On the first Philippine Mining Club Luncheon last February 28 at the Manila Polo Club in Makati City, Metals Exploration President and CEO, Darren Bowden, was the keynote speaker. His presentation was titled “Philippine Mining Industry on the Brink”.
Metals Exploration is a London-listed gold company operating the Runruno mine under its subsidiary, FCF Minerals Corporation. Bowden emphasized the urgent need for regulatory reforms in the Philippines in order to support the mining industry's growth. During his talk, he outlined the company’s turnaround story—rescuing FCF from bankruptcy in 2018 by refinancing $130 million on the following year, optimizing plant technology, and achieving over 90% gold recovery rates. Today, FCF is a debt-free, cash-generating operation that has posted strong production figures and won multiple safety and ESG awards.
Despite President Marcos’ pro-mining stance, Bowden noted that the industry is still being held back by excessive permitting delays and stagnant exploration. He pointed out the contrast between Australia and the Philippines, mentioning that exploration permits can be processed in as little as 30 to 60 days in Australia, while in the Philippines, the process can take 3 to 6 years.
Here are more key points from his presentation:
Philippine Mining Industry on the Brink
Recap:
Australian exploration expenditure - AUD 4.3B (increase of ~300% since 2015)
Philippine exploration expenditure - USD 37M (decrease of ~90% since 2012)
- Interpretation and implementation of legislation is dramatically reducing the exploration activities in the Philippines.
- No foreign mining company will invest money and utilize resources to wait years before starting exploration activities.
- We predict, in 10 years, if there isn't a change, the Philippine mining industry will be reduced to several old operating mines and thousands of illegal SSMs.
What makes Australia more attractive for mining investment?
Bowden stated that Australian States and Territories can issue a Low Impact Exploration License (LIEL) or similar for exploration activities, which provides protection for indigenous persons, which can include the following:
a. aerial surveys
b. geological and surveying field work that does not involve clearing
c. sampling by hand methods
d. ground-based geophysical surveys that do not involve clearing
e. drilling and activities associated with drilling and the establishment of a drill site that do not involve clearing or site excavation other than the minimum necessary to establish a drill site
f. environmental field work that does not involve clearing
Meanwhile, in comparison to Philippine Exploration, Philippine mining must secure a certification from the NCIP. The approved Exploration Permit shall only be issued to the Permittee when the required NCIP Certification is complied with.
“Sec. 59 of the IPRA Law states that all departments and other government agencies shall henceforth be strictly enjoined from issuing, renewing, or granting any concession, license or lease entering into any production-sharing agreement, without prior certification from the NCIP that the affected area does not overlap with any ancestorial domain. “
Mentioning some possible solutions, the first step is to identify and define the rights of indigenous peoples for resource development.
Second step is to look at this problem: How come in exploration activities, the mining proponents are subjected to a lengthy and complicated CP process that can take years just to review the environmental protection measures during a minimal disturbance exploration program?
Suggested solution: NCIP to implement a 2-part CP process, namely:
Part 1 - Issue a CP for exploration activities
Part 2 - Issue a second CP for mining operations
For part 1, the environmental work plan (EWP) submitted by the proponent and assessed by the MGB, should also be promulgated to the indigenous people and community members of the affected area for review, comment, and negotiation. The MGB or proponent should post the EWP to the affected areas with a mandatory timeframe for comment. Comments should then be collated and changes made to the EWP when accepted by all parties.
The CP should be released to the proponent within 60 days if the exploration activities have minimal impact on the receiving environment. MGB can then issue the exploration permit.
And then for part 2, following the current CP process, the proponent will receive the MPSA or FTAA after the CP (relating to profit sharing) is issued by the NCIP.
Without urgent improvements, Bowden warned that the country risks relying solely on decades-old deposits and missing opportunities to revitalize the sector.
Metals Exploration has diversified its portfolio by expanding to Nicaragua, where permitting is reportedly more efficient. The CEO underscored that while Philippine laws protecting Indigenous Peoples are essential, the real issue lies in how they are implemented. He called for a balanced approach that upholds community rights while enabling responsible and timely mining development.
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Also present during the Luncheon is ABB Regional Sales Manager – Southeast Asia-Mining, Dharamdev Rajwar, who presented "ABB: Driving Transformation in Southeast Asia's Mining Sector".
Rajwar discussed the biggest barriers to decarbonization in relation to the 2050 vision with the 2030 urgency. The mining industry is under pressure to transform. The Paris Agreement has spurred change in the mining industry. Mining companies need to prioritize sustainability to meet the rising expectations of communities, NGOs, investors, and societies.
(Most details about his presentation for this event will be discussed on a separate article.)
The President of Philippine Mining & Exploration Association, Joey Nelson Ayson, was the emcee and moderator of this event.
About Philippine Mining Club
Philippine Mining Club is affiliated with the Melbourne Mining Club. The club was established to provide a venue for professional networking and discussions on some of the latest issues influencing the Philippine mining industry. Featured guest speakers present and share their technical expertise related with mining and energy sectors.
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Photo credit: Philippine Mining Club
