The Department of Environment and Natural Resources (DENR) spent the first 100 days under the new administration of President Ferdinand “Bongbong” Marcos Jr. pursuing sustainable management and development of the environment while creating "green" jobs and ensuring investments and revenue for the government. In an accomplishment report dated Sept. 29, the DENR said it has been pursuing a "blue" and "green" economy, refering respectively on the fisheries and marine sectors, and agricutlure and forestry sectors, into which strategies to address climate mitigation and adaptation are incorporated. The DENR said it has prepared four resiliency roadmaps and Investment Portfolios for Risk Resilience (IPRRs) for the climate-vulnerable provinces of Eastern Samar, Northern Samar, and Siquijor, as well as climate-vulnerable city of Metro Iloilo. By December 2022, 12 more resilience roadmaps are expected to be completed for nine climate vulnerable provinces and three major urban areas. For the "green"economy," the DENR said from July to August 31, it developed 646 hectares of forestland and produced 702,470 seedlings benefitting 3,605 CBFM-People's Organization (PO) members nationwide, and provided Enterprise Livelihood equipment to POs in Regions 5, 6, 9, 10, and Cordillera. A total of 944 Forest Extension Officers and 154 Technical Staff have also been hired under the Enhanced National Greening Program, while a total of 1,937 jobs were generated and 1,548 persons were employed in nursery establishment, seedling production, plantation establishment, maintenance and protection, the DENR said. The agency also strengthened the government's Anti-Illegal Logging and Forest Protection Program by renewing a total of 3,215 forest patroller contracts to implement the Lawin Forest Protection and Biodiversity System. Also, 163 lawyers/legal researchers/legal assistant contracts were renewed to speed up the resolution of forestry-related cases, it added. For the "blue economy," the the DENR said from July 1 to Sept. 15, 2022, it monitored 50 priority water bodies with 44 of them passing the water quality standards for Dissolved Oxygen (DO) and 42 waterbodies passing the water quality standards for Biochemical Oxygen Demand (BOD). Still part of its Clean Water Program, pursuant to Republic Act 9275 or The Philippine Clean Water Act of 2004, the agency also monitored 268 esteros/water bodies, of which 156 exhibited significant improvements in BOD, while 160 other water bodies showed water quality improvements in DO. A total of 2,365 estero/river rangers were also hired to monitor, protect, clean up, and rehabilitate the bodies of water draining to the Manila Bay, the DENR said in its report. As to Boracay Island in Malaybalay, Aklan, the DENR hired a total of 40 Boracay Environmental Lawin patrollers and 22 support staff for the Boracay Action Plan. Some 19 Lawin patrollers/beach watch patrollers in Panglao and and 19 personnel in Siargao were also hired to protect beaches designated as Green Economy Model sites, the installation of signage for no build zone, and other activities. The DENR has also issued one Community-based Forest Management Agreement (CBFMA) to the Kawasan-Inuralan Farmers Association, Inc. covering a total area of 49.36 hectares in Region 10; and two Provisionary CBFMAs to the Singclot National Greening Program Consumers Cooperative covering 136.57 hectares and the San Isidro Upland Farmers Consumers Cooperative covering 356.66 hectares in Region 9. Responsible mining In the mining sector, the DENR said the Mines and Geosciences Bureau has issued 797 mining permits/contracts from July to Sept. 15, 2022. Currently, 79 mining projects are being planned to start near-term and/or medium-term mining operations that will bring in total investments of PHP430 billion, revenues of PHP93.14 billion, and jobs to 16,275 individuals, the agency said. "All priority mining projects are expected to earmark a total of PHP6.904 billion in Environmental Protection and Enhancement Programs expenditures," the DENR added. The DENR also monitored the handling of infectious wastes in 42 treatment, storage, and disposal facilities. Of these, four facilities were found non-compliant, hence, issued with Notice of Violations.   Article courtesy of the Philippine News Agency

Photo Global Ferronickel Holdings, Inc. (FNI), a diversified Filipino company with interests in nickel ore mining, logistics, cement and steel production, and port operations, on Friday signed the definitive agreement giving it a pivotal 20% stake in Guangdong Century Tsingshan Nickel Industry Co., Ltd. (GCTN) through the purchase of shares in GHGC Holdings, Ltd. (GHL). GHL owns 90% of the GCTN stock portfolio. GCTN is a nickel alloy enterprise in China operating one of the world’s advanced smelters with RKEF technology in a 33-hectare facility employing over 600 employees. The plant uses a rotary kiln technology that produces about 28,000 tons of pure nickel annually. GCTN caters to customers in Guangdong’s Economic and Technological Development Zones and abroad. “The acquisition is expected to create reliable and consistent synergies between FNI as a nickel ore supplier and GCTN as a value-added processor, and support our ongoing diversification projects to boost profitability,” said FNI President Dante R. Bravo. This initiative will help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain. To complement its expansion targets, the Company continues to pursue investments in high-growth firms and industries that can enhance operational and cost efficiencies. FNI counts Platinum Group Metals Corporation (PGMC) as a subsidiary and Ipilan Nickel Corporation (INC) as an affiliate. PGMC is a leading nickel ore producer, while INC has just conducted its maiden shipment of nickel ore to China.   Article courtesy of the Philippine Stock Exchange

Photo: Ceremonial turn-over of DMPF requirements to the Mines and Geosciences Bureau-Cordillera Administrative Region (MGB-CAR). In photo, left to right: MMCI Monitoring and Evaluation Supervisor Anne Zee Luz Laguerder; CLA Executive Director and MMCI Country Operations Director Peter Hume; MGB-CAR Regional Director Fay W. Apil; MGB Mine Management Division Chief Alfredo J. Genetiano; and MMCI Project Mining Engineer Patrique Jane Duran. Credit: Celsius Resources Celsius Resources is pleased to announce it has submitted all the required documents for the Declaration of Mining Project Feasibility (DMPF) for its flagship Maalinao-Caigutan-Biyog (MCB) copper-gold project, which is held by its Philippine subsidiary Makilala Mining Company, Inc. (“MMCI”). Following the completion of the scoping study, all the major documents to support the application for DMPF were developed and completed in time for submission to the Mines and Geosciences Bureau-Cordillera Administrative Region (MGB-CAR) before the end of September 2022. This includes the Mining Project Feasibility Study Report, Final Exploration Report, Environmental Impact Statement Report, Environmental Protection and Enhancement Program, Final Mine Rehabilitation and/or Decommissioning Plan, Social Development and Management Program, Care and Maintenance Program, and LGU Project Endorsements, amongst others. Prior to the submission, the environmental, social and mine closure plans went through a rigorous consultation process with the host community and local government stakeholders to ensure local content integration. These plans are part of the Philippine Government mining policy reforms whereby social and environmental safeguards are integrated into the overall mine development and operations plan. “With the submission of the DMPF, we are inching closer to harnessing the potential of the MCB Project to bring about significant economic value to both our shareholders and stakeholders in an ethical and sustainable manner,” said Celsius Resources Country Operations Director Peter Hume. A technical presentation is underway during the first week of October as part of the MGB review and evaluation process. The DMPF approval will trigger the next stage of obtaining a Mineral Agreement with the National Government which is anticipated by the end of 2022 and pave the way through to construction and operations. Being a priority project of the government, MGB has been very supportive in fast-tracking the permitting and projects approvals (see CLA Announcement dated 24 February 2022). Meanwhile, results from drill hole MCB-040 have been received, which continue to identify new positions of shallow mineralisation in line with other recent drilling results (see CLA announcements dated 13 December 2021, 23 May 2022, 04 July 2022, and 03 August 2022) confirming the presence of an extensive shallow higher-grade position. The results provide a much better definition now on the various high-grade zones, which is important for the optimisation of the MCB mine plan prior to commencement of mine operations. Excellent high-grade intersections are coming together to expand on the earlier understanding of these high-grade zones.  It appears multiple high-grade zones are stacked on top of each other, which can achieve outstanding results as recently announced from hole MCB-038, which intersected 611.4m @ 1.39% copper and 0.75g/t gold from 32.5m. These results are a continuation of the shallow high-grade zones.   Article courtesy of Celsius Resources. View the full press release HERE

Photo credit: PH-EITI The Philippine Extractive Industries Transparency Initiative (PH-EITI) convened its first Multi-Stakeholder Group (MSG) meeting under the Marcos administration on Friday (September 16), two weeks after the country reaffirmed its commitment to implement the EITI. EITI is the global standard for transparency and accountability in the oil, gas, and mining sectors. The MSG – the body that governs EITI implementation in the country – is chaired by the Department of Finance (DOF) and composed of representatives from government, industry, and civil society. The government began implementing the EITI in 2013 pursuant to Section 14 of Executive Order No. 79, s. 2012 and Executive Order No. 147, s. 2013 that created the PH-EITI. “This meeting demonstrates the government’s continuing commitment to improve transparency and accountability in the extractive industries,” said Finance Undersecretary and PH-EITI Focal Person and Chair Cielo Magno. To improve resource governance, the MSG agreed to strengthen spaces for multi-stakeholder participation and advocate for more spaces along the extractive industry value chain. The group also agreed to include an MSG report on the status of civic engagement in the annual country report. The MSG also discussed remaining initiatives for 2022, including the production of the FY 2021 PH-EITI Country Report, the 2022 National Conference, and a planned visit of EITI Chair and former New Zealand Prime Minister Helen Clark to the Philippines in November 2022. The PH-EITI publishes independently reconciled data on oil, gas, coal, and mineral resources through an annual and comprehensive country report. To date, the PH-EITI has produced seven country reports, reconciling over P362.5 billion in government revenues from extractive projects from 2012 to 2019. Aside from disclosing extractives data to inform research and policy recommendations, the PH-EITI also provides space for multi-stakeholder participation in resource governance.   Article courtesy of the Department of Finance

Photo credit: EITI / CC BY-SA The Marcos administration demonstrated its commitment to pursue transparency in natural resource governance by rejoining the Extractive Industries Transparency Initiative (EITI) and enabling the continued development of the mining sector. In a letter to EITI Chair and former New Zealand Prime Minister Helen Clark, Finance Secretary Benjamin Diokno cited the value of good governance and anti-corruption measures in maximizing the extractive sector’s contribution to resource mobilization and sustainable economic growth. EITI will complement the administration’s agenda on transparency and accountability. “We welcome the opportunity to re-engage in EITI. We also commend the progress of the EITI Board in reviewing the validation standard and making it more relevant to implementing countries. We believe that EITI is an important tool for resource-rich countries like the Philippines to improve transparency and increase accountability in the management and governance of the extractive industries,” said Secretary Diokno. Secretary Diokno said that other government agencies, as well as industry and civil society stakeholders who have been actively implementing EITI in the country, are supportive of the move to rejoin the global initiative. On June 20, 2022, the Philippines through the Department of Finance (DOF) withdrew its participation in the EITI over concerns on metrics and procedures used for assessing country compliance with the international organization’s transparency requirements. In an August 23, 2022 letter, EITI Chair Helen Clark invited Secretary Diokno to re-state the country’s commitment to the EITI on behalf of the Marcos administration and build on the progress that the Philippines has achieved in the past nine years. The PH-EITI multi-stakeholder group is chaired by the DOF and is composed of representatives from government, industry, and civil society. The government began implementing the EITI in 2013 pursuant to Section 14 of Executive Order No. 79, s. 2012 and Executive Order No. 147, s. 2013 that created the Philippine EITI (PH-EITI). Annual disclosure of contracts, financial, economic, social and environmental data is mandatory for extractive industries pursuant to the Department of Environment and Natural Resources (DENR) Department Administrative Order (DAO) No. 2017-07. To date, the PH-EITI has produced seven country reports, covering data from mining, oil, gas, and coal industries and reconciling over P362.5 billion in government revenues from extractive projects from 2012 to 2019. In 2017, the Philippines was recognized by the EITI as the first among 50 plus countries in the world to have fully complied with the 2016 EITI Standard. The EITI updates its standard every three years and subjects member countries to validation to ascertain their compliance. Secretary Diokno said that the Marcos administration is committed to engage and unite various stakeholders in pursuing good governance and policy reforms in the country. “Rest assured that we remain committed to pursuing good governance in the extractive sector,” said Secretary Diokno.   Article courtesy of the Department of Finance

Socioeconomic Planning Secretary Arsenio Balisacan joins the panel discussion of the Philippine economic briefing in New York on Sept. 22, 2022. Balisacan cited the economic growth drivers in the country which include agriculture and mining. (Screenshot from Bangko Sentral ng Pilipinas Facebook page) Socioeconomic Planning Secretary Arsenio Balisacan on Thursday cited agriculture as a vital growth driver for the country, while mining industry should be further explored to increase its contribution to the economy. "We have to reinvigorate agriculture, thus that the high price of food affect everyone and influence the movement of the economy," he said in a statement during the Philippine economic briefing in New York. Balisacan, who is also the National Economic and Development Authority (NEDA) chief, said agriculture is an "obvious" growth driver for the economy as President Ferdinand "Bongbong" Marcos Jr. has pronounced that this is a priority sector of his administration. He said responsible mining is a major source of economic growth and the government should promote this industry. "As we understand from our Environment Secretary, only 6 percent of extractable resources have been mined. There's so much room for expanding that and transform that wealth into other forms of wealth," he added. The country has been pitching investments in green metals such as nickel, cobalt, and copper to American investors as part of the Department of Trade and Industry's "Make It Happen in the Philippines" investment campaign. Balisacan said the country has to revive its manufacturing sector as this is a good source of quality jobs and has a tremendous impact on poverty reduction. The economist cited tourism and information technology and business process management, along with health and pharmaceutical industry, as low-hanging fruit for the economy. Other major growth drivers for the country include construction due to the huge housing backlogs, public-private partnerships, and connectivity.   Article courtesy of the Philippine News Agency

Photo credit: Global Ferronickel Holdings Ipilan Nickel Corporation (INC), an affiliate of Global Ferronickel Holdings, Inc. (FNI), announces the successful completion of its maiden shipment of ore today from its mine site in Brooke’s Point, Palawan. With 54,700 Wet Metric Tons of medium-grade nickel ore loaded aboard M/V He Sheng Nan Fang, INC declared anchors aweigh for its first export en route to Guangdong Century Tsingshan Nickel Industry Co., Ltd in China (GCTN). A long-standing customer of FNI’s Surigao-based Platinum Group Metals Corporation (PGMC), GCTN is looking forward to building a solid relationship with INC. “After years of careful planning and regulatory compliance, this inaugural shipment is a remarkable milestone for our Group and bodes well for the country’s economic and social governance goals at this critical time. Target for the year is 500,000 WMT, with increased production in the coming years, as we begin year-round operations,” said FNI Chairman Joseph C. Sy. Under its Mineral Production Sharing Agreement (MPSA) with the government, INC is authorized to engage in the exploration, development and utilization for commercial purposes of nickel and other mineral deposits in the Municipality of Brooke’s Point, Palawan, with an area of 2,835 hectares. Estimated mine life is at least ten years, with an annual production rate of 1.5 million WMT of medium- to high-grade nickel ores. INC employs more than 1,300 personnel, mainly from the local community and nearby areas. “We are proud of this development because it sets the tone for the optimal pursuit of our social development and environmental protection objectives. INC can now roll up the score in community engagement with various socio-civic initiatives in place from the beginning of our operations,” added Mr. Sy. These projects include support for education, wellness, and livelihood development through scholarship grants, donation of school supplies, rice harvesters, fishing boats and implements, a brand new ambulance, medicines and other health essentials, construction of covered courts, daycare center, and health facility, allowances for teachers, barangay health workers and a community doctor, feeding programs, medical missions, livestock and rice farming assistance, and installation of solar dryers. INC has also tagged infrastructure as its primary focus with the establishment of a mini-hydro power plant and farm-to-market roads. During calamities, INC came in as one of the first responders, allotting over two million pesos worth of food and water supplies to those affected by Typhoon Odette and 12 million pesos more in medical equipment and sacks of rice at the height of the pandemic.   Article courtesy of Global Ferronickel Holdings

Photo: The participants during the mine visit in Agata Mining Ventures, Inc. The Mines and Geosciences Bureau (MGB) and the Biodiversity Management Bureau (BMB) of the Department of Environment and Natural Resources (DENR) recently conducted its first leg of orientation for DENR Mindanao Cluster on DENR Administrative Order (DAO) No. 2022-04 re: Enhancing Biodiversity Conservation and Protection in Mining Operations in Balanghai Hotel and Convention Center, Butuan City on September 5-7, 2022. The said event aims to orient the DENR regional and field offices including personnel from the DENR Central Office (CO) on the salient features of DAO No. 2022-04. Specifically, the orientation aims to level-off, increase appreciation and understanding on the principles and measures of integrating biodiversity in mining sector; and provide a venue for sharing of experiences and practices relative to mining operations. A total of 65 participants attended the said orientation from the DENR Mindanao Cluster (Regions IX, X, XI, XII, and XIII) composed of Directors, Chiefs, and representatives from DENR Regional Offices (ROs), MGB ROs, Community Environment and Natural Resources Offices (CENROs), Provincial Environment and Natural Resources Offices (PENROs), Conservation and Development Division (CDD), Environmental Management Bureau (EMB), Forest Management Bureau (FMB), and Ecosystems Research and Development Bureau (ERDB). The participants were welcomed by Ms. Maritess M. Ocampo, Assistant Regional Director for Technical Services of DENR Caraga Region and opening messages were delivered by Ms. Clarissa Arida, Director of Program Development and Implementation Unit of ASEAN Centre for Biodiversity, Ms. Natividad Y. Bernardino, Director of BMB, Engr. Francis Glenn N. Suante, Chief of Mine Safety, Environment and Social Development Division (MSESDD), MGB RO No. XIII; and Engr. Marcial Mateo, Chief of MSESDD, MGB CO. The following are the topics presented during the said orientation: Overview of the Philippine Mining Industry by For. Teodorico L. Marquez, Jr., Chief, Mine Rehabilitation Section, MSESDD, MGB CO; Overview of Philippine Biodiversity and its Relevant Framework by Ms. Juvy P. Ladisla, Chief, Partnership and Engagement Section, Caves and Wetlands, Division (CAWED), BMB; Overview of Biodiversity Corridor Project by Mr. Ariel Erasga, Natural Resources Management Officer, National Project Management Unit, UNDP-Biodiversity Corridor Project; Salient Provisions of DAO No. 2022-04 by For. Christian Kevin A. Latiza, Chief, Mine Environmental Management Section MSESDD, MGB CO; Measures for Enhancing Biodiversity Conservation and Protection in Mining Operations by Mr. Anson Tagtag, OIC Chief, CAWED, BMB; and Rehabilitation of Degraded Ecosystems by For. Paul Cuadra, Supervising Science Research Specialist, Forest Ecosystems Research Division, ERDB. An open forum was then conducted between the participants and the presenters to discuss the various matters relating to the implementation of DAO No. 2022-04. Likewise, a Training Needs Assessment (TNA) was conducted by Ms. Argean S. Guiaya, Senior Ecosystems Management Specialist, CAWED, BMB, in preparation for the development of modules and instructional materials on the integration of biodiversity in the mining sector pursuant to Section 10 of DAO No. 2022-04 to be prepared by BMB in consultation with MGB. On the second day of the learning event, the participants visited Agata Mining Ventures, Inc. (AMVI) located in Jabonga, Santiago and Tubay, Agusan Del Norte. The said mine visit aims to acquaint the participants on the existing implementation of AMVI’s biodiversity conservation and protection measures in their mining operations. Overall, the event was made possible through the financial and technical support of the ASEAN Centre for Biodiversity BCAMP and DENR-UNDP Biodiversity Corridor Project, in coordination with BMB and MGB. The remaining leg of orientations on DAO No. 2022-04 for DENR Luzon Cluster (Regions CAR, I, II, III, IV-A) and Visayas Cluster (Regions IV-B, V, VI, VII, VIII) will be held in CY 2023.   Article courtesy of the Mines and Geosciences Bureau

In relation to a webinar hosted by the Philippines-Australia Business Council (PABC) last 18 July 2022, regarding the ASEAN Australia New Zealand Free Trade Agreement and the Regional Comprehensive Economic Partnership, the Australian Embassy in the Philippine expressed their further support for Philippine’s economic sector through ASEAN last August. The diplomatic relations between Australia and the Philippines have a significant effect on some of the business sectors of the Philippines, like in infrastructure, construction, mining, food, agriculture, among others. From their Twitter post last August 3, the Embassy stated, “As Australia and the Philippines move towards upgrading our bilateral relationship, the work we do together through ASEAN will continue to help build a peaceful, stable, prosperous and resilient region for us all. Happy #ASEANDay55 from the Australian Embassy in Manila.”

How can the ASEAN-AU NZ Free Trade Agreement help the Philippines? Will their initiative and strategies for open economy help various Philippine industries like mining, construction, agriculture, transportation, telecommunications, and others? Last 18 July 2022, the Philippines Australia Business Council (PABC) in partnership with the Australia Philippines Business Council (APBC) and the Australia New Zealand Chamber of Commerce (ANZCHAM) hosted a webinar about the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA) and the Regional Comprehensive Economic Partnership (RCEP). Their guest speaker was Assistant Secretary Allan Gepty of Department of Trade and Industry (DTI), International Trade Policy and Trade Negotiation. Atty Dennis A. Quintero was the moderator. He is the Chairman and Trustee of the Philippines-Australia Business Council (PABC). The opening remarks was given by Her Excellency Hellen B. De La Vega, Philippine Ambassador to Australia.  Bradley Norman, ANZCHAM Vice President, and Rafael Toda, APBC Vice President, delivered remarks on behalf of their respective organizations.

Photo credit: The Chamber of Mines of the Philippines The Chamber of Mines of the Philippines (CoMP) expressed concern over a proposed tax measure that may push back recent gains of the mining sector and deter prospective investments to the sector. The bill passed by the House committee on ways and means proposes the imposition of a royalty tax of 5 percent on gross output of large-scale mining operations, while increasing the share of the government to 60 percent of net revenues. The proposed legislation will also place a 10-percent export tax on mineral ore exports, to encourage domestic processing of mineral products. CoMP said that while the proposed measure runs contrary to pronouncements of the new administration, there were no consultations with the industry stakeholders to refute the onerous provisions of the bill. “We also maintain that figures shown during the Committee hearing that purported to show the industry’s effective tax rate at 38 percent was woefully out of date as such report was done in the year 2000, prior to the doubling of the excise tax on mineral products under TRAIN 1,” CoMP said in a statement. Once passed into law, the bill will render the Philippine mining industry as one of the highest taxed mining countries in the world.  It will also jeopardize the sector’s contribution to economic development in host communities that may result in a substantial reduction of exports and tax revenues and a considerable amount of social expenses. In addition, a number of large-scale operations run the risk of closure, resulting in massive unemployment in their areas of operations.  CoMP noted that bill will once again put into question the stability of mining policies, which is most detrimental to attracting foreign investments in such a capital-intensive industry.  “Foreign investors will simply look elsewhere, we are not the only country blessed with mineral resources. If further tax increases are unavoidable, the tax structure should not be onerous as to stop investments from coming in,” the group said. This will sustain existing mines and encourage quality investments in the hugely untapped Philippine minerals sector, ultimately expanding considerably the tax base and providing far larger tax revenues to government.  “We thus call on Congress to revisit the bill recently approved by the Committee on Ways and Means and allow for full and meaningful consultations with stakeholders,”CoMP said.

A House of Representatives panel on Wednesday approved a new fiscal regime for the mining sector, which is expected to generate PHP37.5 billion in its first full year of implementation. The House ways and means committee approved a bill proposing a rationalized and single fiscal regime applicable to all existing and prospective large-scale metallic mines, regardless of location. The committee adopted the version of the Department of Finance, which would “bring the country’s effective tax rate on mining (considering all taxes) to 51 percent, up from 38 percent under the current system. Albay Rep. Joey Salceda, committee chair, said this would bring the Philippines "closer to the middle of the pack" among major mining countries, instead of near the bottom of the list. "51 percent is a good number, because it brings us closer to Australia’s effective tax rate, at around 51 percent as well, counting royalties. Among major countries, only Chile and South Africa have lower effective tax rates than us. This proposal brings us closer to Australia and Indonesia, which are our regional comparatives. China is at a very high 71 percent effective tax rate for gold mines,” Salceda said. He said the proposal would fulfill the panel's commitment to President Ferdinand "Bongbong" Marcos Jr. and the Department of Finance to raise revenues to fund the administration's priority programs. “With this measure, we are fulfilling our commitment to the President and to the DOF to raise revenues to fund PBBM’s priority programs,” Salceda said. Salceda explained that under Marcos’s Medium Term Fiscal Framework, the revenue program assumes a tax-to-gross domestic product (GDP) growth of 0.3 percent annually. “The mining tax reform takes care of half of that assumption already. So, if enacted, it will be very good for President BBM’s bigger ambitions for infrastructure, agricultural revolution, and a solid Filipino middle class," he said. The bill proposes the imposition of a royalty tax of 5 percent on the market value of gross output of large-scale mining operations. It also states that a minimum government share of 60 percent of net mining revenues, including all government taxes, fees, and charges, will be imposed on mining operations. A 10-percent export tax will also be levied on the market value of mineral ore exports, to encourage domestic processing of mineral products. “Mining GVA has been declining, but exports value has been increasing, indicating that most exports are ores without domestic value-added. I hope to continue engaging stakeholders on how we can use such a charge to improve the domestic mining value-chain,” Salceda said. Each mining project will also be treated as a separate tax entity, which would help curb the practice of tax avoidance by allocating costs among related projects within the same company, he noted. “It reduces room for transfer pricing, or the manipulation of expenses of a company with various subsidiaries or related parties in order to avoid taxes," he said. To institutionalize transparency standards, the government will implement a mechanism for the public disclosure and scrutiny of all mining tax and revenue data in the extractives value chain. Salceda pointed out that such standards could help mining companies access cheaper and more foreign funds and technologies to make mining more efficient.

Photo credit: Bilyonaryo DMCI Mining Corporation posted an 8-percent upturn in standalone second-quarter core net income from P502 million to P542 million as higher selling prices and stronger US dollar offset the combined impact of lower shipments and higher fuel costs. Including the impact of CREATE law last year, its standalone net income for the period contracted by 28 percent from P749 million to P542 million. “We are seeing some topline weakness because the depletion of Berong mine but with elevated nickel prices and steady production of our other mining asset, we think we can end the year strong,” said DMCI Mining president Tulsi Das C. Reyes. For the second quarter alone, DMCI Mining revenues declined by 20 percent from P1.5 billion to P1.2 billion. Average selling prices of nickel ore surged by 50 percent from US$42 to US$63 owing to global supply disruptions and strong China demand while the US dollar appreciated by ten percent against the local currency. From April to June, shipments plunged by 51 percent from 746,000 wet metric tons (WMT) to 367,000 WMT after production from sole operating asset Zambales Diversified Metals Corporation contracted by 24 percent from 328,000 WMT to 248,000 WMT. Consequently, DMCI Mining standalone topline for the first semester was flat at P2.6 billion while core net income rose by 11 percent from P979 million to P1.1 billion. Meanwhile, net income slipped by 11 percent from P1.2 billion to P1.1 billion with the adjustments made in 2021 relative to the CREATE law.   Article courtesy of the Philippine Stock Exchange

Photo credit: Global Ferronickel Holdings Global Ferronickel Holdings, Inc. (FNI) recorded a consolidated net income of ₱417.4 million for the period ended June 30, 2022. The results are driven by the April to June mining operations of Platinum Group Metals Corporation (PGMC) in Surigao del Norte, with incremental contributions from PGMC International Limited (PIL), a wholly-owned subsidiary established to facilitate relations with Chinese customers for the trading of mineral products. PGMC is the second-largest value exporter of nickel ore in the country. It is a wholly-owned subsidiary of FNI. Net income for H12022 is down 34.9% compared to the ₱640.8 million in the same period last year. Revenues also slid 15% to ₱2.21 billion for the period ended June 30, 2022 compared to the ₱2.61 billion posted during the same period last year due to lower volume of ore shipped. The Group encountered more rainy days this period totaling 128 rainy days compared to 105 rainy days during the same period in 2021. The Group only managed to complete 19 shipments of nickel ore totaling 1.035 million wet metric tons (WMT) during the six-month period ended June 30, 2022, compared to 32 shipments totaling 1.740 WMT during the same period last year. “We are hoping for better weather in Q3, during the peak of PGMC’s mining season that normally delivers more than 60% of FNI’s revenues for the year,” said FNI President Dante R. Bravo. Despite the fewer volume sold for the period ended June 2022, the Group benefited from the higher average realized foreign exchange rate this year at ₱52.60 compared to the prior period’s ₱48.24, augmenting revenues by a total of ₱177.1 million. Nickel ore prices are also higher this year with an overall average realized nickel ore price at US$39.21 per WMT, compared to last year’s period at US$31.10 per WMT, topping up revenues by ₱405.0 million. The resulting sales mix was 79% low-grade ore and 21% medium-grade ore in 2022 in contrast to the previous period’s mix of 84% low-grade ore and 16% medium-grade ore. These shipments comprise 0.816 million WMT low-grade nickel ore and 0.219 million WMT medium-grade nickel ore compared to 1.465 million WMT low-grade nickel ore and 0.275 WMT medium-grade nickel ore of the same period in 2021. “We have adjusted our 2022 shipment target to 4.0 million WMT but we still look forward to a productive and remarkable season due to the strong demand from China and favorable market conditions,” said Mr. Bravo.   Article courtesy of the Philippine Stock Exchange

In a boon for mining in the Philippines, Finance Secretary Benjamin Diokno has earmarked the sector as a source for long-term economic growth amid the pandemic. As reported in business publication, Rappler, Mr. Diokno said: “The mining industry holds the greatest potential to be a key driver in our economic recovery and long-term growth, especially now that world metal prices are high.” “The Philippines, after all, is one of the world’s most richly endowed countries in terms of mineral resources,” Diokno said. The Philippines mining industry had laid dormant for years as areas were closed to mining, and a comprehensive review was undertaken. This changed during Rodrigo Duterte’s last few months of presidency, however, as the country sought to reinvigorate its economy following reported missed growth targets. The Philippine Government’s renewed focus on mining was welcomed by Makilala Mining’s President, Mr. Julito Sarmiento. “We are thrilled with the government’s decision to again support mining in the Philippines,” he said. “Our flagship copper-gold projects in the Philippines, including MCB and Sagay, have the potential to create thousands of jobs and support local communities, whilst employing best practice mining techniques to protect the environment.” In a positive signal for renewed mining support in the Philippines, recently listed miner Philex will push ahead with its Silangan copper-gold mine which includes the development and construction of a mill plant, plus support facilities. The Department of Finance estimates that the project can generate Php8.5 billion in excise taxes alone for Silangan’s entire mine life. Mr Diokno lent his support to the project saying the mine will create jobs, reinvigorate local economies and provide additional revenues to government programs. He called on the mining sector to strike a balance between the local communities, the environment and the government’s economic agenda.   Article courtesy of Celsius Resources