ECCP Launched the 1st Philippine Natural Resources Development Forum
by Marcelle P. Villegas - May 29, 2019
By Marcelle P. Villegas
26 April 2019 - The European Chamber of Commerce of the Philippines (ECCP) organized and launched the 1st Philippine Natural Resources Development Forum at the Marriott Hotel Manila. The forum’s theme was “Harnessing Natural Resources for Inclusiveness and Sustainable Development”.
ECCP describes the current status of the Philippine mining industry:
“The mining industry in the Philippines is a major economic activity but remains operating below potential. There is a considerable anti-mining sentiment in the country especially at the subnational levels where environmental impact and displacement of indigenous peoples caused by mining operations have been the focus of much debate. Small-scale mining is also contentious, due to poor regulations and overlapping policies between national and local government. The ECCP believes that the contribution to national development can be further enhanced through better regulatory and enabling policies, best practices in value sharing, environment-friendly technologies and socially responsible investments.” 
According to ECCP, the objective of the 1st Philippine Natural Resources Development Forum intends to convene decision makers and other key stakeholders from the Mining (Metallic and Non-metallic subsectors) as well as Upstream Oil & Gas, Coal subsectors, to discuss challenges, opportunities, policy reforms and best practices in harnessing the country’s natural resources and their contribution to sustainable development. 
Present during the event were key players in the mineral resources industry from the public and private sectors. There were also participants and attendees from civil society organisations and academic groups. The forum discussed the latest issues and challenges being faced by the mining industry in the Philippines. The forum and its speakers thoroughly enumerated the many ways that the industry has contributed to the Philippine economic and social development. The forum also covered discussions on good governance, environmental management within a mining operation, global standards and sustainable mining practices.
The forum had four sessions namely: Contribution to National, Local and Community Development, Global Standards in Enhancing Inclusion along the Value Chain, Good Practices in Responsible Natural Resource Management and Inclusive Value Chain, and Unlocking Future Growth Opportunities.
The Welcome Address was given by Mr Nabil Francis, President of ECCP who emphasised the great potential and role of mining as an economic development catalyst in the country, for which proper information sharing, such as this forum, is key in solving the industry’s current problems. “While there is much to do in terms of regulation and improving doing business in this sector, it is very encouraging to see you all here today willing to listen, willing to learn, willing to contribute to this common goal,” he stated.
During the first session, Acting Director of the Mines and Geosciences Bureau (MGB), Atty. Wilfredo Moncano, was a speaker and he discussed the current status of the mineral industry in the Philippines, including the approved mining tenements, the sector’s economic contribution, and current and proposed fiscal regime. 
On his keynote speech, Secretary Roy A. Cimatu of the Department of Environmental and Natural Resources (DENR), mentioned five aspects of proper management of our mineral resources: (a) social; (b) environmental; (c) technological; (d) industrialization; and (e) exploration aspect.
The Secretary noted the importance of “social acceptability” in the industry, and treating host communities more than just as a legal or regulatory sense. In the environmental aspect of operations, he emphasised the need to pay more attention to waste production since mineral extraction is the largest global waste producer. The secretary expressed his discontent on the weak enforcement of environmental laws and mitigating measures, and implored the mining sector to cooperate and “strictly comply with environmental laws and standards.”
For this, the Secretary recommended the upgrade of monitoring system, standards, and practices in order to have better control on environmental issues. Secretary Cimatu stated that we should ensure availability of mineral resources for the future generation, thus we have to pursue sustainable exploration and extraction methods including but not limited to shifting to renewable energy.
Representatives of Quisumbing Torres, Atty. Gaston Perez de Tagle and Atty. Dennis Quintero were the moderators of the Open Forum. In one interaction with speakers from the public sector, one of the delegates was the international award-winning architect and urban planner, Arch. Felino “Jun” A. Palafox, Jr. He pointed out (through his question) that given that the Philippines is very much rich in natural resources, that the taxes generated from the operations is clearly a solution in alleviating poverty in Philippines.
During the four sessions of the forum, the other speakers were Usec. Bayani Agabin (Undersecretary for Legal Services, Department of Finance), Mr Jerome G. Cipriano (SGS Phils., Inc.), Mr Isidro C. Alcantara, Jr. (Chairman, Philippine Nickel Industry Association), Mr John Reinier Dizon (VP - Strategy and Business Development, Republic Cement Services, Inc.), Mr. Angelo Kris Marcos (Senior Contracting and Procurement Manager, Shell Philippines Exploration B.V.), Mr Michael Spence (Managing Partner of Southeast Asia Partners in Performance), Usec. Analiza Rebuelta-Teh (DENR), Mr Gerard Brimo (Chairman, Chamber of Mines of the Philippines), Mr Renato C. Sunico (Chair and President, Cement Manufacturers’ Asso. of the Phils.), Engr. Rufino Bomasang (Chairman, Petroleum Asso. of the Phils.), and more.
Some facts about the Philippine Mining Industry from ECCP:
~ 30 million hectares of land in the Philippines are possible areas for metallic minerals
~ 9 million hectares of land are identified as having high mineral potential
The Philippines is endowed with bountiful metallic and non-metallic mineral resources. It is the 5th most mineral-rich country in the world for gold, nickel, copper and chromite. The Philippines has the world’s largest copper-gold deposit in the world. It also exports some iron ore, chromium, zinc and silver, and produces oil and gas.
The Mines and Geosciences Bureau (MGB) estimates that the country has $840 billion worth of untapped mineral wealth.
Approximately 30 million hectares of land in the Philippines are possible areas for metallic minerals; nine million hectares of land are identified as having high mineral potential. The Philippines metal deposits is estimated at 21.5 billion metric tons and non-metallic minerals are at 19.3 billion metric tons.
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 Retrieved from https://www.eccp.com/events/?id=499
 Retrieved from http://mgb.gov.ph/en/2015-05-13-02-02-11/mgb-news/860-eccp-conducts-the-1st-philippine-natural-resources-development-forum
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Philippine Resources - May 23, 2023
MEMORANDUM OF AGREEMENT SIGNED WITH TVI RESOURCE DEVELOPMENT (PHILS.) INC.
Photo credit: TVI Resource Development The Board of RTG Mining Inc. is pleased to announce that a comprehensive settlement of all outstanding issues with the Villar Family controlled Sage Capital and TVI Resource Development (Phils.) Inc. (“TVIRD”) has been reached and a binding Memorandum of Agreement signed. On execution of the final documents, expected in the next month, all litigation that RTG had launched will be withdrawn as part of an agreed restructuring of the Mabilo Project. The Villar Family is one of the most prominent families in the Philippines and RTG is pleased to partner with them in the development of the Mabilo Project, which is a significant mining project for the country. The key terms of the agreement for RTG include the following: RTG (through SRM Gold Limited) will retain a 40% interest in Mt. Labo Exploration and Development Corporation (“Mt. Labo”) with the project also developed by Mt. Labo, in line with Philippine regulatory requirements, with Sage Capital (which is owned by TVIRD) holding the remaining 60%; RTG will have a 2% net smelter royalty (“NSR”); RTG’s debt together with interest, currently in the order of US$27M (subject to audit) will be repaid out of the proceeds of Stage 1 of the project, the Direct Shipping Operation subject to customary requirements to address liquidity and ongoing operations of Mt. Labo; Funding arrangements for the project as between the major shareholders of Mt. Labo have been successfully renegotiated, (relieving RTG of a sole funding obligation) and replaced with a pro-rata funding obligation, together with a disproportionate funding obligation of Sage Capital, as set out below; With debt repayments in full and the NSR, RTG will be entitled to approximately 57% of the proceeds of Stage 1, the Direct Shipping Operation; RTG will be entitled to 40% of the operating cashflow of the project, together with the 2% NSR and repayment of its debt, which is currently in the order of US$27M; The first US$5M of expenditure for Mt. Labo (or 12 months of expenditure, whichever occurs the earlier), will be funded pro-rata between the two shareholders (ie RTG will provide 40%) and thereafter, Sage Capital/TVIRD will sole fund the next US$5M of expenditure, with all additional funding thereafter to be provided on a pro-rata basis; All parties are required to act in the best interests of the project and not compete; A shareholders’ agreement will be finalised which will provide typical minority interest protection clauses including reserve matters for voting including annual budgets and appointments of key personnel; Any disputes will be resolved by the Singapore International Arbitration Centre; and On completion of final signed documents, all litigation matters will be withdrawn and settled in full. With the restructuring of the Mabilo Project now agreed, over the balance of this year, the remaining permitting matters and financing plans will be finalised, a review of the 2016 Feasibility Study will be completed, together with finalising the acquisition of surface rights, following which, a commitment to development will be formalised by the Board of Mt. Labo. RTG is pleased with the outcome of the discussions and the co-operative and constructive approach adopted by the Villar Family representatives. RTG believes they can be a strong and positive partner to work with to take the Mabilo Project forward, with both a near term development and future exploration activities to expand the project, which will start to unlock the value of the project for all stakeholders, not only the local communities but for the country as a whole.
Philippine Resources - May 22, 2023
Mining Operational Excellence Through Digital Transformation
Part 1: Mining Operation Challenges and Mine Operations Management Domains 1 & 2. By Mae Ann Cabasag, EM Mining companies encounter numerous challenges throughout their operations. However, initiatives to mitigate these challenges and improve efficiency are often limited. Most of these limitations emanated from a common factor: the challenge of “poor visibility” in mining operations. A viable solution is to adopt digital transformation in mining operations by incorporating available real-time data into an integrated system— capable of ensuring automatic updates and reliable source of information. Through this, mining companies not only understand simulations and plans developed but also anticipate potential outcomes. Various mining industry analysts have found that using non-digital methods in the mining operations can lead to a 27% reduction in production time and 25% increase in data inaccuracy. For a mining company to remain competitive in an industry susceptible to operation challenges, i.e. production processes, workers’ and equipment performances, ore quality and quantity, compliance to regulations, and inter-departmental collaboration, it needs to embrace digital transformation. Dassault Systèmes Mine Operations Management provides transformative digital solution for mining companies to achieve excellence in their operations. Mine Operations Management (MOM) equips mining companies with an integrated system for their mining operations, enabling them to achieve efficient plan and schedule. This system integrates entire operation data into a single repository source of information, known as the “single source of truth”, ensuring complete transparency of the company’s processes from mine to port. By leveraging MOM, we can address the following global mining industry challenges: Maintaining competitiveness amidst market volatility. Eliminating waste materials, poor communication, and error duplication. Improving site productivity and efficiency. Utilizing assets and sharing best practices across the value chain. Ensuring an utmost level of safety. Reducing environmental impacts and achieving sustainable operations. The transformative digital solution, Mine Operations Management, is composed of eight work packages, split across four domains, namely: Data Management, Material Reconciliation, Operational Control, and Assets Performance. These domains help generate valuable insights from integrated operational data for rapid and informed strategic decision-making. The Data Management consists of Master Data Model and Integration Framework packages essential for material tracking, stockpile management, task and workforce management, machine performance, and asset maintenance. It enables users to manage master data objects such as Site, Material, Location, Equipment, and Operator through manual data entry or third-party source systems. With this, mining companies can ensure efficient and integrated management of critical data required for seamless operations. Material Reconciliation, on the other hand, consists of Material Tracking and Stockpile Management packages. Material Tracking enables us to track material movements across different stages, i.e. from the least accurate grade estimated in geological model to the most precise information on shipped material quantity and quality, to account for any inaccuracies. While in the Stockpile Management, users not only can calculate daily stockpile balance, add Survey or Sampling data, analyze inventory levels and trends, create graphical representation of the stockpile balances and movements, calibrate stockpile using volumetric survey and sampling, enables comparison of different models, track movement genealogy and review stockpile slices for stockpiles with LIFO and FIFO calculation type but can create a different type of analysis such as actual vs plan vs model. In the upcoming article, we will explore the two remaining domains of Mine Operations Management to where assigning operational tasks, tracking compliance to plan, monitoring equipment down to workers’ performance are feasible in the mining operations. To know more about MOM, mining innovations and solutions, contact Dassault Systèmes Value Solutions Partner: Paramina Earth Technologies Inc. through firstname.lastname@example.org References: Make it happen for mine execution excellence: Dassault Systèmes®. MEGATrends. (n.d.). https://events.3ds.com/make-it-happen-for-mine-execution-excellence Dassault Systèmes. (2021, August 12). Digging deeper: The virtual solution for Mining Operational Excellence. Dassault Systèmes. https://discover.3ds.com/virtual-mining-operational excellence dassault3ds. (2022, June 16). The mining industry needs to adapt, but how? Dassault Systèmes blog. https://blog.3ds.com/brands/delmia/the-mining-industry-needs-to-adapt-but-how/
Philippine Resources - May 22, 2023
Customer’s First Choice: Sandvik Philippines Delivers 11th and 12th Pantera DP1500i Drills to Filminera Resources Corporation
Sandvik Philippines has successfully commissioned and delivered to loyal customer Filminera Resources Corporation (“Filminera”) their 11th and 12th Pantera DP1500i Top-hammer Surface Drills last 25 January 2023 at the Masbate Gold Project (MGP) located in Masbate Island, Philippines. Photo shows Sandvik Technician Larry Lugnas (second from left) and Service Operations Manager Jorge Cabello (third from left) handing over the drills to MGP representatives. Located 360 km southeast of Manila, the Masbate Mine is operated by Filminera, the Philippine subsidiary of TSX- and NYSE-listed B2Gold with headquarters in Vancouver. In 2022, the mine produced a record-setting 212,728 oz of gold out of 7.93M tonnes of ore milled at an average grade of 1.11 g/t. B2Gold also operates the Fekola Mine in Mali and the Otjikoto Mine in Namibia. Their projects under development include the Anaconda Area in Mali and the Gramalote JV Project in Colombia. The Masbate Mine started operating in 2008 initially using 4 x Atlas Copco ECM660 Drills owned and operated by the erstwhile mining contractor, Leighton. When the opportunity for re-fleeting came about in 2012, Sandvik succeeded in winning the tender which came packaged with a full maintenance contract for 24,000 service meter hours of five years. Ironically, the said maintenance contract almost led to the cancellation of the order for the first 4 x DP1500i due to a dispute with the rates. Eventually, both Leighton and Sandvik were able to arrive at a mutually acceptable arrangement, and Sandvik ran the service contract for five years without incurring penalties in the availability guarantees. The contract was so profitable, Sandvik even had to share some of the residual profit at the end with Filminera under the pain-and-gain proviso of the contract. The next re-fleeting opportunity came in 2017, with the Masbate Mine. This time, there was no service contract attached to the equipment and Leighton was no longer the mining contractor; the mine has shifted to owner-miner operation. Sandvik managed to secure the repeat order for another batch of 4x DP1500i, banking on the proven performance and reliability of the first four. That brings the total to 8 units. Drill numbers 9 and 10 were ordered in July 2020 and delivered in 2021. Numbers 11 and 12 in the photo above were ordered in January 2022 and are now handed over to the customer. Filminera ordered two more DP1500i’s in November 2022; these machines are now awaiting completion in Tampere, for delivery later this year. That should bring the total to 14 x DP1500i units spread over 11 years for our most loyal Pantera DP1500i customer in the Philippines – Filminera Resources Corporation!
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