View from mining industry's side

In recent days I ran several pieces about the dark side of mining. Among them are studies of poverty and joblessness worsening in mining regions, and looming disaster from tailings dams. As a rejoinder of sorts, the Chamber of Mines sent some industry figures and concerns. In fair play, I present them as the view from the other side.

First, the industry figures:

• Mining employed 340,000 Filipinos last year, with 1.7 million more benefiting in a five-times multiplier effect. Exports amounted to $1.87 billion in 2010, and $513 million in the first quarter of 2011  4.3 percent of total exports. (In the ’70s mining accounted for one-fifth of exports, peaking at 24 percent.)

• Revenues last year totaled $2.09 billion; investments, $955.58 million. In 2009 large-scale miners paid P1.4 billion taxes and contributed two percent (P29.4 billion) to GDP. Investment potential in the next five years: $14 billion-$20 billion.

“Can you imagine how many more jobs such huge investments can create, not to mention the poverty alleviation?” the Chamber asks. But “roadblocks” supposedly stunt mining growth:

1. Some local governments impose bans in their locales, like South Cotabato and Zamboanga del Norte, against open-pit mining. The Chamber blames it on “misconceptions” about mining.

2. Other local governments issue permits to small-scale miners, unlike large-scale ones that deal with national agencies, the Department of Environment and Natural Resources and its Mines and Geosciences Bureau. “There appears to be very little state control over small-scale miners,” the Chamber says. “Monitoring of their operations is loose, thus the risk of damage to the ecology and miners’ health.”

3. Ancestral land claims clash with mine claims. Certificates of Ancestral Domain Titles overlap with Mineral Production Sharing Agreements and exploration sites. Conflict sparks when interlopers bribe tribesmen into issuing Free Prior and Informed Consents to buttress false claims to areas where legit explorers already operate.

4. The Chamber views as “judicial intervention” the Supreme Court’s Writs of Kalikasan. One such writ, in August, ordered the government to answer a petition against mining the Zamboanga peninsula for ruining the environment and communities.

5. The Chamber deems some acts of the DENR as obstructive. Like, the conversion of exploration and mining projects and tenements into mineral reservations, and the increase in excise taxes from two percent to seven percent.

Chamber leaders, under president Philip Romualdez, say they are ready to sit down with the authorities to settle the issues. (Romualdez’s Benguet Corp. recently announced P1.18 billion net income in the nine months to Sept. 2011.)

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Bangkok’s flood crisis is creating opportunities for the Philippines. Everything Thailand-made, from car parts to flash drives, are in shortage and steep, and relief can start only a year or two from now. So East Asian manufactories are taking a second look at Subic Bay and Clark Field to relocate. And Central Luzon congressmen are calling for revival of development plans for the two former US military bases.

Enticing flood-stricken businesses from Thailand to Luzon would need infrastructure catch-ups. The area north of Bangkok had attracted them with the snappy development of the Laem Chabang backwaters into a modern port. Before that, Subic and Clark were the darlings of investors’ eyes because the US military had left the bases with good roads, runways and utilities. The drawback, however, was inconsistency of Philippine government policies. But with Subic and Clark’s head start, improvements can be done faster than in Thailand.

One area of upgrade, according to congressmen, is Subic’s seaport. Carmakers need piers with waters 15 meters deep, like Thailand’s. But the five main wharfs have deteriorated since awarded to private hands in the 1990s. Port concessionaires supposedly should no longer be mere operators but developers. Subic Freeport had signed a deal for Harbour Centre Port Terminal Inc. to rehabilitate the complex, for bulk and break-bulk cargo, for P6 billion. At the same time, the government would exact $32 million over 25 years. But the old operators are resisting, and some new Subic officials have taken their side. Subic would miss Thailand’s outbound bus should the issue take long to resolve.

Clark, meanwhile needs to renovate airport terminals and extend runways. But plans there are tied up in corporate and political tussles too. Subic-Clark have a built-in advantage of being proximate to Manila. A new tollway has cut travel time by half. Commenced in 2005, a railway from Manila to Clark could complete the basket of investor attractions, but endless price-design renegotiations have delayed it by three years.

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Meralco’s annual Christmas art competition has been transformed into an education program. The country’s largest electricity distributor has opened a Maliwanag ang Pasko park within its Ortigas-Pasig compound. Electric rides, light shows and night bazaars are featured during the Christmas season  proceeds of which would put a thousand youths back to school. Meralco’s corporate social responsibility unit says the project is “not only to light up the season, but the future as well of the needy kids.” Details: in website meralco.com.ph or facebook.com/meralco.

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The quick responses were amazing. Dozens of kind souls donated to the indigent youth patients of Cancer Warriors Foundation, in time for their Christmas party on Sunday.

Among the silent donors: Auntie Gretchen, broadcaster Lynda J., airline executive Mike T., PR woman Jacki R., Dr. Maui, Ms. Marissa, readers “I-Care,” A. Xavier, R. Segovia, E. Gnatek, J. Sinsuan, Edith G., Dr. Manuel and Dr. Cristy Q. God bless you, and the many more who gave straight to the foundation, for your generosity.

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Catch Sapol radio show, Saturdays, 8-10 a.m., DWIZ (882-AM).

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E-mail: [email protected]