Safe and Clean Mining: Can Artisanal Miners Survive Regulation?

by Abe Almirol - August 23, 2021

ARTISANAL MINERS MUST EMBRACE SAFE AND CLEAN MINING. In the photo, rescuers carry one of the 10 cadavers retrieved in Sitio Balcony after Typhoon Ulysses ravaged Luzon on November 12-13, 2020. Most of the victims are informal settlers who were repeatedly reminded to leave the geo-hazard zone. (Photo credits: Philippine Information Agency)

Making good its promise to take drastic action against illegal settlers in the mineral-rich Barangay Runruno in the town of Quezon, Nueva Vizcaya, the Mines and Geosciences Bureau (MGB) has led an operation leading to the dismantling and confiscation of illegally operating ball-mills, a device used by traditional miners to process gold ore.

“The operation came in as a surprise. Even the members of the local media took days to find out,” says Leander Domingo of Manila Times, who rushed to the scene with local journalists and Philippine Information Agency staff stationed in Bayombong.

It was only when social media posts began spreading that houses are allegedly being demolished in Runruno in the last days of July 2021 that newsmen learned about the operation. The MGB involved the National Bureau of Investigation, the Philippine National Police, and the Philippine Army to assist them.

Cagayan Valley Regional Executive Director Gwendolyn Bambalan of DENR was quick to dispel the rumour, citing that it is only the illegal ball-mills that were dismantled during the operation.

“These areas were classified as high-risk geo-hazard zones, so we are encouraging them to vacate the area. If needed, we will file appropriate charges just to enforce the law,” she said.

In violation of Presidential Decree 705, 32 lawsuits were filed by the DENR against those occupying the prohibited zones, most of them are operators and workers who owned the confiscated illegal gold mining and processing equipment.

The sub-villages of Bit-ang and Balcony in Runruno have long history of unreported deaths due to landslides and caving-in of make-shift tunnels. “Although there was no official confirmation, reports of deaths due to cave-ins and premature explosions as well as the use of deadly chemicals from small scale mining operations have been taking place in these villages,” a 2011 news report of the Philippine Star reads.

In November last year, Typhoon Ulysses brought the largest number of casualties in a single incident. The reported death of 10 people at the aftermath of Typhoon Ulysses alarmed authorities, and even Malacañang Palace issued an order creating the Build Back Better Task Force.

ILLEGAL MINING BUSTED. Regional Executive Director Gwendolyn Bambalan of DENR Cagayan Valley (in green shirt) personally inspected the dismantled and confiscated gold processing equipment in Barangay Runruno, Quezon, Nueva Vizcaya. Regional Director Mario Ancheta of the MGB (in blue shirt), PENRO Edgar Martin (second from left, front row) and CENRO Giovanni Magat (extreme left, front row) joined in the inspection. (Photo Credits: Benjamin Moses Ebreo, PIA Nueva Vizcaya)

The ‘Minahang Bayan’ as a National Strategy

DENR has long advised that there are legal ways for traditional artisanal miners to benefit from the country’s mineral resources.

“We can find appropriate places to establish a Minahang Bayan, just approach the MGB. You can look for Director Mario Ancheta,” she told Runruno residents in a video-taped interview with the Philippine Information Agency.

Last May, DENR Undersecretary Jonas Leones told the Philippine Daily Inquirer that creating Minahang Bayan sites will generate more jobs in the countryside and fuel economic growth.

Republic Act 7076 established the people’s small-scale mining program. It seeks to achieve an orderly, systematic, and rational scheme for the small-scale development and utilization of mineral resources.

According to RA 7076, small-scale mining “refers to mining activities which rely heavily on manual labour using simple implements and methods and do not use explosives or heavy mining equipment.”

DENR Assistant Secretary Nonita Caguioa, however, clarified that small-scale mining is applicable to gold, silver, and chromite only, and cited a restriction on extracting metallic minerals.

The Minahang Bayan is the only area where small-scale miners can operate legally according to the law. In this way, government can better monitor and regulate extractive activities.  The safety of the mine workers, protection of the environment, and generation revenues for the government could be tracked along this set-up.

“It is difficult to monitor small-scale miners if they are operating outside Minahang Bayan areas,” MGB Small-Scale Mining Development Section chief Joel Natividad.

As of May 2021, there are 39 operating Minahang Bayan in the country, almost twice more than the 20 recorded in 2018. MGB has targeted 150 Minahang Bayan to be established by 2022.

“Our crackdown on illegal miners continues as we also put up more Minahang Bayan areas. This is to ensure that mining will be concentrated in one area where the DENR can regulate and monitor small-scale operations,” Leones said.

Emerging Clean Mining Technology

In the Philippines, Executive Order 79 series of 2012 has already prohibited the use of mercury in small-scale mining, yet almost all artisanal miners continue to use it.

Since 2019, MGB Acting Director Wilfredo Moncano has been collaborating with a Global Environment Facility-funded USD11.70-million project to help eliminate the use of mercury in artisanal and small-scale gold mining sectors in the country and Mongolia.

The long-awaited substitute for mercury and cyanide finally came out very recently. Clean Earth Technologies now owns a technology that was tested at Barrick Goldstrike mine by CSIRO. This technology is being expanded to cover other types of ore.

Last 18 June 2021, Kevin Fell, Executive Director and CEO of Clean Mining Technologies made a presentation before a webinar with the Philippine Mining Club. His strategy for the Philippine market is founded on favourable environment where the authorities are now embracing more sustainable and environmentally friendly mining processes and opening up to approving licenses that benefit the community and economy.

Fell also believes that foreign Investment is now more palatable with stability and governance which assures tenure.

As the CML is the “only available genuine, non-toxic solution that meets all the needs of government authorities and mining communities,” Clean Mining Technologies throws its full support and collaboration with Artisanal Gold Council in the creation of community hubs to process gold extracted by artisanal miners, which is basically the same as the Minahang Bayan.

“We are very excited about this opportunity which will set world first standards in the artisanal space which accounts for over 25% of the worlds gold production,” said Fell.

As to how quick the government and mining stakeholders can put this technology to work is an interesting research subject in the coming years.



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Mining

Marcelle P. Villegas - March 17, 2021

The Aftermath of the Carmen Copper Mine Landslide

After the tragic landslide that occurred at the open pit’s north wall at around 4:15 p.m. on Monday, 21 Dec. 2020,  Mines and Geosciences Bureau (MGB) 7 ordered the immediate suspension of the mine operations in Carmen Copper Corporation (CCC). According to MGB’s report last 22 Dec. 2020 on their official website, they stated “Initial investigations revealed there was no mining activity in the area on that day.” [1] On that day, landslide debris fell on the water at the pit bottom. This has an elevation of 41m above sea level. The landslide created a tsunami-like wave that reached an elevation of 105m in the southern portion of the pit where the workers were located. On 22 Dec. 2020, four fatalities were recorded along with six missing. [1] Further on, an assessment of the area was conducted by Director Pacquito Melicor Jr. (DENR Central Visayas Regional Executive Director), Director Armando Malicse (MGB 7 Regional Director), MGB Region 7 team, and Mine Safety, Environment and Social Development Division. CCC and Toledo City Disaster Risk Reduction and Management team continued their search and retrieval operations on a limited scale due to unstable condition. MGB 7 technical personnel continues its on-site inspection and investigation in accordance with R.A. 7942 (Philippine Mining Act of 1995) and the DENR Administrative Order Nos. 2010-21 (Consolidated IRR of RA 7942) and 2000-98 (Mine Safety and Health Standards). [1] A list of names of workers who died was given by CCC to the Toledo Police Station Chief, Lt. Col. Junnel Caadlawon. The second list contains the names of those who are still missing. [2] Those who died from the landslide are the following: Junil S. Lagola, age 44, from Barangay Don Andres Soriano, leadman Ernesto G. Caspe, age 54, from Dasmamac, Lutopan, checker Juan M. Tapang, age 44, from Don Andres Soriano Village, heavy equipment operator Dionisio Labang, from barangay Uling, Naga, backhoe operator/Anseca Contractor Those who are still missing are the following: Jose B. Carpentero, age 31, from Barangay Biga, heavy equipment operator from Mine Services Department Jonwel S. Herediano, age 33, from Barangay Don Andres Soriano, pump operator Simeon B. Laconas, age 33, from Barangay Biga, leadman - mine services department John Paul L. Resuelo, age 27, from Barangay Biga, heavy equipment operator Renante F. Sepada, age 35, from Barangay Bagakay, pump operator Alfred C. Tautho, age 33, from Barangay Mainggit, welder Carmen Copper Corp. (CCC) expressed their support and commitment to provide free education until college and allowances to all the children of its employees who died or are still missing after the tragedy last December. Based on a press statement of the company last 27 Dec. 2020, they have provided various forms of financial and other assistance to the immediate families of its deceased workers. [3] Additionally, CCC also offered employment opportunities for the victims’ next of kin, spouse and children. “CCC has given the same attention to the immediate family of the missing CCC employees and will afford them of the same commitments CCC provided to the family of the deceased,” according to the company’s statement. CCC also extended support to the family of the contractor who was among the victims. [3] On 8 Feb. 2021, Toledo City Mayor, Hon. Marjorie Piczon-Perales along with Vice-Mayor Jay B. Go met the families of the victims at the open shed of the City Hall Garden to provide them with “ayuda” or financial assistance. This was posted on the Toledo City Public Information Office social media page. The mayor granted the families of deceased workers the amount of Php15 million. For the victims who are injured, they were given Php5 million. Additionally, they were all given food packs. [4] On 29 Jan. 2021, the Office of Senator Christopher “Bong” Go distributed assistance to the Toledo City residents who were affected by the landslide in CCC mine. This was held at the Carmen Copper Recreation Center, Toledo City, Cebu. During the distribution, 248 families received meals, financial assistance, food packs, vitamins, face masks and face shields. Senator Go also gave bicycles and shoes to selected recipients, and computer tablets for their children to be used for online classes. Health and safety protocols were strictly implemented to avoid the further spread of COVID-19. The Senator was not present during the distribution but he sent them a video message with words of encouragement. [5] Senator Go also offered assistance to those who needed major medical operations such as heart surgeries. He urged those in need of such medical attention to seek assistance from any of the Malasakit Centers in the province. [5] While the local and national government along with CCC are busy sending assistance to the families of the victims of the December landslide, mining industry in general received backlashes from various groups who believe that the deaths and injuries could have been prevented. Barely a month before the landslide, there had been reports from residents of Barangay Biga in Toledo City who claim they warned officials of the MGB Central Visayas and CCC as well about large cracks in the village prior to the landslide. However, they said that their appeal was not properly addressed. [6] Biga Barangay Captian Pedro Sepada Jr. told a local newspaper in Cebu last 29 Dec. 2020 that prior to the landslide, barangay officials called for an emergency consultative meeting on 26 Nov. 2020 with representatives of CCC, MGB 7 and Biga residents to talk about the possible measures to be done after the cracks were discovered. Sepada said that MGB 7 Director Armando Malicse and CCC Vice President for Safety, Ignas Alburo were present. No representative from the Toledo City government was present. Sepada noted that during the meeting, they were not given a concrete response or alternative solution by CCC or MGB to provide assurance to the residents that they will all be safe while mining operations are ongoing. But Sepada said that they were simply told by MGB 7 and CCC officials that their place remained safe. [6] According to the local news reports in Toledo City, residents now believe the huge cracks caused the fatal landslide.      “It was only after the landslide last Dec. 21, that they declared our area to be unsafe within a radius of 600-meter distance from the pipeline of Carmen Copper. They now say it’s unsafe. What happened to their guarantee of safety before?” [6] Governor Gwendolyn Garcia said last December that they shall leave the investigation to MGB before implementing any course of action. She mentioned that she will leave it up to the MGB 7 to decide whether or not CCC has any liability.  Garcia said, “The investigation is not our expertise nor is that our mandate. MGB has already issued a suspension of operations and MGB is going to undertake the investigation. So let’s put things in proper perspective. While the investigation is ongoing, perhaps it is best to wait for the results.” [6] “I am not taking any sides. I want to be as objective as possible. However, there are some personalities who are not as objective because they have their own interest in Carmen Copper. They want to control so that they can do business with Carmen Copper. This is a warning to those who want to make it difficult.” Garcia also noted that CCC mining operations have given so much to Toledo City in terms of employment and the city’s development. She said that a thorough investigation is needed in order to prevent those with “personal interest” in the mining operations of CCC from ruining the lives of so many people working there. [6] Garcia assured the Province will provide assistance and support to the families of miners who died and those who remain missing after the landslide. [6] Renester P. Suraltra, a college professor wrote a commentary last December on SunStar Cebu with the title “Toledo tragedy: The untold story”. He wrote, “Who is always responsible for any mining accident? Is it nature or man? Who is at fault? Is it the bad weather or the safety engineer?” “Accidents may happen in the workplace but it can also be avoided. We can’t discount the fact that accidents can happen because of unsafe supervision, lack of situation awareness, and failure to identify the potential threat. That’s the job of the safety engineer under the direction and supervision of sympathetic and responsible management. If workers are dying frequently then responsible mining is a big issue.” “There is another lesson to be learned in the Toledo mining tragedy. We should never compromise safety and security. We can’t always blame nature out of man’s folly. One should think that the mining industry provides short-term revenue but long-term harmful effect on nature and the environment. Life is much precious than copper and gold.” [7] Acknowledgement: Ryan Peter Vivo Penaranda for Cebuano to English translation from some news articles   Reference: [1] Mines and Geosciences Bureau Press Release (22 Dec. 2020)."Carmen Copper Mine In-Pit Landslide Incident". [2] ANV (23 Dec. 2020). SunStar Cebu. "Listahan sa namatay, missing sa Carmen pit gipagawas". [3] WBS and PR (27 Dec. 2020). SunStar Cebu. "Carmen Copper Corp. commits to help landslide victims' families".  [4] Toledo City Public Information Office Facebook Page (8 Feb. 2021). "Families of the victims of the land in Biga Pit Gitagaan ug ayuda in Toledo". [5] Office of the Presidential Assistant for the Visayas Facebook Page (31 Jan. 2021). "Hundreds of Toledo City, Cebu residents affected by a copper mine landslide receive assistance from Senator Bong Go". [6] Sabalo, Wenilyn (30 Dec. 2020). SunStar Cebu. "Biga chief claims please ignored before landslide". Retrieved from - https://www.sunstar.com.ph/article/1881418/Cebu/Local-News/Biga-chief-claims-pleas-ignored-before-landslide [7] Suralta, Renester P. (27 Dec. 2020). SunStar Cebu. "Tell it to SunStar: Toledo tragedy: The untold story". Retrieved from - https://www.sunstar.com.ph/article/1881194

Mining

Marcelle P. Villegas - March 17, 2021

First Offshore Magnetite Iron Mining in the PH

Last December, Apollo Global Capital’s (PSE: APL) subsidiary, JDVC Resources Corporation, announced that Department of Environment and Natural Resources granted them a permit to start the commercial operations of the country’s first offshore magnetite iron mining project. According to JDVC and APL consultant, Jun Herrera, the mining operations in Cagayan are expected to start by mid or end of February. He said that the first newly-built deep sea mining vessel arrived in Cagayan and needed to take shelter for now due to strong sea currents. In relation to this project, they assured the government that there will be minimal impact on the marine ecosystem as per the studies and survey conducted by a Singapore-based company. Their study shows that there is no coral or aquamarine life within the mining area which is located 150 meters below sea level. Herrera stated that three more vessels are expected to arrive this year. The vessel is capable of commercial extraction, sampling, testing and production of magnetite iron. [1] With regards to the apprehension of some residents of Ballesteros in Cagayan that this offshore mining operation will destroy the coral ecosystem, APL addressed the issue by stating that such assumption by the locals has no basis. APL stated last January, “We won’t even be mining in their waters. In the first place, our mining operation will be in the waters of Buguey and Gonzaga towns, and at a distance of over 14 kilometers. That’s more than two horizon lengths away from the shoreline.” Lazaro Ramos, a resident of Ballesteros, sent a formal complaint to DENR Secretary Roy Cimatu. Ramos warned them of the possible “catastrophe” that the offshore mining will bring about should it resumes. He mentioned in comparison a study conducted by Craig Smith from the University of Hawaii regarding the ocean seabed in the NE Pacific abyssal waters. APL, however, contradicted this argument by Ramos and said that the study by Craig Smith is applicable to a different part of the ocean and not necessarily comparable with the mining site in Cagayan.  “That’s a different part of the Pacific. It looks at the ocean bed more than 200 meters below sea level, whereas we can only go down to 150 meters with current technology. Moreover, the Smith study did not look at magnetite iron reserves. From the experience of countries like Indonesia, Japan and New Zealand, magnetite iron is known to be toxic to corals, fish and other aquamarine life.” Moreover, JDVC emphasised on the study results done by the Singapore-based survey company whom they commissioned to conduct a full “sea bottom profile” of its mining tenements off Cagayan. As mentioned, their study reveals no corals or aquamarine life in the area. APL also reported that they have done their part in coordinating with the locals and providing corporate social responsibility activities for the residents of Buguey and Gonzaga. “We’re proud to say that over 90 percent of the residents support us and are even anxious for us to get started.” According to Herrera, the municipalities of Aparri, Buguey and Gonzaga received funding from the Development Bank of the Philippines. These are the municipalities covered by the mining project. DBP grated JDVC a grant worth $8-million credit line for the magnetite iron mining project.   Herrera said, “We have proven to them [DBP] that it’s environmentally safe.” He added, “The DBP loan has zero borrowings yet as of now, hence, our company remains to be zero debts and internally funded by our shareholders. The DBP loan will only kick off once we have the letter of credit presented to the bank for the discounting the letter of credit of export buyers, to obtain a 90-day working capital, to fund the production of the ordered iron ore.” This project is seen as profitable, because magnetite mining has a strong market globally. In China, for example, they consider the steel industry as their “roadmap for their economic recovery”. Herrera mentioned that JVDC is an ISO-certified company. This means that there is an assurance that they shall comply with environmental standards. With all these assurances of a promising mining project ahead, some still have apprehension about it, perhaps rooting down to past incidents. In November 2020, the Cagayan Valley region was greatly affected by the Super Typhoon Rolly and Typhoon Ulysses. The two simultaneous typhoons are classified as category-5 and category-4 tropical cyclones respectively. As an effect, the devastation was great marked by massive flooding in Isabela and Cagayan provinces. [2] The residents in those areas blame the National Irrigation Association (NIA) for the flood when they opened the floodgates of the nearby Magat Dam on the last minute. The two provinces were submerged in high waters as high as a two-storey building. NIA on the other hand firmly contradicted such claim and explained that the release of water from Magat Dam was not the main cause of flooding. NIA points out that proper and sufficient warnings were given to those communities in low-lying areas. Additionally, they stated that the volume of water released was only 25% of the carrying capacity of the Cagayan River. The river is the longest stream in the Philippines that serves as the catch basin of the nine provinces in three regions. [2] Aside from the two typhoons, a second issue related with the river was about the illegal magnetite mining at the mouth of the Cagayan River in the municipality of Aparri. The provincial board of Cagayan appealed to President Rodrigo Duterte in 2019 to stop the dredging operations of Pacific Offshore Exploration, Inc. (POEI) due to potential threat to the environment and the livelihood of the locals. The Chinese company Zhong Hai Gravel Group headed by Dong Biao Su is POEI’s partner in that operation. The company was controversial recently after the Bureau of Customs and the Philippine Coast Guard raided its Zhonhai 68 dredging vessel during a maritime security patrol off the Bataan coast. “Bureau of Customs are poised to issue a warrant of seizure and detention against the undocumented vessel.” However, the Chinese Embassy in Manila claimed that the vessel is technically non-Chinese because it is registered under an African flag of convenience. [2] Currently, JDVC Resources Corp. is the first and only company that was granted a declaration of mining project feasibility by Department of Environment and Natural Resources (DENR) to extract magnetite sand and other minerals in Cagayan. In response to Cagayan’s decade-old black sand mining problem, the launching of Cagayan River Rehabilitation Project last February 2 is seen to solve the problem. DENR stated early in February that mining regulations will strictly monitor the extraction of magnetite or black sand in the coastal waters and rivers of Cagayan province. [3] With regards to APL’s/JDVC Resources Corp.’s offshore magnetite iron mining, MGB Director Wilfredo Monaco stated the project has gone through an environmental impact assessment system processes and the company has secured an environmental clearance certificate (ECC) from the Environmental Management Bureau (EMB). [3]  “JDVC has undergone environmental impact assessment and the company was issued an ECC, which means environmental issues have been considered by the EMB,” Moncano stated. Magnetite or black sand mining is supposed to be banned in the Philippines, but Moncano explained that the extraction of the said mineral offshore is allowed. He said, “Mining in shoreline is prohibited but offshore mining is allowed.  If it is at least 1,500 meters from the shoreline going out to the sea, it is allowed.” He also assured that the company’s operation will be monitored by the MGB and EMB, that in case of any destruction or damage to the coastal or marine ecosystem by JDVC Resources Corp., there will be a corresponding penalty under the mining law. “What is important is that the JDVC will not cause damage to the coastal or marine ecosystem,” he said. As for mining in rivers like in the Cagayan River, it is also allowed as long as the primary purpose of the project is river rehabilitation or restoration. One example is their plan to extract some 7 million metric tons of sand to remove three of the 19 sandbars along is stretch. Moncano said that the DENR-MGB will also monitor the dredging operations because while the activity is primarily flood mitigation, the minerals to be extracted include magnetite sand. [3] Moncano stated, “Black sand mining is also part of the purposes that’s why we will assess the mineral content of the river channel. If the magnetite sand contained surpasses the threshold of 6 percent, we will charge the company of 4-percent excise tax.” He said that every shipment will undergo mineral assessment. (--Marcelle P. Villegas, PRJ) References: [1] Flores, Alena Mae S. (31 Jan. 2021). Manila Standard. "Apollo Global announces subsidiary’s start of magnetite mining operations in Cagayan". [2] Gamboa, J. Albert (5 Feb. 2021). Business World. "Building back better in Cagayan Valley". [3] Mayuga, Jonathan L. (4 Feb. 2021). Business Mirror. "MGB exec vows to keep tabs of Cagayan River magnetite quarry operations set to start in February".

Mining

Marcelle P. Villegas - March 12, 2019

How wars and historical events affected the mining industry

By Marcelle P. Villegas For the past centuries, the mining industry in the Philippines was greatly affected by the changes of government or colonisers, events around the world and more. It seems that whenever there is war, there is also a rise in the demand in certain mineral resources or a fall in the production rate of some minerals. August is History Month in the Philippines as promoted by Government and Education sectors. The Philippines is rich in natural resources, cultural heritage and more noticeably, we are rich in history which brought progress or hindrance in economic growth through the years. Last August, during the Philippine Mining and Exploration Association (PMEA) Monthly Membership Meeting, one of the keynote speakers is Mr Hernulfo “Nonoy” Ruelo, Geologist Consultant. The title of his presentation is “Copper-Gold Discoveries and Mine in the Philippines - Understanding the Past, in order to make sense of the Current, and the Future”. It was a well-researched report and analysis on how historical events, like wars or change in leaders, affected the mining sector and the socio-economic status of the country. The presentation takes us back in time with some rare vintage photos from the past. During the pre-Spanish Period, the earliest use of metal in the Philippines by our Filipino ancestors was the use of copper for ornamentation, not for tools or currency. Other metals used were gold and tumbaga (copper alloyed with gold). “Gold was the major form of ‘currency’ among the early Filipinos and one of the first things they [ancestors] taught their children was the knowledge of gold and the weights with which they measured.” (From the book by Evelyn J. Caballero, 1996. “Gold from the Gods: Traditional small-scale miners in the Philippines”. Giraffe Books, Quezon City.( p 196 and 263) On note, the pre-colonial mining methods had no environmental impact on land, water, air and people. Pre-Spanish Period Mining in the Philippines started in the 3rd century when gold was traded with China and the Javanese empire where the height of this trade was during 12th to 14th century. The Chinese were the first foreign miners. Gold is both a commodity and a medium of exchange. When the Spaniards arrived in the 1521, gold was already being mined, traded and used as jewelry or ornamentation by the native Filipinos. In fact, 16th century Filipino noblemen were decked in gold. Colonial Period Under Spain 1500s - 1898: Paracale and Cordillera were the oldest goldfields. From 1500s - 1700s, gold was one of the tributes collected by the Spanish government and given to the King of Spain. In 1583 and 1595, an expedition was sent to mine in Cordillera but was a failure due to the resistance of the Igorots. “Gold mining before the coming of the Americans was primarily in the hands of enterprises organized in the Philippines by Spaniards and Chinese mestizos and Filipinos, with a few other companies trying, without success, to produce commercially.” (Ref. - Wirkus 1974) In 1600 to 1700, about 10,000 ounces of gold per annum were shipped to Spain, and the gold shipments to Spain increased from 1800 to 1895. For copper, the Spaniards opened the first copper mine in the country in 1842, called the Carawisan copper mine in Antique province. From 1864 to 1874, the Contrabro-Filipino Company operated Mankayan Copper Mine. Gold mining made its comeback in commerce in 1892 where concessions to foreigners were first granted. The British explorer, Frank Karuth of Philippine Mineral Syndicate, led the commercial-scale hard-rock and alluvial gold operations in Paracale District until 1895. (Ref. - Chaput 1987) Philippine Revolution 1896 – 1902: With the rise of the Philippine revolt against Spain, in 1896, mining operations at Paracale dwindled until 1902 when the Filipino-American War ended. The Organic Act of 1902 was created which organized companies, issued patents, and established the Geological & Mining Science Department. By 1927, gold was the third best export commodity and initiated by the Philippine (Manila) Stock Exchange. In the following years, the Mining Act of 1935 was released (Commonwealth Act 137) which introduced the Regalian Doctrine, the concept of Mining Lease, and the establishment of Bureau of Mines. The Americans invested US$ 34.2M in gold production. Mining for copper was reopened in 1936, the same time when the Japanese savvy for copper was high and led to the ‘discovery’ of the first large porphyry copper deposit in the country. Commonwealth Period 1937 - 1941: This period in Philippine history was considered a golden era when Manila was highly modernised and was one of the most beautiful cities in Southeast Asia. In fact, in 1937, we had the best and well-equipped airport in the Southeast Asia, the Nielson Airport. (This is now Ayala Triangle Park in Makati City, and the original Nielson Tower is now “Blackbird” Restaurant.) Although this elegant airport was primary used as an aviation school, it also paved the way for trade and commerce for foreign investors. Philippine Airline made its first commercial flight in 1941, from Nielson Airport to Baguio. The Philippines was the largest gold producer in Asia and second only to California in world production. During the American period, 9 million oz of gold was produced from 1906 – 1941. Japanese Occupation 1942 – 1945: Being a colony of United States of America, the Philippines got itself involved in war against the Japanese who invaded Manila in 1942. The Japanese took over Lepanto and the Hixbar mines (Rapu-rapu) and was able to mine and extract 11,000 tonnes of copper. No gold production was recorded. With the aggressive strategies of conquering their neighboring countries, Japan was unstoppable that time in their collection of natural resources that were needed to fuel their warships and planes and the production of weapons. Battleships Musashi and Yamato where the two giants in naval power that made Japan feared by other nations. The two battleships were defeated though in the Philippines during the Battle in Leyte Gulf in October 1945 which paved the way to the Liberation of Manila and eventually the whole country. Post-war Reconstruction 1946 – 1954: Those post-war years were hard times for all war-torn countries. However, with the need for repairs infrastructure after WWII, there was an increase in the global demand for copper. Some gold mines in the Philippines were rehabilitated but the problems were lack of capital and low market demand. Copper production re-started in 1947. Since Manila was the ground zero and battlefield of the war that ended WWII in the Pacific (Battle of Manila in 1945), there were serious damages in the country’s economy and on the mining industry. Korean War 1954 – 1960: For the Filipino soldiers who fought the Japanese during WWII, the Korean War was the first time for them to fight a battle in a foreign land. Although this war affected Southeast Asia directly, the gold prices maintained. However, in mid 1950s, the gold mines collapsed due to a recession period. The copper price rose slight due to high world demand. More Philippine copper mines opened. Vietnam War 1960-1975: In 1972, U.S. President Nixon took dollar off the gold standard. It was fixed at $35 since 1934, but gold prices are allowed to float free which devalued dollar to $38. In 1973, world gold price jumped from $38 to $120. World copper rate hit high at $0.90 in 1974. World copper mine production was at its peak. Martial Law 1972 - 1986: During Martial Law in the Philippines, copper price trended upward where the country’s copper production continued and boomed in 1980 where it reached its peak. It was in 1980 when Philippine copper production was recorded the highest at 306 Kt. However, the World Oil Crisis in 1973 - 1980 brought about a decline in copper demand. World Recession in 1982 – 1984 pulled down the copper prices. Philippine inflation devalued the Philippine peso and there was an increase in production costs, materials and equipment. The Global recession resulted in a decline in copper demand. The Philippine gold production was sustained and gold prices surged from 1978 to 1980. The modern Gold Bloom in 1980s brought about the rise of unregulated Small Scale Mining. In summary, the explanatory variables of growth and decline in PH copper industry in the 1950s-1980s are: - For Copper resources: risk capital or investments, development in the world’s copper market, technology, human capital in mining, domestic social, legal, and political environment . - For the gold industry: gold resources, competition, commodity price, production costs, technology (bulk mining, milling, treatment), damages – natural & man-made disasters (Reference). T.M. Santos 2001 . Growth of Copper Production: Determinants and Empirical Evidence. Social Science Diliman, July-December 2001. 2:2, 1-49.) There were other historical events in the Philippines that followed like: EDSA Revolution: 1986-1992 - gold averaged $381, copper $1.02 – There was investment uncertainty and several mines closed. New mining laws were crafted like the 1991 RA 7076 (Small Scale Mining Act). The 1987 Constitution replaced Leasehold into Agreements system. From 1990s – 2004, there was collapse of the local mining industry. However from 2004 – 2009, there was a revitalization of the mining industry with EO 270 National Policy Agenda – Mineral Action Plan. Gold price surged from $410 to $873. Copper production hit lowest in 2004 at 16 Kt since 1957. The year 2005 brought global gold boom where Philippine gold-copper mines had expansion and reopening. The Aquino Administration from 2010-2016 was within the Global Mining Boom period (2010 - 2013). It was a successful period for Philippine mine exploration, prospect drill-testing, and resource evaluation drilling. In conclusion, Mr Ruelo presented a list of challenges that miners will need to face at the present time, namely: - Fewer outcropping “easy-to-find” deposits are now left except in high-risk and “inaccessible” areas. - Current mining operations will encounter increasing real costs (labor, materials, energy, environmental, community impact) that will affect production. - The next generation of lower-grade copper/gold projects require significantly higher metal prices to justify development. - We need to discover high-quality or better gold/copper resources, even deeper ones that can be economically mined – e.g. in greenfields and brownfields.


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Construction

Philippine Resources - September 24, 2021

DOTr, Pasay City sign deal for monorail, flyover extension

Residents and those working in Pasay City will soon enjoy easier public transportation after the Department of Transportation (DOTr) and the city government signed a deal for the construction of a monorail and extension of the Epifanio Delos Santos Avenue (Edsa)-Tramo flyover. In a live broadcast on Facebook on Wednesday, DOTr Secretary Arthur Tugade and Pasay City Mayor Emi Calixto-Rubiano signed the memorandum of agreement (MOA) for the proposed Integrated Pasay Monorail and Edsa-Tramo flyover extension project. Tugade said the project will be interoperable with the Light Rail Transit Line 1 (LRT-1), Metro Rail Transit Line 3 (MRT-3), the Edsa Busway, and the Edsa Greenways. “[Ito ay] makapagbibigay ng mas mabilis at episyenteng biyahe sa mga pasahero. Magiging mas madali na rin ang access patungong central business district (CBD) ng Pasay (This will provide fast and efficient travel to passengers. Access to Pasay CBD will also be easier),” Tugade said. Aside from its benefits to commuters, he said the project will also create jobs. “Ang paulit-ulit kong sinasabi na karugtong ng mga proyekto para sa kaunlaran ay trabaho para sa Pilipino (What I have always been saying is that development projects go hand-in-hand with jobs for Filipinos),” Tugade said. He said the project is a partnership between the DOTr, Pasay City government, and SM Prime Holdings. “Makakaasa 'ho kayong magpapatuloy ang DOTr sa pagsusulong ng mga proyekto para sa ikauunlad ng pampublikong transportasyon sa bansa (You can be rest assured that the DOTr will continue to promote projects for the development of public transportation in the country),” Tugade said. The MOA signing was witnessed by Pasay City Vice Mayor Noel del Rosario, DOTr Undersecretary for Finance Giovanni Lopez, Undersecretary for Legal Affairs Reinier Paul Yebra, Undersecretary for Railways Timothy John Batan, SM Prime Holdings President Jeffrey Lim, and other representatives from the Pasay City government and the private sector. On Sept. 7, the Pasay City government and the SM Prime Holdings made a joint presentation on the project to the DOTr. By Raymond Carl Dela Cruz   Article courtesy of the Philippine News Agency

Construction

Philippine Resources - September 24, 2021

DOTr eyes GenSan airport as alternate int'l gateway

Photo credit: Department of Transportation The Department of Transportation (DOTr) is pushing for the inclusion of the newly rehabilitated and expanded airport here as among the alternate gateways for returning Overseas Filipino Workers (OFWs) and international travelers. DOTr Secretary Arthur Tugade proposed the move on Thursday as he personally led the formal unveiling and inauguration of the city airport’s new passenger terminal building and other completed facilities. He said the city’s international standard airport can accommodate airline passengers coming in from as far as the Middle East. Tugade said it can be realized once the proposed increase in the daily cap for returning OFWs, currently at 2,000 for the Ninoy Aquino International Airport (NAIA), is approved. Once the cap is expanded, he said NAIA might “choke” with the influx of airline passengers from various countries. “If we will increase the cap, we need to expand our gateways and not limit them to Clark, Cebu, and NAIA. We can include GenSan among the gateways for travelers from Doha who are going to Manila,” he said in a press conference. He said they will propose such strategy with the airlines serving the international routes, including the Philippine Airlines, and seek the approval of the city government. The other possible alternate gateways could be the Laoag International Airport in Ilocos Norte and the Bohol-Panglao International Airport, Tugade said. The rehabilitated and expanded General Santos Airport passenger terminal building, which was completed early this month, is part of the PHP959-million upgrade implemented by the national government. The other completed components are the procurement and installation of navigational aids and the construction of the new Civil Aviation Authority of the Philippines (CAAP) administration building at the airport. Under the project, Tugade said the passenger terminal area has tripled in size from 4,000 to 12,000 square meters. “This will allow the airport to accommodate more passengers and provide them comfortable and convenient travel,” he said in his speech. A DOTr report said the larger passenger terminal building can now accommodate around 2 million passengers annually, a significant jump from the previous 800,000 per year. Tugade said the improvement at the city airport will continue next year with the upgrading of its air control tower, which he considered as “too low.” He said they will build a “higher and modernized” tower in 2022 to make it “more world-class” and can easily adjust to the needs of the airport. The official said the upgrading of the airport, which started in 2018, is among the agency and the national government’s top priorities in Mindanao. He said the initiative is part of the government’s efforts to bring more progress and economic opportunities in Mindanao, which “suffered from long years of neglect in terms of development.” Tugade said they endeavored to implement these projects despite the challenges posed by the continuing coronavirus disease 2019 (Covid-19) pandemic to pursue their goal of giving a “comfortable and convenient life” to Filipinos. “After the pandemic, we want all these developments in place and ready to benefit the people,” he said. In a video message, President Rodrigo Duterte commended the DOTr, the local government, and concerned stakeholders for completing the projects at the city airport amid the Covid-19 pandemic. He said the city has “gone a long way” in terms of the development of its air connectivity and airport facilities. “The rehabilitation and expansion of the airport passenger terminal building, among others, will truly boost General Santos City’s role as an agro-industrial and eco-tourism hub,” the President said. City Mayor Ronnel Rivera lauded the national government for helping the city realize its dream of having an international-standard airport. Aside from the expanded passenger terminal building, the airport is now capable of accommodating bigger aircraft like Boeing 737 and 747, as well as Airbus A330, A340, and A350. “(What) we are seeing now is a result of multisectoral commitment and dedication in various stages of the airport development, which includes coordination of several initiatives, preparation of the airport master plan, operations, and marketing,” he said. The mayor said the local government will continue to engage with prospective investors and airlines for the opening of more flights to and from the airport and the development of adjacent areas. He cited the proposed establishment of an aerotropolis or growth area centered on the city airport and its surrounding areas. “We are opening a wide array of opportunities, not only on the improvement of our infrastructure facilities but also in terms of investments that will generate more economic opportunities for the city and the entire region (Soccsksargen),” he said. Aside from the inauguration of the airport projects, Tugade also led the unveiling of completed initiatives at the Makar port here. The DOTr said it includes the construction of the Port Operations Building and other vital facilities, which includes a parking area, covered court, port manager’s quarter or Day Care Center, and drainage system. “The improved port of Makar will now offer safer, comfortable, and a more convenient port experience to passengers, while ensuring a faster turnaround for vessels, cargo trucks, and other ancillary service providers,” it said.   Article courtesy of the Philippine News Agency

Construction

Philippine Resources - September 22, 2021

Cebu-Cordova Link Expressway 83% Complete

Photo credit: Cebu-Cordova Link Expressway As of August 31, 2021, the construction progress of the Cebu-Cordova Link Expressway (CCLEX) project was at 83.84 percent. The P30-billion toll bridge, which will be substantially completed by the end of 2021, will use a full electronic toll system when it opens to motorists in the first quarter of 2022 to enable faster traffic flow and seamless travel. The project recently marked a milestone with the completion of the installation of all 56 stay cables that hold the main bridge deck. On September 11, the Cebu Cordova Link Expressway Corporation (CCLEC), through its contractor, installed the last and longest stay cable, which is 219 meters long. The gap on the main bridge, on the other hand, is now down to only two meters before span closure and preparations are underway for the lowering of the form travelers. These form travelers, which weigh 500 tons in each tower, were used to construct the main bridge’s pier table and deck. Also, all 434 NU (Nebraska University) girders for the entire project have already been installed. With this, the mobile launching gantry used to install the girders have been demobilized. At the Cebu South Coastal Road (CSCR) on ramp and off ramp sections of CCLEX, construction of its substructures is complete. Ongoing works are now on the installation of precast planks and the concreting of deck slab. Also finished is the 200-meter pedestrian footbridge beside the CSCR with all six prefabricated steel walkways already installed. The footbridge will start near the U-turn slot of the South Road Properties’ welcome tower and will connect to the on-ramp sidewalk of CCLEX. At the Cebu viaduct, the construction of deck slab is ongoing. The Cordova viaduct, on the other hand, is now structurally complete with its substructure already done. Installation of handrails are underway. At the causeway, embankment works continue to progress with the placing of 20 vent pipes, which equalize the flow of seawater along the Cordova Channel, is finished. Also structurally complete are the four low-level bridges along the causeway, which will provide fishermen continued access to their fishing grounds. Aside from these, works are ongoing for the toll plaza and the CCLEX Operations and Maintenance Center. CCLEX, highlighted by its iconic crosses on top of the twin pylons of the cable-stayed main bridge over the Mactan Channel, is Metro Pacific Tollways Corporation’s (MPTC) first toll road project outside Luzon. CCLEX, which will be the third link to Mactan Island from Cordova Municipality to mainland Cebu through Cebu City’s South Road Properties, has a design speed of 80 kilometers per hour (kph) and a navigational clearance or height of 51 meters to allow large vessels to pass underneath the bridge. Not only is CCLEX seen to reduce traffic and make traveling more convenient but also spur trade activities and open greater economic opportunities for Cebu and the rest of the Visayas region. CCLEX is a project of Cebu Cordova Link Expressway Corporation (CCLEC), in partnership with the local government units of Cebu City and Municipality of Cordova. CCLEC is a wholly owned subsidiary of MPTC, the toll road arm of Metro Pacific Investments Corporation (MPIC), a publicly listed infrastructure holding company and a member of the MVP Group of Companies. MPTC is the largest toll road concessionaire and operator in the Philippines, which expansion goals include establishing toll operations in the Visayas, other parts of the Philippines, and in neighboring countries notably Vietnam, and Indonesia.   Article courtesy of Cebu-Cordova Link Expressway

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