Atienza cites economic gains from mining

MANILA, Philippines - Environment and Natural Resources Secretary Lito Atienza has cited the Philippine mining industry as a pillar of the country’s economic growth and as an engine that generates jobs and reduces poverty in the countryside.

“We believe that the development of our mineral wealth will help us achieve sustained economic development and improved quality of life for our people and a major factor in attaining our investment target in mining,” Atienza said in the recent Mining Philippines 2009 Conference at the Sofitel Philippine Plaza Hotel in Pasay City.

To prove his point, Atienza said that from 2004 to the first semester of 2009, mining investments totaled to about $2.4 billion and that another $450 million is expected to be invested in the sector this year.

Atienza also said that since 2004, the government has been promoting 60 mining, exploration and processing projects which are expected to collectively generate a total of up to $14.8 billion of investments up to the year 2013.

“The Philippine mining industry is projected to register a growth of nine percent in 2009 with the coming on stream of six new mines including Carmen Copper Project in Cebu, Masbate Gold Project in Masbate, Palawan HPAS Line 2 Nickel Project in Palawan, TVI Base Metal Project in Zamboanga del Norte, PHILSAGA CO-O Gold Project in Agusan del Norte and CTP Carrascal Nickel Project in Surigao del Sur,” Atienza said.

The DENR chief also cited the upswing in the jobs generated by mining in the country saying that in 2005 the country’s mining industry has created a total of 123, 000 jobs; in 2006, a total of 141,000; in 2007, 149,000; in 2008, 158,000 and as of the second quarter of 2009, a total of 166,000 jobs.

DENR records also showed that annual gross value added (GVA), which refers to the goods and services produced by mining (at current prices), amounted to the following: in 2005, P46.3 billion; in 2006, P59.6 billion; 2007, P90.5 billion; 2008, P89.5 and as of the second quarter of 2009, P23.3 billion.

Atienza also expressed optimism in the achievements of mining in the country’s economy on account of the government’s revitalization program in the mining industry and the Mining Act of 1995 that puts strong focus on the environmental and social responsibilities of the mining companies.

Under the Mining Act and its revised implementing rules and regulations, a social development and management program (SDMP) was institutionalized with the objective for mining companies to implement plans, programs and projects that would improve the living standards of the mining project’s host communities in accordance with the principles of people empowerment and sustainable development.

Under the mining law, SDMP is being funded with 90 percent of one percent of the annual direct mining and milling costs. The law also provides for a national wealth share for the local government and at least one percent of the annual gross revenue as royalty for the indigenous peoples groups in case their ancestral domain is being developed for mining.

“That’s the way mining should really go in the Philippines — for the benefit of the country and for responsible mining to be ensured, mining operations covered by the Philippine Mining Act and supervised by the DENR. I believe this is the way to really promote mining in the Philippines,” Atienza said.