mining arangkada-3rd-anniversary-assesment

136 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 137

Recommendations: 32

Progress:

Rating:

8 Improved 3 Declined 20 Steady

Mining

PART 3 SEVEN BIG WINNER SECTORS

1 Backward/RegressionNo Longer Relevant1 13 Not Ongoing

4 Substantial ProgressStarted11 2 Completed

2013

2012

2011

Active Dormant

Active Dormant

Active Dormant


PART 3

SEVEN BIG WINNER SECTORS

MINING“SECTION 4. Grant of Mineral Agreements Pending New Legislation. No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect. The DENR may continue to grant and issue Exploration Permits under existing laws, rules and guidelines.” - Executive Order No. 79, July 6, 2012.

With an estimated $1.4 trillion in reserves, Philippine mining potential ranks fifth in the world, covering an estimated 9 million hectares, but less than 2% of these have mining permits. After long stagnation, the sector began coming back after a 2005 SC decision affirming RA 7942, considered a world-class legal framework for sustainable development. Minerals development should be a government priority and has great potential for jobs and revenue. Government has identified over 60 priority PPP mining projects. Mining can support poor rural areas through high quality jobs, local tax payments, and community development. The national government receives substantial royalty and tax payments. Government revenue from mining has more than doubled to PhP 22.2 billion in 2011 from PhP 10.4 billion in 2007. Full development of the sector, however, continues to face significant challenges. Lengthy tedious approvals for Exploration Permits (EPs) continue to impede investment. Several LGUs have closed their provinces to mining. Industry is concerned that the Writ of Kalikasan might disturb lawful activities. An investor cannot tell easily if land is ancestral land. Skilled Mines and Geosciences Bureau (MGB) personnel often leave public service. EO 79 has imposed a moratorium on new mining permits, pending the passage of a new law on the revenue sharing scheme between industry and government. Designation of “no-go” areas may undervalue areas closed to mining for minor tourist or agricultural value. The immediate future for the growth of the mining sector is not positive.


2011 Rating 2012 Rating 2013 Rating

Backward/Regression Not Ongoing Not Ongoing


Not Ongoing Not Ongoing Not Ongoing

PART 3: SEVEN BIG WINNER SECTORS: MINING





Not Ongoing Backward/Regression Not Ongoing





Started Started Started







-20%

0%

20%

40%

60%

80%

-40

0

40

80

120

160

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Gross Value Added

YOY Growth, rhs

Mining and Quarrying Gross Value Added (GVA), 1990-2003

Source: NSCB; Old series (1997-back) New series (1998-onwards)


Substantial Progress Substantial Progress Completed

-100%

-50%

0%

50%

100%

150%

200%

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0Value, in Bn US$, lhs Series2

Mineral Products Exports , 1990-Nov 2013

Source: NSO



Backward/Regression Backward/Regression Not Ongoing








Substantial Progress Started Substantial Progress




No Longer Relevant Backward/Regression Backward/Regression



Started Started Not Ongoing

Copper Concentrates, 13.6%

Copper Metal, 19.9%

Gold, 2.2%

Iron Ore Agglomerates, 3.3% Chromium Ore, 0.5%

Others, 60.6%

Source: NSO

Mining Goods Exports Distribution, Jan-Nov 2013



0%

10%

20%

30%

40%

50%

60%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

IndonesiaThailandSingaporeMalaysiaPhilippinesVietnam

Source: UNCTAD; Includes ores, metals, precious stones and non-monetary gold

Share in ASEAN-6 Total Mineral Products Exports, 1995-2012




Not Ongoing Started Substantial Progress



Started No Longer Relevant Completed




Not Ongoing Backward/Regression Not Ongoing




Backward/Regression No Longer Relevant No Longer Relevant


Not Ongoing Not Ongoing Started







Not Ongoing Started Started




Started Substantial Progress Started






Substantial Progress Substantial Progress Substantial Progress


Substantial Progress Substantial Progress Started


Started Substantial Progress Substantial Progress

mining arangkada-3rd-anniversary-assesment

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