Reviving mining
I was interviewed by media when Executive Order No. 79 was issued nine years ago by then President Benigno Aquino III, institutionalizing and implementing reforms in the Philippine mining industry, to ensure environmental protection and responsible mining.
I recall saying then that it’s good that government was able to come out with a policy as to the direction it would want the mining industry to take, because, in any business, predictability is very important.
I iterated then, as I iterate now, that we must develop what we have to address the needs of the present without compromising the ability of future generations to meet their own needs.
As Philex chairman Manuel V. Pangilinan has often said, “Mining is not the enemy. Poverty is. The lack of the most basic necessities, the lack of opportunities, the lack of choices — these pernicious deficits have plagued our people for far too long, in far too many places. Yet, the supreme irony is that, in the midst of all this poverty, lie one of the world’s richest natural resources, a gift of providence endowed to our people.”
Mining can be a most viable economic driver if allowed to flourish. During the pandemic where mining companies were allowed to operate as an export-oriented business that was exempted under the guidelines of the IATF-EID, the mining industry was able to prove that it could also be a viable government partner, not just in economic recovery but also in its fight against COVID-19.
Mining companies were allowed to allocate the unused portion of their Social Development and Management Program (SDMP) funds to assist host and neighboring communities in mining project areas with their COVID-19 response.
Philex Mining was able to provide much-needed assistance and support to the social amelioration program and food needs of the barangay local government units, as well as in the provision of food and medicine assistance, personal protective equipment, and even fuel and alcohol to the provincial government of Benguet, the local PNP, Baguio City and the municipalities of Itogon, Tuba, Sablan, and Tublay.
Late last year, Finance Secretary Carlos “Sonny” Dominguez III made the call to revive the mining industry, to raise revenues, especially for the purchase of much-needed COVID-19 vaccines, and to provide for “good jobs” in the countryside.
This move was supported by Surigao del Norte 2nd District Representative Robert Ace Barbers, who mentioned that the revitalization of the industry was a way to prop up the economy.
As a response to this call, President Rodrigo Roa Duterte issued Executive Order No. 130, which, among others, amended Section 4 of Executive Order No. 79, thereby lifting the moratorium on new mineral agreements. Government may now enter into new mineral agreements, subject to compliance with current law, rules, and regulations.
This bodes well for the industry, as it would hopefully create favorable investment interest in new mining projects, like the Silangan Mining Project of Philex Mining in Surigao del Norte.
The board of directors of parent Philex Mining recently approved the in-phase development of Silangan, so, in this regard, Philex will be appointing a financial advisor to assist in the fundraising that will start as soon as it is practicable.
With the in-phase development of the Silangan Mine Project, the capital expenditure requirement will be made in stages. Philex is confident that Silangan development will start by the second quarter of 2022 with the target of commencing commercial operations in January 2025.
According to Euls Austin, Philex president and CEO, the recent government pronouncements related to the mining industry will increase the level of interest and confidence of investors and lenders to mining companies.
This makes the launching of Silangan very timely, he emphasized.
Philex Mining itself has seen an increase by 186 percent in its core net income for the first half of 2021 compared with the same period in 2020, riding on the wave of sustained demand for metals and strong metal prices.
In fact, after the completion of confirmatory drilling and related technical studies, Philex successfully identified from the end of 2022 additional mineable reserves in its Padcal Mine that are feasible for mining. This means that the additional mineable reserves are expected to be mined over two years, extending the life of Padcal Mine until Dec. 31, 2024.
This extended Life of Mine will ensure the continuous employment of 1,831 Padcal employees and support the social development of the Host Local Government Units (LGU) and neighboring communities, especially in this time of the COVID- 19 pandemic.
It will also give more time for the company to bring the Silangan Mine Project to the development and commissioning stages.
These are all positive developments for the mining industry that, pardon the pun, are worth their weight in gold.
And, speaking of gold, I would like to take this opportunity, also as a member of the Philippine Air Force Multi-Sector Governance Council (PAF MSGC), to congratulate our first Olympic gold medalist, Air Force Staff Sergeant Hidilyn Diaz, for her outstanding performance at the Tokyo Olympics and for being an inspiration to the Filipino people, especially in times like these.
Kudos to the MVP Sports Foundation, which has been supporting our athletes, like Hidilyn, all these years.
May your victory move us forward to reviving the glory of Philippine sports and to mining those medals in international sports competitions.
Mabuhay ka, Hidilyn!
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