By Marcelle Villegas
The Mining Philippines International Conference and Exhibition 2019 last September presented the many aspects on how the local mining industry affects other industries as well, such are the agriculture, infrastructure, energy sector, petroleum and more.
Change in general is one of the main focus of the conference. “Change is inevitable. In today's fast-changing business landscape, change is the main catalyst for growth.”
It was also emphasised by the various speakers that change is a great equalizer that allows the emergence of new businesses, startups and crowdfunded enterprises in order to compete with bigger and more influential multinational companies. [1]
“Changes has been knocking at the door of the mining industry. Embracing change is no longer an option. It is do or die.”
This explains why the theme of the conference is “Riding The Wave: Capitalizing on Opportunities”. Change creates a wave that shapes the mining industry today, and is an important factor in nation-building.
“The interplay of internal and external forces is creating a wave of change that can bring the industry to new heights. The Chamber of Mines has prepared a diverse program that will give conference attendees a better understanding of the social, geo-political and economic landscape and market trends that have and will continue to shape the mining industry as we know it today.” [1]
“Demand for minerals is projected to increase in order to achieve energy transition. Given that low-emission energy and transportation systems are more mineral-intensive than their fossil fuel-based counterparts, the transition provides a great opportunity for the mining sector.”
Philippine Mining Today
“The Philippines is a leading producer of nickel and is a significant producer of gold, copper, chromium, zinc and silver. We also produce oil and gas. In the 5th Country Report of the Philippines Extractives Industry Transparency Initiatives (PH-EITI), it is reported that there are currently 48 large-scale metallic mines with a total production value of PHP 108.7 billion. [2]”
“The country accounted for 11% of the world’s production of nickel in 2017. Other commodities being produced in the Philippines include chromite, zinc, iron, silver, crude oil and natural gas.”
“Domestic production follows a similar trend as mining - declined from 3 million barrels of oil in 2014 to only 1.5 million barrels in 2016. Production from Galoc oil field has been the main contributor to the total output, producing 1.4 million barrels of oil in 2017.”
“The Philippines has rich deposits of gold, copper, nickel, chromite, and reserves of coal, zinc, iron, molybdenum, crude oil and natural gas. While the Philippines is ranked as the world’s 5th most mineralized country by estimated reserves valued at USD1.39 trillion, only around 2.35% of the 9 million hectares holding mineral reserves are covered by mining permits as of August 2018. As of 2018, the Philippines accounted for 6.4% of the world’s total estimated reserves of nickel.”
Revenue Collection
“The latest EITI disclosures (2017) show that the Philippines received USD 722 million (PHP 37.8 billion) from the extractive industry. This was a 26% increase from the previous year (USD 536 million or PHP 28 billion in 2016). Almost 74% of these revenues came from oil and gas, with the rest from mining.”
“Oil and gas revenues were mainly collected through the government’s share of oil and gas production (63% of oil and gas revenues) and corporate income tax (28%), while mining revenues were mainly collected through corporate income tax (38% of total mining revenues) and excise tax on minerals (24%).”[2]
Reference:
[1] Retrieved from Mining Philippines 2019 Conference and Exhibition Directory
[2] PH EITI 5th Country Report (FY 2017) vol.1, p.15
