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Fishermen in a mining community harvest 12,000 kilos of bangus in 4 months

by Philippine Resources - June 30, 2021

GAMAWA is a 21-strong fishermen’s cooperative in a mining community of barangay Wanke, Claver, Surigao del Norte.

Republic Act 11535, creating the position of a Cooperatives Development Officer (CDO) mandatory in all local government units (LGUs), was signed into law last April 9.   This directs the LGUs – from the municipal, city, and provincial levels – to appoint its own CDO.

In Taganito Mining Corp. (TMC), a CDO is a regular job description – someone in charge of identifying promising groups in different sectors in the communities to guide and assist them to organize their own cooperatives.

Edelina E. Peraz is the Community Development Coordinator at TMC and she says “as a mining company, TMC is tasked by law to ensure social and economic development of the communities and we have long acknowledged the significance of a successful cooperative to achieve this” says Peraz.

One of the organizations that Peraz has been assisting since its inception is the Gagmay’ng Mananagat sa Wangke (GAMAWA), a cooperative of small fishermen in barangay Wanke, in Claver, Surigao del Norte.

Last month, GAMAWA recorded another big harvest – a total of 4,270 kilos of bangus that converted a total sale of P480,238.00 pesos.  But their biggest record was last December when they harvested 7,928 kilos of bangus that sold for a whopping P889,292.00.

GAMAWA President, Felix Saranza’s leadership style is key to the success of the organization.  CDOs, Urbiztondo (right) and Peraz (left) express that his success is TMC’s success as well.

 The success of GAMAWA also showcases the effective leadership of its president, Felix Saranza.

“It is important to understand the interests of the individual member and of the whole group, to keep the organization intact, until everyone gets the taste of the fruits of everyone’s labor,” says Saranza.

“It is a democracy, I cannot decide until everyone involved agrees, so it can be very hard sometime, but in the end, it is all worth it because members actively participate when they know they have a say in decision making,” Saranza adds.

“We owe all our accomplishment to the support of TMC,” Saranza declares.

Since 2017, TMC has inputted an accumulated fund of some P5.5 million pesos from the mining company’s Social Development Management Program to help GAMAWA build state-of-the-art fish cages in a 450-square meter area with 3 chambers that can handle 30,000 bangus fingerlings in a single cropping.

“In a cooperative where you have members with different personal quirks, different economic challenges and demands, different issues, you need a strong leader respected by everyone to keep things together, and Mr. Saranza is perfect for the role” explains another CDO, Judy B. Urbiztondo, Senior Community Development Specialist for TMC

Urbiztondo says the Co-op of GAMAWA has gone through a lot of challenges and sacrifices that taught the members valuable life lessons that got them to what they enjoy today – a strong cooperative and a sustainable livelihood. 

But success, according TMC’s CDOs, means the cooperative will be able to grow the fish farm bigger to better the lives of its 21 members for years and years to come.

“Taganito Mining’s partnership with GAMAWA aims to prove the strength of a collaborative effort between the mining company and its communities toward a shared goal of empowering cooperatives,” explains Engr. Artemio E. Valeroso, Resident Mine Manager at TMC.

Valeroso adds that another worthy take away from the success story of GAMAWA are the information from the members that help define how communities can actually take active part in the success of societies.

Taganito Mining is located in Claver, province of Surigao del Norte. Its area of operations is within the Surigao Mineral Reservation.



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Philippine Resources - April 20, 2021

TMC pays P75.5 million in taxes to Claver LGU

As part of its commitment to contribute to local economy, Taganito Mining Corporation (TMC), a subsidiary of Nickel Asia Corporation (NAC), handed over its tax payments amounting to P75.5 million to the municipality of Claver. The payments consist of P 65,329,304.37 million in Business Tax and P 10,169,769.60 in Real Property Tax which were handed last December 14, 2020 and January 20, 2021, respectively. The handover of tax payments was led by Mine Accountant Cristy Mae Comandante-Pariño, Division Manager Salvador Cabauatan and Comrel Manager Roel Paniza. On behalf of Claver LGU, the tax payments were received by Municipal Treasurer Caryl Cagas-Lukban, in the presence of Municipal Administrator Atty. Jeffrey Galido and Sanggunian Bayan members. “TMC is committed to creating a positive impact in our host and neighboring communities and one way we do this is by ensuring timely payment of our taxes which translates into projects and services for the community. This is on top of our Social Development and Management Program (SDMP) and Corporate Social Responsibility (CSR) program funds,” shares TMC Resident Mine Manager Artemio E. Valeroso. Based on data from the Commission on Audit consolidating the total assets of LGUs in 2019, the mining town of Claver ranked 1st among the richest municipalities in Mindanao with P 1.91 billion worth of assets. Meanwhile, Surigao del Norte ranked 6th among the richest provinces in the country with P 16.68 billion worth of assets. TMC is a four-time awardee of the Philippine Extractive Industries Transparency Initiative for Excellence in Reporting of payments made to the government. TMC also ranked 14th among the Department of Finance’s list of Top 500 taxpayers who filed their income tax returns ahead of the deadlines which were deferred due to lockdowns during the pandemic. In response to the coronavirus pandemic, TMC has mobilized over P 19.1 million to extend relief goods, medical supplies, test kits and other assistance to its host and neighboring communities in the province of Surigao del Norte.

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Philippine Resources - August 03, 2021

OceanaGold Provides Didipio Update and Q2 2021 Financial Results

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Strong first half performance at Haile has put us firmly on track to deliver ahead of 160,000 gold ounces for the full year at moderately higher AISC, largely driven by an increased proportion of mining costs capitalised as pre-strip plus higher than expected mining costs incurred. On the other hand, a softer first half at Macraes is driving production to the lower end of guidance of 155,000 to 165,000 gold ounces for the full year at consequently higher AISC. Waihi is firmly on-track and production guidance remains unchanged but at improved costs. We expect to provide updated consolidated guidance in-line with the staged restart of Didipio over the coming weeks.” “Renewal of the FTAA at Didipio was one of our key priorities this year, and I’m extremely proud to say we delivered. The staged restart of the asset is underway with the current focus on the rehire and training of our skilled Philippine workforce. 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Unit mining and milling cost decreased quarter-on-quarter, and increased 9% and 36%, respectively, YTD over the prior year period. Second quarter decreases reflect lower maintenance activities on the mining fleet and higher mill feed following milling disruptions from the first quarter; YTD increases are attributable to higher maintenance costs and an unplanned mill disruption from blocked crusher chutes in the first quarter that have since been resolved. The decrease in site G&A quarter-on-quarter reflects the increase mill feed and lower costs during the period. Confirmed COVID-19 cases at site increased from 111 at the end of the first quarter to 120 by the end of the second quarter, a decrease in positive cases from 48 in the first quarter to nine in the second quarter. 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Unit mining costs were 6% and 28% higher quarter-on-quarter and YTD over the prior year period, respectively, as a result of reduced trucking productivity from inclement weather which saturated haul roads, flooded active open pit mining areas, and rendered the underground inaccessible for a two-week period in the first quarter. Mining efforts were subsequently re-directed to increased waste mining and pre-stripping at Deepdell North open pit through the first half. Processing unit costs also increased over comparable periods, reflecting the one-off mill motor outage in the first quarter and extended mill shutdown during the second quarter. 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Mining

Philippine Resources - August 02, 2021

Lawmaker Renews Call for Mining Tax Regime, Trust Fund During National Confab of Mining Stakeholders

Albay Rep. Joey Sarte Salceda has called for the passage of the proposed fiscal regime for the mining industry, saying the industry is a potential job creator in the post-COVID future. Salceda, chairman of the House committee on ways and means, emphasized the natural wealth potential of the Philippines, but observed "key deficiencies in the country’s extractive industry governance framework," some of which can be resolved by a “coherent tax regime.” “The country is the fifth most mineral-rich country in the world for gold, nickel, copper, and chromite. It is also home to the largest copper-gold deposit in the world. Estimates suggest that up to 840 billion dollars of untapped mineral wealth is in Philippine soil,” Salceda said in his keynote speech during the Extractive Industry Transparency Initiative (PH-EITI) National Conference on Thursday. “This is not to mention the 17.1 billion barrels of oil deposits that China’s Ministry of Geology and Mineral Resources estimates to be in the Spratlys, or the 190 trillion cubic feet of natural gas that the US Energy Information Administration believes to be in the area. “These resources, if extracted and managed properly, could make the Philippines one of the richest countries in the world,” Salceda added. Salceda noted that although the issuance of Executive Order 130, amending Section 4 of Executive Order No. 79 s. 2012, lifted the moratorium imposed by the latter on new mining agreements, the Executive Order still has areas for improvement. “First, neither Congress nor the Department of Finance, the country’s fiscal policymakers and fiscal administrators respectively, are given a specific role in this process by the new EO,” Salceda said. Salceda also observed that the EO delegates some powers that are not supported by law, including the power of the Department of Environment and Natural Resources (DENR) to negotiate tax agreements with miners. Salceda also said it is the DOF that has the experience in financial management and should therefore negotiate revenue sharing agreements on the government’s behalf. Salceda, however, emphasized the high potential of the mining sector post-pandemic. “As the world shifts towards electric-powered transport, and as the digital economy continues its ascent, the global economy will require more minerals, especially nickel and copper, which we abound in. Nickel prices are once again in 5-year high levels. So is copper and cobalt, elements needed for e-vehicle batteries,” Salceda said. “Regardless of the grade of minerals we produce, demand is high across the board. It can only mean well for our mining industry’s bottom lines in the medium-term,” Salceda added. Salceda stressed the revenue-generating potential of the industry if a tax regime is enacted. “The tax revenues are also crucial for economic recovery. The proposed regime will generate P7.2 billion in incremental revenues on the first year and P37.9 billion over the next 5 years. These are closed-group estimates. “They are probably conservative, as more mining agreements are made and as mineral prices continue to boom. So, these revenues will play an important role in helping stabilize our fiscal situation,” Salceda said. The industry could create well-paying jobs post-pandemic but stressed the need for a mining trust fund supported by tax revenues from mining as a “rainy day fund” for when mineral prices are low. “Of course, that’s [high prices] not forever. Manufacturers will find ways to reduce metallic content when the metals get too expensive. When that happens, prices will inevitably fall. We must be ready. The tax regime is not everything, but it’s a necessary step we cannot skip,” Salceda said.

Mining

Philippine Resources - August 02, 2021

Philex Delivers PHP1.149B Core Net Income in 1H2021, An Increase of 186% Compared with 1H2020

Photo Credit: Redjie Melvic Cawis Philex Mining Corporation announced that the Company achieved another new high in its revenues and core net income for 2Q2021. Philex recorded a Core Net Income of Php610 million for the 2nd quarter. In addition to the Php540 million core net income it already recorded in 1Q2021, Philex registered a new high core net income for the first half of the year at Php1.149 billion. Satisfactory execution of the mining plan resulted in sustained level of metal output, and optimum operating cost and expenses delivered the higher core net income for the quarter and year-todate ended June 30, 2021. The Company reported a Net Income of Php600 million for 2Q2021 versus the reported Net Income of Php322 million for the same period in 2020, an 86% increase. Production and Revenues The Company milled slightly lower tonnage than the first quarter of 2021 resulting in slightly lower copper output for 2Q2021. Despite the slightly lower copper output, the Company generated higher revenues for 2Q2021 at Php2.377 billion, higher by 21% over the same period in 2020. This brings 1H2021 revenues to Php4.747 billion, ahead by 29% over the same period in 2020, with revenues only at Php3.680 billion. The higher revenues are due mainly to the sustained higher realized metal prices for both Gold and Copper at $1,807 per ounce and $4.21 per pound, respectively. The satisfactory execution of the mining plan and mill operations resulted in the production of 13,612 ounces of Gold and 6.435 million pounds of Copper for 2Q2021, bringing the 1H2021 total metal output at 27,025 ounces of Gold and 13.205 million pounds of Copper. Operating Costs and Expenses Core and Net Income Operating costs and expenses for 2Q2021 at Php1.593 billion are higher than those of 2Q2020 at Php1.552 billion due to slightly higher production expenses and higher excise taxes and royalties attributable to higher revenues. The slight increase was tempered by lower non-cash production costs in 2Q2021 amounting to Php271 million compared with non-cash production costs in 2Q2020 amounting to Php330 million. This brings the 1H2021 operating costs and expenses to P3.240 billion, higher by Php136 million compared with 1H2020. The increase is attributable to increasing production cost brought about by the effects of the pandemic to the supply chain, including logistics and Covid-19 response undertaken by the Company. Reported Net Income for 2Q2021 increased by 86% to Php600 million from Php322 million in 2Q2020 This brings the Company’s 1H2021 reported Net Income to Php1.159 billion from Php425 million of 1H2020. Core Net Income for 2Q2021 reached Php610 million to close the 1H2021 Core Net Income at Php1.149 billion, higher by 186% versus the Core Net Income of Php402 million in 1H2020. The Company generated EBITDA of Php1.016 billion for the 2Q2021 versus Php708 million in 2Q2020, a 44% increase. This brings the 1H2021 EBITDA to Php2.027 billion versus Php1.127 billion in 1H2020, an increase of 80% COVID 2019 Despite our strict implementation of the IATF-DOH mandated health protocols, the Company was not spared by the spread of the Covid19 virus. Several employees and their dependents were infected by the virus but the infection was immediately contained, preventing widespread transmission, and ensuring the continued operation of both the mine and mill plant. The Company adopted and implemented regular surveillance and contact tracing activities to further strengthen its defense against any transmission to its employees and their dependents. Silangan Project The Board of Directors of Philex has approved the In-Phase development of Silangan and the Company will be appointing a financial advisor to assist in the fund raising that will commence as soon as practicable. With the In-Phase development of Silangan, the capital expenditure requirement will be made in stages, and can be funded from a variety of potential resources including internally-generated cash and potentially through equity and debt from investors and creditors. The Company is confident that Silangan development will start by Q22022 with the target of commencing commercial operations in January 2025. “We will be working with our financial advisor to immediately implement the fund raising activity for the InPhase development of Silangan. We believe that the recent government pronouncements related to the mining industry will increase the level of interest and confidence of investors and lenders to mining companies. The launch of Silangan will be very timely.”, emphasized Eulalio B Austin, Jr, Philex President and CEO. “The global outlook for metal prices continue to be positive and Philex is poised to benefit as we emphasize on excellent execution of plans in light of the current volatile environment brought about by this pandemic. In the next couple of months, we set to launch our Silangan Project under an In-Phase Development approach. Silangan will be an exciting project for Philex.”, concluded Manuel V. Pangilinan, Philex Chairman.   Article Courtesy of The Philippine Stock Exchange

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