PMEA President, Joey Nelson R. Ayson [File photo by the author]
---
On October 7th, Philippine Mining and Exploration Association (PMEA) President, Joey Nelson R. Ayson, reported PMEA Matters and Industry Updates during the association's Monthly Membership Meeting in Makati.
He mentioned that according to DENR-MGB, the metallic production on the first half of 2024 is Php114.77B. In contrast, last year's metallic production is Php123.01B (H1 2023). This is due to lower gold and nickel production and lower nickel prices. The estimated royalties within mineral reservations are Php81.33M, from 20 nickel mines and 1 chromium mine. The estimated excise tax is at Php2.84B. (Au mines - Php1.14B or 40.07%, Cu mines - Php0.99B or 35.17%, Ni mines - Php0.65B or 22.82%, and Cr/Fe mines - Php0.05B or 2.22%)
Metallic Production (H1 2024)
On the first half of 2024, the top producers in gold are PGPRC (2933 kg), OGPI (1536 kg), APEC Maco (1340 kg), FCF (1312 kg), MMPRC Co-O (741 kg), and BSP Purchases (3883 kg -- excludes purchases from Benguet, OGPI, Hexat). Total gold produced is 14,187 kg.
For copper, the top three producer are CCC (92,555 DMT), OGPI (26,468 DMT), and Philex Padcal (23,027 DMT). Total copper production is 142,050 DMT.
For nickel direct-shipping ore (DSO), the top producers are Rio Tuba (3,053,599 DMT), Taganito (1,783,398 DMT), Nickelace/Verum Terra (987,224 DMT), Carrascal Nickel/CTPCMC (961,359 DMT), and CTPCMC Adlay & Dahican (826,851 DMT). Total nickel production is 13,372,483 DMT.
For silver, the top producers are TVI Balabag (10,446 kg), APEX Maco (4919 kg), PGPRC (2888 kg), and OGPI (2168 kg). Total silver production is 23,268 kg.
For chromite, the top producers are Taganito HPAL (37,887 DMT) and Techiron (35,125 DMT). Total chromite production is 73,013 DMT.
For iron, the top producer is Ore Asia Mining (31,798 DMT). Total iron production is 31,798 DMT.
Finally, for mixed nickel-cobalt sulfide, the top producers are Taganito HPAL (25,823 DMT) and Coral Bay HPAL (13,636 DMT). Total production for mixed nickel-cobalt sulfide is 39,459 DMT.
DENR-MGB Updates
Staff Movement
-- Engr. Mike Cabalda was appointed as DENR Assistant Secretary (co-terminus) on August 27, 2024
-- DENR SO 2024-568 assigning Mike Cabalda as ASEC for Mining Concerns and Concurrent OIC MGB Director
-- DENR SO 2024-567 assigning Engr Ted Sandoval as OIC Asst. MGB Director
Draft Policy Enhancement for the EIA Process of Mining Projects (Proposed DAO)
-- Canada TAP EDM Project
-- Consultations held at DENR on Sept. 26-27, 2024
-- PMEA has sent its comments, but proposed DAO intends to:
1. Require ECC during exploration
2. Involvement of EMB in the SDMP/CDP with experts to do reviews (costs charged to??)
3. Increasing buffer zone from 20m to 30m
4. Requiring IP consent before issuing EP
5. Estimate GHG emissions and mitigating measures for >25,000 mt CO2
6. Gender and Human Rights to be included
7. Strategic Environmental Assessment for mining projects within biodiversity zones
8. Assessment of mine closure plans by experts if there are residual structures/post closure monitoring
MGB MIMAROPA New Office
Their new office is located at Basic Petroleum Building, 104 Carlos Palanca Street, Legaspi Village, Makati City.
Exploration for Critical Minerals (LGSD)
-- Ni, Cu, Co, Cr, Fe, Au, REE, PGMs
-- Establishment of new mineral reservations
-- Ongoing geological assessments; environmental resource mapping and conduct of public hearing to follow
-- REE Exploration (Phase 1: 2017-2025)
Extraction of Critical Minerals (MTD)
-- Pilot-Scale Production of Nickel Pig Iron from Low Grade Laterite Ores
-- Significant amount of Sc in the slag
Critical Minerals in Seabed (MGSD)
-- Deep sea (2,500-4,000m depth) – manganese nodules and crust
-- Shallow marine (40-100m depth) – magnetite sand, placer metals and quarry sand materials
-- Draft Guidebook for offshore mining applications, evaluation and operations monitoring
OTHER NEWS
Towards Sustainable Mining (TSM)
-- 19 companies submitted self ratings with 8 companies undergoing external verification
-- Verified results were discussed in detail in October 17, 2024 at Digging Deeper – A Mining Philippines Policy Forum.
National Unified IEC Program (NUIECP)
-- Survey of participating organizations show overall satisfaction with campaign management and impact
-- Generated a total PR value equivalent to almost PhP 1B – nearly 2,000% of target
Presidential Mineral Industry Environment Awards (PMIEA)
-- 42 entries have been received by MGB Regional Offices
-- Results of initial screening (for field validation) (Quarry – 11 of 16; Surface Mining – 13 of 17; Mineral Processing – 3 of 8; Underground Operations – 0 of 0; Exploration – 0 of 1)
PwC Audit
-- Phase 1 on organizational set-up completed
-- Phase 2 on processes completed and final report to be prepared
Senate Bill 2826 (Enhanced Fiscal Regime for Large Scale Metallic Mining Act)
-- Introduced by Sen JV Ejercito- Royalty of 5% of gross output within mineral reservations and 5-tier margin-based for those outside
-- 5-tier windfall profit tax- 40% share of LGU to be remitted directly to concerned LGU
-- Local business tax shall not exceed 50% of 1% of total gross output
-- Ring fencing – contractor treated as a separate taxable entity with respect to each tenement
Proposed Amendments to RA 7076
-- Revision of HB 6408 as proposed by National Coalition of SSM in the Phil, ALU-TUCP, ILO, MGB
-- Establishing a “Minahang Bayan”, limited validity of mining contracts, definition of SSM
BSP Gold Sale
-- 24.95 tons Au sold in H1 2024; reducing total Au reserves to 134.06 tons
-- Average Au reserves from 2000-2024 is 187.99 tons
Anti-Red Tape Authority
-- Included responsible mining in 2024 as among its focus sectors for re-engineering and streamlining
-- Discussions with MGB, NCIP, LGU have identified the challenges and corresponding initiatives for streamlining the permitting process and service requirements including permits issued by LGUs
-- Invitation extended to Private Sector Advisory Council (PSAC) for the conduct of Whole of Government Re-engineering and Process Streamlining Workshop for the Mining Sector (Oct. 08, 2024)
-- Discussions to focus on: 1. Mining’s contribution to national economy 2. Fostering a stable and conducive environment for domestic and foreign investments 3. Regulatory frameworks, challenges and best practices in mining
---
Reference:
[1] Ayson, Joey Nelson (Oct. 7, 2024). PMEA Monthly Membership Meeting – PMEA Matters and Industry Updates.
