
Bello,
Head
of
the
South
African
Institute
of
International
Affairs’
Governance
of
Africa’s
Resources
Programme
said
that
resource
nationalism
has
been
applied
to
all
kinds
of
efforts
by
governments
of
resource-‐producing
countries
to
gain
a
greater
degree
of
control
over
the
way
in
which
mining
activities
are
carried
out
within
their
jurisdictions.
On
the
other
hand,
Sir
Mark
Moody-‐Stuart,
former
Chair
of
Anglo
American
and
Shell,
said
that
resource
nationalism
concerns
become
even
more
serious
when
prices
are
high,
as
resource-‐producing
countries
seek
to
take
a
larger
share
of
the
windfall.
David
Humphreys,
who
has
served
as
an
analyst
for
Rio
Tinto
and
Russia's
top
mining
company,
Norilsk
Nickel,
said
that
there
is
a
growing
perception
from
producer
countries’
governments
that
they
were
losing
out
to
resource
companies
although
he
argued
that
this
perception
was
not
borne
out
by
any
research.
Fitch
Ratings'
Report:
Resource
Nationalism
indicated
that
while
greater
state
participation
in
large
commodity
windfalls
can
provide
additional
revenues
to
improve
government
finances
and
accelerate
economic
development,
the
long-‐
term
effect,
however,
is
that
it
may
curb
the
revenue-‐generating
capacity
of
the
mining
sector.
Excessive
taxation
and/or
regulatory
uncertainty
can
undermine
the
potential
of
the
sector
to
attract
new
investments
and
place
marginal
assets
into
early
retirement.
The
Philippines
joins
the
bandwagon
Resource
nationalism
has
become
highly
contagious,
as
there
is
now
a
faster
transmission
and
exchange
of
ideas
and
experience
across
some
resource-‐rich
countries.
The
Philippines
has
been
no
exception.
Executive
Order
No.
79,
which
seeks
to
set
the
policy
framework
to
guide
the
government
and
other
stakeholders
in
the
implementation
and
operationalization
of
mining
legislations
2. aims
among
others,
to
increase
revenues
to
promote
sustainable
economic
development
and
social
growth.
To
this
end,
EO
79
mandates
the
establishment
of
mineral
reservations
for
strategic
mineral
reserves
to
be
able
to
collect
5%
additional
royalties
and
the
creation
of
a
national
plan
and
road
map
for
the
development
of
value-‐adding
activities
and
downstream
industries
for
strategic
metallic
ores.
The
Mining
Industry
Coordinating
Council
(“MICC”),
a
body
created
under
EO
79,
is
further
directed
to
conduct
a
study
on
existing
mechanisms
for
benefit
sharing
and
review
of
existing
taxes,
fees
and
incentives
receive
by
mining
companies.
The
MICC
is
also
tasked
to
consider
the
imposition
of
higher
export
fees
for
metallic
and
non-‐metallic
minerals
in
the
country,
rationalize
revenue-‐sharing
schemes,
mechanisms
and
incentives
given
to
mining
companies,
and
implement
resource
accounting
or
full-‐cost
benefit
analysis.
In
addition,
the
Department
of
Environment
and
Natural
Resources
is
also
directed
to
increase
mine
wastes
and
tailings
and
occupation
fees
and
impose
processing
fees
for
all
mining
applications.
The
Department
of
Finance
has
also
been
pushing
for
the
passing
of
a
mining
revenue
bill
that
will
rationalize
the
mining
fiscal
regime
to
raise
more
revenues
for
the
government.
More
alarming
is
the
proposed
People’s
Mineral
Resources
Act,
which
seeks,
among
others,
the
removal
or
prohibition
of
full
foreign
participation
in
mining
and
an
increase
of
the
government’s
share
in
mining
agreements
from
2%
to
10%.
On
the
judicial
front,
the
Supreme
Court
is
once
again
reviewing
petitions
assailing
the
constitutionality
of
the
Philippine
Mining
Act
of
1995
particularly
the
validity
of
sections
80
and
81.
According
to
the
petitioners,
the
questioned
provisions
foster
inequitable
sharing
of
wealth
by
limiting
the
share
of
the
government
in
Mineral
Production
Sharing
Agreements
to
excise
taxes
and
confining
government's
share
to
taxes,
fees
and
royalties
instead
of
letting
it
have
full
control
over
the
exploration,
development
and
utilization
of
mineral
resources.
These
developments
have
clearly
manifested
that
the
Philippine
mining
industry
is
under
threat
from
resource
nationalism
with
the
recent
regulatory,
legislative
and
judicial
initiatives
to
revise
and
amend
fiscal
and
contractual
regimes.
Non-‐impairment
Clause
The
question
remains
whether
the
Philippine
government
can
justify
changing
the
rules
in
the
middle
of
the
ballgame.
Art.
III,
Sec.
10
of
the
Constitution
provides
that:
“No
law
impairing
the
obligation
of
contracts
shall
be
passed.”
Law
includes
statutes
enacted
by
the
national
legislature,
executive
orders
and
administrative
regulations
promulgated
under
a
valid
delegation
of
power,
and
municipal
ordinances
passed
by
the
local
legislative
bodies.
The
purpose
of
the
non-‐impairment
clause
is
to
safeguard
the
integrity
of
valid
contractual
agreements
against
unwarranted
interference
by
the
State.
To
impair,
the
law
must
apply
retroactively
so
as
to
affect
existing
contracts
concluded
before
its
enactment.
3. While
non-‐impairment
of
contracts
is
constitutionally
guaranteed,
the
rule
is
not
absolute,
since
it
has
to
be
reconciled
with
the
legitimate
exercise
by
the
State
of
police
power.
A
contract
cannot
be
raised
as
a
deterrent
to
police
power,
designed
precisely
to
promote
health,
safety,
peace,
and
enhance
the
common
good,
at
the
expense
of
contractual
rights.
Resource
companies
operating
in
the
country
face
the
risk
that
the
government
to
assert
control
over
natural
resources
for
strategic
and
economic
reasons
will
invoke
its
police
powers
to
modify,
amend
or
repeal
resource
development
contracts.
Minimizing
Risks
In
response
to
the
risks
of
resource
nationalism,
mining
companies
have
employed
both
contractual
safeguards
and
socio-‐economic
considerations
to
minimize
the
impact
on
their
investments.
Contractual
safeguards
include
meticulous
provisions
on
the
choice
of
law,
the
forum
and
method
for
resolving
disputes,
and
instituting
stabilisation
and
adaptation
clauses.
Foreign
investors
have
also
utilized
an
increasingly
robust
international
legal
framework
that
included
bilateral
investment
treaties
and
options
for
direct
investor-‐state
arbitration
under
the
auspices
of
arbitral
authorities
such
as
the
International
Centre
for
Settlement
of
Investment
Disputes
and
the
International
Chamber
of
Commerce.
Political
risk
insurance
taken
by
developers
also
provides
cover
against
expropriation
and
breach
of
contract
by
host
governments.
Nevertheless,
the
industry
is
now
beginning
to
realize
that
the
traditional
legal
boilerplate
provisions
to
address
resource
nationalism
are
outdated
and
inadequate.
The
disturbing
trend
is
that
governments
in
emerging
markets
are
forming
state-‐controlled
companies
or
mandating
local
equity
through
the
support
of
judicial
and
regulatory
environments,
which
directly
competes
with
foreign
investors
sometimes
using
aggressive
but
often
controversial
legal
measures.
Economic
liberalism
once
employed
by
government
to
attract
private
risk
capital
to
resource
development
projects
is
now
giving
way
to
mandated
local
participation
in
favor
of
larger
state-‐
or
domestically-‐owned
companies.
While
contractual
provisions
contribute
to
minimizing
the
risks
associated
with
the
various
expressions
of
resource
nationalism,
the
mining
industry
have
resorted
to
engagements
with
governments
to
foster
a
greater
understanding
of
the
value
a
project
brings
to
the
host
country.
By
communicating
the
benefits
of
the
project,
the
industry
hopes
to
encourage
governments
to
take
a
broader
view
of
the
return
from
natural
resource
development.
Using
this
approach,
the
industry
hopes
to
be
better
able
to
negotiate
appropriate
trade-‐offs
that
preserve
the
value
to
both
mining
companies
and
governments
through
tax
incentives
and
offsets.
At
the
same
time,
mining
companies
are
developing
corporate
social
responsibility
initiatives
by
supporting
local
entrepreneurship
and
investing
in
public
services
and
infrastructure.
Foreign
companies
are
collaborating
with
local
companies,
as
the
rise
of
resource
nationalism
has
brought
with
it
a
requirement
imposed
by
host
governments
for
greater
local
content
and
participation
in
resource
development.
4.
While
some
mining
companies
appear
confident
that
they
stand
a
better
chance
of
fair
treatment
from
governments
through
their
tangible
investments
in
the
environment
and
host
communities,
the
assumption
that
social
development
spending
assure
them
against
resource
nationalist
policies
is
unrealistic
according
to
Nader
Mousavizadeh
of
Oxford
Analytica.
Resource
projects
with
the
concomitant
infrastructure
improvements
they
bring
to
the
host
country
are
most
of
the
time
held
hostage
to
political
rhetoric
and
strategy
employed
by
populist
governments
vulnerable
to
unrest
over
pollution,
corruption,
and
inequitable
sharing
of
wealth.
Companies
are
now
more
particularly
vulnerable
to
both
the
emotional
and
economic
aspects
of
resource
nationalism
especially
during
times
of
peak
commodity
prices
as
higher
revenue
will
translate
into
greater
public
demands
for
rents
and
governments
will
be
increasingly
wary
of
foreign
control
of
these
commodities.
Mousavizadeh
believes
that
when
government
and
foreign
companies
negotiate,
there
is
no
set
ratio
or
formula
for
arriving
at
the
best
practice
to
channel
resource
nationalist
tendencies
away
from
zero-‐sum
thinking.
Deals
will
vary
according
to
contract
lifetime,
type
of
mineral,
bargaining
positions,
and
many
other
factors.
So
rather
than
thinking
about
an
optimum
distribution
of
production
or
profits,
the
parties
should
think
about
optimum
deal
structures.
By
recognizing
joint
interests,
the
contracting
parties
can
create
shared
value
instead
of
a
playing
a
zero-‐sum
game
where
one
has
to
win
at
the
expense
of
the
other.
The
contracting
parties
must
apply
strategies
for
constructive
engagement
instead
of
counter-‐productive
opposing
positions.
For
foreign
resource
developers,
they
must
realize
that
local
content
development
can
play
a
huge
part
in
mitigating
resource
nationalism
by
addressing
the
issue
of
equitable
distribution
of
economic
benefits
and
the
build
up
local
industries
so
that
they
can
directly
benefit
from
the
exploitation
of
the
resources.
Conclusion
Resource
nationalism
has
become
much
more
sophisticated
and
complex
in
the
forms
it
takes,
being
not
purely
driven
by
nationalistic
policies
but
by
wider
political,
economic,
social
and
environmental
drivers.
Effective
risk-‐mitigation
strategies
will
involve
not
only
careful
thought
as
to
contractual
protection,
but
also
to
effective
early
engagement
by
the
resource
developer
with
the
host
state
and
its
communities
to
deliver
the
socio-‐economic
benefits.
The
Philippine
government
must
realize
that
policy
uncertainty
can
be
extremely
damaging
to
both
investors
and
the
host
country
and
can
hamper
the
successful
exploitation
of
mineral
endowments.
It
is
imperative
then
that
any
legislative
and
regulatory
measure
imposed
by
the
government
should
be
properly
vetted
and
go
to
a
proper
consultation
process
with
the
affected
stakeholders
less
regulators
may
be
unwittingly
putting
the
finishing
touches
to
the
demise
of
the
mining
industry.
The
key
challenge
is
the
creation
of
an
investment
climate
that
5. can
assure
appropriate
profit
to
investors,
protect
host
states’
natural
resources
and
provide
other
long-‐term
benefits
to
the
state
and
its
people.
Fernando
“Ronnie”
Penarroyo
is
the
Managing
Partner
of
Puno
and
Penarroyo
Law
(fspenarroyo@punopenalaw.com).
He
specializes
in
Energy,
Resources
and
Environmental
Law,
Business
Development
and
Project
Finance.