By Marcelle P. Villegas “The Philippines is currently the leader in the hydrometallurgical leaching of laterite ores but will lose its leadership position in the battery raw materials sector if supportive mining policies are not put into place quickly... or if an export ban is not implemented quickly.” (George Bujtor, 11 September 2019, Jakarta, Indonesia) Last September, during the Asian Nickel Conference 2019 in Jakarta, Indonesia, Mr. George Bujtor (CEO of Electric Metals Ltd.) represented the Philippines through his report titled “Philippines: Regulatory Update and the Potential of the Philippine Laterite Ore” -- “How the Philippines was Surpassed by Indonesia in the Laterite Nickel Industry”. The scope of his presentation covered the following: Update on mining regulations in the Philippines Examining export volumes of nickel ore from the Philippines, and how these had been impacted by Indonesia’s exports Examining the viability of the Philippines’ laterite ore deposits and what this could mean for future production [1] The Asian Nickel Conference is now on its 7th year. This year’s conference was held at The Ritz-Carlton Jakarta, Mega Kuningan, Jakarta, Indonesia. Indonesia is known as the fast-growing hub for the global nickel market. The conference is a venue that brings together nickel, stainless steel and NPI producers, end-users, auto and battery manufacturers and industry experts. [2] Mr Bujtor is an eminent mining executive with over 35 years of experience in the industry. He is an expert in the technical, financial and commercial aspects of mining operations, and projects across many commodity groups such as gold, copper, lead, zinc, tungsten, nickel, iron ore, chromite, magnetite sands, diamonds, coal, etc. He has extensive work experience in the past as General Manager and Managing Director in Rio Tinto, Australia. He was CEO of Toledo Mining Corporation and developed the Berong Nickel Mine in Palawan. Currently, he is the CEO of private companies -- Electric Metals Limited (EML) in Hong Kong and PT Electric Metals Indonesia which are developing the innovative EML Process for the low-cost leaching of nickel laterite ores. This is the first of its kind in green technology in nickel processing, and he introduced this at the Asian Nickel Conference in Indonesia last September. While many are optimistic about how the Philippines shall benefit from Indonesia’s upcoming nickel laterite ore export ban, there are certain angles of this situation that many do not realise. First, let us look into the situation of the Philippine nickel industry and how Indonesia is affecting us. During his participation as a speaker in Indonesia’s Asian Nickel Conference, Mr Bujtor gave a comparative analysis on how the Philippines and Indonesia differ in handling the nickel industry. The Philippines has the fourth largest resource of nickel in the world, the fourth largest resource of cobalt in the world, and the world’s second largest producer of nickel units in 2017. Both the Philippines and Indonesia have the resources to dominate the nickel industry. How come Indonesia is taking the lead while the Philippines is behind the race? According to the Fitch Group - Asia Mining Risk & Reward Index, “Philippines mining to remain among Asian’s laggards”. The Philippines ranks as the last (rank 13) among resource-rich Asian countries. The Philippines’ global rating is on the 45th rank. [1] A quote from the Fitch Group analysis states “The Philippines is characterized by weak mining reserves, poor regulatory framework, corruption and increasing resource nationalism… Political uncertainty will continue to impinge on growth and especially foreign investment.” Furthermore, “The Philippines has been left behind as Asia’s mining sector continues to boast the greatest rewards globally with positive business environments, rich mineral deposits, supportive infrastructure and political stability in the countries holding the top positions in the mining index.” How did the Philippine mining sector end up in this situation when we have the resources necessary to excel? Let’s take a look at the policies we have. In 2012, we have the implementation of the EO 79 which is still in place today. This is the moratorium on processing new mineral agreements until new legislation rationalizing existing revenue sharing agreements take effect. Then, the 2016 mining audits resulted in the closure or suspension of 28 mining operations. As of today, 13 mineral agreements have been canceled. On the following year, there was an Open Pit Ban by the late DENR Secretary Gina Lopez. The ban is still in place today. This entails a national ban on all open pit mining in the Philippines for copper, gold, silver and complex ores. (This excludes quarrying.) In 2018, (DAO 2018-03) DENR lifts the moratorium on the acceptance, processing and/or approval of Exploration Permit applications. From Mr Bujtor’s presentation, he stated, “The Philippines has already been surpassed by Indonesia in developing its nickel industry, but the Philippines has the fourth largest resource tonnage of Ni-Co laterite in the world, comprising ~28 million tonnes contained nickel (~15% of the world’s total) [Reserves ~14Mt], ~1.35 million tonnes contained cobalt (~12%), and ~0.44 million tonnes contained scandium.” “Regulatory turmoil and policy indecision has prevented the Philippines from developing its world-class laterite resources, and this is unlikely to change in the short to medium term.” [1] Compared with Indonesia, “the Philippines has already ‘lost’ the race to Indonesia to become the world leader in Nickel Pig Iron production and stainless steel. Direct shipping of laterite ores has not benefited the Philippines and is not in the national interest.” [1] However, the Philippines is currently Asia’s leading supplier of raw materials (nickel and cobalt) for the battery sector. Now, with the right policies, the Philippines could become one of the world’s leading suppliers of battery raw materials, including battery manufacturing, according to Mr Bujtor. [1] Now, over the next 4 to 5 years, nickel demand growth will be in the stainless steel and battery sectors. Mr Bujtor said, “Indonesia will continue to dominate the NPI growth and investment. The Philippines will only be able to compete in the battery sector.” The Philippines is one of two producers of the raw materials of battery in Asia. The other one is Papua New Guinea. In the Philippines, we have Nickel Asia and Sumitomo that control the Coral Bay and Taganito HPAL Plants for processing of limonite laterite ores. [1] In comparison, Indonesia has benefitted enormously from its nickel laterite ore export ban. How? They have been successful in the value added development of its nickel industry with around 26 plants. [1] “Tsingshan in Indonesia has invested over US$6B in integrated production facilities since 2014.” Moreover, “NPI production in Indonesia is forecast to exceed 750kt nickel metal by 2023. Where is the Philippines?” Indonesia’s export ban introduced in 2014 resulted in large investments in nickel plants due to access to laterite ore, coal and Chinese capital. “Investment to date is estimated at >US$12B with NPI production growing rapidly. NPI technology is readily available ‘off the shelf’. Chinese domestic production will decline for cost competitiveness and environmental reasons.” [1] He further noted, “The Philippines has ‘missed the boat’ and will now never be able to compete with Indonesia in ferro-nickel production for the stainless steel sector -- an unfortunate missed opportunity.” With Indonesia’s accelerated progress in the industry, how has that affected the Philippines? “Laterite nickel ore sales from the Philippines have peaked and are now in decline.” Here are some key points: China is moving its NPI production to Indonesia for reasons of lower cost, higher saprolite ore grades, favourable tax incentives and less uncertain mining policies. As Indonesia increases domestic NPI production, the need for laterite ores from the Philippines will decline. No Chinese companies have shown any interest in investing in process plants in the Philippines. Why invest when you can freely export ores and avoid political uncertainty and poor regulatory framework? The Philippines has permanently lost billions of dollars in investments because of the lack of an ore export ban. Even though laterite ore is being converted into NPI in China, costs would be much lower in the Philippines without the need to export ores. Philippine saprolite ores are low grade relative to Indonesia, but limonite ores are of similar grade with respect to nickel, cobalt and scandium. Indonesia exports average ~1.65% Ni whereas the Philippines grades average ~1.2% Ni. Much of the Philippine ores have been “high graded” and sold off at ~10% of the London Metal Exchange (LME) price for the contained nickel. “In-country processing generates much more revenues than DSO exports, which could be worth US$4.1 billion per year.” Therefore, what is the future for Philippine laterite nickel ores? Let’s look at the competitiveness of Indonesia vs the Philippines. “Relative to Indonesia, the Philippines has no competitive advantage in ferro-nickel production. Indonesia has built power stations to provide electricity to its ferro-nickel industry. The Philippines has limited coal resources and a negative view of coal-fired power stations.” Mr Bujtor added, “With past high grading and sales of saprolite ores, little high grade saprolite tonnage remains in the Philippines to produce low-cost ferro-nickel/NPI.” “Indonesia has the advantage of having considerably higher saprolite ore grades and lesser environmental controls. These are the key cost drivers.” Therefore, in conclusion, the future for the Philippines is not in ferro-nickel or NPI. “The future of the Philippines lies in the processing of its laterite ores as battery raw materials,” he concluded. “The Philippines has the world’s best HPAL technology and should leverage its current strong position.” For Part II of this article, we shall further discuss Mr Bujtor’s presentation on the Philippine’s potential if we make the right moves in leveraging its current strong position. We shall also discuss his company’s “EML Process” which was developed in the Philippines. This is like a heap leach process but adapted for the tropics and can treat all laterite nickel ores with the lowest carbon footprint. EML’s technology is a low cost breakthrough in leaching being the “greenest” of all nickel technologies with the lowest capital cost in the industry. Acknowledgement: Thank you to Mr George Bujtor of Electric Metals Ltd. Reference: [1] Bujtor, George. (11 Sept. 2019). “Philippines: Regulatory Update and the Potential of the Philippines Laterite Ore -- How the Philippines was Surpassed by Indonesia in the Laterite Nickel Industry”. Presented at Asian Nickel Conference 2019, Jakarta Indonesia [2] Asian Nickel Conference 2019 website - Retrieved from - https://www.metalbulletin.com/events/asian-nickel-conference/details.html

By Marcelle VillegasThe Mining Philippines International Conference and Exhibition 2019 last September presented the many aspects on how the local mining industry affects other industries as well, such are the agriculture, infrastructure, energy sector, petroleum and more. Change in general is one of the main focus of the conference. “Change is inevitable. In today's fast-changing business landscape, change is the main catalyst for growth.”It was also emphasised by the various speakers that change is a great equalizer that allows the emergence of new businesses, startups and crowdfunded enterprises in order to compete with bigger and more influential multinational companies. [1]“Changes has been knocking at the door of the mining industry. Embracing change is no longer an option. It is do or die.”This explains why the theme of the conference is “Riding The Wave: Capitalizing on Opportunities”. Change creates a wave that shapes the mining industry today, and is an important factor in nation-building.“The interplay of internal and external forces is creating a wave of change that can bring the industry to new heights. The Chamber of Mines has prepared a diverse program that will give conference attendees a better understanding of the social, geo-political and economic landscape and market trends that have and will continue to shape the mining industry as we know it today.” [1]“Demand for minerals is projected to increase in order to achieve energy transition. Given that low-emission energy and transportation systems are more mineral-intensive than their fossil fuel-based counterparts, the transition provides a great opportunity for the mining sector.”Philippine Mining Today“The Philippines is a leading producer of nickel and is a significant producer of gold, copper, chromium, zinc and silver. We also produce oil and gas. In the 5th Country Report of the Philippines Extractives Industry Transparency Initiatives (PH-EITI), it is reported that there are currently 48 large-scale metallic mines with a total production value of PHP 108.7 billion. [2]”“The country accounted for 11% of the world’s production of nickel in 2017. Other commodities being produced in the Philippines include chromite, zinc, iron, silver, crude oil and natural gas.” “Domestic production follows a similar trend as mining - declined from 3 million barrels of oil in 2014 to only 1.5 million barrels in 2016. Production from Galoc oil field has been the main contributor to the total output, producing 1.4 million barrels of oil in 2017.” “The Philippines has rich deposits of gold, copper, nickel, chromite, and reserves of coal, zinc, iron, molybdenum, crude oil and natural gas. While the Philippines is ranked as the world’s 5th most mineralized country by estimated reserves valued at USD1.39 trillion, only around 2.35% of the 9 million hectares holding mineral reserves are covered by mining permits as of August 2018. As of 2018, the Philippines accounted for 6.4% of the world’s total estimated reserves of nickel.”Revenue Collection“The latest EITI disclosures (2017) show that the Philippines received USD 722 million (PHP 37.8 billion) from the extractive industry. This was a 26% increase from the previous year (USD 536 million or PHP 28 billion in 2016). Almost 74% of these revenues came from oil and gas, with the rest from mining.”“Oil and gas revenues were mainly collected through the government’s share of oil and gas production (63% of oil and gas revenues) and corporate income tax (28%), while mining revenues were mainly collected through corporate income tax (38% of total mining revenues) and excise tax on minerals (24%).”[2]Reference:[1] Retrieved from Mining Philippines 2019 Conference and Exhibition Directory[2] PH EITI 5th Country Report (FY 2017) vol.1, p.15

By Marcelle VillegasThe annual Mining Philippine International Conference and Exhibition 2019 (10-12 September 2019) tackled several issues about the mining sector of the Philippines from regulations, audits, environmental concerns and recent changes in global market trends. This year’s theme is “Riding the Wave: Capitalizing on Opportunities”. Honorable Analiza Teh, Undersecretary, Climate Change and Mining Concerns, DENR, discussed on first two days of the conference some updates about mining permits and audits. She reported five pending major investments or mining projects that are expected to generate growth for the industry. Undersecretary Teh said, “Our goal now is how to maximize this potential to boost growth without compromising the protection of the environment and ensuring the sustainability of mining practices,"She also mentioned that there are five mining projects that are expected to increase the contribution of the mining sector to the economy. [1] The following mining companies are: Tampakan Copper-Gold project in South Cotabato, Sultan Kudarat and Davao del Sur with a total capital investment of USD8.20 billionKingking Copper-Gold mining project in Compostela Valley -- USD2.29 billionSilangan Copper-Gold in Surigao del Norte -- USD40.43 billionPujada Nickel project in Davao Oriental -- PHP540.36 billionBalabag Gold-Silver project in Zamboanga del Sur -- PHP1.04 billion [1] Undersecretary Teh noted, "These mining projects are expected to bring billions of US dollars worth of revenues during its operations.". "The government and the industry need to work on improving public perception and enhance public confidence in the industry's capacity to implement genuine responsible mining." [1]During the morning session of Day One of the conference, a protestor addressed a question to the Undersecretary after her speech. He is Paul Nieves, Media Coordinator of “Alyansa Tigil Mina”, a Phlippine anti-mining group. He later said during an interview by ABS-CBN, "What is DENR doing regarding irresponsible miners? I have shown to Undersecretary (Analyza Teh) the people's mining audit. It shows the environmental destruction." He was questioning the credibility of the government’s audits. [2]There was also a group of female protestors from the same anti-mining group who did a non-violent, silent protest at the lobby of the hotel where the conference was held. The ladies were arrested and detained by police and hotel security. [2]Environmental Undersecretary Analiza Teh mentioned that the MICC audit are even stricter than the audits done by the late DENR Secretary Gina Lopez which resulted in closure and suspension orders for some 26 mines. She also emphasised the audits are meant to ensure that miners don't harm the environment and to allow responsible miners to continue operations. [2] "It really covered several aspects: legal, technical, environmental and social compliance, so this is more thorough.” Additionally, she said that different mining companies have different corrective measures. The MICC will start another audit of the mining sector within the next two months, and according to Undersecretary, this one will cover 17 mining companies which passed previous evaluations. The second audit aims to ensure all industry players are complying with laws that protect the environment. [2]She mentioned that despite the completion of the last audit, MICC decided not to publish the results as some of the information are confidential. In contrast to this, Mr Gerard Brimo (Chairman, Chamber of Mines of the Phils.) said that the audit results should be released. "The fact is the majority of the companies have passed, so it paints a different picture than the results of the first audit when some 26 companies, more than half of the operating mines were serving closure orders." [2]Mr Brimo said that the mining industry has been “in a tough situation for years now with growth stifled by the ongoing moratorium on new mining permits, the ban on open-pit mining and prevailing uncertainty regarding mining taxation”. [2]The 17 mining companies covered by the MICC Review Phase II are:Agata Mining Ventures Inc.Apex Mining Corp.Atlas Consolidated Mining and Development Corp.Cagdianao Mining Corp.Century Peak Corp.FCF Minerals Corp.Filminera Resources Corp.Greenstone Resources Corp.Pacific Nickel Phils.Philex Mining Corp.Philsaga Mining Corp.Platinum Group MetalsRio Tuba Nickel Mining Corp.SR Metals Inc. Taganito Mining Corp.TechIron Resources Inc.Tribal Mining Corp.-----On Day Two of the conference, Undersecretary Teh gave a presentation titled “Where are we going? Government’s way forward for the mining industry”. During the open forum after the first set of speakers, Atty. Leo G. Dominguez, President of OLLI Consulting Group, Inc., asked a question to Undersecretary Teh. The question pertained to her statement the day before that the results of the MICC audit have been forwarded to the Office of the President (OP), for concerns relating to the Privacy Act of the audit results cannot be made public, and therefore matters relating to the audit are no longer in the hands of the DENR. If companies need to follow up on the resolution of appeals pending with the OP as affected by the audit, these companies should not come to the DENR but go directly to the OP. Atty Dominguez asked whether or not the Undersecretary believed that the OP has the expertise to understand the audit report, because it has been there for 18 months with no action. His concern reflects the situation of the companies being audited and whose operations have been on hold pending government action on the audit results. Because the report has not been released to the mining companies concerned and to the public, then the mining companies have no idea exactly where they stand in respect of the audit, and what actions they need to take to pass the audits, or how long their operations will need to be on hold. Undersecretary Teh responded to Atty. Dominguez by saying that mining companies subject of the audit could go to her at the DENR and seek the DENR’s assistance. If the meetings indicate that a specific mining company’s position is meritorious, the DENR would forward a favorable endorsement and recommendation to the OP in respect of that company’s pending appeal. In effect, this is how Undersecretary Teh proposed that the OP’s lack of expertise to understand the audit results could be addressed. So, again, in effect, Undersecretary Teh admitted that contrary to her statement the day before that the audit results were no longer in the hands of the DENR, the DENR’s additional input was in fact still necessary for the OP to act on the audit results vis-a-vis appeals by mining companies of Orders of Cancellation of their operations issued by former DENR Secretary Gina Lopez. Loss of time is critical in any business operation. Plus a vagueness in process flow of approvals and audits puts the mining companies involved in an awkward position of waiting for the unknown.The Undersecretary said she would forward Atty. Dominguez’s concern to the Office…-----The 3-day conference had many notable speakers such as Director Nestor Arcansalin (Resources-Based Industries Service, Board on Investment) who talked about “Identifying Opportunities Under the Government’s Manufacturing Resurgence Program”, Mr Pierre Gratton (President and CEO, Mining Association of Canada) on “Updates on the Towards Sustainable Mining Initiative”, Atty Dante Bravo (President, Phil. Nickel Association Industry) on “What;s next for the nickel in the face of the looming EV market”, Engr. Eulalio B. Austin, Jr. (President and CEO, Philex Mining Corp.) on “The Silangan Project - Surigao del Norte”, Mr Rob Longey (Technical Director - Tailings and Mine Rehabilitation, GHD) on “Dam Design and Safety”, and more. On Day One of the conference, a Focus Group Discussion was held to talk about the Philippine Mineral Reporting Code and Its Relevance to the Philippine Mineral Industry. The discussion was led by Atty. Ronald S. Recidoro (Chamber of Mines of the Phils. Executive Director) and moderated by Atty. Dennis A. Quintero (PABC Chair and Meeting Chair). Presenters for the Focus Group Discussion were Engr. Ramon N. Santos (GSP CPAC Secretariat Head) who reported about the “Basics of the Phil. Mineral Reporting Code 2007 and Its Implementing Rules and Regulations”, Engr. Juancho Calvez (MGB Chief Metallurgical Engineering) on “PMRC Committee: Role and Composition”, Mr George Baquiran (GSP CPAC Chair) on “CRIRSCO & International Reporting Codes”, and Mr Joey Nelson Ayson (PMEA President) on “PMRC: Updates and Relevance to the Minerals Industry”.The Focus Group Discussion was ended with an open forum that was moderated by Engr. Roger A. De Dios (PSEM National President). Reference:[1] Ison, Lilybeth. (10 Sept. 2019) "5 projects seen to boost growth of PH mining sector". Philippine News Agency[2] Deguzman, Warren. (10 Sept. 2019). "Environmental groups question PH officials on credibility of mining audits". ANC 24/7, ABS-CBN News

By Marcelle Villegas Filminera Resources Corporation (FRC) is currently the largest operating gold mine in the Philippines. For the past years, Filminera greatly contributed in upgrading their host municipality of Aroroy from a fourth class into a first-class municipality. [1] In order to fully understand the measures on how environmental protection is implemented in Filminera’s mining operation, we interviewed Mr Patrick Paul Mkonyi (AVP Technical Services), Mr Nikko Vanell Dolino (Senior Mining Engineer) and Ms Maureen Rapsing-Bien (Senior Environmental Liaison Officer, Environmental Department). In the creation of an open pit mine and extraction of ore, the process involves transfer of waste rocks and soil materials to uncover the valuable mineral-bearing material called ore. The waste materials are dumped strategically to form a landform called waste dump. The size of a waste dump is determined by stripping ratio of the designed pit -- the ratio of the volume of overburden required to be handled in order to extract a unit volume of ore. Stripping ratio can also be expressed in terms tonnage – tonnes of waste to be handled in order to uncover a tonne of ore. Mr Mkonyi explained, “You cannot have a mine without a waste dump. It is like having a house without a toilet. You need a space where you can dump the mined waste in order to access the ore, to give you the mineral that you are after. Therefore, waste dumps must be designed to last forever, that means it must be geotechnically stable.” “Filminera waste dumps are well engineered, geotechnically tested and environmentally confirmed so it must conform with international engineering and geotechnical stability standards.” How are designs checked to further ensure safety? “We have different third-party bodies that assist us with the designs. They cross-check our designs for the government to accept it,” said Mr Mkonyi. “All our waste dumps are geotechnically approved by third party, environmentally approved by third party and, also we have our in-house team that do the engineering and geotechnical work on much regular basis. Then, our Environmental Department takes over for rehabilitation.” “We have different parameters for different waste dumps. Let us take Syndicate waste dump as an example. For this waste dump, we started building from the bottom up. We built from the base of the mountain, upwards, and we built in 10-meter lifts. Since we have potential acid rock drainage here, we altered our practice of construction. Instead of doing 10-meter lifts, we changed to 3-meter lifts (or 3-3-4) in order to make sure that the compaction is well-maintained to prevent acid rock drainage to occur.” Filminera’s Senior Mining engineer, Mr Nikko Vanell Dolino, manages the activities from groundbreaking to the closure of the waste dumps. “It all starts with area selection,” Mr Dolino explained. “We generally pick an area in which it would be advantageous for creating a waste dump, with lesser disturbance on the environment. Once an area is selected, we make sure that we follow the environmental laws and the standard best practices.” “When you disturb a vegetation, there are expected silts that will be washed away by running water when it rains. Therefore, we first create sedimentation ponds and other measures that would control siltation and make sure that it does not go to nearby water bodies.” “Initially, the materials to be dumped will first undergo sampling and testing for potential acid generation. Materials with high percentage of potential acid generation will be placed at the core of the dump. We and our third-party consultants make sure that these materials are isolated in order to prevent leaching.” Mr Dolino added, “Once we start building these lifts, we also place some controls or testing sites so that even though we have completed the dump site, we are still constantly monitoring the dump from these sites in order to determine chemical reactions that might be taking place within the dump.” The whole process is done in repetitive checking and in stages. Mr Dolino explained that upon finishing a 20-meter lift, they now proceed with rehabilitation of the slope. The rehabilitation process takes place concurrently with the construction of the dump. This is called Progressive Rehabilitation, and is handled by the Environmental Department. The Senior Environmental Liaison Officer of the Environmental Department, Ms Maureen Rapsing-Bien, explained progressive rehabilitation. “In a mine site, the disturbed area at the end of the mine life must be rehabilitated or revegetated. This is required by the law. While the operation is ongoing, we start rehabilitation right away [on the portions where mining or construction is finished]. The advantage of progressive rehabilitation is that the end cost of operation is lower because it is done gradually, rather than spending on the whole rehabilitation stage at the last part of the operation.” She added, “When it comes to environmental protection, almost all companies do the same system such as waste management, water management, land rehabilitation, and others. They just differ in the implementation.” Moreover, Mr Dolino added, “It takes time for the plants and trees to grow after revegetation. Thus, gradual revegetation is a smart way to manage time. While we are still working on some portions of the waste dump, somehow the completed spots of the waste dump already have growing trees and plants on it. Revegetation also increases stability of the waste dump.” “Also, since we are still working on the site while some portions are being rehabilitated, in case of failure in the design, at least the company is still there to immediately rectify it.” Mr Dolino explained that once they have reached the final layer of the dump, they place a cover that isolates the highly potential acid forming materials. “We have a 20-meter cover of good material (or non-acidic materials), then we revegetate the surface.” Mr Mkonyi stated, “The final cover must be engineered to meet geotechnical and geochemical criteria. The main purpose is to make sure that it encapsulates the potential acid forming material within the dump by allowing a saturation layer (porous layer) of material within the dump that stops oxygen from reaching the potential acid-forming material that forms the core of the dump.” “Excessive saturation of the material may cause instability to the dump, so it must allow some drainage to take place, thus we engineered the cover design for to meet this criteria. We've constructed one on the Syndicate waste dump and we are still testing its performance. The Syndicate cover was designed by a third party consultant in collaboration with a well-known professor from the University of Alberta, Canada. The consultant visits twice a year to test the performance of the cover. So far, we have achieved very good results. More samples have been sent to the University of Queensland in Australia for more testing.” On the strict protocols on how to ensure safety during the construction of a waste dump, Mr Mkonyi said, “We have procedures on site and in case we identify a procedure that does not cover all aspects of the activity to be performed, then we supplement the procedure with a tool called Job Safety and Environmental Analysis (JSEA). Safety is our No.1 priority so we don't expose our people to risk. We also have people who review all our safety measures and approve them. So it starts from the level of supervisor, superintendent and mine manager, and lastly to resident manager.” The capacity of the Syndicate waste dump is approximately 10 million cubic meters of waste. It was completed in 2018 and it took about three years to construct. According to Mr Dolino, “A waste dump is limited to the maximum height that we can stockpile material. It is usually determined by how much waste material is excavated from the pit. We start with the numbers and then we translate it into a design that can contain volume excavated from the pit.” This refers to the stripping ratio. During the construction of the Syndicate waste dump, they encountered heavy rains. Mr Mkonyi relayed that at the start of the operation, they had one torrential rain in December 2015 that eroded part of the access that they were constructing. “The effect was not that severe. We were able to control that.” Mr Dolino added, “It was a good thing that we anticipate events like this so we can come up with controls or measures to prevent the worst from happening.” On responsible mining, Mr Mkonyi stated, “Being a mining engineer, you might think I am biased, but for me mining is everything, but you have to do it responsibly. If you look around, everything we see, everything we use are mostly from mining. It is how you practice mining that may make it look good or bad, but for us in MGP, we are a responsible mining company. We look after the community around us. We have certifications and we are being monitored. We pass the assessments.” Reference: [1] Filminera Resources Corporation Corporate Brochure 2019

By Marcelle P. Villegas Stock Market speaker, Mr Alexander "Sandy" N. Gilles, CFA, has been involved with the Philippine Mining Club Luncheon since April of 2011. It is a professional networking forum and event that provides a venue for mining industry executives, professionals, students and stakeholders. The club is affiliated with the Melbourne Mining Club and luncheon meetings are held every other month. Last August, Philippine Mining Club (PMC) celebrated their 50th Luncheon Anniversary. On our previous edition, we featured an interview of its founder and Managing Director, Mr Kevin Lewis. This time, Mr Gilles shares his story about PMC’s early days and the team’s life behind the scenes. Mr GIlles is a regular speaker and presenter at PMC for for five minutes of “Stock Watch” where he explains how to gain from stock market moves, whether of a mining company who is presenting its operations, or how to profit from any good economic news. He is a Chartered Financial Analyst (he has passed three exams that are globally-recognized as the board exam for investment analysts) and lecturer on Philippine Stock Exchange seminars. He is a Consultant for Market Education at First Metro Securities where he educates retail investors (mostly beginners) in the stock market and in mutual funds. Mr Gilles is a graduate of the University of the Philippines, with a cum laude degree in BA Communication Arts in Journalism. He has a Masters Degree in Applied Business Economics in University of Asia and the Pacific. He has been writing about the stock market since 1990. He used to teach at the graduate school of business at De La Salle University. Every month, Mr Gilles is interviewed on ABS-CBN News Channel (ANC) and One World TV (formerly Bloomberg TV 5). PRJ: How long have you been part of the PH Mining Club? Mr Gilles: “From the beginning. Kevin Lewis approached me about setting up the first ever mining luncheon. We brainstormed and we helped one another find the first speakers.” “The first-ever speaker was Mr Fernando Moya of Vale Exploration Phils. He spoke about the work done by this Brazilian mining company. That took place five in 2011 or 50 meetings ago.” “I was privileged to be invited to speak on the Stock Watch. I describe the behavior of listed stocks in mining. I show the pros and cons of the Philippine stock market, and whether the audience can make or lose money by buying the shares. Why not do something practical and make a bet that the share prices might go up, assuming the future is bright for the mining company? PRJ: What is it like being part of the Phililippine Mining Club events? What are the challenges behind the scenes? Mr Gilles: “Organisationally, the event requires a lot of planning to make it happen. Hard work. We thank the Platinum, Bronze and Gold sponsors for giving their support and making the event possible. They contribute to the good of the industry, the community and society. They also get some advertising value. I wish that their sales go up, as a reward for their efforts.” “And then the good part is that people are very nice and they have a very good networking and community discussion about the challenges facing the country and the industry.” “The difficulties or challenges are in the details: sound system, lights, the projector, the food and the service. But we try to improve on these organisational details as we go along.” PRJ: In the past, do you have any encounter with anti-mining activists? Mr Gilles: “No, in fact this has been a venue for bringing to light all of the hurts of the mining industry in the hands of other parties and whether the local mining industry can indeed play a part in nation-building. People here tend, for the most part, to be responsible miners who are thinking in terms of working with integrity and also how to do their share in nation-building and improving the exports of the country.” PRJ: Could you share with us your thoughts about the Philippine mining industry in general and how it is doing in the stock market? Mr Gilles: “We have about 11 mining stocks listed. I think Nickel Asia Corp. is one of the bigger ones, and Semirara also. There are 8 or 9 relatively inactive stocks. They're in mining and oil index. I think that the more that profits go up, then the more that they can have more attention from stock market investors. The mining companies have to focus on steady, rising growth in net profits and that's how they will be able to promise higher cash dividends and be able to see higher share prices and greater participation.” “These days, mining stocks are doing poorly in the stock market, just a mirror of their lethargy at the mine sites. Generally, mining company shares are weaker than, say infrastructure stocks, or consumer stocks, or property stocks, or shares of stock of banks. Those other ones are doing fine. They are experiencing strong demand and good sales. The mining industry is facing declining sales and net losses.” “Everyone seems to be against mining and sometimes for the wrong reasons because of misconceptions. So the mining industry is dealing with misconceptions, trying to wipe them aside, but along comes a new misconception.” “Mining industry does not have many friends. You could argue that maybe it deserves it reputation, maybe half of it is true. There have been environmental problems in the past, but the other part, that is also true that there are responsible mining companies.” “So if you give them the chance to prove themselves, they will not only dig the minerals out of the ground but rehabilitate and reforest afterwards.” “I understand there are many places where you can mine where the land is no good for agriculture because there are so many rocks in the ground where the plants won’t grow. So when you remove the rocks from the ground and you replace it with topsoil, it does a favor to the environment.” “A lot more people need to see the many good things mining does so that they don't keep on harping on all the negative things that may have happened to a few of the mining companies in the past.” PRJ: Do you have a message to the readers of Philippine Resources Journal that you would like to impart to them about supporting further the Philippine Mining Club events? Mr Gilles: “Dear readers, please keep inviting your influential friends and contacts to the Mining Luncheon. Refer also more sponsors. With better luncheons come better understanding between the mining executives and regulators, between the mining executives and the greater community, meaning all affected parties. I trust that the Luncheon does its share in promoting peace and understanding… removing prejudices and misconceptions.” “May there be a fair and free exchange of ideas so we can have some nice economic progress and strong mineral exports.” “Also, I would like the readers to contribute scholarships or provide contacts to help the college students of Geology and Mining Engineering. For the meantime, they might all have to apply for jobs abroad. But one day, when the business environment becomes more than 51% pro-mining in the Philippines, then they might all be able to come back from overseas jobs, and start working in local mines.” “It might take many years for the local business, opinion-leaders to be pro-mining. I think that due to resistance, not much exploration is being done. If there are explorations being done, they are stuck there. There is not much production. And where there is production being done, there is not much potential for export or refining. Not yet. ” “So a lot of things have to happen for the mining (and oil) industry to “find its feet” and start running. Lucky for other industries like banking and real estate, they don’t have to suffer public-relations attacks. Their role in the national economy is now respected beyond question. I wish the same for the Mining and Oil industries.”

By Marcelle P. Villegas Pop culture, movies, novels, literature, comic books and even video games often catch our attention and sometimes become our momentary bliss as we try to escape the real world... to find entertainment or to relax our minds. These modes in media are quite influential in ways that most of us are unaware of. For young minds or lay people who have no background in the field of Geology or Mining Engineering, their perception of the mining might be influenced by movies and books. Is this helpful in promoting proper information? Is it somehow injecting a negative impression towards mining where lay people believe what is fiction rather than true science? In the film industry, mining is a popular topic in science fiction movies. In the Star Wars movie trilogy, prequels and sequels (in films and novels), it seems evident that storylines show the importance of mining. There are many parts of Star Wars films or books where pro-mining sentiments are projected. Without mining in the Star Wars universe, there are no lightsabers, laser blasters, Star Destroyers, Imperial Fleets or Death Stars. For example, the lightsaber (a fictional and signature weapons of the Jedi Order and Sith Lords) are dependent on kyber crystals (a fictional precious gemstone) for its source of power. In the story, young Jedi apprentices are sent to the Crystal Caves of an ice planet to mine crystals. From there, they can build their own lightsaber. [1] Darth Vader’s success as a leader is marked by the completion of two Death Stars. Mining of minerals made the creation of these battle stations possible. Moreover, In the 2016 film, “Rogue One: A Star Wars Story”, an ancient Jedi Temple (Temple of the Whills) was looted by the Imperials for their kyber crystals which were used for the first Death Star that they were building. Story plots of Star Wars films and novels often show the life of miners and how communities are affected by mining. For example, back in 1977, a Star Wars novel was published titled “Splinter of the Mind's Eye” by Alan Dean Foster. In this novel, Luke Skywalker and Princess Leia were stranded in a swamp-like planet. In order to escape from the Imperials, they concealed their identity by pretending to be miners. The story somehow reflected the life in a planetary mine site. The 1992 novel “Star Wars: Dark Force Rising” by Timothy Zahn also had chapters were mining and its effect on a planet were discussed. Mine sites also made its mark in significant scenes in Star Wars films. In “Star Wars: Episode III - Revenge of the Sith” in 2005, two fictional mine sites were mentioned. At the mine site of Planet Utapau, Jedi Knight Obi-wan Kenobi had a fierce duel with the strange cyborg leader of the Separatist Army, General Grievous. With all the noise, sarcastic lines and blinking lights in the scene, perhaps it is hard to notice that the background resembles an open pit mine. Utapau is a planet with many sinkholes wherein alien cities are found and mining is their main occupation. This is also the hideout of the Separatist Army. Later in the film, we are taken into another mine site. Do you remember how Anakin became Darth Vader? He had a fatal duel with his teacher, Obi-wan while they were at the Mustafarian mining complex in Planet Mustafar. This mining complex is an ore-collection complex in a volcanic planet. The mining facility was also used as a secret hideout of a battle droid factory. Although Star Wars films and novels seem to project a pro-mining picture, these two fictional mine sites in SW Ep III have a negative connotation. First, mine sites are used as secret hideouts of criminals and their illegal activities like manufacturing weapons and aggressive use of military technology. Second, mine sites are dangerous. A young hero can be badly injured and end up being the villainous Darth Vader. Aside from Star Wars in 1977, there was also Battlestar Galactica in 1978 by Glen A. Larson. The movie had a TV series in 1980 and 2009, plus a miniseries in 2003. Mining was rarely mentioned in the film or TV series but the Galactica star fleet does have a Mining Ship designed to gather ores and water from asteroids. Mining became more prominent in Battlestar Galactica on its online gameplay. Therefore the concept of asteroid mining is depicted where mining titanium and water are needed to upgrade spaceships and provide fuel. If “Star Wars” and “Battlestar Galactica” present pro-mining messages, do you think films like “Avatar” and “Man of Steel” are doing the opposite? In 2009, James Cameron’s “Avatar” brought us into the world of Pandora, a habitable moon in the Alpha Centauri star system, which is inhabited by a local tribe of Na’vi (blue-skinned humanoid species of Pandora). The humans inhabited Pandora primarily for the mining of a rare mineral called Unobtanium, a fictional superconductor element not found on Earth. This mineral is needed to save Earth from an energy crisis. Eventually the mining colony expanded and it threatened the existence of the local tribe. The movie presented how mining affects the lives of indigenous people and the environment. Is the problem here mining or is it greed and misuse of technology? In the 2013 film “Man of Steel” (by David Goyer and Christopher Nolan) anti-mining sentiments were not presented directly. However, there was a scene when a holographic recording of Jor-el (Superman’s father), explained how Planet Krypton exploded. He said, “We exhausted our natural resources. As a result, our planet's core became unstable. Eventually, our military leader, General Zod, attempted a coup, but by then it was too late.” [2] Jor-el did not directly say that mining destroyed Planet Krypton, but the concept of “exhausting natural resources” and “planet’s core became unstable” could be hints of irresponsible mining. That part is left for audiences to think about. Looking at classic literature novels, mining and the life of miners were the main topics in Jules Verne’s “The Underground City” (1877) and “The Call of the Wild” (1903) by Jack London. The French sci-fi writer, Jules Verne wrote “Les Indes noires” (The Black Indies) which had English titles like “The Child of the Cavern”, or “Strange Doings Underground”. Other English titles for the novel were “Black Diamonds” and “The Underground City”. The novel is about coal miners in the mining community of Aberfoyle near Stirling, Scotland back in the 1800s. The mysterious setting showed how mining can bring a community together or perhaps how it can bring danger to some in an underground mine site. “The Call of the Wild” is an adventure novel by Jack London that tells a story of a dog named Buck. The story took place in 1890 in Yukon, Canada during the height of the Klondike Gold Rush. In those times, strong and reliable sled dogs were in high demand due to their ability to survive the harsh winter climate. Buck was stolen from his home in Santa Clara Valley and sold as a sled dog in Alaska. The book is not science fiction but is a fictional novel based on real-life events about gold mining. It tells us about the historic Klondike Gold Rush in 1896 - 1899. Gold was discovered there by local miners on 16 August 1896. When news reached Seattle and San Francisco the following year, around 100,000 prospectors migrated to Klondike region of Yukon (north-western Canada). Some became wealthy while others failed. The Klondike Gold Rush became a part of popular culture at that time. In summary, no matter how mining is presented by pop culture or media, it brings awareness on how mining plays a vital role in nation-building through infrastructure. Mining also determines the success or failure of a nation at war. The portrayal of miners, engineers and scientists in films or novels gives its audience or readers an awareness of the difficulties of working in a mine site. The Star Wars Universe for example may be science fiction, but the concept behind mining for minerals, industrialisation, political conflicts, economic issues and wars are reflective of real life struggles. For professionals in the mining industry, the challenge is to help young people and lay people find the balance between facts and fiction. Let us help them understand the scientific facts versus science fiction with regards to mining. Was there a good movie or book that inspired you towards a career in mining or infrastructure? Can you think of a good movie or novel where mining was a center of the plot or narrative? Reference: [1] https://starwars.fandom.com/wiki/Kyber_crystal Other reference - https://www.starwars.com/ [2] https://www.quotes.net/movies/man_of_steel_132084 * “The Call of the Wild” by Jake London, book cover by Paul Bransom and Charles Bull (1890)

(Photo courtesy of Mr Jason Magdaong, OceanaGold Phils. Inc. - “Didipio Mine: The Renewal of the Philippines’ First FTAA”)   According to OceanaGold Corporation (Melbourne), the Philippines Court of Appeals in Manila had set last 18 September 2019 as the hearing date for the company's application for a Writ of Preliminary Injunction. This is part of the company's appeal against the Nueva Vizcaya Provincial Court ruling of denying OceanaGold Phils. Inc.’s (OGPI) request to end the unlawful restraint of operations.   The Provincial Local Government Units of Nueva Vizcaya (PLGU) has been impeding access to the mine site since 1 July 2019. This is in response to an unlawful directive from the Governor to 'restrain any operations of the company. OGPI points out that the regulatory authority over the Didipio Mine rests with the National Government. They also clarified that the Local Government Code of 1991 (Republic Act No. 7160) does not grant the power of authority to the Provincial Governor or any local government officer to restrain any aspect of the Didipio operation. [1] OGPI continues to work with the National Government to finalise the renewal of their Financial or Technical Assistance Agreement (FTAA) and remains open to the opportunity to engage with the Provincial government and work together in the best interest of the local stakeholders. The Company remains strongly committed to operating in accordance with the law and will always comply with its responsibility under its contract with the Philippine Government. [1] Mr Mick Wilkes, President and CEO of OceanaGold said, "The Company has successfully developed and operated the Didipio Mine in the Philippines with a focus on delivering socio-economic benefits to local communities utilising international best practices and gaining a strong social license to operate. OceanaGold has established sound and collaborative relationships with regulatory authorities and stakeholders based on mutual respect." "While this process is taking some time, we will always operate in line with our values and commitment to responsible mining, and this means working transparently with the Philippine regulatory authorities to maximise the speed of the renewal. We are encouraged by the engagement with the government to date as we continue to work towards a mutually-acceptable path forward on the FTAA renewal." "I would like to recognise our world-class Philippine workforce of 1,500 workers who have remained focused on safety and preserving optionality at site during this uncertain time. We are proud to have positively contributed to the Barangay of Didipio, Province of Nueva Vizcaya and Quirino and neighbouring communities since 2012." [1]   The Didipio Mine of OceanaGold Phils. is an underground gold and copper mine located across the provinces of Quirino and Nueva Vizcaya. The mine operation has received numerous awards such as two Presidential Awards for being the most environmentally and socially responsible mining operations in the Philippines. Overseas, the company was awarded the 1st ASEAN Mineral Award for best practices in sustainable development. OceanaGold's Didipio mine site (Philippines) is considered one of the safest gold mining operations in the world because for the past two years, the company has deployed state-of-the-art automated and digital underground mining technology. For the past years, OGPI’s Didipio project has been providing significant socio-economic assistance to the province of Nueva Vizcaya and Quirino. Other than providing jobs to 1,500 workers (97% are Filipinos, 59% are from local communities) the company also provides several thousands of additional livelihood opportunities and indirect jobs through partnerships with cooperatives and social development organisations. As an international company, OceanaGold Corporation is a mid-tier, high-margin, multinational gold producer with assets located in the Philippines, New Zealand and the United States. The Company's assets encompass the Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. In New Zealand, OceanaGold Corporation operates the high-grade Waihi Gold Mine, the Frasers mine, and the largest gold mine in the country at the Macraes Goldfield. [1] In the United States, the Company operates the Haile Gold Mine in South Carolina. The Haile Gold Mine is a top-tier, long-life, high-margin asset. OceanaGold Corporation also has a significant pipeline of organic growth and exploration opportunities in the Americas and Asia-Pacific regions. From their media release, the Company states, “OceanaGold has operated sustainably since 1990 with a proven track-record for environmental management and community and social engagement. The Company has a strong social license to operate and works with its valued stakeholders to identify and invest in social programs that are designed to build capacity and not dependency.” [1] “In 2019, the Company expects to produce between 500,000 to 550,000 ounces of gold and 14,000 to 15,000 tonnes of copper at All-In Sustaining Costs ranging between $850 and $900 per ounce sold.” [1] #DidipioMine #OceanaGoldPH #ResponsibleMining #Philippines Reference: [1] OceanaGold Corporation Media Release - 13 Sept. 2019, retrieved from - https://www.oceanagold.com/investor-centre/news-releases/ Photos: Courtesy of OceanaGold (Phils.) Inc. - Retrieved from  - https://www.oceanagold.com/downloads/images/

By Marcelle Villegas The Didipio Mine of OceanaGold Philippines Inc. (OGPI) is a gold and copper mine located across the provinces of Quirino and Nueva Vizcaya. It is considered one of the safest gold mining operations in the world.OGPI received numerous awards such as two Presidential Awards as the most environmentally and socially responsible mining operations in the Philippines. On the international scene, the company was awarded the 1st ASEAN Mineral Award for best practices in sustainable development.OGPI’s Didipio mine site is considered one of the safest gold mining operations in the world, because for the past two years, the company has deployed state-of-the-art automated and digital underground mining technology. The Didipio Mine also implements International Organization for Standardization (ISO) certified environmental management system (ISO14001:2015), Occupational Health and Safety Management System (OHSAS 18001:2007) and Energy Management System (ISO50001:2011).It is notable that OGPI has delivered significant socio-economic benefits to the Barangays of Didipio, neighboring communities, the province of Nueva Vizcaya and Quirino. It directly employs 1,500 workers where approximately 97% are Filipinos, with 59% hailing from local communities. The company also provides several thousands of additional livelihood opportunities and indirect jobs through partnerships with cooperatives and social development organisations.“OceanaGold has given us our three basic needs: School, Roads and Electricity,” Pastor Efren H. Bulawan, Resident and Local Didipio Leader. [1]During the September Monthly Membership Meeting of the Philippine Mining and Exploration Association (PMEA), Mr Jason Magdaong, Environmental/MEPEO & Compliance Manager of OceanaGold Philippines, Inc. was a guest speaker. His presentation was titled “Didipio Mine: The Renewal of the Philippines’ First FTAA”. [2]From his report, he stated that OGPI generated over 3000 jobs as part of its economic contribution to the country. In the development of their host communities, they have the following accomplishments:a total of 119kms of road improved and developed201 scholars graduated since 2007, 11 mining engineers producedtrained and produced 114 local residents as globally competitive underground mine workersestablished a community-owned corporation that offers a multitude of services of OGPIfinancially and technically supporting 13 agricultural cooperatives and establishing local and regional marketsFTAA Renewal Process and ChallengesOn March 2018, OGPI submitted its applications for its Financial or Technical Assistance Agreement (FTAA) renewal with the Philippine Government. The company is currently working with the National Government to complete the renewal. As of 20 June 2019, Mines and Geosciences Bureau (MGB) issued a letter authorising the Didipio Mine to continue its operations while the confirmation of the FTAA renewal by the Government is pending. By 25 June 2019, the Provincial Local Government Unit of Nueva Vizcaya (PLGU NV) ordered the Provincial Environment and Natural Resources Office (PENARO), Philippine National Police (PNP), Municipal Local Government Unit of Kasibu (MLGU) and Barangay Local Government Unit of Didipio (BLGU) to restrain any operations of the company after 20 June 2019.Then, on 1 July 2019, BLGU Didipio started blockade and hindered access to and from the mine site in response to the PLGU NV Order. By 25 July 2019, the Regional Trial Court (RTC) of Nueva Vizcaya denied the Writ of Preliminary Injunction prayed by OGPI to enjoin the enforcement of the Order pending the determination of the case with the local court. On 29 July 2019, OGPI appealed the decision by the RTC to deny the Injunction of the Court of AppealsThis blockade has the following impact on the Didipio mine operation:voluntary ceased copper concentrate haulagesuspension of underground activities due to depletion of consumable mining suppliesimpending depletion of consumable processing suppliesimpending temporary suspension of operation which will directly affect 1,516 employeesThe blockade also affects the community through the suspension of the PHP300M+ worth Social Development Management Program and Corporate Social Responsibility Projects of 11 beneficiary barangays with 15,000+ residents, namely:273 Barangay Health Workers, Security/Utility, Teachers and SDMP Staffs being subsidised193 scholars currently being supported3,000+ members/employees of cooperatives being assistedAdditionally, major community development projects are on hold, namely: Nueva Vizcaya and Quirino Road networkDidipio water systemKasibu Sanitary LandfillDidipio Gymnasium In response to the blockade, the community resorted to the following action:July 3 dialogue with MGB Director Wilfredo Moncano and DENR Key Officials to show support for FTAA renewalVarious dialogues with BLGU and MLGU August 6 dialogue with Governor Padilla to recall his order in restraining the operationIn summary, OGPI is actively working with the national government in finalising the renewal to ensure another 25 years of operation. The company is also involved in continuous efforts to try and engage with the Provincial Government, continuous community support for the renewal, and continuous legal process on the Governor’s restraint order. OGPI stated that they remains focused on the safety of workers and the environment.When the Didipio Operation started in 2013, it became a catalyst for an enormous economic transformation and development. OGPI’s major initiative was to contribute to the local economy through the construction of a PhP43-million senior high school building at Eastern Nueva Vizcaya National High School. [1]OceanaGold Philippines Inc. is a proud member of the UN Global Compact, which means absolute transparency in their commitment to the universal sustainability principles of human rights, labour, the environment and anti-corruption. This commitment is front and center of their corporate governance and at the heart of OGPI’s Didipio operations, because sustainability means earning the right to remain a valuable part of the community for many years to come. [1]#DidipioMine #OceanaGoldPH #ResponsibleMining #PhilippinesReference:[1] Retrieved from OceanaGold Philippines Inc. Facebook page[2] Magdaong, Jason. (3 September 2019). “Didipio Mine: The Renewal of the Philippines’ First FTAA”. Presentation during the Monthly Membership Meeting of the Philipping Mining and Exploration Association (Manila Elks Club, Makati City)

About 270-kilometers north of Metro Manila lies the mineral rich barangay of Didipio in Kasibu, Nueva Vizcaya. It is home to some 4,000 people and the Didipio gold-copper mine. OceanaGold is working with the Philippine government through the country’s first Financial or Technical Assistance Agreement (FTAA)--an agreement that allows the large-scale exploration, development and utilization of gold, copper, nickel, and other metallic minerals in the Philippines. The mine started its commercial production in 2013 and has since paved the way for a massive economic transformation, which connected the barangay to information, education, jobs, and markets. “We felt the hardship before OceanaGold came to Didipio. There were no roads, our agricultural products were not able to reach the market. OceanaGold has given us our three basic needs: school, roads, and electricity. The business opportunities boomed and work opportunities increased when the Company started operating,” says Pastor Efren H. Bulawan, resident and one of the local leaders of Didipio. Single dirt track and fire roads that were once only passable to pedestrians and motorcycles were turned to paved boulevards that facilitated movement of cars, goods, and people; suddenly, there was electricity and better cellular signal; suddenly, people from neighboring communities turned to Didipio for economic opportunities. Growing opportunities from the land The barangay’s pivot to mining did not stop OceanaGold from pouring support to community agriculture--after all, the barangay has been producing mountain vegetables and some palay. It is also home to some citrus farms, which have been reporting lower yields because of the citrus tristeza virus. In 2015, Dr. Pio Javier, an entomologist from the University of the Philippines conducted an onsite investigation and validated the findings. His research included a forum to share methods for preventing further spread of the pest and disease infestation and production and post-harvest techniques. The company's collaboration with the Department of Agriculture and the local government units paved the way for the empowerment of close to a hundred local Kasibu farmers on coffee production and some 30 farmers for organic vegetable production. “In Didipio, there are vegetable farms situated very close to our operating mine. We know that they have excellent produce because we buy some of it through the community’s three local agricultural cooperatives. We have interventions in the production and marketing aspects to ensure that our local partners would have a solid capital and operational foundation,” said David Way, General Manager of OceanaGold Philippines Inc. OceanaGold, recognizing that agriculture is a main economic activity, also supports ten other local agriculture cooperatives in ten communities adjacent to the mine. Jobs, jobs, jobs About 97% of OceanaGold’s employees are Filipinos, with more than half of the workforce coming from Nueva Vizcaya and Quirino. In the mine’s first six years of operation, the company disbursed some PhP 2.5-billion in salaries. To date, OceanaGold directly employs more than 1,500 people and provides additional employment opportunities for thousands more through cooperatives, suppliers and subsidized workers. The mine requires a steady stream of mining specialists and technical experts. To safeguard this talent pipeline, OceanaGold runs training and scholarship programs which include the Development of Mining Technology and Geosciences program. Every year, they allot scholarship slots and provide Php 170,000 in tuition fees and allowances to individual students who want to take up Mine Engineering, Geology, Metallurgical Engineering, Materials Engineering, Civil Engineering, as well as Bachelor of Science in Forestry, and Bachelor of Science in Agriculture. Engineering, geology, and metallurgy are professions that were not in the horizon of most Didipio residents before the mine came in. The continuous investment on capacity building of both employees and community members elevated their dreams, and tremendously increased their employability and likeliness to start their own businesses. “We are seven in the family. When I was about to enter college, I knew my parents were worried as I had two other siblings who were in college. So, I worked in DiCorp for a time to earn money for my college education. It was there I saw that OceanaGold offered scholarships, so I applied, got in, and now I’m a mining engineer and working for the Company,” says Wilbur Habiling, resident and scholarship program graduate. The need to provide for the basic needs of many workers--feeding them three times a day, seven days a week--necessitated auxiliary units, one of which is the Didipio Community Development Corporation (DiCorp). DiCorp is owned and managed by the town’s residents, with 361 local shareholders and 279 local workers. It offers a multitude of services such as housekeeping, catering, camp administration, transport services and construction services. OceanaGold has awarded several contracts to DiCorp from 2011-2018 with total gross revenue amounting to PHP 1.5B (USD 28M). The growing enterprise is now worth PHP 85.5 million and has extended their services beyond the mine. “DiCorp. is a perfect example of what local community enterprises can achieve if plugged in to value chains,” says David Way, General Manager of OceanaGold Philippines Inc. He adds, “DiCorp has come a long way and I am proud that it remains to be one of the largest taxpayers in Nueva Vizcaya.” Technology and Infrastructure No other private firm has contributed to the infrastructure growth of Didipio as OceanaGold – from roads to health centers, to school buildings and community centers. In 2017 it made the dreams of local students and educators a reality through the construction of a PhP 43-million senior high school building at Eastern Nueva Vizcaya National High School. The company has provided essential healthcare for students, improvement of school buildings, and construction of day care centers in the past. The high school building, however, is one of the biggest single investments made locally for education, and this was in view of the K-12 implementation, which some high schools in Metro Manila found hard to comply with. OceanaGold directly supports infrastructure, training and education, health and enterprise development programs not only of Didipio but of ten other communities adjacent to the mine with combined population of about 15,000 residents. A final anecdote from a resident “I wasn’t able to take up high-school in Didipio because there was no high school then. Instead, I went to the municipality of Bayombong, which is about five hours away--very far from my family. I’m proud to say that I’m one of the graduates of the OceanaGold scholarship program. There are about 246 of us and I belong to those who took up courses like mining and geology. For the past years, I worked as a mining engineer in the Didipio mine. I learned about the environment and how responsible OceanaGold is and I’m proud that we are where we are right now. OceanaGold offered a lot of opportunities to my community and to adjacent barangays. “The Company’s operation has been a blessing to us,” concludes Echievery Baguilat, Didipio’s first local mining engineer. OceanaGold’s mine life is expected to last until 2032, by which time Didipio could reach or even surpass its full economic and social potential as a barangay in the midst of a lush greenery that characterizes most of Nueva Vizcaya and Quirino, with all the necessities for a comfortable life.

By Marcelle P. Villegas On 14 June 2019, The Philippine Mining Club celebrated their 50th Luncheon Anniversary. Their special guest speaker for this luncheon was Mr Eulalio B. Austin, Jr. who is the President and CEO of Philex Mining Corporation. His presentation’s title is "The Future: Padcal and Silangan". With the many hurdles and challenges that the industry is facing today, what can we learn from a 60-year-old mining project like Padcal? Mr Austin started his discussion with the World Happiness Report 2019 by the United Nations Sustainable Development Solutions Network. It states that the Philippines ranked 69th out of the 156 nations in the World Happiness Index. The Philippines also ranked as the 12th among the countries that showed the highest increase in level of happiness between the periods of 2005-2008 and 2016-2018. Then, he showed a clipping from a newspaper article dated February 2008 with the statement -- "a Golden Age in Philippine Mining was coming" due to upcoming investments from the world's biggest mining and metals leaders. Generally, things look bright and promising for the Philippines. In the mining sector, we have the Philippine Mining Act of 1995 (RA 7942) which was declared valid and constitutional by the Supreme Court in 2005. This Republic Act is "An Act Instituting A New System of Mineral Resources Exploration, Development, Utilization and Conservation". However, he stated that by 2012, Executive Order 79 presented challenges for the industry all the way to 2016. He mentioned that the industry "has been highly injured because it was misunderstood". Mr Austin further noted that perhaps the boom years of mining were in the 1950s when gold and copper became the pillars of large-scale mining. That decade also ushered the introduction of new technologies in mining. From his report, he expressed that Philex Mining Corporation has been reaching milestones for decades. Their Padcal Mine just turned 60 years old in 2018. "Turning 60 is the age of senior citizenship and the age of retirement or retiring. The once-hectic pace of life is replaced with a 'delicious sense of calm, confidence and clarity of purpose'. Our Padcal Mine is settling into that delicious sense of calm." For the record, a total of 10 million trees were planted at Philex Padcal and other mining properties in more than 4,000 hectares of disturbed and undisturbed areas. Additionally, even before DENR mandated ISO 14001 certification in 2015, Philex Padcal Mine already secured IMS Certification (ISO 14001:2004, OHSAS 18001:2007) by TUV Rheinland. Philex has also taken the initiatives and introduced to the Chamber of Mines of the Philippines the "Towards Sustainable Mining" (TSM) commitment to promote responsible mining in cooperation with the Mining Association of Canada. "Initial Padcal mine life was originally up to 2014... All in all, while interim prospects remain subdued, we are determined to maximize the remaining mine life of Padcal." Now, the projected end-of-mine life of Padcal is 2022. "The closure of Padcal will be an opportunity for us to showcase that closing mines can be done properly with dignity." How did Philex Mining Corporation handle the TSF3 incident in 2012? It was on 1 August 2012 when Philex Mining suspended operations voluntarily as nontoxic tails and water discharge from the TSF3 spilled onto the Balog Creek. This was an effect of the destructive heavy rains brought about by Tropical Depression Ferdie (a.k.a. Typhoon Vicente) and Typhoon Gener which hit Benguet successively. The company resumed production only on 8 March 2013 due to the four-month temporary lifting order issued by the government which was extended indefinitely afterwards. Thus, the operations formally resumed on 27 August 2013. [1] Philex Mining Corporation was allowed to resume operations after they implemented urgent remediation measures such as providing immediate assistance to the affected residents, cleaning up the Balog Creek, and ensuring the integrity of its TSF3 by building an open spillway. [1] Regarding the hard lessons learned from the 2012 TSF3 incident, Mr Austin stated that they faced the challenge and "never ran away from our obligations". The first public consultation of its kind was conducted to address the problem. The company paid the government PHP1.34 billion for the tailings leak. This is the highest payment ever done by a single company. The spillway that the company constructed at the TSF3 is the first of its kind in tailings management in the Philippines. Mr Austin recalled, "It was a humbling experience for us but we have to prove that we are advocates of right and principled mining." His presentation also include the Silangan Project which is expected to generate 8,000 direct and indirect employment, raise PHP60 billion in investments, contribute PHP31 billion in taxes and will spend PHP6 billion for community development. "The project will proceed with underground sub-level cave mining method. Regulatory developments between 2016 - 2017 necessitated shift to underground mining from open-pit method. Sub-level caving presents itself to be a better method rather than block caving. Well-engineered solutions are now incorporated in our recent studies. Silangan Mindanao Mining is currently working on securing all necessary permits and approvals." To conclude his presentation, he left the audience with an optimistic message. "We have the opportunity to make Silangan and all other pending mining projects to make it big for the Philippines in the global market. We have the opportunity to make this the Golden Age of Mining now. Believe that best to come for the mining industry." Update on Silangan Project Last 1 August 2019, Philex Mining Corporation reported that the definitive feasibility study for the first phase of the Silangan Project is finally complete. The mine site is a development for high-grade copper and gold and is located at Surigao del Norte in Mindanao. Silangan is coined as one of the three major mining projects expected to push the Philippines as a regional copper producer. The mine site is composed of three tenements, namely: Boyongan, Bayugo and Kalayaan. On the first stage of the development of the Silangan Project, the Boyongan deposit is estimated to have a mine life of 22 years. Silangan is expected to produce high grade ores with 0.63% copper and 1.20 grams per tonne of gold. [2] Bayugo deposit is part of the second phase of the development and this is still under initial feasibility study for underground sub-level cave mining within the year. Philex Mining Corporation will be adopting underground sub-level cave mining for ore extraction. They shall be using state-of-the-art milling facility that uses modern convention technologies for ore processing. Mr Austin stated, "We are thrilled with the outcome of the study which reaffirms the immense potential and magnitude of the project. Over the next few months, we will be focusing our efforts on raising equity and financing for mine development." Philex Mining Corporation will allocate USD750 million for the Boyongan ore body development. For fund-raising, Philex has appointed J.P. Morgan for equity investment and Mizuho for project financing. The international law firm White & Case and local law firm Sycip Salazar Hernandez & Gatmaitan will be the legal consultants for this development project. [2] References: [1] Philex Mining Corporation website. Retrieved from - http://www.philexmining.com.ph/2017/07/29/mine-firm-assures-integrity-of-storage-facility/ [2] Ison, Lilybeth. (1 Aug. 2019). "Philex completes feasibility study on Silangan project". Philippine News Agency. Retrieved from - https://www.pna.gov.ph/articles/1076750

By Marcelle P. VillegasSince April 2011, the Philippine Mining Club has been a professional networking forum that brings industries together and creating opportunities. The club was established to form better relationships across all areas of the Philippine mining industry. Moreover, the Philippine Mining Club is affiliated with the globally-recognised Melbourne Mining Club.Their goal is "to uphold a professional networking environment in order to promote the mineral industry for those with an interest in the sector." In celebration of the club's milestone 50th luncheon event, Philippine Resources Journal has this exclusive interview with Mr Kevin Lewis and Mr Alexander Gilles, two important people behind the Philipine Mining Club.Creating a mining club in the Philippines that was patterned after the Melbourne Mining Club had its share of challenges and rewards. As a platform for communication among the industry's experts, executives, investors, government officials, media and students, the Philippine Mining Club has an interesting story behind its origin. Mr Kevin Lewis, General Manager of Philippine Mining Club, hails from Australia and has been living in the Philippines for almost 20 years now. In 2009, Mr Lewis and a partner decided to start a new venture called "World Resources Events and Consultancy Inc." which catered as a consultancy to the resources services industry with business development planning. [1] Due to many requests from people in the industry, the event side started with the concept of "Philippine Mining Club" which has brought to the lunchtime networking circuit many of the Philippine and international industry leaders as guest speakers, all under the banner of responsible mining. [1]PRJ: When you first established the Philippine Mining Club, what was your goal or motivation for the events? Could you share with us how it all started?Mr Lewis: "The motivation was, at that time... I personally was at a loose end with my career at that time. It was also because my previous job included being part of a service area to mining and oil and gas. I identified the mining industry and oil and gas sectors as the ideal customers because they really didn't mince their words. They knew what they wanted. They knew when they wanted it, and they would tell you that. And most of all, the best thing was when it came to being paid, they always paid you. So I identified them as a group of people that we could always rely on as being good, A-class customers." "Because I've been dealing with the miners and mining groups and the oil and gas for so long, the relationship developed from being client to friends. And when they found out that I was leaving my previous job, they asked me what I was going to do next. At that time, I said I'm not too sure. Then, some of them asked me to see if I wanted to start a club for them -- a mining club.""And one of those gentlemen was Gavan Collery from Indophil at that time and he was a founding director of the Melbourne Mining Club. When he heard the others saying that they want a 'mining club', he said, 'Well the Melbourne Mining Club could use the Philippines as an affiliate.' So then we developed our relationship with the Melbourne Mining Club. We were lucky because, of course, Melbourne Mining Club is globally recognised and is the largest mining club globally, so we're quite privileged to be part of that." "So my motivation was the people that developed from clients to friends and with the support of the Melbourne Mining Club." PRJ: During the early days of the Philippine Mining Club, what were some of the challenges or difficulties that you and your team have encountered?Mr Lewis: "Some of the difficulties was doing it in the Philippines. At first, the Filipino people really did not understand what it was. They thought a club involved membership fees and all of those things that you would normally associate with a club. However, like the Melbourne Mining Club, the word 'club' is used loosely. It means that becoming a member simply meant that you want to be listed our mailing list. There are no fees to be a member. It is totally free. That was one challenge."PRJ: Tell us about your first ever mining luncheon event.Mr Lewis: "For our first mining luncheon ever on 8th of April 2011, we had Fernando Moya who was the Country Manager of Vale Exploration Philippines at that time. He was our first speaker and we had a full house! I think we had 180 to 200 people at the venue. We did have quite a few months lead after that particular event." "Once that event was finished, we had several companies come up to us who said that they wanted to be our marketing partners and sponsors. Therefore, we started there. We had a little bit more money in the bank to keep developing it and to develop our website. The Mining Club has never made a profit, so it is the support from the industry and the sponsors that make it happen. Without them, we have a short fall because we have students and CSR programs to support. We couldn't support the idea of the club without the help of the sponsors."PRJ: Could you mention some memorable moments or notable guest from the past luncheon events?Mr Lewis: "Yes, I can say we've had some speakers who really gripped the audience. One in particular was a gentleman called Mitch Hooke who was at the time the Chairman of the Minerals Council of Australia. He came all the way from Melbourne to speak and he had a clear cut view on the mining industry as it is in Australia. As you might know, Australia is one of the leading mining countries in the world. The mining industry in Australia is pretty much black and white. It is pretty clear." "When he was introduced to the challenges that we face in the Philippines, he could not believe some of the hurdles facing the industry. So he actually opened up and said his mind about some of these hurdles and how he would have dealt with them. While he was talking, you could have heard a pin drop! The audience was mesmerized by his words.""I consider all of our speakers notable. Some of the others were Gerry Brimo from Nickel Asia Corporation. He gave his initial rebuttal to Gina Lopez that was prior to Lopez being the DENR Secretary, so that was quite a few years before that. That was an interesting talk.""Mick Wilkes has always been a good talker from OceanaGold, with the Didipio Project being their blue ribbon mine in there. He is always very happy to be here in the Philippines and he talked about how much he loves the Philippines. But he also talked about how much he thinks the Philippines misses out due to some of the regulations and some of the attitudes toward mining." "Another one is Mr Walter Brown who has spoken twice here. He is a good man and an intelligent man. Walter doesn't mince his words either. He is very clear cut on how he thinks things should be."Finally, Mr Lewis shares his special message about Philippine Mining Club and its media partner, Philippine Resources Journal. "I believe that literally the Philippines is sitting on a gold mine. I also believe that eventually they are going to discover that again. I said 'again' because it has in the past, but there will be a rebirth of the industry. For those people who continually support the Philippine Mining Club, they all know something is going to happen. The ones that will win are the people that believe that things will change in the Philippines and stick with it. Now, with respect to the Philipine Mining Club, I think the more people, the merrier. The more friendships they make, the more business I will be doing in the future.""We have always supported Philippine Resources Journal since the beginning. I think the journal has been on as long as Philippine Mining Club has been going... The magazine, Philippine Resources Journal, has been able to sustain itself during this period -- very tough time. And it is still the magazine of choice and it is still here." On our next edition, part 2 of the Philippine Mining Club 50th Luncheon Anniversary series, we shall feature stock market expert, Mr Alexander Gilles.Reference:[1] Retrieved from Philippine Mining Club website - http://www.philippineminingclub.com/

Bangsamoro Interim Chief Minister Murad Ebrahim encouraged mining companies to consider investing in mining operations in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).Speaking at a luncheon in Makati organized by the Philippine Mining Club on Friday, August 9, Murad also emphasized that the Bangsamoro government will only approve mining operations that respect the people and the ecological integrity of the new southern region."I invite you to explore opportunities on mining to bolster the economic development of the Bangsamoro," he told mining executives and leaders of mining groups."I hope that we do this with the lens of the 4 bottomlines that I have outlined. Profit, yes, but please include also the people, the planet, and the purpose for all this which is change for the good," Murad continued.Also in the audience were European Union Ambassador Franz Jessen, New Zealand Ambassador David Strachan, and Australian Ambassador Steve Robinson – envoys of countries with mining interests in the Philippines.The Bangsamoro Transition Authority (BTA), the interim government of the Bangsamoro, is honoring mining contracts entered into by the now-defunct Autonomous Region in Muslim Mindanao (ARMM), said Murad.Mining audit, mining codeThe Bangsamoro Organic Law gives the BTA the power to grant mining permits for operations in the region.But before it exercises this power, the Bangsamoro government would first conduct an audit of mining operations in the region to ensure compliance to environmental regulations and other laws.The audit is to be led by BARMM Minister of Environment Abdulraof Macacua."In order for the administration to measure the impact of mining industry in the lives of our people, the BARMM Minister of Environment and Natural Resources constituted the mining performance audit team that will look into the compliance of these mining companies to their commitments, both in environmental and social contributions," said Murad. He told the mining executives that the mining audit shouldn't be seen as an effort to "find holes" in the mining industry but to "provide an avenue for a better, pro-environment, pro-people and responsible mining in the BARMM." Murad called the mining code the "responsible mining law.""This mining code shall address robust development, not at the expense of the environment," said the Chief Minister.Murad expects the audit results to be in by August and to be set for discussion by the Bangsamoro Parliament in September.The audit results would be among the considerations in crafting a Bangsamoro mining code, also to be led by Macacua.Macacua had been Murad's military chief, leading the Moro Islamic Liberation Front's Bangsamoro Islamic Armed Forces (BIAF). He is also known by the name Sammy Gambar. Source: https://www.rappler.com/nation/237422-murad-encourages-pro-people-environment-mining-bangsamoro

1 April 2019 - Philippine Mining and Exploration Association, for their Monthly Membership Meeting at Manila Elks Club, Makati City, presented the “Mining Updates and Open Forum Discussion on Proposed Revisions of Existing Mining Laws”.The topic was discussed and reported by Atty. Danilo U. Uykieng, Acting Assistant Director of Mines and Geosciences Bureau (MGB). The meeting started with a review of recent policies that were signed in 2017 onwards. Here is a rundown of policies and its development, plus a summary of events that transpired and affected the Philippine mining operations.A Review of Recent PoliciesOct. 9, 2017 - Memorandum was issued by MGB Director providing "streamlined" checklists of requirements of various mining applications. May 25, 2018 - MGB Memorandum Circular No. 2018-01 was issued in re: Guidelines in the Conduct of Apprehension, Seizure, Confiscation and Disposition of Illegally Sourced Minerals/Mineral Products and By-Products, Tools, Conveyances and Equipment Used.June 18, 2018 - Issued DENR Memorandum Circular No. 2018-05 in re: Non-Coverage of Small-Scale Mining Projects from the Department Memorandum Order No. 2016-01.July 3, 2018 - DENR Administrative Order No. 2018-13 in re: Lifting of the Moratorium on the Acceptance, Processing and/or Approval of Applications for Exploration Permit Under Department Memorandum Order No. 2016-01.July 3, 2018 - Issued MGB Memorandum Circular No. 2018-02 in re: Guidance for Compliance Monitoring and Rating/Scorecard of Mining Permits/Contracts.July 17, 2018 - DENR Administrative Order No. 2018-20 in re: Providing for a New Guidelines in the Evaluation and Approval of the Three-Year Development/Utilization Work ProgramAug. 17, 2018 - Issued DENR Administrative Order No. 2018-19 in re: Guidelines for Additional Environmental Measures for Operating Surface Metallic MinesMarch 2019 Policy Issuance1) MGB Memorandum Circular re: Clarification Guidelines on Industrial Sand and Gravel Permit~ Providing for clarification on the coverage of ISAGP i.e. permit area2) MGB Memorandum Circular re: Supplemental Guidelines to MGB MC 2018-01 Otherwise known as Guidelines in the Apprehension, Seizure, Confiscation and Disposition of Illegally Sourced Minerals/Mineral Products and By-Products, Tools, Conveyances and Equipment Used~ Additional provisions for conveyance, release, posting of bond, establishment of confiscation panel3) MGB Memorandum Order re: Guidelines for Care and Maintenance Programs for Mining Projects~ Provides for the mandatory submission of a CMP~ Assures fund allocation~ Provides for penalties for certain violations4) DENR Administrative Order re: Guidelines on the Disposition of Residual Stockpiles Sourced from Small-Scale Mining Operations Previously Covered by Valid Mining Permits Issued Pursuant to PD 1899 and Temporary Small-Scale Mining Contracts under DAO 2012-07.~ Provides clear guidelines on the disposition procedures and timelines- - -Recent Inter-Agency CoordinationJoint Memorandum Circular: Guidelines on the Issuance of Clearance and/or Permit for Dredging within Waterways or other Inland Body or Water.~ Provides for a standard and uniform procedures in the approval of dredging/mining permitPolicy Directions:Guiding Principle - Ours is a Responsible Mining that is:1) People-Oriented as it provides decent jobs and benefit host communitiesUpcoming Policy Issuances:~ Expediting the approval of Minahang Bayan and processing of SSM Contracts~ Ensuring timely release of the share of LGUs~ Ensure increasing LGUs' share and granting them direct access similar to existing arrangements with the PEZA2) It Protects and Enhances the Environment Upcoming Policy Issuances:~ Strict monitoring of the shipments of ores/minerals~ Strict implementation of Water Code and NWRB policies on the use of water in mining operations~ Strict enforcing ban on black sand mining in coastal areas3) Equipped with Strong Monitoring and Enforcement SystemUpcoming Policy Issuances:~ Strengthening of the Environmental National Task Force to stop illegal mining and environmental violations~ Use of modern technology in monitoring mine operations~ Blacklisting of irresponsible mining companies with major violations~ Cleansing of non-moving mining rights holders and review of existing mineral agreement for renegotiation of the terms and conditions~ Strengthening of the Multipartite Monitoring Team (MMT)~ Imposing one-strike policy to DENR officials for inability to monitor and take immediate actions on major violations4) It Contributes and Promotes fair share to the National IncomeUpcoming Policy Issuances:~ Amend EO 79 - lifting the moratorium on the grant of Mineral Agreement (MPSA)~ Declaring high mineral potential areas as mineral reservations including all existing operating mines~ Promoting establishment of mineral processing plants in the country~ Mandatory mineral processing of all nickel ore~ Finalizing the national program and road map for the development of value-adding activities and downstream industries for strategic metallic ores 5) World Class, efficient, effective and competitiveUpcoming Policy Issuances:~ Adoption of new technology to maximize mineral ore utilization and environment protection~ Requiring all operating mines to have ISO certifications~ Options and alternatives on open pit mining methods

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.” [1] 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. [1] 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. [2] 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.”[2] 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. - - - Reference: [1] Retrieved from https://www.eccp.com/events/?id=499 [2] 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

Last 19th of March 2019, Dr. Bernardo Malvar Villegas was one of the special guest speakers during the Nickel Initiative 2019 Conference which was held at Shangri-La at the Fort in Taguig City. He delivered the Closing Keynote Presentation with the title “Nickel Mining Can Be Sustainable”. His speech mentioned the vital role of the Philippine government and its agencies in helping the local mining industry become successful and sustainable. Additionally, he offered proactive solutions on how University of Asia and the Pacific (UA&P), through its Centre for Corporate Responsibility, can help the government and the nickel industry in establishing sustainability, policy and structure, training and communication, stakeholder dialogue and measurement and verification systems. Dr. Bernardo M. Villegas is a well-known Filipino writer, professor and economist. During the time of President Corazon Aquino, he was a member of the Constitutional Commission that drafted the Philippine Constitution. Through the years, he has always been an advisor to recent Philippine Presidents. As of 2013, he is the Senior Vice-President at the University of Asia and the Pacific. Dr. Villegas is also the Chairman and Research Director of the Center for Research and Communication, and a member of the Board of Trustees of the Makati Business Club (MBC). The MBC is a forum that addresses economic and social policy issues that affect the country’s development. Aside from being a professor at UA&P, Dr. Villegas is also a visiting professor of IESE Business School, a graduate business school of the University of Navarra. IESE is one of the world’s leading business schools with campuses in Barcelona, Madrid, Munich, New York and São Paulo. Dr. Villegas is a Certified Public Accountant in the Philippines. He has a degree in Commerce and the Humanities from De La Salle University, both with Summa Cum Laude honours. Dr. Villegas earned his doctorate degree in Economics at the Harvard University. At age 21, he became a teaching fellow at the College of Arts and Sciences in Harvard University. In 1972, he received the TOYM award (Ten Outstanding Young Men). His other awards include those from Fulbright, Johnson Foundation, Asia Foundation and the Instituto de Cultura Hispanica. With all his awards and achievements here and abroad, the 80-year-old professor is considered one of the best economists in the country with his excellence and wisdom in his field and in addressing issues concerning national development. - - - SPEECH OF DR. BERNARDO M. VILLEGAS AT THE NICKEL INITIATIVE 2019 (19 March 2019, Shangri-la at the Fort, BGC, Taguig City, Philippines) “Nickel Mining Can Be Sustainable” by Dr. Bernardo M. Villegas It would not be an overstatement to say that the Philippine mining industry has gone through a self-inflicted environmental and political crisis over the last two or three years. The environmental crisis can be attributed to real damage caused to the Philippine environment by some mining firms that resulted in either suspension or closure of mining operations. The political crisis resulted from decisions made during the early years of the Duterte Administration that exaggerated these violations of rules of sustainable development to the complete disregard of the many positive contributions of the mining industry to income growth, poverty eradication and employment generation. Politics is the art of the possible. It always involves balancing different societal objectives. Some of those who formulated mining policies at the beginning of the present Administration were not able to do the necessary balancing act among conflicting objectives. They gave short shrift to the economic benefits of the mining industry. The Centre for Social Responsibility of the University of Asia and the Pacific (UA&P), led by Dr. Colin Hubo, is doing its best to help both public officials and private investors attain the appropriate balance among the objectives of income growth, foreign exchange earnings, employment generation, poverty alleviation and environmental protection. This is especially important in the nickel industry because the Philippines has become the world’s second largest supplier of nickel ore which has surpassed the production of the former top contributors such as gold, silver and copper. In 2016 and 2017, the country exported 577,000 metric tons of nickel. In 2017, nickel ore exports totalled 230,000 metric tons—a third less than the 2016 figure—but still raked in $455.21 million (P224.533 billion) for the country. In fact, the Philippines has been the world’s top nickel producer in decades past, but the shifting local political landscape combined with real environmental concerns forced it to lose ground to Indonesia. Indonesia has capitalised on our country’s uncertain situation as regards mining policies and kicked its production into high gear to feed the mineral-hungry economy of China. It has to be pointed out that as emerging markets like China, India, the Philippines, Indonesia, Vietnam and other countries in the ASEAN grow at an average of 6 or more percent in GDP in the next decades or so, there will be an explosion in demand for the first applications of nickel, such as stainless steel, nonferrous alloys, alloy steels and castings, plating, and batteries. Rapid industrialization and urbanisation in the Asia Pacific region will see an increasing use of nickel-based products in Architecture, building and construction; process engineering, oil, gas, and power; food contact materials; pulp and paper; transport; healthcare; consumer products and water. Nickel is used in myriad products, especially in the ongoing fourth industrial revolution, because of the following qualities: high-melting point; resistance to corrosion and oxidation; highly ductile; alloys readily and can be fully recycled. The last quality gives nickel very high points in sustainability. Researchers at the Centre for Social Responsibility of UA&P has identified the following multiple challenges facing Philippine nickel miners in the coming years: a) First, what was once one of the most liberal mining regimes in Southeast Asia is now subject to a government crackdown that shows no sign of relenting, even with significant changes in leadership. As noted by Amanda Key in an article for Investingnews.com, “For now, one thing is certain: the direction the Philippines goes with its mining policy moving forward will impact the global nickel market.” b) The second challenge is to produce the right type of nickel ore that end-users, such as Chinese companies, will use to produce anything from stainless steel to batteries to electric vehicles. A recent Standard and Poor’s analysis of the global nickel market indicates that most nickel producers started their operations geared toward producing nickel sulphide ores. When these ores became scarce, the market gravitated toward laterite ores that are costlier to extract. c) Finally, local nickel miners have to decide what grade of ore to produce that would make the most profit, given the generally falling prices for the metal in the world market. Mining firms are slowly shifting to shipping medium-grade ores amid declining prices of the usual low-grade nickel ores—ninety percent of which goes to China from the Philippines. Dante Bravo, President of the Philippine Nickel Industry Association (PNIA), remarked in a recent forum: “For the long term, this would mean that some mines might slow down in their production in the coming years depending on the area being mined. The shift would have to make adjustments depending on mineralization.” Despite some of these uncertainties, there is still a mood of optimism among the nickel miners because of the many uses of nickel in such sunrise industries as electronic vehicles, construction, consumer goods, health care and housing. The more enlightened members of the nickel industry, most of them active in the Philippine Nickel Industry Association, have provided a group of researchers in the Centre for Corporate Responsibility of UA&P concrete evidence that sustainability is very high in their priorities as they truly espouse the triple Ps: People, Planet and Profit. As a group, PNIA members have planted over 4.2 million trees in Caraga and Palawan as part of ongoing progressive rehabilitation and reforestation in several mining sites. This initiative is part of the efforts of the nickel miners to offset its mining footprint with a green footprint. The reforestation effort includes planting endemic trees and grass species such as agoho, mahogany, giant bamboo, and narra, as well as fruit-bearing trees like calamansi, cashew, jackfruit, and cacao, among others. Tree planting in vast forest areas can employ numerous rural dwellers who are among the poorest of the poor in the country, including members of indigenous tribes. The increased supply of these fruit products can also help in slowing down inflation as middle-income households increasingly turn to fruits and vegetables for healthier diets. Cash crops such as rubber, coffee, vegetables and herbal plants have also been planted in the mine sites’ respective nurseries. Apart from providing employment to the residents, the program also allows the companies to help their respective host communities by donating seedlings in support of various greening initiatives. This has given birth to an emerging downstream industry, agro-forestry which also focuses on the community’s livelihood beyond mining. The reforestation program is part of the nickel industry’s commitment and contribution to the government’s National Greening Program which aims to revegetate some 1.2 million hectares of “unproductive, denuded, and degraded” forest land nationwide from 2017 to 2022. Thanks to the responsible nickel mining firms who are actively engaging their respective local government units in their operations, there is an ongoing dramatic shift of local government authorities in their attitudes toward mining activities. LGU heads realize that their active participation in the development of the mining industry is essential to sustained mining development. This new position has been reinforced by the fact that there are initiatives to require mining companies to pay directly to local government units (LGUs) in mining areas their 2 percent share of the firms’ gross sales as local business tax. The past practice was for the national government to collect the levy and then distribute this to the LGUs. There is also an increasing participation of local government authorities in getting informed consent of communities prior to the exploration or site investigation and prior to reaching decision on a development, management or concession agreement. There is also a very healthy trend in which nickel mining companies are participating actively in regional economic development. Whereas in the past, the benefits of mining had been very limited to a relatively few areas, leading nickel mining firms are making significant contributions to building strong local economies which are more balanced and dispersed, with greater social equity. Some of them are experimenting with innovative partnership with LGUs and are pursuing different development models. To expand their multiplier effects on a broader regional level, some of the leading mining companies are collaborating with Regional Development Councils to increase the participation of stakeholders in planning and administration and improving the access of marginal groups in mining-impacted communities to resources and opportunities. It must be pointed out again and again that most mineral ores are found in remote and mountainous areas where there are very few sources of livelihood. The legitimate concern for sustainability of the environment must be tempered with the need to address the serious extreme poverty situation in mineral-rich territories. There is no substitute to a tripartite cooperation among the Government, the mining companies and civil society. There is increased evidence that nickel mining companies are investing in the upscaling and empowerment of host communities in partnership with various groups in order to pool resources and capabilities. The LGU is expected to give approval to the operations, help in getting access to ODA funding, strategic co-ordination through the Regional Development Plans, exercise its new decentralised powers and allot budgets for long-term provision of public services. In its turn, the mining enterprises are expected to source some of its raw materials from the localities, invest in human resource development, make available supply chain facilities, provide project management, construct operational infrastructure, establish certain ethical standards and provide operating funds. Civil society organisations have the advantage of local knowledge, longevity of local presence, independence of views, relevance to household livelihoods and greater capacity to mobilise communities. Civil society is also in a better position to champion environmental sustainability. The way forward for the Philippine nickel mining industry is to integrate sustainable and responsible policies and practices in its core business. The current push for voluntary sustainable mechanisms (codes, policies, guidelines), for example, is a positive step towards integrating social responsibility as part of the mining agenda. At present, there are several methods used to incorporate sustainability into the core business of mining enterprises. Among these are: -Industry-specific codes of conduct such as the Chamber of Mines Code of Corporate Social Responsibility. -Company-specific (internal) codes of conduct and policies. -Sustainability guidelines from international institutions such as World Bank disclosure policy, Global Reporting Initiative (GRI), Extractive Industry Transparency Initiative (EITI) -Pressure from civil society. The application of these methods will surely have long-term positive benefits as can be gleaned from the experiences of other mineral-rich countries. These include: -Raising the acceptable threshold for mining industry sustainability performance and standards; -Providing some leverage upon which mining stakeholders can hold companies accountable if a company fails to implement its own code or policy; -Raising awareness of external factors affecting the core business activity and financial viability of mining firms. It is even more important than ever to demonstrate that industry support for sustainability goes beyond mere rhetoric and is translated into concrete action on the ground. The Philippine nickel industry has to counter prevailing perception that supporting sustainability is only a public relations gimmick but really involves a change of priorities. To accomplish this, the industry can come up with an industry sustainability code which is not only transparent but open to independent monitoring and verification by third party experts and the academe. Some degree of third-party involvement must be in place to ensure transparency and accountability. Furthermore, for sustainability codes to raise the bar of industry performance, it must be based on minimum internationally agreed standards such as the ILO code of human rights among others. The industry needs to put in place “Disciplinary” measures for members who refuse to sign or adhere to the industry code, policies and guidelines. More than other economic sectors, the mining industry cannot be left to free market forces alone. The role of the government is indispensable. Experience in other countries has shown that it is vital that governments themselves are genuinely committed to needed mining reforms and these reforms command a strong degree of government support and regulation. In the case of sustainability, the government, or more specifically the Mines and Geosciences Bureau (MGB) itself must be strongly committed to the “government case” for pursuing the sustainability agenda. It cannot be achieved by prescription from external agencies. The “government case” has to be built up by a process of dialogue, which in turn means creating or adapting institutional frameworks for discussion, consolation and negotiation. The process by means of which the MGB eventually builds sustainability policies is as important as the policies themselves. Dialogues must be the core in the development of sustainability policy for the nickel mining industry. It must also be kept in mind that “voluntary” sustainability mechanisms are not easy solutions to all mining dilemmas. It is imperative that partnership with non-corporate stakeholders is established to achieve the necessary improvements. These partnerships can yield the following advantages: they can confer greater legitimacy to mining activities because of multi-stakeholder involvement; they can encourage companies to work together to raise the bar of performance; they can allow mining firms to share capacity building costs; and they can allow corporations to address external factors beyond their core business activity. In this regard, a strong link between academe, industry and government can help the “business case” for sustainability. As an example, the University of Asia and the Pacific, through its Centre for Corporate Responsibility, can assist the government and the nickel industry to establish sustainability, policy and structure, training and communication, stakeholder dialogue and measurement and verification systems. The products of such partnership among academe, government and business can come out with the following: -Nickel Industry Sustainability policy and structure. Clear standards and detailed guidelines are needed to ensure that the industry has a “road map” for incorporating sustainability agenda into its operations. With such details, the industry would be able to measure performance consistently and completely to help meet the stakeholders’ expectations. -Training and communication. Training internal staff is needed because of the recognition that sustainability-type programs require a unique set of skills and competencies. On the other hand, because leadership starts at the top, it is essential for top management to consistently communicate sustainability guidelines internally in order to generate awareness and on convey management support for the program. -Stakeholder dialogue. Dialogue and sharing of information with external parties (companies, civil society) is one of the fundamental shifts in recent years in policy making. NGOs, other civil society organisations, and companies often have information otherwise unavailable to companies or governments. In the case of the nickel mining industry, an academic institution like UA&P with strong links to business may be able to help the industry develop guidelines and policies that are not only effective, but also acceptable and credible to all the stakeholders. Monitoring and verification. A research wing or think tank of an academic institution like UA&P may be a more credible institution to effectively assess compliance of nickel mining firms to various voluntary sustainability mechanisms. Because of serious violations of environmental regulations in the past, the mining industry in general continues to face a public that is skeptical of its efforts to respect and protect the environment. The industry may choose to scrutinise sustainability practices of nickel firms in a more transparent manner by inviting external parties, and by issuing public reports on the findings of independent academic or research institutions. There is no question that the Philippine nickel industry is capable of practising responsible and sustainable mining. As discussed above, what is needed is the political will of all the stakeholders concerned to commit themselves to a continuing dialogue on sustainability practices. For comments, my email address is bernardo.villegas@uap.asia. - - - Acknowledgement: Dr. Bernardo Villegas Ms Cleah Nava, Legislative Officer, Senate of the Philippines