SSS to benefit from Philex reopening

A major beneficiary once Philex Mining reopens the operations of its Padcal mine in Benguet would be the Social Security Systems with P18.7 billion invested in the mining giant, Deputy House Majority Leader Roman Romulo disclosed. The unusually heavy monsoon rains last August triggered a leakage in one of the mine tailings ponds, causing the company to voluntarily cease operations. Cleanup has been ongoing, with P2.1 billion from First Pacific to help finance the restoration and rehabilitation activities.

Romulo has expressed support for the mining company which is the industry’s biggest taxpayer as well as the ninth largest taxpayer among all Philippine companies. Citing Philippine Stock Exchange filings, the Pasig congressman said Philex had paid some P5.64 billion in taxes in the last three years, with P2.38 billion paid in 2011 alone when the company posted record-high production in gold and copper. Noted economist Nouriel Roubini who visited Manila recently has also encouraged the development of mining, pointing to the industry’s potential contribution to the GDP.

The private pension fund and its over 45,000 public shareholders are counting on Philex to “build considerably greater shareholder value in the months ahead,” Romulo said, with the SSS reportedly owning 21.5 percent of the mining company (1,063,009,428 shares as of yearend). Even Roman Catholic institutions are most likely praying for the speedy rehabilitation and early resumption of operations in the Padcal mine since aside from the SSS, the other big Philex shareholders include the Religious of the Virgin Mary and the Roman Catholic Archbishop of Zamboanga, reportedly the 15th biggest stockholder.

Zobel heir needs to work

Polo sportsman Iñigo Zobel had on many occasions told friends he doesn’t mind having his cousins Fernando and Jaime run the Ayala conglomerate, limiting his involvement to being board director and attending board meetings. The Ayala heir would rather concentrate on playing polo while he is still able to, and then retire from the sport to start working. His passion for the game has taken him to so many countries all over the world to compete in prestigious polo competitions like the Queen’s Cup in London.

But Iñigo’s holding company investments in San Miguel Corp. – which has since become the most diversified company in the country, with its vast portfolio that includes interests in power, mining, energy and the airline industry – will most likely see him cutting down on his polo playing to spend more time having to work in AirPhil Express where he is president and CEO. Budget airline AirPhil Express happens to be the sister company of Philippine Airlines which Zobel’s granduncle Andres Soriano had founded in 1941.

Iñigo inherited the passion for polo from his late father Enrique Zobel, after whom the very prestigious Enrique Zobel Cup was named. But for the first time in three years, the Ayala scion’s team lost last Sunday at a score of 11-14. As they say in golf – you can’t be an A golfer and A businessman all at the same time.

Will China be Asia’s troublemaker?

China seems to be getting more and more aggressive in claiming disputed territories, triggering the anger of countries such as India, Japan and Vietnam where incursions of Chinese vessels have been reported over the past several years. Just several days ago, a Chinese fishing boat with a crew of 12 was apprehended by a Japanese coastguard patrol on suspicions that it was illegally fishing in the waters around Japan’s exclusive maritime zone.

The incident was the latest irritant in the escalating territorial dispute involving Japan’s Senkaku Islands, which China also claims as its own, calling it Diaoyu. Just two weeks ago, Japan protested the incursion of four Chinese surveillance ships in the contested territory, staying there for over 13 hours – the longest recorded incursion so far. Summoned to explain the incident, the Chinese ambassador instead replied by saying the islands are owned by China and that Japanese vessels had no right to be there in the first place.

The incursion of Chinese planes over Japan’s air space last December has also prompted the Japanese government to approve increased defense spending, something that hasn’t happened in over a decade – which indicates just how testy the situation is becoming, observers noted.

The Chinese captain and his crew have since been released, but for sure, the sovereignty row is far from over, with Japanese Prime Minister Shinzo Abe vowing to defend his country against China’s “provocations.” The Philippines may be forced to do the same and reiterate the message of President Aquino that “what is ours is ours,” and that Filipinos, when their patience runs out, can be provoked into great lengths to defend this nation from foreign incursion – something attested to by our history.

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