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March 18, 2024
Celsius Resources Limited (“CLA”, “Celsius” or the “Company”) is pleased to announce that its Philippine subsidiary, Makilala Mining Company, Inc. (“MMCI or the “Contractor”), has obtained a Mineral Production Sharing Agreement (“MPSA” or the “Agreement”) with the Philippine Government for its flagship Maalinao-Caigutan-Biyog Mining Project (“MCB” or the “Project”). The issuance of the MPSA, which is the first copper project to be approved in the Philippines in the last fifteen years, grants MMCI the exclusive right to undertake rational exploration, development, and commercial production of copper and associated minerals within the Contract Area covering approximately 2,500 hectares for a period of 25 years and is renewable for another 25 years. Celsius Executive Chairman Atty. Julito R. Sarmiento, said: “The issuance of the mining permit has been much awaited by Celsius and the Balatoc Community. Now is our chance to deliver on our firm commitment to work with the Government and the local communities to develop the MCB Project in a sustainable manner that creates value not only for our shareholders but also for our communities.  We are grateful to the Philippine Government under the bold leadership of His Excellency President Ferdinand R. Marcos, Jr. and to the Department of Environment and Natural Resources under the visionary stewardship of Secretary Maria Antonia Yulo-Loyzaga for supporting the MCB Project. We are seriously taking the Government’s call for the Project to go beyond compliance by striking a balance between keeping the business viable, protecting and rehabilitating the environment, uplifting local communities, and supporting the Government’s socio-economic agenda.  With strong Government support, we are confident that we can make this happen.” Celsius Managing Director Peter Hume, said: “The grant of the MCB mining permit marks the progression of Celsius from being known as an exploration company to a mineral resource developer, and eventually a mine operator. Credit goes out to our hard working in-country team who strived to get the Project up to this stage in such a short timeframe amidst all the challenges. Over the last eighteen months, the Company has been interfacing with potential investors who have shown resounding interest in the MCB Project but have been also waiting for the issuance of the mining permit. With this now in hand, the Company will proceed with finalising funding options for the Project. The in-country team has commenced planning for the next exciting phase in the development of the Project. We wish to thank shareholders for their patience, trust, and continued support.” Mineral Production Sharing Agreement The Republic Act No. 7942, otherwise known as "The Philippine Mining Act of 1995," (the “Mining Act”) which took effect on 09 April 1995, provides that the Secretary of the Department of Environment and Natural Resources is authorised to enter into Mineral Production Sharing Agreements in furtherance of the objectives of the Government and the Philippine Constitution to bolster the national economy through sustainable and systematic development and utilisation of mineral lands. Specifically, the Government has granted MMCI a permit via an MPSA to undertake mining operations of the MCB Project under the key following provisions: Scope Pursuant to the provisions of the Mining Act and its implementing rules and regulations, the primary purpose of the Agreement is to provide for the sustainable development and commercial utilisation of associated mineral deposits existing within the Contract Area, with all necessary services, technology, and financing to be furnished or arranged by the Contractor in accordance with the provisions of the Agreement. The Contractor shall undertake and execute, for and on behalf of the Government, responsible mining operations in accordance with the provisions of the Agreement. During the term of the Agreement, the total value of production and sale of minerals derived from the mining operations shall be accounted for and divided between the Government and the Contractor in accordance with fiscal regime provisions summarised below. Term of Agreement The Agreement shall have an initial term of six (6) months from the date of grant. During this initial term, MMCI is required to submit the following: Additional proof of financial capability to undertake the implementation of the pertinent Work Programs, and Certification Precondition issued by the National Commission on Indigenous Peoples. Subject to compliance with the above requirements, the Agreement shall have a term of twenty-five (25) years from the date of grant and may be renewed thereafter for another term not exceeding twenty-five (25) years.  Celsius and MMCI are progressing with the satisfaction of the above conditions by re-engaging with potential investors both in the Philippines and internationally who have shown strong interest in supporting and funding the development of the Project but have been waiting for the mining permit to be issued. MMCI is proceeding through the process of obtaining the Certificate of Pre-condition as part of the Free, Prior and Informed Consent (“FPIC”) Process which is governed by the National Commission on Indigenous Peoples (“NCIP”). As announced to ASX on 15 November 2022, MMCI signed an agreement with the Balatoc Tribe community setting out the terms and conditions for the use of their land for the purpose of mining. Now that the mining permit has been issued, MMCI can request the Certificate of Pre-condition to be issued by the NCIP. Fiscal Regime General Principle –  The fiscal regime is governed by the general principle according to which the Government expects a reasonable return in economic value for the utilisation of non-renewable mineral resources under its national sovereignty while the Contractor expects a reasonable return on its investment with special account to be taken for the high risk of exploration, the terms and conditions prevailing elsewhere in the industry and any special efficiency to be gained by a particularly good performance of the Contractor. Occupation Fees – Prior to registration of the Agreement and at the same date every year thereafter, the Contractor must pay to the Municipal/City Treasurer concerned an occupation fee over the Contract Area at the annual rate provided in the existing rules and regulations. As at the date of this announcement, the annual occupation fee which would apply to the Contract Area would be approximately A$5,000 per year. Share of the Government – The Government share of production shall be the excise tax on mineral products at the time of removal and at the rate provided for in Republic Act No. 7729 amending Section 151 (a) of the National Internal Revenue Code, as amended, in addition to a royalty of not less than four  percent (4%) of the gross output, as well as other taxes, duties and fees levied by existing laws.  Rights and Obligations of the Parties Main Obligations of the Contractor: Exclusively conduct sustainable mining operations within the Contract Area in accordance with the provisions of the Mining Act and its implementing rules and regulations; Construct and operate any facilities specified under the Mineral Agreement or approved work program; Determine the exploration, mining and treatment process to be utilised in the mining operations; Extract, remove, use and dispose of any tailings as authorised by an approved work program; Secure all permits necessary or desirable for the purpose of mining operations; Environmental Protection and Mine Safety and Health Mining operations shall be done in a technically, financially, socially, culturally and environmentally responsible manner to achieve the sustainable development objectives and responsibilities as provided for under the implementing rules and regulations of the Mining Act. Comply with the approved Environmental Protection and Enhancement Program (EPEP) allocating an annual amount equivalent to three to five percent (3%-5%) of the MCB Project’s direct mining and milling costs depending on the environmental/geologic condition, nature and scale of operations and technology employed in the Contract Area. Establish a Contingent Liability and Rehabilitation Fund (CLRF) which shall be in the form of the Mine Rehabilitation Fund (MRF) and the Mine Waste and Tailings Fee (MWTF), although for MCB, the mine Waste and Tailings fee will not be applicable due to the implementation of paste backfill. The MRF shall be based on the financial requirements of the approved EPEP as a reasonable environmental deposit to ensure satisfactory compliance with the commitments/strategies of the annual EPEP and availability of funds for the performance of the same during the specific project phase. Community Development Allocate an annual royalty payment of not less than one percent (1%) of the value of the gross output of minerals sold; Allocate annually a minimum of one point five percent (1.5%) of the operating costs necessary for the development of the host and neighboring communities; Preferential hiring of qualified local Filipino citizens during mining operations including the conduct of training and recruitment programs aimed to develop local skills and expertise at the Contractor’s expense. Rights of the Contractor: Conduct mining operations within the confines of its Contract/Mining Area, as defined in the MPSA; Possession of the Contract Area, with full right of ingress and egress and the right to occupy the same, subject to surface and easement rights; Use and access to all declassified geological, geophysical, drilling, production and other data relevant to the mining operations; Sell, assign, transfer, convey or otherwise dispose of all its rights, interests and obligations under the Agreement subject to the approval of the Government; Employ or bring into the Philippines foreign technical and specialised personnel, including the immediate members of their families as may be required in the operations of the Contractor, subject to applicable laws and regulations; Easement rights and use of timber, water and other natural resources in the Contract Area subject to pertinent laws, rules and regulations and the rights of third parties; Repatriation of capital and remittance of profits, dividends and interest on loans, subject to existing laws and Bangko Sentral ng Pilipinas rules and regulations; and Importation, when necessary, of all equipment, spare parts and raw materials required in the operations in accordance with existing laws and regulations. Obligations of the Government: Ensure that the Contractor has the Government's full cooperation in the exercise of the rights granted to it under the Agreement; Use its best efforts to ensure the timely issuance of necessary permits and similar authorising documents for use of the surface of the Contract Area; and Cooperate with the Contractor in its efforts to obtain financing from banks or other financial institutions; provided that such financing arrangements will in no event reduce the Contractor's obligations in relation to the Government’s rights under the Agreement.
March 18, 2024
Celsius Resources Limited (“CLA”, “Celsius” or the “Company”) is pleased to announce that its Philippine subsidiary, Makilala Mining Company, Inc. (“MMCI or the “Contractor”), has obtained a Mineral Production Sharing Agreement (“MPSA” or the “Agreement”) with the Philippine Government for its flagship Maalinao-Caigutan-Biyog Mining Project (“MCB” or the “Project”). The issuance of the MPSA, which is the first copper project to be approved in the Philippines in the last fifteen years, grants MMCI the exclusive right to undertake rational exploration, development, and commercial production of copper and associated minerals within the Contract Area covering approximately 2,500 hectares for a period of 25 years and is renewable for another 25 years. Celsius Executive Chairman Atty. Julito R. Sarmiento, said: “The issuance of the mining permit has been much awaited by Celsius and the Balatoc Community. Now is our chance to deliver on our firm commitment to work with the Government and the local communities to develop the MCB Project in a sustainable manner that creates value not only for our shareholders but also for our communities.  We are grateful to the Philippine Government under the bold leadership of His Excellency President Ferdinand R. Marcos, Jr. and to the Department of Environment and Natural Resources under the visionary stewardship of Secretary Maria Antonia Yulo-Loyzaga for supporting the MCB Project. We are seriously taking the Government’s call for the Project to go beyond compliance by striking a balance between keeping the business viable, protecting and rehabilitating the environment, uplifting local communities, and supporting the Government’s socio-economic agenda.  With strong Government support, we are confident that we can make this happen.” Celsius Managing Director Peter Hume, said: “The grant of the MCB mining permit marks the progression of Celsius from being known as an exploration company to a mineral resource developer, and eventually a mine operator. Credit goes out to our hard working in-country team who strived to get the Project up to this stage in such a short timeframe amidst all the challenges. Over the last eighteen months, the Company has been interfacing with potential investors who have shown resounding interest in the MCB Project but have been also waiting for the issuance of the mining permit. With this now in hand, the Company will proceed with finalising funding options for the Project. The in-country team has commenced planning for the next exciting phase in the development of the Project. We wish to thank shareholders for their patience, trust, and continued support.” Mineral Production Sharing Agreement The Republic Act No. 7942, otherwise known as "The Philippine Mining Act of 1995," (the “Mining Act”) which took effect on 09 April 1995, provides that the Secretary of the Department of Environment and Natural Resources is authorised to enter into Mineral Production Sharing Agreements in furtherance of the objectives of the Government and the Philippine Constitution to bolster the national economy through sustainable and systematic development and utilisation of mineral lands. Specifically, the Government has granted MMCI a permit via an MPSA to undertake mining operations of the MCB Project under the key following provisions: Scope Pursuant to the provisions of the Mining Act and its implementing rules and regulations, the primary purpose of the Agreement is to provide for the sustainable development and commercial utilisation of associated mineral deposits existing within the Contract Area, with all necessary services, technology, and financing to be furnished or arranged by the Contractor in accordance with the provisions of the Agreement. The Contractor shall undertake and execute, for and on behalf of the Government, responsible mining operations in accordance with the provisions of the Agreement. During the term of the Agreement, the total value of production and sale of minerals derived from the mining operations shall be accounted for and divided between the Government and the Contractor in accordance with fiscal regime provisions summarised below. Term of Agreement The Agreement shall have an initial term of six (6) months from the date of grant. During this initial term, MMCI is required to submit the following: Additional proof of financial capability to undertake the implementation of the pertinent Work Programs, and Certification Precondition issued by the National Commission on Indigenous Peoples. Subject to compliance with the above requirements, the Agreement shall have a term of twenty-five (25) years from the date of grant and may be renewed thereafter for another term not exceeding twenty-five (25) years.  Celsius and MMCI are progressing with the satisfaction of the above conditions by re-engaging with potential investors both in the Philippines and internationally who have shown strong interest in supporting and funding the development of the Project but have been waiting for the mining permit to be issued. MMCI is proceeding through the process of obtaining the Certificate of Pre-condition as part of the Free, Prior and Informed Consent (“FPIC”) Process which is governed by the National Commission on Indigenous Peoples (“NCIP”). As announced to ASX on 15 November 2022, MMCI signed an agreement with the Balatoc Tribe community setting out the terms and conditions for the use of their land for the purpose of mining. Now that the mining permit has been issued, MMCI can request the Certificate of Pre-condition to be issued by the NCIP. Fiscal Regime General Principle –  The fiscal regime is governed by the general principle according to which the Government expects a reasonable return in economic value for the utilisation of non-renewable mineral resources under its national sovereignty while the Contractor expects a reasonable return on its investment with special account to be taken for the high risk of exploration, the terms and conditions prevailing elsewhere in the industry and any special efficiency to be gained by a particularly good performance of the Contractor. Occupation Fees – Prior to registration of the Agreement and at the same date every year thereafter, the Contractor must pay to the Municipal/City Treasurer concerned an occupation fee over the Contract Area at the annual rate provided in the existing rules and regulations. As at the date of this announcement, the annual occupation fee which would apply to the Contract Area would be approximately A$5,000 per year. Share of the Government – The Government share of production shall be the excise tax on mineral products at the time of removal and at the rate provided for in Republic Act No. 7729 amending Section 151 (a) of the National Internal Revenue Code, as amended, in addition to a royalty of not less than four  percent (4%) of the gross output, as well as other taxes, duties and fees levied by existing laws.  Rights and Obligations of the Parties Main Obligations of the Contractor: Exclusively conduct sustainable mining operations within the Contract Area in accordance with the provisions of the Mining Act and its implementing rules and regulations; Construct and operate any facilities specified under the Mineral Agreement or approved work program; Determine the exploration, mining and treatment process to be utilised in the mining operations; Extract, remove, use and dispose of any tailings as authorised by an approved work program; Secure all permits necessary or desirable for the purpose of mining operations; Environmental Protection and Mine Safety and Health Mining operations shall be done in a technically, financially, socially, culturally and environmentally responsible manner to achieve the sustainable development objectives and responsibilities as provided for under the implementing rules and regulations of the Mining Act. Comply with the approved Environmental Protection and Enhancement Program (EPEP) allocating an annual amount equivalent to three to five percent (3%-5%) of the MCB Project’s direct mining and milling costs depending on the environmental/geologic condition, nature and scale of operations and technology employed in the Contract Area. Establish a Contingent Liability and Rehabilitation Fund (CLRF) which shall be in the form of the Mine Rehabilitation Fund (MRF) and the Mine Waste and Tailings Fee (MWTF), although for MCB, the mine Waste and Tailings fee will not be applicable due to the implementation of paste backfill. The MRF shall be based on the financial requirements of the approved EPEP as a reasonable environmental deposit to ensure satisfactory compliance with the commitments/strategies of the annual EPEP and availability of funds for the performance of the same during the specific project phase. Community Development Allocate an annual royalty payment of not less than one percent (1%) of the value of the gross output of minerals sold; Allocate annually a minimum of one point five percent (1.5%) of the operating costs necessary for the development of the host and neighboring communities; Preferential hiring of qualified local Filipino citizens during mining operations including the conduct of training and recruitment programs aimed to develop local skills and expertise at the Contractor’s expense. Rights of the Contractor: Conduct mining operations within the confines of its Contract/Mining Area, as defined in the MPSA; Possession of the Contract Area, with full right of ingress and egress and the right to occupy the same, subject to surface and easement rights; Use and access to all declassified geological, geophysical, drilling, production and other data relevant to the mining operations; Sell, assign, transfer, convey or otherwise dispose of all its rights, interests and obligations under the Agreement subject to the approval of the Government; Employ or bring into the Philippines foreign technical and specialised personnel, including the immediate members of their families as may be required in the operations of the Contractor, subject to applicable laws and regulations; Easement rights and use of timber, water and other natural resources in the Contract Area subject to pertinent laws, rules and regulations and the rights of third parties; Repatriation of capital and remittance of profits, dividends and interest on loans, subject to existing laws and Bangko Sentral ng Pilipinas rules and regulations; and Importation, when necessary, of all equipment, spare parts and raw materials required in the operations in accordance with existing laws and regulations. Obligations of the Government: Ensure that the Contractor has the Government's full cooperation in the exercise of the rights granted to it under the Agreement; Use its best efforts to ensure the timely issuance of necessary permits and similar authorising documents for use of the surface of the Contract Area; and Cooperate with the Contractor in its efforts to obtain financing from banks or other financial institutions; provided that such financing arrangements will in no event reduce the Contractor's obligations in relation to the Government’s rights under the Agreement.
March 18, 2024
By Zeevik Halber Editor’s note: Zeevik Halber is the CEO of AnyWay Solutions, a company with a longstanding presence in Papua New Guinea and after a few years of exploring is now looking to bring its climate resilient designs and solutions to the Philippines. Papua New Guinea (PNG) is a land of mystery and splendor. Its untouched wilderness, breathtaking landscapes, diverse cultures, tropical jungles, and majestic high-altitude mountains make it one of the most unique countries in the world. One of the main roads in the country, The Highland Highways, forms the central backbone of the nation’s road network. It begins at the main port city of Lae in Morobe Province, which runs north-easterly towards Madang Province, branches off to the east well before Madang and heads far inland to the Southern Highlands. Even though it serves as the main access road, most of the highway's length is no more than a two-lane single carriageway, connecting a large portion of the country's population and leading to some of its most vital mining projects. The road was initially constructed in the 1950s and has since undergone several rehabilitation and maintenance upgrades. Due to the progressive increase in traffic, especially heavy vehicles, the Government of PNG initiated an ambitious upgrade and rehabilitation program with the support of the Asian Development Bank (ADB) called the Sustainable Highlands Highway Investment Program (SHHIP). Through the SHHIP, significant portions of the Highlands Highway were rehabilitated, including drainage and water management elements, as well as the road pavement itself. Through the Department of Works and Highways (DOWH), the Government of PNG set a goal to enhance the climate resiliency of its road network by implementing an advanced engineering approach, including in-place recycling through stabilization. By implementing this approach, the sub-standard materials of the existing roads’ pavement structures would be recycled, processed, and stabilized. The superior strength of pavements achieved through implementing this approach significantly enhances climate resiliency. In addition to strengthening the pavement structures, drainage and water management elements would be upgraded and rebuilt to withstand the climatic events that have become more frequent in the region. In recent years, the DOWH has also embarked upon extensive rehabilitation work on existing roads in the country's main cities, including the ones connecting them. This is over and above the many new roads being designed and constructed to support the rapid growth in the country. Of the few alternative rehabilitation solutions that were considered, the approach AnyWay Solutions (AnyWay) offered was to enhance climate resiliency using cold in-place recycling through stabilization. Given the lack of suitable natural pavement materials near many of the roads throughout the country, the solution was preferred and selected with thorough research conducted by the DOWH. Rehabilitation of the Highlands Highway started in late 2010 with the upgrading of the 60-km branch road linking Wabag town and the Western Highlands province's capital, Hagen. The mountainous environment and associated extreme climatic and topographical conditions pose challenges to getting to and from the relevant project sites and overcoming operational difficulties related to the terrain in which these project areas are located. AnyWay has specialized in providing climate resiliency engineering designs and solutions for transport infrastructure for more than two decades, and has worked with the DOWH in developing specific engineering designs and solutions that fit the special conditions of PNG. AnyWay was consulted and has provided an innovative approach to rehabilitating and upgrading many other road projects in PNG, including the Highlands Highway. To assist the DOWH in achieving its ambitious climate resiliency goal, AnyWay’s main approach has been to address pressing issues, such as the lengthy time it takes to construct roads in this region, the lack of readily available quality road-building materials, and the country's unique natural environment. AnyWay’s approach to enhancing the climate resiliency of transport infrastructure projects has always been based on localizing the solutions. Thus, AnyWay sent its team of experts to work with the DOWH engineers to evaluate the problem areas, perform geotechnical investigations, provide appropriate pavement designs, and oversee local contractors' rehabilitation and upgrading works. Through the joint work, AnyWay’s experts shared the wealth of experience they have gained over many years of working on such projects with the various stakeholders, engineers, contractors, supervisors, and local communities. Like in many roads in PNG, the existing pavement structure of the highway has, in most cases, been constructed mainly with locally available alluvial materials that have been identified as being of substandard quality and one of the principal causes of the observed premature distress, leading to the disintegration of the road pavement. Modifying the rounded aggregate used in the initial construction of the road’s pavement layers was essential to obtain the desired angularity and resultant interlock of the coarse fraction to enhance the strength of the base layer of the road pavement. This element is critical for improving the climate resiliency of roads. For this to be achieved economically, a recycling approach was taken with a road recycler employed in the construction process. This machine can mill the upper pavement layers, incorporating the bituminous wearing course in areas where the road has been paved and breaking down the rounded coarse aggregate fraction to more angular particles to ensure better resistance to repetitive loading. An added benefit of the recycler is that its penetration depth can be readily adjusted and accurately controlled to produce a new uniform, well-mixed base course material. The fact that this process is performed in-situ reduces traffic congestion and major earthworks along the rehabilitated stretches. As specialists in climate resilience for transport infrastructure, AnyWay have developed various technologies and solutions that enable the use of such techniques in scenarios that were previously not possible. These solutions are designed to expand the scope of climate resiliency and make it accessible in a wider range of circumstances. One of these technologies and solutions is a cementitious binder called AnyWay’s Natural Soil Stabilizer. Subsequent stabilization of the processed layers with an ANSS, also using the recycler, has been repeatedly proven to be an effective solution for rehabilitation with a very successful result. The sections of this highway and many roads being rehabilitated since that have been completed using this method are performing to the required standard and, in some cases, exceed expectations. The resiliency of these roads is undoubted, as they withstand the extreme climate events imposed on the region over more than a decade. Many roads throughout PNG have since been rehabilitated utilizing the rehabilitation and upgrading approach presented by AnyWay. Through this process, the DOWH engineers and many of the site supervisors, laboratory technicians, equipment operators, and contractors have not only gained a wealth of experience but also increased their knowledge and became well acquainted with the application of this approach.
March 18, 2024
The province of Cebu will partner with private firms to continue oil and natural gas exploration in Alegria town, south of Cebu, Governor Gwendolyn Garcia said Thursday. Garcia’s decision came as Department of Energy (DOE) Undersecretary Alessandro Sales visited the provincial capitol on Thursday to inform the governor of the agency’s intention to continue the exploration and drilling of the oil reserves in the town’s Barangay Montepeller. China International Mining Petroleum Co. Ltd. (CIMP) was already producing commercial quantities of oil and natural gas in 2020 following the discovery of an estimated 27.93 million barrels of oil and a possible production recovery of 3.35 million of barrels of crude oil, or a conservative estimate of 12 percent of total oil in place and reserves. The company also found about 9.42 billion cubic feet of natural gas reserves, with the recoverable resource estimated at 6.6 billion cubic feet, or about 70 percent of total natural gas in place. However, the DOE terminated the contract with CIMP in 2023 when “they were not able to perform adequately” due to the coronavirus disease 2019 (Covid-19) pandemic. Garcia hinted at the possibility of entering into a public-private partnership (PPP) in re-exploring the Montpeller oil fields. “We invite private firms and let them partner with capitol to pursue exploration and drilling efforts to harness the town’s untapped oil and gas resources,” she said. She cited large-scale projects in Cebu such as the Mactan-Cebu International Airport operations, Cebu–Cordova Link Expressway, and joint venture agreements with Filinvest Land and Manila Water that are successfully undertaken through PPP. The governor also said that the province is set to sign a joint venture agreement with the consortium of Spanish firm Acciona Energia Global and Freya Renewables Inc. to build a 150-megawatt solar plant in the northern town of Daanbantayan. According to a statement released by the capitol’s information office, Sales is open to the Garcia’s proposal and willing to facilitate talks between potential investors and the province. By John Rey Saavedra   Article courtesy of the Philippine News Agency
March 18, 2024
The province of Cebu will partner with private firms to continue oil and natural gas exploration in Alegria town, south of Cebu, Governor Gwendolyn Garcia said Thursday. Garcia’s decision came as Department of Energy (DOE) Undersecretary Alessandro Sales visited the provincial capitol on Thursday to inform the governor of the agency’s intention to continue the exploration and drilling of the oil reserves in the town’s Barangay Montepeller. China International Mining Petroleum Co. Ltd. (CIMP) was already producing commercial quantities of oil and natural gas in 2020 following the discovery of an estimated 27.93 million barrels of oil and a possible production recovery of 3.35 million of barrels of crude oil, or a conservative estimate of 12 percent of total oil in place and reserves. The company also found about 9.42 billion cubic feet of natural gas reserves, with the recoverable resource estimated at 6.6 billion cubic feet, or about 70 percent of total natural gas in place. However, the DOE terminated the contract with CIMP in 2023 when “they were not able to perform adequately” due to the coronavirus disease 2019 (Covid-19) pandemic. Garcia hinted at the possibility of entering into a public-private partnership (PPP) in re-exploring the Montpeller oil fields. “We invite private firms and let them partner with capitol to pursue exploration and drilling efforts to harness the town’s untapped oil and gas resources,” she said. She cited large-scale projects in Cebu such as the Mactan-Cebu International Airport operations, Cebu–Cordova Link Expressway, and joint venture agreements with Filinvest Land and Manila Water that are successfully undertaken through PPP. The governor also said that the province is set to sign a joint venture agreement with the consortium of Spanish firm Acciona Energia Global and Freya Renewables Inc. to build a 150-megawatt solar plant in the northern town of Daanbantayan. According to a statement released by the capitol’s information office, Sales is open to the Garcia’s proposal and willing to facilitate talks between potential investors and the province. By John Rey Saavedra   Article courtesy of the Philippine News Agency
March 11, 2024
As Chairperson of the Professional Regulatory Board of Geology, December of last year was quite a busy month. I was given the honor to present the keynote speech during the opening of the Geological Convention (GeoCon) 2023 last 05 December 2023 and the Oath Taking Ceremonies for New Geologists on 11 December 2023. In my speeches, I emphasized the important relationship between geology and national development as geoscientific data and knowledge are essential for informed decision-making and policy-setting in various areas of the economy. The profession is important in the primary production of mineral and energy resources, infrastructure building, advancement of science and technology, and prediction and cost-damage avoidance through better understanding and mitigation of natural hazards. During GeoCon 2023, I started my speech with a reflection on the recent onslaught of different calamities and super typhoons that ravaged our country in the last few years. These devastating disasters have had far-reaching impacts, hindering the development and growth of our nation. These highlighted the urgent need to address climate change, not just on a local scale, but as a global concern that affects every aspect of our society. While the Philippines is a minor contributor to global greenhouse gas emissions, we are undeniably one of the most impacted nations, facing the imminent threat of rising sea levels due to increasing global temperature. Hence, we must recognize that climate change is not an isolated issue. It is an integral factor in our national policy. It is our collective responsibility to tackle this challenge head-on and without hesitation. To address these challenges, the geology profession must embark on a journey of energy transition, building the capacity for resilient communities and a resilient nation. It is imperative that we develop our green economy, as it holds the key to unlocking numerous job opportunities, livelihoods, and the sustainable future we envision for our people. However, this transition will require a collaborative effort between the government and the various industries that strive to achieve the same goal, and thus, we must work hand in hand to achieve this ambitious goal. Renewable energy technologies, such as wind turbines, solar photovoltaic panels and batteries, are essential for transition to climate neutrality. Deployment, maintenance and replacement of this infrastructure requires significant resources, including many substances in the list of critical raw materials. Addressing Wastes However, waste arising from end-of-life clean energy infrastructure is projected to grow up to 30-fold over the next 10 years. This presents significant opportunities to reduce consumption of scarce raw materials by recycling metals and other valuable resources back into the production systems. Waste arising from the development and use of renewable energy infrastructure includes rare earth elements as well as other valuable materials such as steel, copper and glass. The fast pace of technological development means that equipment can be subject to relatively rapid obsolescence and can generate complex waste streams. These present technical and logistical challenges for managing this infrastructure at the end-of-life stage. Recovering materials and reintroducing them into the production cycle faces challenges. Policy makers and industry can address the waste and resource challenges associated with the shift to renewable energy technologies through circular economy approaches. Critical Minerals The Philippines has grand ambitions to take on the global electric vehicle boom with its nine million hectares of land with high mineral potential. Government estimates suggest less than five percent (5%) of our country's mineral reserves have been extracted so far. The country is already, after Indonesia, the world's second-largest producer of nickel and the fourth-biggest producer of cobalt. Nickel and cobalt are among the critical minerals crucial to the modern technological world and the clean energy transition. Both are essential elements for electric vehicles batteries, consumer electronics and advanced defense technologies. However, the Philippines also faces competition from other nations in seeking new investments in critical mineral exploration, development, and processing. At the same time, mining regulatory policies are complicated as the industry has long been synonymous with environmental destruction and social dislocation. The End of Fossil Fuels? Developments in clean energy transition have led to an assumption that the world economy is “done” with fossil fuels. There is no need for further development of new non-renewable energy resources, and we have to stop using them as soon as possible. This assumption has also led to a perception of “good” renewables-based technologies, on the one hand, and “bad” fossil fuels-based technologies, on the other. The reality is that this debate requires a more thorough analysis. Carbon capture and storage technology and managing methane emissions throughout the fossil energy value chain can help meet ambitious CO2 emission reduction targets while fossil fuels remain part of the energy system. This will allow fossil fuels to become "part of the solution", rather than remain "part of the problem". All technologies have a role to play in an energy system as long as they are guided by rational economics. Addressing the issue of sustainable energy requires the engagement of all possible groups of stakeholders. Ignoring the role of fossil fuels will have a negative effect. Many developing countries, like the Philippines, have large untapped fossil fuel resources that they intend to use to develop their economies. Insisting that they forego the use of these resources in favor of renewables is likely to create repercussions in their economies. Let us be reminded that the developed countries built their existing economies on fossil fuels and are still heavily relying on them.  The Philippines, with untapped natural gas reserves in offshore Palawan, can use its resources to develop its economy. Rather than a “non-fossil fuel” agenda, a more pragmatic approach should be used to create a more-balanced strategy. Our government regulators should encourage the use of a broad range of resources available - energy efficiency, renewables, and fossil fuels in a sustainable manner. I see no need to join the bandwagon of banning the exploration, development, and utilization of our fossil-based resources. Energy security must be the primordial objective of the Philippine government. Let me say it again. The Philippines is a minor contributor to global greenhouse gas emissions. The other stakeholder group that is often vilified in the energy transition agenda is the private sector in the fossil fuel industry. In fact, the private sector holds the expertise and often the financial resources to support the needed change to an inclusive green economy. For example, experience in petroleum drilling can be applied to the geothermal industry. Using the financial resources of the big companies along with their knowledge and experience, can facilitate the energy transition. Governments should instead encourage them to diversify to green energy and use environment, social, and government or ESG standards in sustainability reporting. Treating them like outcasts will make the energy transition harder and more expensive. The Role of Filipino Geologists Filipino geologists are in the forefront of fueling the energy transition journey. Geoscientists are employed in a wide variety of jobs, from traditional mining and petroleum to many new areas such as water quality and supply, land-use management and geologic hazards. In a global study, employment of geoscientists is expected to grow 5% in the next 10 years, which is faster than the average for other professions. Science, policy, public health, engineering, education, law, business— all of these fields overlap with the understanding of the earth that comes with a degree in geosciences. The continued need for energy, materials, including the critical minerals for energy transition is projected to increase demand for geoscientists in the future. Responsible stewardship of land and resources are also regularly being deployed in fields that focus on renewables such as hydrothermal power, geothermal, and sites for solar and wind. It’s also important to note that automation and artificial intelligence don’t necessarily mean there’s no future for geologists. What it means is that geologists, like many other professionals, need to learn new skill sets. Robots may be taking over areas such as field mapping and routine jobs like soil and rock sampling but ultimately humans make the final decisions about what to do with the data and information. It’s also human geologists who have to explain to higher management what all the data and information mean! Automation and AI is an opportunity to learn and apply new skills. Let us all embrace change and become digital-savvy geoscientists! In my speech during the oath taking of new geologists, I emphasized that the Professional Regulation Commission (PRC) will spare no effort to provide the support necessary to address the pressing concerns that hinder the professional development of our geoscientists. And even as the PRC invests in infrastructure and institute reforms to improve the geology profession, it will continue to channel the hard-earned money of our taxpayers to empower our geologists—making them productive contributors to the continuing cycle of opportunity and progress. The PRC bear witness to the oaths of exemplary and honorable geologists who have been, and who will continue to be assets to our country. These individuals became leaders and trailblazers in our profession — exemplars of patriotism, of excellence, and wholehearted service throughout their careers and endeavors. For geologists who will join government, public service is no easy task. Serving in an office with such a significant and influential role in the nation’s affairs will be difficult. Life in government will always be hard and challenging, but every service delivered brings purpose, it brings fulfillment. They will be assured of PRC’s unshakable commitment to their protection and welfare, to ensure that they are provided with the necessary tools to perform their tasks and duties in the fulfillment of their service to the nation and the people. The persistent critical challenge presented is to ensure an improved quality of life and economic growth, while reducing the environmental footprint of the resources sector. The transition to a sustainable energy system is an opportunity to improve energy efficiency from exploration to consumption, minimize environmental impacts, reduce energy use and carbon footprints, and correct energy market failures and leakages. Taking advantage of the opportunity will require a coordinated policy review and reforms across many sectors, most especially from the ranks of Filipino geologists. The idea of green mining and the presence of stringent environmental compliance measures may not be enough to make mining widely acceptable to the public. It is their responsibility then to explain the importance of resource development to the general public. I ended my speech by thanking our Filipino geologists, for their dedication, expertise, and unwavering commitment to our beloved nation. The Filipino geologists can make a real difference in climate change mitigation, digital transformation, and clean energy transition, and most especially in the pursuit of a sustainable and prosperous future for the Philippines.   Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. He is also currently the Chair of the Professional Regulatory Board of Geology; the government agency mandated under law to regulate and develop the geology profession. He may be contacted at fspenarroyo@penpalaw.com for any matters or inquiries in relation to the Philippine resources industry and suggested topics for commentaries. Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www.penarroyo.com
March 11, 2024
As Chairperson of the Professional Regulatory Board of Geology, December of last year was quite a busy month. I was given the honor to present the keynote speech during the opening of the Geological Convention (GeoCon) 2023 last 05 December 2023 and the Oath Taking Ceremonies for New Geologists on 11 December 2023. In my speeches, I emphasized the important relationship between geology and national development as geoscientific data and knowledge are essential for informed decision-making and policy-setting in various areas of the economy. The profession is important in the primary production of mineral and energy resources, infrastructure building, advancement of science and technology, and prediction and cost-damage avoidance through better understanding and mitigation of natural hazards. During GeoCon 2023, I started my speech with a reflection on the recent onslaught of different calamities and super typhoons that ravaged our country in the last few years. These devastating disasters have had far-reaching impacts, hindering the development and growth of our nation. These highlighted the urgent need to address climate change, not just on a local scale, but as a global concern that affects every aspect of our society. While the Philippines is a minor contributor to global greenhouse gas emissions, we are undeniably one of the most impacted nations, facing the imminent threat of rising sea levels due to increasing global temperature. Hence, we must recognize that climate change is not an isolated issue. It is an integral factor in our national policy. It is our collective responsibility to tackle this challenge head-on and without hesitation. To address these challenges, the geology profession must embark on a journey of energy transition, building the capacity for resilient communities and a resilient nation. It is imperative that we develop our green economy, as it holds the key to unlocking numerous job opportunities, livelihoods, and the sustainable future we envision for our people. However, this transition will require a collaborative effort between the government and the various industries that strive to achieve the same goal, and thus, we must work hand in hand to achieve this ambitious goal. Renewable energy technologies, such as wind turbines, solar photovoltaic panels and batteries, are essential for transition to climate neutrality. Deployment, maintenance and replacement of this infrastructure requires significant resources, including many substances in the list of critical raw materials. Addressing Wastes However, waste arising from end-of-life clean energy infrastructure is projected to grow up to 30-fold over the next 10 years. This presents significant opportunities to reduce consumption of scarce raw materials by recycling metals and other valuable resources back into the production systems. Waste arising from the development and use of renewable energy infrastructure includes rare earth elements as well as other valuable materials such as steel, copper and glass. The fast pace of technological development means that equipment can be subject to relatively rapid obsolescence and can generate complex waste streams. These present technical and logistical challenges for managing this infrastructure at the end-of-life stage. Recovering materials and reintroducing them into the production cycle faces challenges. Policy makers and industry can address the waste and resource challenges associated with the shift to renewable energy technologies through circular economy approaches. Critical Minerals The Philippines has grand ambitions to take on the global electric vehicle boom with its nine million hectares of land with high mineral potential. Government estimates suggest less than five percent (5%) of our country's mineral reserves have been extracted so far. The country is already, after Indonesia, the world's second-largest producer of nickel and the fourth-biggest producer of cobalt. Nickel and cobalt are among the critical minerals crucial to the modern technological world and the clean energy transition. Both are essential elements for electric vehicles batteries, consumer electronics and advanced defense technologies. However, the Philippines also faces competition from other nations in seeking new investments in critical mineral exploration, development, and processing. At the same time, mining regulatory policies are complicated as the industry has long been synonymous with environmental destruction and social dislocation. The End of Fossil Fuels? Developments in clean energy transition have led to an assumption that the world economy is “done” with fossil fuels. There is no need for further development of new non-renewable energy resources, and we have to stop using them as soon as possible. This assumption has also led to a perception of “good” renewables-based technologies, on the one hand, and “bad” fossil fuels-based technologies, on the other. The reality is that this debate requires a more thorough analysis. Carbon capture and storage technology and managing methane emissions throughout the fossil energy value chain can help meet ambitious CO2 emission reduction targets while fossil fuels remain part of the energy system. This will allow fossil fuels to become "part of the solution", rather than remain "part of the problem". All technologies have a role to play in an energy system as long as they are guided by rational economics. Addressing the issue of sustainable energy requires the engagement of all possible groups of stakeholders. Ignoring the role of fossil fuels will have a negative effect. Many developing countries, like the Philippines, have large untapped fossil fuel resources that they intend to use to develop their economies. Insisting that they forego the use of these resources in favor of renewables is likely to create repercussions in their economies. Let us be reminded that the developed countries built their existing economies on fossil fuels and are still heavily relying on them.  The Philippines, with untapped natural gas reserves in offshore Palawan, can use its resources to develop its economy. Rather than a “non-fossil fuel” agenda, a more pragmatic approach should be used to create a more-balanced strategy. Our government regulators should encourage the use of a broad range of resources available - energy efficiency, renewables, and fossil fuels in a sustainable manner. I see no need to join the bandwagon of banning the exploration, development, and utilization of our fossil-based resources. Energy security must be the primordial objective of the Philippine government. Let me say it again. The Philippines is a minor contributor to global greenhouse gas emissions. The other stakeholder group that is often vilified in the energy transition agenda is the private sector in the fossil fuel industry. In fact, the private sector holds the expertise and often the financial resources to support the needed change to an inclusive green economy. For example, experience in petroleum drilling can be applied to the geothermal industry. Using the financial resources of the big companies along with their knowledge and experience, can facilitate the energy transition. Governments should instead encourage them to diversify to green energy and use environment, social, and government or ESG standards in sustainability reporting. Treating them like outcasts will make the energy transition harder and more expensive. The Role of Filipino Geologists Filipino geologists are in the forefront of fueling the energy transition journey. Geoscientists are employed in a wide variety of jobs, from traditional mining and petroleum to many new areas such as water quality and supply, land-use management and geologic hazards. In a global study, employment of geoscientists is expected to grow 5% in the next 10 years, which is faster than the average for other professions. Science, policy, public health, engineering, education, law, business— all of these fields overlap with the understanding of the earth that comes with a degree in geosciences. The continued need for energy, materials, including the critical minerals for energy transition is projected to increase demand for geoscientists in the future. Responsible stewardship of land and resources are also regularly being deployed in fields that focus on renewables such as hydrothermal power, geothermal, and sites for solar and wind. It’s also important to note that automation and artificial intelligence don’t necessarily mean there’s no future for geologists. What it means is that geologists, like many other professionals, need to learn new skill sets. Robots may be taking over areas such as field mapping and routine jobs like soil and rock sampling but ultimately humans make the final decisions about what to do with the data and information. It’s also human geologists who have to explain to higher management what all the data and information mean! Automation and AI is an opportunity to learn and apply new skills. Let us all embrace change and become digital-savvy geoscientists! In my speech during the oath taking of new geologists, I emphasized that the Professional Regulation Commission (PRC) will spare no effort to provide the support necessary to address the pressing concerns that hinder the professional development of our geoscientists. And even as the PRC invests in infrastructure and institute reforms to improve the geology profession, it will continue to channel the hard-earned money of our taxpayers to empower our geologists—making them productive contributors to the continuing cycle of opportunity and progress. The PRC bear witness to the oaths of exemplary and honorable geologists who have been, and who will continue to be assets to our country. These individuals became leaders and trailblazers in our profession — exemplars of patriotism, of excellence, and wholehearted service throughout their careers and endeavors. For geologists who will join government, public service is no easy task. Serving in an office with such a significant and influential role in the nation’s affairs will be difficult. Life in government will always be hard and challenging, but every service delivered brings purpose, it brings fulfillment. They will be assured of PRC’s unshakable commitment to their protection and welfare, to ensure that they are provided with the necessary tools to perform their tasks and duties in the fulfillment of their service to the nation and the people. The persistent critical challenge presented is to ensure an improved quality of life and economic growth, while reducing the environmental footprint of the resources sector. The transition to a sustainable energy system is an opportunity to improve energy efficiency from exploration to consumption, minimize environmental impacts, reduce energy use and carbon footprints, and correct energy market failures and leakages. Taking advantage of the opportunity will require a coordinated policy review and reforms across many sectors, most especially from the ranks of Filipino geologists. The idea of green mining and the presence of stringent environmental compliance measures may not be enough to make mining widely acceptable to the public. It is their responsibility then to explain the importance of resource development to the general public. I ended my speech by thanking our Filipino geologists, for their dedication, expertise, and unwavering commitment to our beloved nation. The Filipino geologists can make a real difference in climate change mitigation, digital transformation, and clean energy transition, and most especially in the pursuit of a sustainable and prosperous future for the Philippines.   Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. He is also currently the Chair of the Professional Regulatory Board of Geology; the government agency mandated under law to regulate and develop the geology profession. He may be contacted at fspenarroyo@penpalaw.com for any matters or inquiries in relation to the Philippine resources industry and suggested topics for commentaries. Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www.penarroyo.com
February 28, 2024
In the dynamic realm of automotive engineering, the pursuit of optimal performance and reliability is an enduring challenge. Choosing between Original Equipment Manufacturer (OEM) parts and aftermarket alternatives is a critical decision, and the case for OEM parts, especially those equipped with Donaldson's Ultraweb Media Technology, becomes even more compelling when we delve into the data-backed advantages. Donaldson's Rich History: Pioneering Filtration Since 1915 Embarking on their journey in 1915, Donaldson's initial foray into air filtration for tractor engines laid the foundation for a century-long legacy of innovation. Today, Donaldson is a global leader in filtration solutions, with a commitment to pushing the boundaries of technology. This rich history is not just a chronicle of the past but a testament to the relentless pursuit of excellence. Technological Marvel: Ultraweb Media's Data-Driven Superiority The heart of the argument for OEM parts lies in Donaldson's cutting-edge Ultraweb Media. Looking at the data, it speaks volumes about its performance. The synthetic nanofiber layer isn't just a claim – it's an engineering marvel that showcases exceptional filtration efficiency while maintaining optimal airflow. By examining particle capture efficiency, pressure drop characteristics, and dustholding capacity, engineers and enthusiasts gain a quantitative understanding of how Ultraweb Media outperforms conventional filtration technologies. The data not only showcases Ultraweb Media's prowess but also provides a benchmark for evaluating its impact in real-world applications. Real-World Validation: Case Studies in Reliability To fortify our case, let's examine real-world case studies. Our longtime Donaldson coal mining customer in Charleston, West Virginia, claimed to have one of the longest-running engines in the industry – 51,000 hours of work without a rebuild or major repairs, the equivalent of almost six years of continuous work by using Donaldson Filters. This offers a tangible glimpse into the impact of Donaldson's filtration solutions on heavy-duty equipment. The data reveals not only the longevity and reliability that Ultraweb Media imparts but also its costeffectiveness over the long term. Reduced maintenance costs and increased engine lifespan are not just theoretical benefits but proven outcomes in practical scenarios Cost vs. Quality: A Data-Backed Perspective Critics may argue that OEM parts are costlier, but the investment is justified by the wealth of data supporting the advantages they bring. The engineering brilliance encapsulated in Donaldson's OEM parts, featuring Ultraweb Media, translates into quantifiable benefits. The total cost of ownership, including reduced maintenance expenses and prolonged engine life, often outweighs the initial cost difference. As we navigate the intricate landscape of automotive components, the datadriven argument for Donaldson's OEM parts with Ultraweb Media becomes even more compelling. From a history rooted in tractor engine air filtration to the forefront of cutting-edge technology, Donaldson's legacy is one of relentless innovation. Engineers and enthusiasts, when it comes to your vehicle's engine – the beating heart of performance – trust in the data, trust in the century-long legacy, and choose OEM parts that embody the engineering prowess Donaldson is renowned for. It's not just about parts; it's about data-backed reliability, longevity, and a commitment to keeping your engine running at its very best.
March 12, 2024
[Quezon City] Dec. 5-6, 2023 - During the GEOCON 2023 of The Geological Society of the Philippines (GSP), various scientific presentations discussed energy transition, innovative studies and technology applications on Earth Science, and more. The theme of the two-day conference is “Our Natural Resources: Fueling the Energy Transition Journey”. GSP President, Mr. Joey Nelson R. Ayson said that this aptly captures how we recover from the effects of Covid-19 pandemic and at the same time put Environmental, Social, Governance (“ESG”) at the forefront of their activities. He stated, “It also highlights the significant contribution of geologists and geosciences in general to our socio-economic development, environmental sustainability, and climate change adaptation activities.”
March 12, 2024
[Quezon City] Dec. 5-6, 2023 - During the GEOCON 2023 of The Geological Society of the Philippines (GSP), various scientific presentations discussed energy transition, innovative studies and technology applications on Earth Science, and more. The theme of the two-day conference is “Our Natural Resources: Fueling the Energy Transition Journey”. GSP President, Mr. Joey Nelson R. Ayson said that this aptly captures how we recover from the effects of Covid-19 pandemic and at the same time put Environmental, Social, Governance (“ESG”) at the forefront of their activities. He stated, “It also highlights the significant contribution of geologists and geosciences in general to our socio-economic development, environmental sustainability, and climate change adaptation activities.”

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