New Consistent & Organized Mining Policy of the Philippines lauded by COMP – Investors dream

Signal to all investors to com in!

The issuance of the long-awaited Executive Order No. 79 on mining reforms drew generally positive reactions from the mining industry in the Philippines.

The Chamber of Mines of the Philippines (COMP) said the policy offered solutions that would encourage the development of the country's mineral resources.

"We submit that legislation should also include a review of the Local Government Code, the Indigenous Peoples Rights Act and the Internal Revenue Code in a purposive effort to harmonize conflicting provisions of these laws with the mining policy," COMP said in a statement.

"Our members applaud the policy's directive to ensure consistency of local ordinances with the Constitution and national laws, as well as LGU cooperation," it said.

The COMP said it respected the government decision to close certain areas to mining, adding that environmentally critical and protected areas should be preserved for future generations.

It also lauded the Aquino administration's intent to improve the small-scale mining industry, and to develop downstream industries.

"We view the time spent on developing the policy as recognition of the important role of responsible mining as a catalyst for economic growth. The mining policy is a signal to all investors of government's desire to establish a consistent and stable business environment founded on a level playing field. We are hopeful that the policy will harmonize conflicting interests, encourage investments, and foster sustainable development especially in the countryside where it is greatly needed," COMP said.

Increasing Tax Collection

Philippines said it was seeking to increase royalties from mining companies while imposing more restrictions to protect the environment and local communities.

The policy contained in a new executive order signed by President Benigno Aquino said no new mining permits would be approved until Congress passed a bill backing the increase.

The order, announced by Environment Secretary Ramon Paje after months of heated debate between mining firms, environmentalists, tribal groups and church leaders, seeks to impose a 5% royalty on the companies' gross earnings compared to the existing 2% tax.

"Basically, the executive order intends to increase the revenues of government from mining," Paje told reporters.

The order extends a moratorium on mining permits that Aquino imposed last year when he was still drafting the new executive order. Paje stressed the order would respect existing mining agreements with the 33 mining operations already in the country, but would be imposed on new entrants.

He said existing contracts would be reviewed to ensure the companies are complying with their obligations.

Paje said if the law was passed by 2016 the country could earn an additional ₱16 Billion Pesos ($381 Million US Dollars) from the higher royalties.

In addition, the order designates all abandoned mine waste and tailings as state property, allowing the government to extract any remaining minerals. This could potentially raise another ₱ 50 Billion Pesos, Paje added.

The order also bans mining in 78 areas designated as "eco-tourism" sites and in "prime agricultural and fishing areas", and imposes controls on poorly-regulated "small-scale mining industry", particularly banning the use of mercury, which can poison the environment.

Finance Secretary Cesar Purisima expressed confidence the new order would help the industry and boost revenues.

"We are confident that by investing in a stronger regulatory framework and a more equitable revenue sharing mechanism, we are improving mining's long-term growth potential," he said in a statement. The Chamber of Mines of the Philippines said it welcomed the new rules, hoping it might end lengthy debates over the sector.

"We are hopeful that the policy will harmonize conflicting interests, encourage investments, and foster sustainable development especially in the countryside where it is greatly needed," a chamber statement said.

The executive order still leaves hanging the issue of whether local governments can overrule mining permits issued by Manila, an issue affecting a potential project by Swiss giant Xstrata. The project worth some $6.0bn in the strife-torn island of Mindanao has been delayed by the local government's ban on open-pit mining. While the new order asserts national laws are above local ordinances, Paje said it would be up to the courts or the local government department to determine if the open-pit ban would hold up.

The Philippines is believed to have some of the biggest mineral reserves in the world—the government estimates the country has at least $840bn in gold, copper, nickel, chromites, manganese, silver and iron ore deposits.

However, the minerals have been largely untapped, partly because of a strong anti-mining movement led by the influential Catholic Church, while poor infrastructure and security concerns have also kept investors away.

Options

The order also says the Department of Environment and Natural Resources (DENR) may continue to grant and issue exploration permits, which allow a person or entity to explore for minerals in a specified area. No actual mining or mineral extraction may be conducted during the exploration phase of a project.

But those given exploration permits and those who actually discover minerals shall be given the preferential option when government issues a mineral sharing agreement.

The EO said the DENR shall likewise review existing mining contracts and agreements for possible renegotiation of the terms and conditions.

The order says the grant of all mining rights and mining tenements over areas with known and verified mineral resources and reserves shall be undertaken through competitive public bidding, not through a first come, first served basis.

 Mining Ban Areas

 As a clear concession to the anti-mining advocates, the order closes the following areas to mineral contracts, concessions, and agreements:

Areas expressly enumerated under Republic Act No. 7942 or the Philippine Mining Act of 1995;

Protected areas categorized and established under the National Integrated Protected Areas System under RA No. 7586 or the "National Integrated Protected Areas System Act of 1992;

Prime agricultural lands, in addition to lands covered by RA No. 6657 or the Comprehensive Agrarian Reform Law of 1988, including plantations and areas devoted to valuable crops, and strategic agriculture and fisheries development zones and fish refuge and sanctuaries declared as such by the Secretary of the Department of Agriculture (DA);

Tourism development areas, as identified in the National Tourism Development Plan (NTDP); and other critical areas, island ecosystems, and impact areas of mining as determined by current and existing mapping technologies, that the DENR may identify.

The Department of Tourism (DOT) has identified at least 78 sites it wishes to preserve, Paje said.

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Forgetting the tons of Gold, Queen Sofia of Spain ended her visit to the Philippines

WHERE'S HER CROWN? A little girl asks as Queen Sofia puts her arms around two children during her visit to Zamboanga City. JULIE S. ALIPALA/INQUIRER MINDANAO

330 years Spain's unproductive control to the Philippines

The Philippines was colonized by Spain for 333 years.  Folks, that's a long long time, correct?  And that's why anyone who speaks Spanish or Portuguese gets confused why the dialect of Filipinos they can seem to understand but cannot have the hang of it– Why Philippine Nationals speaks good English than Spanish?

So, where's the English?  In 1898, Spain lost to the American colonizers and stayed to be under the United States of America for nearly 50 years.   That's like covering one or two generation's right?

While the Spaniards controlled the locals with 'divide & rule' dictum, the Americans wooed the locals with corned beef, chocolates, bubble gums, jeans and opportunities.  That fits well to the peace loving Filipinos.  That's why it was so easy for American teachers to incorporate themselves to the smart locals. 

The American governors were bent to make the Philippines their small paradise in the pacific hence those American soldiers who doesn't want to go back home, stayed on and opened various business establishments.  Country clubs were developed, business chambers were created and the style of governance was patterned after that of the United States.

The school's language of instruction was in English which the locals found easy enough to follow vs the Spanish language in more than three centuries.  Even Japan, in the few years they had the Philippines and want take it from the Americans during the World War II tried to instill to the locals the study of Nippon-go, but failed.

For 333 years Spain controlled the Philippines and shipped tons of gold of the country to the Mainland Spain. Poor infrastructure, low education, corruption, killings, slavery and other degrading acts that makes the Philippines rebellious and hates the Spain and refused to remember Spain to forget the bad nightmare in the past - but wound heals in the right time.

It could be a bit shameful for Spain who controlled the country for 333 years and been forgotten. For the sake of new business opportunity for Spain and the Philippines with the backup of culture similarities as inputed by  Spain to the Philippines for 333 years, the Spain spend a little to win the heart of the Filipinos and to gain more for possible by reciprocation with the Spain made Armaments which will cost Billions of Dollars. 

In 2011, the Spain Government Officials Delegation already visited the Philippines and offered their junks and second hand fully depreciated armed assets as AID to the country and the Philippines must pay only the salvage value of the Assets like the Class cutter of USA which the Philippines paid $10 Million US Dollars. 

Spain keeps lobbying to the Philippine Government to be their armaments buyer in line with Italy, Poland and Korea.

The recent signed contracts for armaments upgrade of the Philippines which budget reached up to $1.5 billion dollars did not include the armaments which recently introduced and  made by Spain.

The Philippines is now a shining country and the most promising country in the world with abundant of manpower pool and intelligent people, gold and mineral deposits, oil and natural gas, world famous beaches and too many to mention.

The Philippines is now also famous for abundant of riches and awash  with cash which on the process of modernizing the Weaponry of the Armed forces to deter invading neighbors which ready to spend Billions of Dollars, so many business to be done in the Philippines.

What is the 30 Million Euros aid of Spain to the Philippines for the tons of gold they shipped to the Spain during their 333 year rule? Spain is still even in heavy indebtedness to the Philippines for their abuses and slaveries to the Filipinos during their rule which they never paid even a dime.

Queen of Spain goodbye to the Philippines

Queen Sofia of Spain, who wraps up Friday (July 6, 2012) her five-day visit, may have inadvertently glossed over the role of the Siege of Baler in the restoration of bilateral relations between Manila and Madrid.

Unbeknownst to the queen, the warm and enthusiastic welcome accorded to her by the country since her arrival on Monday stemmed from a singular act passed by Congress in 2003—the Filipino-Spanish Friendship Act authored by Senator Edgardo J. Angara.

Neither her speech at Tuesday's state dinner nor her itinerary paid homage to the singular event that is officially celebrated in Spain for exemplifying the universal traits of valor, magnanimity and dignity even during war times between Spanish and Filipino troops called "Katipuneros."

"In her speech, she did not mention Baler's contributions to the return of normal relations between Spain and the Philippines, which was practically zero but is now growing," said Angara, who attended the state banquet held at the Rizal Ballroom in Malacañang.

Friendship with the old enemy

Republic Act No. 9187 recognizes June 30 of every year as the Philippine-Spanish Friendship Day "to mark the act of benevolence in 1899 when President Emilio Aguinaldo issued a decree stating that Spanish soldiers who survived the Siege of Baler be treated not as prisoners, but as amigos," said Angara.

"It showed the generosity of Filipinos in victory, and on the part of the Spaniards, the valor and loyalty to their flag and king," Angara said. "It was the singular act that changed the near-zero relations between Manila and Madrid … from bad to good."

At the close of the Philippine revolutionary war against Spain in 1898, 54 Spaniards—49 soldiers, three officers, one medical officer and a parish priest—barricaded themselves inside the Church of San Luis de Tolosa in Baler, Aurora.

They holed up in the church, refusing to surrender until June 2, 1899, or after 337 days.

During the yearlong siege, Filipino troops allowed carabaos (water buffalos) to stray into the church grounds, providing food for the famished Spanish soldiers.

When the dust settled, 35 managed to survive, including the six who deserted. Five died from gunshot wounds, while 14 died from beriberi and dysentery.

When the surviving Spaniards emerged from the church, they received cheers of "Amigos, amigos!" from the Katipuneros and natives of Baler.

Forgiving Enemies

President Aguinaldo's declaration on June 30, 1899, stating that the survivors of the Siege of Baler shall be treated as friends, not as prisoners, guaranteed their safe travel back home.

"The siege embodies courage, honor, compassion and charity, the same spirit that fuels the Philippine-Spanish Friendship Day," Angara said, recalling that the Spanish movie "Los Ultimos de Filipinas" was based on the siege.

The movie raised the morale of the Spanish people during the time of dictator Francisco Franco, when war-torn Spain became impoverished in the aftermath of World War II.

The movie also popularized the classic song "Yo te dire," comparable to "Dahil sa Iyo (Because of You)."

RA 9187 resulted in increased Spanish official development assistance (ODA) to the Philippines, investments and tourist arrivals. Spain's ODA to the Philippines amounted to 28.9 million euros ($36.58 million) in 2011.

For the latest visit of Queen Sofia—her fifth trip to the Philippines since 1995—she toured Manila, Albay province and Zamboanga City, where she inspected schools, hospitals and museums that have received funding from Spain.

'Where's her crown?'

In Zamboanga City Thursday (July 5, 2012), the queen visited the Kalinaw Urban Poor Community in Sinunuc village. Wearing a printed blouse and light brown slacks, she casually walked to the multipurpose hall where she was met by two toddlers who offered her a bouquet of flowers.

"Is that the queen?" Jenny Azurin, 8, asked her mother, Geraldine, 39, who nodded. "Where's her crown? Why isn't she wearing a gown?" the child asked after the queen smiled at her and briefly touched her face.

Clara Pardo, who handles the Asia-based projects of the Spanish aid group Manos Unidas, said the visitor saw projects her foundation had helped build.

"She likes to see where the money went and was spent and she is very committed to development projects," Pardo told the Inquirer.

"Queen Sofia also wants to meet and interact with children and women because she is always very worried about the situation of the children in the world," she said.

Fr. Angel Calvo, a Claretian missionary who heads Zamboanga-Basilan Integrated Development Alliance Inc., said Spain had been helping Zabida for 13 years now and had so far poured in about 5 million euros to the group's education, livelihood and shelter projects.

Calvo said Queen Sofia was to visit urban poor communities but security precautions cut short her itinerary. A scheduled visit to an orphanage, Akay Kalinga, was canceled.

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Gold prices feed fever on Philippine mountains in Mindanao

Mindanao the Land of Gold

Bukid sa Diwalwal, Mindanao - As grime-covered men emerge from deep shafts on the Philippines' "golden mountain", Norie Palma eagerly prepares to haggle for her share of ore from the weary miners.

The former laundrywoman turned gold buyer directs the procession to her small milling shack amid grunts from the miners whose backs are stooped under the weight of their hauls from the dangerous honeycomb tunnels of Mount Diwata.

"It is like this every day. People are always digging, searching and haggling for that stone with the best gold," says Palma, a 36-year-old mother of four who runs one of many backyard mining operations on Mount Diwata.

"Gold is what we live for on this mountain."

With global gold prices rising as investors park their funds in the precious metal to hedge against an uncertain global economy, Palma said she and other prospectors on Mount Diwata were enjoying a windfall.

Gold hit a record high of $1,921.15 an ounce in early September and, although it has since fallen back, some analysts have forecast it will hit the $2,000 mark this year.

A college dropout, Palma's operation has lately been producing thousands of dollars? worth of gold -- a fortune in the impoverished Philippines.

"You could say gold changed our life. I now have the money to buy the things that I want," she said. "And we want more of it while the prices are high."

Palma buys the ore dug up by the miners who don't have the means to process it, then trades with jewellers and brokers who regularly make the arduous trip up the 2,012 metre (6,600 feet) mountain to buy the yellow nuggets.

The Philippines has some of the biggest gold and other mineral deposits in the world, according to the US government, but the country's official mining industry is relatively small and hard to access for foreign firms.

Illegal mining, in which individuals or small-scale ventures simply start digging on vacant land, is rampant.

Mount Diwata -- located in the violence-plagued and often lawless southern region of Mindanao -- is the country's biggest and most famous of these "gold rush" sites.

It has yielded at least 2.7 million ounces of high grade ore since a tribesman first discovered gold there three decades ago, according to local government data.

The discovery of gold on the mountain triggered a mad rush of people from all walks of life, from military deserters and ex-communist rebels to gun runners and ordinary folk dreaming of that life-changing haul.

The government estimates that at the height of the gold fever in the early 1980s, the population in the area peaked at nearly 100,000.

The present population is believed to be 40,000, according to officials, but they said more miners had started returning to the area recently to take advantage of the rising prices.

However, Mount Diwata is as famous for the misery it has wrought upon the miners and the destruction of the local environment as it is for the riches enjoyed by the lucky ones.

The first generation miners and their families settled in small cliff-side shacks and dug tunnels under their homes, creating the blueprint for a chaotic and dangerous existence in which many laws of society and nature were ignored.

Highly toxic mercury is used in the mining process, polluting the Naboc stream that cuts through the village.

Armed disputes erupted between rival miners and their thugs, according to local village chief Rodolfo Boyles, himself an ex-miner, although he said violence dropped after the military stationed some troops there nine years ago.

He said hundreds of people had also perished in cave-ins and other mine-related accidents.

The hardships of working the mines have earned Diwata the tag "diwalwal", local slang referring to tongues that hang out after a hard day's labour in the tunnels.

"When you enter the mines your life is already at stake, you might be buried there or you might get hit by falling rock," said Dandy Labrador, 28, who left his work as a security guard to become a miner.

"It is dangerous and anything can happen."

Labrador said he arrived at Mount Diwata several years ago filled with dreams of striking it rich, but found that fortune-hunting was back-breaking work.

Like the vast bulk of the miners, Labrador works as a hired hand and is paid with a share of the ore that he digs up. He then sell his ore to brokers.

Still, Labrador said he earned more than he would as a construction worker or labourer in Manila, the country's capital.

"And I have not given up on my dream of becoming rich," he said.

Boyles said there had long been a plan to bring in big mining firms with modern extraction methods and make the operations there legal, but small miners had resisted the idea and continued to virtually control Mount Diwata.

With the high global gold prices, the government is concerned that there will be more Mount Diwata-style operations around the country.

Environment Secretary Ramon Paje recently said 70 percent of gold produced in the country already came from illegal mines.

"There is the possibility of a gold rush, because gold is the safest commodity right now," he said. "But we have to manage our resources well... this is not the kind of mining we want to encourage."

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