Chamber of Mines of the Philippines

The Chamber of Mines of the Philippines (COMP) decried on Tuesday the results of an environmental audit of the Department of Environment and Natural Resources (DENR) which called for the suspension of eight of its members.

The DENR revealed earlier Tuesday it has recommended closing 20 more miners – on top of the 10 miners earlier suspended – after failing to pass an environmental audit.

The audit was announced by Environment Secretary Regina Paz “Gina” Lopez on July 1, the first full day in office of the Duterte administration.

The DENR mandated mining companies to secure an International Standards Organization (ISO) certification, and make sure their operations are of international environmental standards.

In an emailed statement, COMP Vice President for Legal and Policy Ronald R.S Recidoro said the audit was done in a “punitive manner rather than objectively.”

“When you suddenly change the rules of the game, there should have been an earlier dialogue between companies and the Department of Environment and Natural Resources, given that the audit report was already finished in August,” he said.

“As early as August, the alleged violations could have already been addressed instead of setting a trap for suspension,” he added.

Of the 20 miners recommended for suspension, eight are COMP members: Filminera Resources Corp., Marcventures Mining and Development Corp., Agata Mining Ventures Inc., CTP Construction and Mining Corp., Hinatuan Mining Corp., Benguet Corp., Lepanto Consolidated Mining Corp., and OceanaGold Philippines Inc.

The companies that failed have a week explain to government why their mining operations should not be padlocked.

“Our member-companies will comply with the seven days given them to address these issues raised against their operations,” Recidoro said. – Jon Viktor Cabuenas/VDS, GMA News

- See more at: http://www.gmanetwork.com/news/story/582946/money/companies/chamber-of-mines-decries-denr-audit-results#sthash.bOtSzuFe.dpuf
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9 things you need to know about Mining in Philippines.

The mining industry in the Philippines is controversial again as the Aquino government issues a policy and pursue legislation on a potentially economically rewarding extractive business but a flashpoint for environmental and other stakeholder groups.

Below is a list of 9 key things to know the mining industry in the Philippines:

1. The Philippines is the fifth most mineral-rich country in the world for gold, nickel, copper, and chromite. It is home to the largest copper-gold deposit in the world. The Mines and Geosciences Bureau has estimated that the country has an estimated $840 billion worth of untapped mineral wealth.

2. All the regions (except NCR and ARMM) in the country allow mining operations. ARMM ceased issuing permits due to the on-going peace process between the Moro Islamic Liberation Front and the national government.

3. About 30 million hectares of land areas in the Philippines is deemed as possible areas for metallic minerals. Of these, only a small percentage has been covered by present mining permits.

4. The Philippines metal deposit is estimated at 21.5 billion metric tons and non- metallic minerals are at 19.3 billion metric tons.

5. Labor department statistics show that mining in the Philippines has created 211,000 jobs in 2011 alone. The figures have doubled since 2006.

6. The mining industry's gross production value has consistently increased through the years. In 2010, the mining industry reached $3.2 billion.

7. The Mining Act of 1995 allows for foreign ownership of mining assets and exploration permits. The Supreme Court upheld the constitutionality of the foreign investors' participation in mining activities in 2004. 

8. Mining tax is low at 2% for metallic and non-metallic minerals. The current Aquino administration, however, wants to increase revenues through an additional 5% royalty tax for mining permits within mining reservation areas and increase the filing fee charges.

9. There are a total of 1,828 mining applications in the country, which will be directly affected by the Executive Order from the Aquino administration that does not allow new mining permits.

Leilani Chavez

Published 3:34 PM, September 07, 2012 

Updated 3:34 PM, September 19, 2012

source:http://www.rappler.com/business/special-report/whymining/whymining-latest-stories/11983-9-things-you-you-need-to-know-about-mining-in-philippines"

Philippines & Indonesia: Mining companies face increased compliance risks, further uncertainty

• Both the Philippines and Indonesia are seeking to reinforce environmental regulations and increase revenues from the mining sector, compounding longer-term difficulties for mining operators in both countries.
• Mining firms could face penalties for not complying with previously unenforced regulations, especially in the Philippines where President Rodrigo Duterte has spoken against the negative effects of mining on communities.
• Meanwhile, mining companies in Indonesia could suffer from the planned transfer of licencing powers from local to provincial authorities as well as government demands for greater shares of revenue in mining contract negotiations.                                                                                                    Mining firms in the Philippines and Indonesia are facing increased exposure from an impending crackdown on environmental compliance. Both countries have poor records for enforcing environmental regulations, leading to tensions between communities and the mining sector, which the leaders of both countries have pledged to address. In the Philippines, President Rodrigo Duterte has issued a sweeping review of all mining contracts for environmental and communal impact and has already suspended six contracts for compliance violations since he took office on 30 June. Although Indonesia’s President Joko Widodo has been less confrontational in his rhetoric and some reforms under his presidency have improved the operating prospects for international miners, the transfer of mining oversight from local to provincial authorities in October 2016 will complicate already established bureaucratic procedures and could increase the risk of penalties by activist provincial governors.
• The Philippines
  Duterte’s plans to review mining contracts that are causing environmental damage will further undermine investment in a sector that has long struggled to meet its full potential. Decades of environmental scandals, incoherent or inhibitive regulations, poor infrastructure, and security concerns have deterred mining investment in the Philippines, where only 3 percent of the country’s estimated 9 mn hectares of mineral reserves are under development. The mining sector represents just 1 percent of GDP, and investment in mining dropped to a three-year low of USD 924 mn in 2015.
  Plans to develop the sector have been further impeded by a 2012 moratorium on new mining licences that was intended to allow for reforms to revenue-sharing licences. The moratorium was initially planned to last for just three years, but remains in place as the previous government failed to pass the reforms. The proposed changes to the licences, which are supported by the new Duterte administration, would increase the government’s share of mining revenues. Mining companies in the Philippines already face the most burdensome tax regime in Southeast Asia, with an average of 40 percent of revenues transferred to the government, via a 30 percent corporate income tax and several mining-specific taxes.
  Moreover, Duterte has proposed policies that stand to make the enforcement of environmental regulations more onerous, thereby increasing the likelihood of contract cancellation or financial penalties. On his first day in office, he ordered a review of all mines in the country for environmental and communal wrongdoing, threatening to cancel permits for any mines deemed to be damaging to the environment. Mines and Geoscience Bureau Director Leo Jasareno said in June that half of the country’s 44 metal miners had repeatedly violated environmental laws and yet had only received warnings under the six-year administration of Duterte’s predecessor President Benigno Aquino. New Environment Secretary Regina Lopez has called for a ban on all open pit mining, while Philippine Mine Safety and Environment Association head Louie Sarmiento said that companies must have comprehensive health and safety plans for all stages of projects, and are required to set aside funds for an environmental clean-up. The government appears likely to focus on enforcement rather than legislative change, with Duterte saying he has no plans to amend existing mining laws.
  The suspension of six mines, which were operated by domestic mining companies, since Duterte came to office nonetheless proves that he and mining minister Lopez are following through with the promised compliance drive. Three of the six mines shut down were nickel ore pits, which the government claims were affecting coral reefs and the ecology of the soil in Palawan and Manicani. These early suspensions less than one month into the new administration provide a key indicator of the trajectory of enforcement of regulation, not least as the environment secretary has stated that mines with certification from the International Organisation for Standardization will not be protected from punishments.
  Until the audit is completed and wrongdoers are censured, mining companies in the country will be reluctant to invest in new projects and may continue the trend of divestments seen in recent years due to declining profitability. In August 2015, Glencore sold the Tampakan gold mine for a record USD 290 mn due to a ban on opening mining in South Cotabato. Plans to increase the government’s share of mining revenues will further deter investors. Lopez has already started efforts to push through the mining-contract reforms begun by the Aquino administration, demanding as much as 55 percent of net revenues from mining projects. The timeline for when this bill will be put to congress remains unclear.
• source:https://www.google.com.ph/search%3Fq%3Dphilippine%2Bmining%26espv%3D2%26biw%3D1360%26bih%3D613%26source%3Dlnms%26sa%3DX%26ved%3D0ahUKEwin9tjHz7PPAhUDupQKHbCDBo4Q_AUIBygA%26dpr%3D1