Philippine Mineral Industry and the Corporate Social

Responsibility

Raul V. AngelesDirector

Mining, Marine and Natural Resource-Based Products Dep’t.Board of Investments

Coverage

I. The Philippine Mineral IndustryA. Mineral Reserves of the PhilippinesB. Targets for the Philippine Minerals IndustryC. Technical Working Group on Mineral IndustryD. Important Issues of the Industry

II. Corporate Social Responsibility in the Philippine Mining Companies

A. Importance of Corporate Social Responsibility B. Characteristics of CSR

III. Recommendations

The Philippine Minerals Industry

• Contributed 2% to the country’s GDP and 21% to total exports in the ’80s• Vast industry linkages with huge multiplier effect in terms of employment and economic activities• May surpass the electronics sector in terms of income generation with the latter generating only US$24.32 B

Mineral Reserves of the Philippines

Metallic US$ 165.96 billion

Non-Metallic US$ 798.69 billion

Total US$ 964.65 billion

Targets for the Philippine Mineral Industry

I. No. of Approved 1995 2001 Annual Increase 2009Projects from 2003

EP 4 64 65 455

MPSA 35 169 158 1,275

FTAA 2 2 4 30______ ______ ______

Total 41 235

7 years

II. Employment 107 104 84 590(in thousand)

III. Investments 860 1,100* 26,725 187,075(in million Php)

IV. Exports 566 455 2,000(in million US$)

7 years

Technical Working Group on Mineral Industry

• Formed in the early 2002, and composed of representatives from the government and private sectors, to look at the concerns of the mining industry and identify steps to address these concerns

• Instrumental in the drafting of the Philippine Mineral Industry Road Map, which presents the current status of the industry, its economic potential, issues and concerns and action steps.

Important Issues of the Mining Industry

I. Environmental Risks and Concerns on MiningSubmission of Environmental Compliance Certificate (ECC) and environmental programs

II. Delays in the Issuance of Mining Agreements/ Permits

Establishment of Mining Investment Assistance Center (MIAC)

III. Social Issues/ Anti-Mining Sentiments

Corporate Social Responsibility (CSR) in Philippine Mining Companies

May serve as the long-awaited solution to social problems of the industry

I. Philex Mining CorporationImplemented various projects and programs for environment protection and enhancement of relationships with the community, LGUs, POs and civil society groups.

II. Silangan Mindanao Exploration CompanyEstablished strong working linkages with the community in order to address issues such as environment preservation and labor-manager relationships.

III. APO Cement CorporationCSR concept lies in its commitment to environment-friendly operations and health and safety for its employees and the public.

Importance of Corporate Social Responsibility

• Addressing Public Sector Priorities

• National Development Planning

• Poverty Alleviation

• Investments Promotion

Characteristics of CSR

• CSR initiatives should be over and above activities stipulated by the law

• These are voluntary positive initiatives by a company that go beyond simple legal compliance

• Strongest point of CSR is voluntarism

• CSR practices are not substitute for social legislation or national laws

Characteristics of CSR

Community Stakeholder Engagement • Involving government agencies, community groups, NGOs, and people’s organizations in engagement activities aimed at building mutual understanding

Community Stakeholder Engagement • Securing consent on decisions affecting indigenous communities

Environmentally Safe Production, Products and Services • Developing additional practices for sound and environment-friendly operations such as ISO 9000 and 14000 certifications

Environmentally Safe Production, Products and Services • Developing guidelines for promoting the safety and health of the workers and end users

Labor Standards• Providing compensation and additional contributions consistent with the needs of the employees and their families

Labor Standards• Providing minimum wage to employees

CSRLaws

Recommendations

• Institutionalization of CSR and provision for policies, infrastructures, support and other resources for the implementation of the program

• Set minimum requirements that would facilitate the monitoring of CSR compliance such as:

Formulation of a company/policy on CSR; andCreation of a multi-partite monitoring team to serve as mechanism for which the implementation of CSR activities is ensured

• Adoption of CSR concept in addressing social issues related to mining

• Encourage mining companies to become more innovative in their CSR activities/efforts