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
By Marcelle P. Villegas
18-19 March 2019 - Philippine Nickel Industry Association (PNIA) organised and launched The Nickel Initiative 2019 Conference at Shangri-la at the Fort in Taguig City. The event's objective is to provide a venue to discuss issues and potential opportunities or collaborations for the various industries that are involved in the nickel supply chain. The event also featured companies involved in the exploration, extraction and processing of nickel. According to PNIA, The Nickel Initiative 2019 Conference aims to open doors for improved networking and collaboration among stakeholders and industry players in the Philippines and abroad.
Price, policy constraints and challenges were among the major issues discussed during the conference. The establishment of a roadmap for the industry was a goal mentioned by PNIA as they aim to leverage on the Philippine's position as the second biggest producer of the key input in stainless steel, mobile phones, transportation and electric vehicle batteries. This roadmap is intended to provide a foundation that would accelerate growth in the local nickel industry and to further contribute to the country's economic expansion. The roadmap will also address the industry's needed infrastructure, incentives, power, as well as peace and security. [1] The PNIA stated that they are hoping to finalize the nickel industry roadmap within a year. [2]
The two-day event had attendees from local and global nickel stakeholders from the private and public sectors.
Mr Clarence J. Pimentel, Jr., Conference Chair of The Nickel Initiative 2019, gave the Welcome Remarks. This was followed by Atty. Dante R. Bravo's message and Q&A portion with ANC's News Anchor, Mr Quintin Pastrana. Mr Pastrana is the President of WEnergy Global Pte Ltd., a graduate of University of Oxford, University of Cambridge and Georgetown University.
The keynote speaker for Day 2 was the former Philippine President and currently the House Speaker, Honourable Gloria Macapagal-Arroyo. From her speech, she mentioned her support for the industry and its endeavours. The House Speaker is hopeful that Congress will be able to pass the new fiscal regime measure for the mining sector before the end of 17th session of Congress in June. [1] This refers to the House Bill No. 8400 which she co-authored.
For large-scale metallic and non-metallic mining operations outside of the mineral reservations, they will be required to pay the government a margin-based royalty on income from mining operation. It was noted that the rate is raised from 1.5% royalty to 5% royalty. This is from a 10% to a 70% margin. [1] On top of this, a royalty tax equivalent to 3% of the gross output of minerals or mineral products extracted or produced by the mining operation will also be imposed on large-scale metallic and non-metallic operations if this is located within mining reservation areas and this is exclusive of all other taxes. This means that they still have to pay corporate income tax.
For small-scale mining, the House Speaker mentioned that the mining contractors within or outside mineral reservations will pay to the government a royalty equivalent to one-tenth of one percent of gross output. [3]
She noted that the measure would generate around PHP22 billion for the government from the current PHP19 billion (or PHP18.71 billion) as well as an additional PHP3 billion from the royalties collection. With regards to mining royalty, she stated that the government will earn PHP2.57 billion instead of the current PHP1.13 billion. [3]
Furthermore, the House Speaker said that HB 8400 was adopted by the Senate committee level with an objective to promote fairness by providing fiscal regime that is applicable to all existing and prospective large metallic and non-metallic, and small-scale mines. It shall be applied to all mines regardless of whether the mine is located outside or inside of mineral reservation. This measure would also "enhance the equitable share of the government in the utilization of natural resources without compromising the mining sector's need for reasonable return on its investment." [3]
Mr Dante Bravo, President of PNIA, said that they welcome the measure. He hopes that the approval of the House Bill would eventually push the lifting of the moratorium on new mining permits.
The House Speaker also noted that the local mining industry flourished under the present administration than it did during her regime despite the current President's stand on mining. "I have said that even under my successor, who was very strict about mining, the sector grew even more than it did in my time," she said. "That's what we want to do now. Even in today's policy and regulatory environment, we want to help the sector grow and contribute to national development." However, she emphasised that there should be a solid framework that will approximate the thinking of President Rodrigo Duterte. [3]
In relation to President Duterte's message during his 2018 SONA, the House Speaker pointed out that raw materials from mining operations in the Philippines should be processed here. She said, "In line with the President's other statements regarding raw materials...your projects would ideally include processing facilities if not today, at least in the realistic future.”
The House Speaker also proposed that the Department of Environment and Natural Resources (DENR) should also transform into a promoter of responsible mining aside from being a regulator.
From her keynote speech, she emphasised as well the importance of educating the public on the aspect of land rehabilitation since there are several remarkable examples such as Berong Nickel, Coral Bay Nickel, and Rio Tuba in Palawan; Agatha Mining and SR Metals in Agusan del Norte, Taganito Mining in Surigao del Norte, Zambales Diversified Metals in Candelaria, Zambales.
Hon. Arroyo also mentioned the old mined pit of Semirara which is now a blue lagoon after the company's marine rehabilitation efforts in the island. This environmental rehabilitation brought international attention and the company was awarded in 2015 as first runner-up in the Corporate Social Responsibility category of the Asean Energy Awards in Kuala Lumpur, Malaysia.
After the speech of Hon. Arroyo, Undersecretary Rafaelita M. Aldaba of the Department of Trade and Industry gave a presentation about "Securing the Future of the Philippine Industries".
On the second part of the morning session, the topic was "Discovering Nickel and Tomorrow's Industries". The presenters were Mr Paul White (Secretary General of International Nickel Study Group), Mr Edmund A. Araga (President of Electric Vehicle Association of the Phils.) and Mr Lawrence Liu (Tsingshan Holding Group Co., Ltd.).
The afternoon session's topic was "The Next Generation of Innovators and R&D Champions" where a Q&A panel was moderated by TV host Mr RJ Ledesma. The panelists were Mr Earl Forlales (CEO and Founder of CUBO Modular) and Dr. Rogel Mari Sese (President of Regulus Space Tech Inc.). Mr Forlales presented an innovative and low-cost housing solution for the urban poor that uses bamboo as building material. It has a practical home design that is easy to assemble but durable for years. Dr. Sese talked about outer space mining and its legal implications on a global scale. He passed around to the audience a sample of a meteorite that landed in Russia which he said is composed mainly of nickel.
The segment's moderator, Mr Ledesma has been popular in Philippine television since the late 1980s for appearances in various commercials and TV shows, representing Generation X with wit, humour and flair. He is a writer, editor and entrepreneur, co-founder of the successful Mercato Centrale food market, and the Honourary Vice Consul of Monaco to the Philippines. He is the first Asian to deliver the graduation speech at the Massachusetts Institute of Technology where he received a degree in Masters of Science in Real Estate Development.
Other presenters for the afternoon session were Mr Cyrille Jouin (Glencore International AG), Mr Ian Hiscock (CRU Consulting Group) and Mr Weixun Huang (Ningbo Lygend Mining Co., Ltd.).
Dr. Bernardo M. Villegas gave an insightful and informative closing keynote presentation titled “Nickel Mining Can Be Sustainable”. Dr. Villegas is an economist and professor at the University of Asia and the Pacific. He is also a book author and a leading expert in economics. Dr. Villegas is one of the best economists of the Philippines due to his unparalleled expertise and wisdom. From his speech, he emphasised the important role of the Philippine government in the survival and success of the local mining industry.
- - - - -
At the end of the day, with all the talks and sharing of ideas, studies and opinions, the success or failure of the Philippine nickel industry in solving its impending problems and challenges is dependent on how well the key players are able to differentiate between the best solutions from false limiting beliefs. After the conference, here are some thoughts, reactions and expert analyses from some of the delegates who attended the Nickel Initiative Conference 2019:
“I am convinced that nickel demand will continue to rise in the future. Profit can be made if we are properly positioned. Trading of nickel in the Philippines is a sustainable project or business. The initiative was good as the problems unique to the industry were identified and discussed and a possible solution was talked about. The event was also a fresh ground for meeting new contacts and renewal or updating with former acquaintances.” (Ms Audi Fabricante, Business Manager at Epitomo Holding Resources Pte Ltd. and Principal at Fahaodi Mining Consultancy)
"The Nickel Initiative conference was very informative. Current regional and world trends were covered by industry experts from various countries. The speakers were able to cover topics from nickel extraction to stainless steel usage and even emphasised the demand for raw materials for electric vehicles. Next time, I hope, in the next conference, there will be discussions on worldwide trends or sharing of best practices that companies adopt to minimize environmental and social impact of the mineral extraction and processing." (Ms Maan Baribar, Community and Public Relations Senior Manager of Sumitomo Metal Mining Philippine Holdings Corporation)
“During the conference, I heard lots of well-intentioned speeches but the challenge is for industry leaders and authorities to create a clear roadmap with practical steps to achieve quickly a shared vision. I hope that this will emerge soon because we need it. It seems that there was no Philippine company mentioned who is willing to put up a nickel processing plant locally to add value to the large laterite nickel resources of this country. Perhaps most companies prefer direct shipping of ore to overseas markets at prices of less than 10% of the contained nickel content.
“Indonesia banned the shipment of laterite nickel ores in 2014 and now has over 25 companies operating or building processing plants, with the production of over 750,000 tpy nickel metal in product by 2023. All the Chinese producers who attended the Nickel Initiative stated they will NOT invest in the Philippines as they already have investments in Indonesia. Interestingly, Indonesian companies cannot export laterite ores unless they are building a processing plant. The same policy should be immediately implemented in the Philippines.
“Nickel Asia/Sumitomo at their Coral Bay and Tanganito has been the only company in Asia processing local laterite nickel ores to produce raw materials for batteries. This company has been the sole producer for the last 15 years but is now at risk of being overtaken by the Indonesian companies as they start work on three planned HPAL plants. From a position of absolute advantage, the Philippines will lose its position in the battery sector. It has already lost the race in producing ferro-nickel or nickel pig iron and will never be able to compete with the Chinese companies in Indonesia.
“Banning the immediate export of laterite nickel ores is the only way to force companies to invest for the future and for the benefit of the Filipino people. Without an immediate ban on exports, the fourth largest resource of laterite nickel and cobalt in the World will become irrelevant as we watch our Asian neighbors grow to lead the world in battery materials production and stainless steel production from laterite ores,” (Mr George Bujtor, 12th April 2019)
Mr Bujtor is a prominent mining executive from Australia with 23 years of experience in various roles such as General Manager and Managing Director in Rio Tinto, Australia. He is an expert in the technical, financial and commercial aspects of mining operations. In the Philippines, he was the CEO of Toledo Mining Corporation in 2005 where he developed in record time, commercialized and operated the Berong Nickel Mine in Palawan. He was also the CEO of Carmen Copper Corporation in 2009 (under Atlas Consolidated Mining and Development Corporation), the largest porphyry gold-copper producer in the Philippines. He has a degree with honours in BASc Geology, Mining and Metallurgy; Master's Degree in Mineral Economics; Master's Degree in Mining Engineering and M.B.A. Mr Bujtor is currently the CEO of Electric Metals Limited.
-----
References:
[1] Rodriguez, Bruce (19 March 2019). "Policy and global metal price constraints tackled at Nickel Initiative 2019" on ANC 24/7. Retrieved from https://www.facebook.com/ANCalerts/videos/607666546327913/
[2] Retrieved from https://www.pna.gov.ph/articles/1065046
[3] Ison, Lilybeth (19 March 2019). "Arroyo optimistic about bill on new fiscal regime for mining". Retrieved from https://www.pna.gov.ph/articles/1065024
Uncover the advances in the oil and gas industry in the Philippines’ largest oil and gas expo. Oil & Gas Philippines 2019 is a 3-day oil and gas event that will feature various oil and gas companies, contractors, and technology providers from all over the world.
On June 18-20, Oil & Gas Philippines 2019 will showcase the continuous innovations of the Philippines’ growing industry. It will also highlight the most recent developments among different exhibitors coming from the industries of oil and gas downstream, upstream, offshore, construction, services, and a whole lot more.
The event is expected to have more than 5,000 trade visitors originating from different countries around the world. Now on its sixth edition, Oil & Gas Philippines 2019 will take place at SMX Convention Center Manila, one of the Philippines’ most impressive premier exhibition center.
For further information about this event, please visit www.oilgasphil.com or send us email at phil@asiafireworks.com.
By Jose De Vencia Jr.
At some point now or sooner than later, the claimants in the South China Sea/West Philippine Sea will have to sit down and agree on a seismic and oil exploration program to be followed by a definitive oil drilling and development schedule for a satisfactory commercial petroleum discovery which is anticipated.
This should include a detailed and definitive agreement in the event of marginal hydrocarbon discoveries, non-commercial in volume, and must be followed through by a series of exploration activities in the areas with reasonable looking anticlines or likely oil-bearing structures before the areas are given up, or abandoned, or preserved for other uses by succeeding generations.
The anticipated agreement should include sharing of exploration expense, the more expensive development costs in the event of commercial discovery, distribution of export petroleum to refineries in the Philippines, China, and Vietnam, and/or third-party international buyers, and an agreement on a second-round or third-round of exploration areas nearby or in much farther locations.
There is a need for a focussed Petroleum Academy or a unit in the Philippines to train future Filipino geologists, drilling technicians in hydro-carbons-related work who can be assigned at home or abroad for hydrocarbons employment.
The petroleum division can be an initial extension or component of an expanded Base Metals Mining Division in our Department of Environment and Natural Resources (DENR).
It will be the workplace for Filipino students eyeing positions in petroleum or mining industries after graduation.
The Philippine government must now consider training an initial 100 scholars in petroleum and mining industries for future assignment after graduation at home or overseas under veteran executives and who will mobilize successive waves of like-minded students.
This early, we should have exchanges with Australian, US, Chinese, Japanese, Canadian, South Korean, Malaysian, and Indonesian oil exploration and base metals mining organizations to help develop Philippine capabilities in these fields if we have not yet done so, or for perhaps only an inadequate few until now.
The government and existing capable Philippine companies must assist our eager students in these fields.
For all these expectations to come to pass, the Philippines or ASEAN, or just the concerned ASEAN countries, must now initiate work and call first for an initial meeting and get to work soon on valid proposals.
The first task is to undertake detailed extensive seismic surveys in the target offshore areas, to identify the first exploratory drillable structures in the South China Sea (West Philippine Sea), approximate the costs of exploration for, say, an initial program of five wells (shallow or deep wells as needed), preferably using Chinese or US drillships, with common Filipino, Chinese, Vietnamese drilling representatives and crews onsite.
I must say that in the event of commercial oil discovery, the refining will be done in Philippine or Chinese or Vietnamese refineries located relatively nearby through eventual interconnecting pipelines or immediate oil tankers parked in the vicinity.
Engaging American drillships from the Gulf of Mexico will be too expensive to hire or engage and bring them all the way to the South China Sea for drilling in the offshore areas near Palawan and further in Fujian or on to the Tonkin Gulf area of Vietnam.
I believe if we start talking quietly and professionally instead of shouting at each other in the wire news services, television, or radio, our negotiations, aided by our professional petroleum executives and geologists, could agree on a Philippine-Chinese-Vietnamese initial five-wells exploration program with reasonable budget costs for an 18-month or two-year period, including adequate time for data analysis.
This will immediately mean two years of uninterrupted peace in the South China Sea.
So that nobody will be more equal than others irrespective of size, might, and contribution, the cost of exploration and development must be shared and divided equally among the three-nation partners.
And the three countries must agree among themselves who will be the designated “operator” who will assume leadership and management responsibility for the drilling program under a Drilling Committee composed of the three nation partners who might engage other offshore international technicians for independent consultations.
The sharing system, unless one partner abdicates for any valid reason whatsoever, must continue to preserve the continuing efficacy of the partnership and of the system itself which could run for as long as a hundred years or more.
Sooner than later, Malaysia and Brunei should be invited to join the Philippines, China, and Vietnam strategraphic oil/gas drilling in other areas of the South China Sea.
An understanding with China must be reached to deal with Taiwan’s role in the
exploration/development program.
If this South China Sea oil exploration and, hopefully, oil development project can run for a long period, it is hoped that it will extend to
China and Japan in the disputed areas in the Senkaku or Diayou Straits in the East China Sea.
It can also be a formula for lasting peace between China and India in their vast conflict areas in the high Himalayas, between India and Pakistan over Kashmir, and between Azerbaijan and Armenia over Nagorno Karabakh, which will put Israel and Palestine to shame if they do not finally agree on their already much-delayed land-sharing agreement.
There are also other Philippine areas for possible oil discovery in the Sulu Sea below the Treaty Line across Sabah which has not yet been explored geologically until now.
The Muslim areas in Central Mindanao have also not yet been explored for petroleum resources, which are Filipino Muslim and Christian brothers need badly for development.
Right now, almost all of Northeast Asia, China, Japan, and South Korea, and in Southeast Asia, the Philippines, Cambodia, Thailand, Laos, and Singapore, must send their oil tankers across the South China Sea and into the Indian Ocean and the Arabian Sea and into the Straits of Hormuz to lift crude from the rich oilfields of Saudi Arabia, Kuwait, and the United Arab Emirates.
In our earlier humble capacity as president of the Petroleum Association of the Philippines and later as speaker of the House, I had made similar earlier proposals in 1970 and 1987 to the same countries and I believe now is the most auspicious time for undertaking opportunities for exploration and development in the sea.
The alternatives for all of us are endless tension, conflict, and, God forbid, even war.
Source: https://news.mb.com.ph/2019/04/20/a-formula-for-the-philippines-china-and-vietnam-in-the-west-philippine-sea-south-china-sea-and-other-participants/
When pumping slurry, gland seals can be prone to leakage. This is often caused by inadequate maintenance, incorrect lubrication application, poor quality gland water, or a combination of all three. Plant operators should be vigilant against gland seal leakage as it can cause premature bearing assembly failures, leading to downtime.
Gland Maintenance
Inadequate gland maintenance can cause leakage, spraying slurry or water directly onto the pump’s bearing assembly. If this penetrates the bearings, there is a high risk of failure.
In some instances, incorrect gland seal adjustment causes unwanted leakage. This can be resolved by regularly adjusting the seal and ensuring seal water supply is high quality and free of abrasive particles.
Bearing assembly lubrication
In addition to contamination ingress from leaking gland seals, Incorrect bearing assemblylubrication volume is another factor to be mindful of. If a pump bearing assembly is over greased, a build-up of excess grease in the bearing assembly cavity can cause grease churning resulting in elevated bearing temperatures. This leads to rapid degradation of grease and subsequent bearing failure. Conversely, if the bearing assembly is under greased, the loss of fluid film lubrication will cause premature bearing wear. When this occurs, the remaining grease will experience accelerated degradation due to internal contamination caused by abrasive wear particles.
To help prevent premature bearing assembly failures, Weir Minerals recommends that grease should be regularly supplied to the bearing assembly labyrinth seals using Warman® Accumin® automatic lubricators. This provides a protective barrier against gland leakage and other sources of external contamination whilst also regreasing the bearings.
Michael Roinich, Weir Minerals Accumin® Product Specialist states “Our Warman Accumin automatic lubricators are a heavy-duty, single point lubrication system designed specifically for Warman slurry pumps. They deliver the required amount of grease in line with our specifications and are fitted as standard on any new pumps. This helps our customers prevent bearing failures, keeping their operations running smoothly.”
The Accumin range is comprised of two lubricators with easy to adjust dispensing systems. The Accumin® 125 lubricator, ideal for smaller pumps, is waterproof, gas operated and ready to use straight out of the box.
The 250 model embraces the latest technology and is recommended for larger pumps, featuring a reusable electro-mechanical drive unit embedded with software which can determine fault codes. This model features an LCD display and LED indicators which immediately confirm the lubrication system’s operational status. Accumin® lubricators are suitable for most grease lubricated rotating equipment including conveyors, fans, electric motors, valves, filter belts, vacuum pumps, mechanical seals and gearbox seals.
Accumin lubricators maintain a grease barrier within the labyrinth seal. This prevents external contamination ingress into the bearings from gland water or slurry.
Using Accumin® lubricators decreases the risk of lubrication related failures and extends the life of the pump. Accumin® lubricators deliver small amounts of grease at regular intervals for a seal purging effect. This allows any contaminated grease to be pushed out before it can further penetrate the bearing assembly. This is preferable to using a manual grease gun to insert a large amount of grease at once, which can result in over greasing and elevated bearing temperatures. The grease dispensing rate, in monthly increments, ranges from one to twelve months, allowing equipment to be lubricated as needed.
Furthermore, when compared to multipoint systems, single-point lubricators require less maintenance and are more economical while providing the same benefits.
“Our Accumin lubricators are part of our holistic approach to supporting customers, with the product designed to reduce bearing assembly failure for lower total ownership costs.
“We are the only manufacturer to provide a heavy-duty lubrication as standard on our pumps, helping our customers get the most out of their equipment,” states Michael Roinich, Weir Minerals Accumin Product Specialist.
Adopting a proactive approach to pump maintenance and lubrication will help improve equipment reliability and its lifespan, whilst reducing maintenance costs and downtime. Contact your local Weir Minerals representative today for more information.
All the conveyors are hydraulically fold-able.
By: Marcelle Villegas
CTP Construction and Mining Corporation is one of the top 5 nickel mines in the Philippines. They operate the Adlay Mining Project and Dahican Nickel Project in Surigao Del Sur. Having a triple ISO certification is just one of the many notable accomplishments of the company. Last year, they were the champion for the 5th Regional Fire Olympics 2018, Industrial Fire Brigade Category in the Caraga Region. The competition was held last June 1, 2018 at Tandag City, Surigao del Sur. Here is an exclusive feature of Philippine Resources Journal as we interviewed Mr Simplicio E. Oliveros III, the Head of Safety and Health Department of CTPCMC.
Fire safety is sometimes trivialized or misunderstood as something that can be accomplished by anyone. However, being a part of a Fire Brigade is not as simple as it sounds. It requires special training and establishing a team of highly competent individuals who are focused, smart and resilient even under pressure. These requirements are essential because the team will be dealing with life threatening situations. Moreover, being a part of the Fire Brigade and Emergency Response Team requires skill, discipline, physical stamina, focus and the ability to analyse and respond to emergency situations quickly and correctly.
For those unfamiliar with a Fire Olympics, this is a competition where each team is subjected to fire emergencies and rescue scenarios. “There is a target where we need to hit with water after replacement of busted hose,” according to Mr Oliveros. This trial involves the use of a 6-feet ladder on 12 ranks. On a typical Fire Olympics, there are trials like Pump and Roll with Turret Target, Raising Ladder, Blitz Attack, and more. “The competition determines the fastest and the most accurate team in extinguishing fire,” he adds. For the Rescue and Transfer Relay Operation, members are to execute the different techniques in carrying a victim.
CTPCMC’s Safety and Health Department’s work is not only limited within the mine site. They also extend their assistance to outside communities where help might be needed. “In terms of emergency response, we recently responded to a road traffic accident between a motorcycle and a bicycle,” Mr Oliveros said. “We were also the first to respond to Typhoon Basiang [in February 2018]. We support the LGU during calamities. We also conducted a First Aid Training and Mine Rescue [training]. This year, we participated in the Regional Fire Olympic. As a matter of fact, we won!”
The Safety and Health Department office has a fascinating array of trophies which reflect his team’s competence and commitment to their work. Their awards include the following: • Champion – Regional Fire Olympics, 2018 (Industrial Fire Brigade Category) • Champion – Regional Fire Olympics, 2017 (Industrial Fire Brigade Category) • Champion – 4th Mine Safety Competition, Mining Summit 2017 • Second Runner Up – Fire Brigade Competition, PMSEA 2017
In the future, they aim to compete in the National Fire Olympic event. He mentioned, “CTP will represent the Caraga region for the National Fire Olympics [in 2019]. Then we also aim to compete in PMSEA for First Aid and the Fire Brigade Competition.”
In general, how does the department adhere to its commitment to excellence? Mr Oliveros states that as an ISO-certified company, they continue improving by monitoring tasks and performance, submission of reports for assessment, and regular meetings.
In terms of safety in the mine site, they implement various safety measures to assure the prevention of accidents. For example, employees are required to wear safety vests, safety shoes, hard hat, etc. Within the office, they have regular monitoring of operations, a monthly Central Assessment Committee Meeting and Contractors Meeting. They also have a weekly Toolbox Meeting for their drivers and operators.
“We are proud to say that we have never had any fatal accidents since 2016,” said Mr Oliveros.
CTPCMC is 100% Filipino owned and has been operating since 2007. Aside from being one of the top 5 nickel mines in the Philippines, they are also the second nickel mine in the Philippines that was awarded three ISO certifications. They passed the ISO 9001, ISO 14001, and OHSAS certifications last 2016 and in February 2018. It was upgraded to latest versions, namely ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System) along with its existing OHSAS 18001:2007, certified by TÜV Rheinland.
The longest-running construction expo in Southeast Asia and the biggest trade show in the Philippines took place last November 8-11 in two venues, namely; SMX Convention Center and the World Trade Center Metro Manila. Now on its 29th year, this trade show for the construction industry welcomed more than 70,000 visitors. This massive expo is organised by the Philippine Construction Association Inc. (PCA). Members of PCA are responsible for more than 80% of the country’s total annual construction projects.
Mr Morris Agoncillo, President of PCA states, “These are very exciting times for the industry with the government’s aggressive pursuit of infrastructure development through the Build, Build, Build program as well as the private sector’s drive to produce globally competitive projects, there are plenty of opportunities for both local and international suppliers to grow their business here. Our goal in PCA is to provide a venue where they can easily explore these opportunities and for close to three decades now. PHILCONSTRUCT has been that platform.” Secretary Ramon Lopez of Department of Trade and Industry (DTI) led the opening rites for the event.
During the 29th PHILCONSTRUCT, the entire parking lot of World Trade Center Metro Manila was converted into an indoor exhibition hall to give space to many new international exhibitors. This is approximately an additional 3,000 square meters of indoor space, according to Mr Gerardo Pancho who is the 1st Vice President of the Philippine Constructors Association and the Overall Chairman of last year’s PHILCONSTRUCT.
Since 2013 when PHILCONSTRUCT started its expansion, the event has generated a steady growth and demand for exhibit space from local and international suppliers. In the latest expanded exhibit, PHILCONSTRUCT featured building materials, construction equipment, fixtures, finishing solutions, and other related construction services from 23 countries.
Participating countries include China, the European Union, Germany, Italy, India, Japan, Jordan, Korea, Malaysia, Singapore, Spain, Taiwan, Vietnam, and the United States. Over 1,500 companies participated in the event. PHILCONSTRUCT 2018 was presented by Pacific Paint (BOYSEN) Philippines, Inc. with major sponsors Civic Merchandising, Inc., CW Home Depot, Hyundai Asia Resources Inc., and QSJ Motor Philippine. The show sponsors are Caltex/ Chevron Philippines, Co Ban Kiat Hardware, and Isuzu Philippines.
Mr Pancho mentioned that the event is a great venue for stakeholders from both the government and the private sector. From here, we can determine how these products and technologies from other countries can help improve and strengthen the country’s various structures and infrastructures. He said, “We expect this synergy between these stakeholders to help bring the practice of construction here in the Philippines to the next level.”
The event also presented various technical lectures for engineers and engineering students. For instance, at SMX Convention Center, Mr Jun Perez conducted a lecture on Basic HVAC Seminar during the HVAC/R Philippine Technoforum 2018. In his lecture, he shared much of his vast experience in smart techniques in building designs and air con installation from his previous projects in Guam for the U.S. Army and U.S. Navy. The seminar was sponsored by Concepcion Midea Inc. Two meeting rooms for the seminar were filled with attendees who are engineering students and engineers.
Within the exhibit ground in SMX Convention Center, many companies offered free technical lectures by experts like Engr. Jhon Carlo Rojo, Technical Support Engineer of Daikin Airconditioning Philippines Inc. His lecture emphasized the importance of Indoor Air Quality (IAQ). He mentioned that we breathe 28,800 times a day and 90% of the time, most of us are indoors. With that, IAQ has an impact on our health, work performance and quality of living. For almost 90 years, Daikin of Japan has been the leader in air con and air filter technology.
MANILA HOTEL, 11 December 2018 -- It was the first day of GEOCON 2018 by the Geological Society of the Philippines. During the event, Philippine Resource Journal has this exclusive interview of Dr. Renato U. Solidum, Jr. regarding his scientific views regarding Boracay’s water and beach pollution. This is one of the most conspicuous environmental issues of this famous beach.
Dr. Solidum is the Undersecretary for Disaster Risk Reduction and Climate Change of the Philippines, Department of Science and Technology (DOST). He is also the Officer-In-Charge of the Philippine Institute of Volcanology and Seismology (PHIVOLCS) where has worked since 1984 and became its Director in 2003 up to February 2017.
During the interview, he mentioned an important aspect of marine biology and ecology that most people are unaware of. He explained how the chemicals from shampoos and soaps are not merely chemical pollutants but as well as substances that cause disorder in the equilibrium of the marine ecosystem. This imbalance eventually triggers more pollution in the sea and coastline. “Well, essentially the problem in Boracay and many other beaches is that people are not aware that the normal things that they do might actually harm the environment. They need to be educated on why this is so.”
“For example, let me just say going back to Boracay, that the prime resource of Boracay is the white beach sand. However, people do not know, especially the tourists or even the locals, that the beach sand is not provided by the erosion of the limestone of Boracay. It is actually provided by the corals growing on the water, and so the breaking up of the corals provide the beach sand. Also, the corals actually serve as barrier in the shoreline from strong waves that can cause erosion.”
Regarding the types of wastes found in the water and beach, he adds, “The problem is, due to the rapid utilization of Boracay and the untreated waste, the waste can be of several forms. One is the actual waste that would go down on the septic tanks or not at all. Another is simply the washing of our own bodies and clothes using shampoo and soap. Shampoo and soap for example have phosphorus. Phosphorus is part of the fertilizer. So if it reaches the water, that would cause the proliferation of the algal growth of the blue-green algae.”
In Biology, blue-green algae are also knowns as Cyanobacteria or Cyanophyta. These are a group of plant-like bacteria capable of photosynthesis. Blue-green algae have a symbiotic relationship with other organisms in the aquatic environment and have many important functions in the environment. One of them is nitrogen fixation in the atmosphere which assists plants in creating proteins and nucleic acids which are essential for a plant’s survival. However, moderation is vital to maintain balance in nature. Therefore, a rapid, abnormal growth of the blue-green algae causes pollution. This is called “algal bloom” where the sea water is dominated by blue-green algae. These blooms can be toxic and can lead to closure of beaches.
Moreover, Dr. Solidum explains how algal bloom can be destructive, “The sign of pollution is not only the fecal coliform which you don't see, but if you see that there is blue-green algae [in the water], then that's polluted.” In this statement, he is referring to an algal bloom which is manifested by greenish scum visible in the water. Fecal coliform on the other hand are microscopic organisms which are not visible to the naked eye. Both algal bloom and fecal coliform presence in the water are toxic and unsafe for drinking or swimming.
How does an algal bloom affect the coral reefs? “When the blue-green algae grow, they would suffocate the corals or will cause the corals to die. And so, if corals die, they won’t be able to produce the sand grain to preserve the beach. Then the stronger waves shall now reach the beach and can cause further erosion. So in the past two decades, Boracay has been eroded by 40 meters,” said Dr. Solidum.
“Actually the move of the President and the Government and supported by everyone to close Boracay and treat the water are very good but that has to be maintained. People have to play their part. From the presentation [in GeoCon 2018 about sand and water pollution in Boracay], there are three E's in this kind of job. One is Engineering Solution -- you have to treat the water… or somewhat related, Bioengineering. It is not simply the septic tank hard core but there can be bioengineering.”
“Second is the Education -- how people should contribute so that pollutants will not reach the ground or the water, and three is the Enforcement. This refers to the regulatory actions.”
“Therefore, education is key because everyone has to play a role. If people are not educated as to the cause of the pollution and to the effect of the pollution, people will take things for granted. So it starts from education. Sometimes people will take shower around the beach and wash their clothes with soap or use shampoo and that's dangerous. And people do not know. I was actually the one who briefed the National Disaster Risk Reduction Management on the reason why shampoos and soaps should not be used while in the beach or water. These findings are done by the specialists and not by me. I learned it (algal bloom effect) from them.”
Dr. Solidum is the Chairperson of GeoCon 2018 from which he his message, “There are many differences in our focus of work or interest but when GEOCON comes, this event allows us to share what we have learned from our studies or gain new knowledge from others. It brings to light what we think will be relevant to us and our fellow geologists. It is a venue for highlighting opportunities and bridging gaps and interests for the benefit of our profession and society.”
Dr. Solidum has a degree in BS Geology from University of the Philippines, finished his M.Sc. in Geological Sciences from the University of Illinois, Chicago, plus his Ph.D. in Earth Sciences from the Scripps Institution of Oceanography, University of California, San Diego, CA.
In recognition of his contribution to disaster risk reduction in the Philippines, Dr. Solidum has several notable awards such as the Presidential Citation for Public Service, the Presidential Lingkod Bayan Award (Civil Servant) by the Civil Service Commission, the Professional of the Year in the Field of Geology by the Professional Regulation Commission (PRC), the Excellence Award for Government Service by the Philippine Federation of Professional Associations and the Presidential Career Executive Service Award by the Career Executive Service Board.
September 2018 was a tragic, difficult month for the Philippine mining industry because heavy rains resulted in landslide in the Mountain Province region. Several small-scale miners died during the landslides in Itogon, Benguet. Other than being part of the headlines at that time, it also placed the mining industry under scrutiny or even misjudgment by many. What are the possible causes of the landslides? Is mining responsible for this incident? How can the science experts help in preventing this incident from happening again?
During the GeoCon 2018 last December, a study was presented with the title “Landslides in Itogon, Benguet: The triggers and Causes” with authors M. Madrigal, L. Manzano, R. Agot, et al. From their study and through investigation, this is what happened that day.
It was around 1:00 in the afternoon on 15 September 2018 when a small-scale mining community in Sitio First Gate, Barangay Ucab, Municipality of Itogon was devastated by a massive debris flow. The study reported that the debris materials originated from the northwestern slope of a ridge that was composed of highly weathered, altered and fractured diorite, andesite and pyroclastic rocks. At the western side of the slip, there was a high discharge flow of a creek, a tributary of Liang River. This aggravated the ground failure.
“It pushed the the debris flow materials farther towards the chapel and portal of an old tunnel level 070 of Benguet Corporation,” according to the report. The debris flow affected around 2.0 hectares downslope. There were other areas that also experienced massive landslides like the following barangays: Ampucao, Loacan, Gumatdang, Poblacion, Ucab and Virac.
It was reported that 87 people died and 12 were missing (DILG-CAR) as of 29 September 2018. Based on the rainfall data of PAGASA, the Province of Benguet received 250.2mm and 535.6mm of rainfall within 24 hours that was caused by Typhoon Ompong on September 14 and 15 respectively. Normally, there is a 10mm threshold for ground failure/mass movements to occur.
The study of this incident was conducted by having a methodology that employed anecdotal accounts, geological and geohazard assessment, Ground Penetrating Radar (GPR) Survey and drone mapping. The technical team from Mines and Geosciences Bureau-Central Office and Regional Office - Cordillera Administrative Region (CAR) conducted a delineation of critical areas/danger zone and assessment of small-scale mining communities.
The results revealed that the debris flow in the barangays are natural phenomena that was triggered by abnormally heavy rainfall that affected critical slopes underlain by highly fractured, altered and weathered rocks. GPR images also revealed that the areas are unstable and not suitable for permanent habitation and other developments. Moreover, the landslide incident were enhanced by human activities like removal of forest vegetation, small-scale mining operations, and development along unstable slopes and on ridges.
Findings and observations:
1) Rainfall
2) Geology and Geomorphology
3) Anthropogenic processes
Recommendations:
1)The team strongly recommends for the immediate relocation of small-scale mining communities away from areas delineated in critical zone with active landslides.
2) The concept of Minahang Bayan may be applicable in some areas but permanent habitation or settlement within the area of mining operation should not be allowed. Illegal mining should be stopped.
3) LGU to provide alternative and stable source of living for small-scale miners.
4) Consider expert opinion of geotechnical engineers along with in-depth studies in finding appropriate relocation sites.
5) Fault or lineament map of DOST-PHIVOLCS should be considered in the identification of relocation/settlement sites.
6) Warning signs should be installed along all road sections that were affected by the recent landslide.
7) Abandoned tunnels by small-scale mines should be backfilled immediately.
8) Choked sections of river channels should be declogged soonest to prevent artificial damming.
9) Prohibit slope loading by disposing muck or rock waste as well as heavy infrastructure development.
10) Revegetation of slopes is highly recommended.
Reference:
Mines and Geosciences Bureau, Department of Environment and Natural Resources
Atty. Fernando Penarroyo, Geological Society of the Philippines
Last November 20-23, 2018 marks the 65th Annual National Mine Safety and Environment Conference (ANMSEC) in CAP-John Hay Trade and Cultural Center. The event was organised by the Philippine Mine Safety and Environment Association (PMSEA). In the Philippines, PMSEA is the leader in promoting occupational safety and health, sound environmental management and social responsibility in the minerals industry.
PMSEA works in partnership with the Department of Environment and Natural Resources-Mines and Geosciences Bureau as well as with the Chamber of Mines of the Philippines, the Philippine Society of Mining Engineers (PSEM), other mining companies, quarries, cement plants, suppliers, service contractors and other professional organizations.
On the Opening Day Ceremony, PMSEA President Dr. Walter W. Brown gave the Welcome Remarks. South African Ambassador to the Philippines, His Excellency Martin Slabber along with officers and directors of PMSEA participated in the Ribbon-Cutting Ceremony.
The Mayor of Baguio City, Honorable Mauricio G. Domogan joined the ANMSEC celebration later that day along with the other PMSEA officers like Atty. Wilfredo Moncano, Mr Ramon Santiago and Engr. Louie Sarmiento who is the Immediate Past President of PMSEA.
“It has been 6 decades of promoting Responsible Mining in the hearts and minds of Filipinos. With the theme ‘65 years of Responsible Mining Industry and Regulator Together in Promoting and Advocating Responsible Mining’, we believe that it is only through the collaborative efforts of both the industry and regulator will we be able to maintain a safe and sound, environmental-compliant and community-supported Mining Industry,“ said Mr Roel A. Colado, Chapter President. “We have been conducting worthwhile projects and upholding values and beliefs of our organisation.”
For the week-long celebration of ANMSEC in Baguio City, the highlight of the event in the mining industry were the following:
● PMSEA Immersion and Excursion Activity with Baguio Students
● Welcome Cocktails at Baguio Country Club
● Sports Fest (Badminton, Golf, Bowling and Lawn Tennis)
● Mining Exhibit by Mining Companies and Suppliers
● 4th National Minerals Industry Student Congress of students taking up BS Mining Engineering, BS Geology, BS Metallurgical Engineering and other related mining and geology courses
● 6th Community Relations Officers Conference in cooperation with National Community Relations Practitioners in the Philippine Mining/Minerals Industry
● Minerals Industry Symposium in cooperation with Philippine Society of Mining Engineers
● Minerals Industry Parade
● Mine Safety Field Demonstration and Field Competition on First Aid, Machine Drilling, Hand Mucking, Tug-of-Peace, Fire Extinguishing and Fire Brigade)
● Testimonial Dinner and Annual Awards Night
On November 21, 2018, the 6th National Community Relations Officers Conference was held with the theme “Sustained partnership of regulators, mining industry & communities as pillars for developing a progressive society”. In this conference, they emphasised the important role of mining companies in educating and communicating with the public about the contribution of their mining company to the environment and to the whole country in general. Deploying smart and effective communication techniques are essential in relaying science-based information to a layperson who has no science background in order for them to understand the operations in a mining project. By consistently promoting correct information using all possible communication tools, mining companies will have a better reputation and better support from the public, rather than being unfairly stereotyped and generalised as destroyers of the environment.
On November 22, 2018 was the schedule for the “Minerals Industry Symposium”. Dr. Walter W. Brown stated, “This symposium discusses and chooses best practices which are consistent with principles of sustainable development. Initially as a geologist and then as a mining executive for 58 years, I am pleased to have witnessed a gradual and broader appreciation of respect for the environment and responsible mining practices.” He concluded, “Rest assured that the PMSEA will support and participate in meaningful industry and government initiatives to bring about positive change for our industry and more importantly for the Filipino people.”
Mr Roger A. De Dios, President of the Philippine Society of Mining Engineers said, “Over the years, the mining industry faced its ups and downs, but it is only in this current decade that it confronted severe anti-mining sentiments and stringent policy directions. Nevertheless, the mining industry has survived for we have shown that the industry and the government, as regulator, have satisfactorily done their share in fostering and carrying out responsible mining.”
“We have to realize that minerals are so important in our life. ‘Without mining, life would be so difficult and uncomfortable.’ It is in this premise that we, as mining professionals, have the responsibility of making life on earth pleasant for all without compromising the environment,” said Mr De Dios.
He further noted, “It is for this reason that the Philippine Society of Mining Engineers (PSME) will always be in the forefront in its advocacy in promoting responsible mining and even espousing beyond compliance. This Minerals Industry Symposium is one venue for presentations of best mining practices and principles reflecting sustainable development in the extractive industry.”
The PSME-Northern Luzon Chapter organised and hosted this year’s Mineral Industry Symposium.
Last October 12, 2018, Diwata-Women in Resource Development, Inc. brought to the Philippine Mining Club Luncheon a panel of 2 eminent speakers to discuss about the possible collaboration of renewable energy (RE) with the mining industry.
The topic for this meeting’s panel is titled “The Mining Industry and Renewable Energy”. The discussion covered the following: (1) Situationer on Renewable Energy; adoption by mining companies; (2) the business case for adopting Renewable Energy; and (3) Environment/Carbon Footprint Reduction.
The first speaker was Ms Claire Lee who is the Vice President of Philippine Solar & Storage Energy Alliance or PSSEA (formerly Philippine Solar Power Alliance). Her career in RE started in 2009, months after the Renewable Energy Law was passed, and she joined Solutions Using Renewable Energy Inc. as its AVP for Operations. Ms Lee was later assigned to rural electrification using solar home systems, and with her leadership, they were able to distribute and install over 10,000 solar home systems in the off-grid areas of the Philippines.
Ms Lee worked with Department of Energy and micro financing institutes and foundations where she helped the Government with their electrification targets. Additionally, she worked with U.S.A.I.D. where she led the group that installed the very first pure RE hybrid planned in Palawan. This hybrid system operated using clean alternative sources of energy such as wind, solar, storage and coconut shells. Ms Lee is also the Director of the Renewable Energy Association of the Philippines.
The second speaker in the panel was Mr Michael Tetsuji Yamazoe who is the Country Manager of Sindicatum Renewable Energy since 2016. Mr Yamazoe has over 15 years of experience in consulting and business development. He graduated with a degree in Biotechnology from the Imperial College London. Mr Yamazoe is also well-verse in Akiva Hebrew and Middle Eastern studies.
Mr Quintin Pastrana was the moderator and a speaker during the panel. Mr Pastrana is the President of WEnergy Power Pilipinas, Inc. He has over 20 years of leadership experience in the energy, natural resources and development sectors. Mr Pastrana studied in University of Oxford and earned a Master's Degree in Literature and Creative Writing, International Management and Public Policy Programme. From University of Cambridge, he has a Master's Degree in International Relations, Political Risk Mitigation and Competitiveness. He earned his MBA in International Management in Georgetown University, Washington D.C. He also studied in Ateneo de Manila University where he earned a degree in B.A. Political Science, minor in French Studies.
In the Philippines, he was a News Anchor and Associate Producer at Bloomberg TV Philippines for their daily broadcast of "Starting Gate" and "In the Loop". Currently, he is the co-host of "On The Money" and "Shop Talk" on ANC.
Mr Pastrana was named by the US-Asean Business Councils as one of its rising stars and also as one of the top Philippine young leaders by the Asia Society as a fellow at the Philippine Consul for Foreign Relations. He is the President of the award-winning Philippine Rowing Team. Additionally, Mr Pastrana is the Founder and Managing Director of the Library Renewal Partnership (LRP), a coalition of local and international partners that aims to empower over 2 million citizens by building at least 200 community education centers by year 2020, creating readers and leaders. (Please visit www.librarypartners.com.)
During the panel discussion and presentation, Ms Lee reported about the Philippine Solar Energy Update by PSSEA. “Since 2010 we have been very active in a lot of government consultations and we have contributed a lot to some of the RE laws that involved solar. Since 2010, we've also produced and organised the Philippine Solar Summit, an annual event,” she said.
She explained why solar energy is good for business. “The Philippines is right in the middle of the sun belt geographically so we are very much blessed with a lot of sun.”
Ms Lee presented the national RE roadmap which will be updated eventually. “As you can see, in RE, hydro and geothermal are the leading RE sources,” she said.
According to Ms Lee, “For the mining group, I think solar, being scalable and versatile, efficient and easeness of its operation and maintenance, makes it an ideal energy source for mining operations. Since most of the mines are located in the remote areas, most of the time, I think some of the mines are using solar hybrid installations which is a hybrid between solar technologies and diesel operated. But soon enough with the development of storage technologies, a lot of these power plants or mini grids can be wholly solar in the future.”
Mr Pastrana added that there is an intersection between mining and the renewables which is full of gap, hoping that this dialogue will bridge this gap, “...and more importantly have collaborations between our sector in the renewables and the mining sector which does need reliable power these days, and really integrating into your operations and your footprint.”
When asked about how the gap can be bridged, Mr Yamazoe answered, “With regards to the mining industry, since the main topic is the bridge between mining and renewables, at the end of the day RE is part of the business. People talk about RE being good because it is green or because it has good CSR. But at the end of the day, my view is it has to have some kind of benefit to whatever corporation or company you are involved in.”
He added, “Now, what the mining industry has to do at this point is to take a good look at the cost and the benefits of RE. Nowadays, people are saying that solar is coming down. I think solar now is actually under the price of coal in a lot of places. So you could effectively say in some ways that solar is now at parity with coal. Coal is a base load, solar is not. it is intermittent and therefore you cannot compare them as two apples.”
Regarding the involvement of the mining industry with RE, Mr Yamazoe stated, “You've got to take a good look as to whether you are thinking of this as a kind of CSR green initiative or a true business, because that is where your raw investment in the industry or in RE would differ.”
Mr Pastrana shared his insights. “Since I wear three hats as a moderator, someone in the RE sector and somebody who belongs to the mining sector, understanding your footprint and your needs and your pain points, let me just talk about a particular case study. It seems to be very typical of the mining industry where you've got generators in your mine, you've got self-sufficient power. Most likely those are fossil-fuel based.”
“Secondly, you likely will be under the open access scheme under the EPIRA (Electric Power Industry Reform Act) where you can buy over 750 kilowatts from a generator and pay the distribution utility where PECO or Meralco [will give] a willing fee. So that's the practicality of it.”
“The third thing is, those power rates are actually discounted because you're buying them wholesale. So going back to Michael's point, the question will be, are you at parity or is there enough of an economic advantage for you to contract solar or renewables or build on your rooftop, avoid the transmission cost and actually generate on your own, partially, as a CSR project or really as something that will transform your business models into making your overheads go down and become a true green company rather than a greenwashing company.”
About Philippine Mining Club:
Running for 8 years now, the Philippine Mining Club is closely affiliated with the Melbourne Mining Club. The group was formed to create better relationships across all areas of the mining industry whose aim is to uphold a professional networking environment in promoting the exploration, extraction and minerals industry of the country.
Highlighting the achievements and challenges in the field of geology, The Geological Society of the Philippines (GSP) presented the 2018 Annual Geological Convention (GeoCon) last December 11-12, 2018 at The Manila Hotel. GSP is a duly accredited integrated professional organization for geologists. The theme for this event is “Building the Country, Securing the Future, The Role of Filipino Geologists”. The exhibit and convention was held at the hotel’s Fiesta Pavilion which had over 900 attendees from different parts of the country.
The Welcome Remarks was given by Dr. Renato U. Solidum, Jr. who is the Undersecretary for Disaster Risk Reduction and Climate Change of the Philippines, Department of Science and Technology (DOST). Mr Alberto P. Morillo, 2018 President of the Geological Society of the Philippines, introduced the keynote speaker, Honorable Juan Edgardo “Sonny” M. Angara,
Senator and Chairman of the Senate Committee on Local Government/ Ways and Means.
Senator Angara’s speech highlighted many important and critical topics surrounding the mining industry and the country’s Science and Technology (S&T) status in general. He started by thanking the Filipino scientists and S&T professionals for the important role they play in powering our economy forward. Then he wished them to have a long life and an appeal for them to stay in the country. "Sadly, people like them are fast becoming a rare breed here in the Philippines," he states.
"We continue to lose our best and brightest… We may be exhibiting among the world's fastest economic growth rates but we remain among the world's top labor-exporters, with close to 10 million of our people working in greener pastures abroad."
He said that these migrant workers may bring important dollar remittance to the Philippines which keeps our macroeconomic position stable, but their talents and skills are utilized by another country rather than here where they are much needed.
"A 2017 ADB report found that of all the 2.79 million tertiary-educated ASEAN nationals who migrated to OECD countries between 2010 and 2011, around 1.55 million or 55.3% were Filipinos. Among ASEAN countries, we sent abroad the biggest number of educated professionals comprising a significant brain drain. In fact, we sent to OECD (Organisation for Economic Cooperation and Development) countries a little more than three times as many as the second largest labor-exporting ASEAN country--Vietnam with 539,000."
Additionally, he noted, "By some measure, I am sure that such brain drain is also felt in the industries and research areas where the members of the Geological Society of the Philippines are involved."
Sen. Angara discussed the following topics:
1) Failure to create high-paying, S&T-driven jobs - He stressed the general inability of our economy to create high-paying jobs in the field of science and technology. For this reason, most professionals in the scientific field (like geologists, engineers, etc.) end up working in New Zealand, Australia, Canada or UK for more lucrative jobs.
2) "But even government-research positions are unattractive." - The Senator stated that, "Our top scientists, engineers and researchers are forced to find opportunities abroad where their talents are well-compensated. A National Academy of Science and Technology (NAST) July 2014 press release said that since the Scientific Career System was institutionalized in 1983, only 147 career scientists have entered the system -- or little less than 5 new scientists each year for 31 years. Worse, out of the 147, only 47 were actually active in government."
Sen. Angara mentioned that they worked to respond to the issue by co-authoring amendments to the Magna Carta for Scientists, Engineers and Researchers (still pending in the House of Representatives) to counter this. He says that this entails removal of limits on honoraria or additional salary that scientists can receive from grants-in-aid projects, expanding the coverage to include non-DOST S&T personnel (such as the R&D employees of the DA), and granting five-year extensions to those up for mandatory retirement.
3) “This needs to be rectified soon because the lack of attractive S&T jobs in the country dissuades many of our youth from pursuing S&T courses.”
4) “Such situation is unfortunate especially when S&T can play such a big role in solving many of the challenges we face today. Geologists and Geoscientists in particular could help the nation in any number of ways.”
Additionally, he emphasised the significant roles of geologists in addressing more issues in the country such as, disaster risk reduction (in preparation for “The Big One” earthquake), infrastructure build-up, responsible mining, and energy security. Sen. Angara also emphasised the importance of making education available to all to provide opportunities to more children so they will be encouraged to pursue a career in Science and Technology.
Several technical papers and studies were presented for the two-day convention. “Landslides in Itogon, Benguet: The Triggers and Causes” was discussed by M. Madrigal et al. Another interesting topic presented was the “Typhoon Ompong-Induced Landslides and Debris Flows in the Mine Claims and Host Barangays of Itogon-Suyoc Resources Inc. in Itogon and Mankayan, Benguet Province: Emergency Preparedness Initiatives” by G. Rostata et al.
The environmental issue in Boracay was discussed by R. Agot et al with their study titled “Ground Penetrating Radar (GPR) Investigation of Buried Pipes along White Beach and Bulabog Beach, Boracay Island, Municipality of Malay, Aklan Province.” Their presentation revealed photos which are striking evidence on how certain restaurants and resorts in Boracay have violated environmental rules and guidelines in managing their wastewater.
For Session 5 of day 1 of GeoCon 2018, the special guest speaker was Ms Marites Danguilan Vitug, RAPPLER’s Editor-at-Large and author of the book “Rock Solid: How the Philippines won Its Maritime Case against China”. Atty. Fernando Penarroyo, moderator of Session 5 described the book, “‘Rock Solid’ narrates the complicated maritime dispute by providing previously unreported details on the developments before and after the July 2016 arbitral decision.” The author discussed her book during the event. Ms Vitug is a former editor of Newsbreak magazine. She won numerous awards such as the Philippine National Book Award in Journalism for her books “Power from the Forest: the Politics of Logging” and “Under the Crescent Moon: Rebellion in Mindanao” with Glenda M. Gloria. She also received the Courage in Journalism Award by the International Women’s Media Foundation (U.S.A.) for her work that exposes plunder of Palawan forests. Her book with Criselda Yabes titled “Jalan Jalan:A Journey through EAGA” was chosen by Asiaweek as one of the best books on Asia in 1999.
Election for the 2019 GSP Officers and Trustees also took place during the GeoCon 2018. The induction of newly elected officers, trustees and committed chairs was held later in January 31, 2019 at PHIVOLCS Auditorium. This year’s GSP Officers and Trustees are the following: President: Dr. Carla B. Dimalanta (President), Dr. Teresito C. Bacolcol (Vice-President), Dr. Jillian Aira S. Gabo-Ratio (Secretary), Dr. Victor B. Maglambayan (Treasurer), Dr. Karlo L. Queaño (Assistant Secretary), and Trustees Mr. Ciceron C. Angeles, Jr., Dr. Rene Juna R. Claveria, Dr. Betchaida D. Payot and Atty. Marissa P. Cerezo.
This year will be an exciting time for GSP as they prepare for the 75th year anniversary in 2020. GSP will also be hosting the GEOSEA conference on the same year.
Thank you to Atty. Ronnie Penarroyo, Ms Marites Danguilan Vitug, Dr. Renato U. Solidum, Jr., and Ms Dianne Kay Orquina Namit.
Considered to be Asia’s most prestigious mining investment awards and a highlight in the Asian mining calendar, the annual Mines and Money Outstanding Achievement Awards are where ‘the best of the best’ in the Asia Pacific region receive recognition for their achievements in the past year.
Nominated by industry peers and chosen by an esteemed panel of judges, these awards are designed to recognize excellence and outstanding achievement over a wide cross-section of the Asia Pacific mining and investment sector.
Sponsored by SRK , this year we recognise six areas of excellence: Asia-Pacific Mining Executive of the Year, North American Mining Executive of the Year, Asia-Pacific Mining Exploration Executive of the Year, Asia-Pacific Mining Deal of the Year, Asia Pacific Exploration Mining Company of the Year, and Asia-Pacific Mining Company of the Year.
The 2019 Shortlisted Nominees are:
Asia-Pacific Mining Executive of the Year
Recognizing outstanding achievement by a mining company CEO or MD who oversaw a major financial or operational improvement for a mining company, either headquartered or operating in Asia-Pacific.
Nominees:
· Bill Beament, Northern Star
· John Lamb, Myanmar Metals
· Jake Klein, Evolution Mining
· Graham Kerr, South 32
· Paul Flynn, Whitehaven Coal
· Simon Finnis, Metro Mining
North American Mining Executive of the Year
Recognizing outstanding achievement by a mining company CEO or MD who oversaw a major financial or operational improvement for a mining company, either headquartered or operating in North America.
· Michael O’Keeffe, Champion Iron
· Steve Letwin, IAMGOLD
· Peter Kukielski, Nevsun Resources
· Anthony Makuch, Kirkland Lake Gold
· Sean Roosen, Osisko Royalties
· Mark Bristow, Barrick
Asia-Pacific Mining Exploration Executive of the Year
A CEO or MD of an exploration company either headquartered or operating in Asia-Pacific, who oversaw a noteworthy exploration in the past year in either greenfield or brownfield discoveries.
· Bharat Parashar, Ceylon Graphite
· Steve Parsons, Bellevue Gold
· Graham Carmen, Tinka Resources
· Mike Young, Vimy Resources
· Sam Riggall, CleanTeq
· Carl Dumbrell, Herencia Resources
· Jonathan (Sam) Spring, Kincora Copper
· Rob Humphryson, Novo Resources
· Nick Mather, SolGold
Asia-Pacific Mining Deal of the Year
A notable takeover, listing, merger or acquisition.
· Northern Star
· Nevsun Resources – Zijin Mining
· Rio Tinto
Asia-Pacific Exploration Mining Company of the Year
Awarded to an exploration company either headquartered or operating in Asia-Pacific who made a noteworthy greenfield or brownfield discovery in the last year.
· Ceylon Graphite
· Bellevue Gold
· Tinka Resources
· Vimy Resources
· CleanTeq
· Herencia Resources
· Kincora Copper
· Novo Resources
· SolGold
Asia-Pacific Mining Company of the Year
Awarded to a mining company either headquartered or operating in Asia-Pacific who provided great value to shareholders, outperformed its peers and continued to strengthen its core assets.
· Evolution Mining
· Kirkland Lake
· Myanmar Metals
· South 32
· China Molybdenum
· MMC
· Whitehaven Coal
· Hitachi Construction Machinery Australia
“We had a record number of entries this year across all award categories and congratulate all of those companies and individuals who have made it on the shortlist for this year’s awards” said Mike Hill, Commercial Director Asia for Mines and Money.
All registered delegates of Mines and Money Asia are invited to join us at the 12th annual Mines and Money Asia Outstanding Achievement Awards Reception on Wednesday 3 April 2019, taking place at Island, Shangri-La Hotel where the winners in each of the respective categories will be announced.
Most of us have the impression that bamboo is only useful in building nipa huts or creating furniture. There is actually far more about this plant than most of us are aware of. Let’s begin as far back as the 1950s when bamboo technology was used in aviation. Do you know that a Filipino named Antonio De Leon designed two airplanes in 1950s using WOBEX (Woven Bamboo Experimental), a resin reinforced woven bamboo composite? He was from the Institute of Science and Technology (IST), a national science board previously known as Bureau of Science (1905, from the American era), the predecessor of our present-day Department of Science and Technology (DOST).[1]
Mr. De Leon’s first experimental aircraft was the I.S.T. XL-14 Maya, a single-engine, light aircraft designed to investigate the use of indigenous materials in aircraft construction. [2] He later designed the I.S.T. XL-15 Tagak (swan) using the same WOBEX technology. This is a single-engine, twin-boom, high-wing monoplane. It made its first flight in October 1954. This project was a collaboration with the Philippine Air Force with a goal to design an aircraft for utility, liaison, medical emergency, and a test bed for the use of local materials in aviation. [3]
Tagak (1954). Institute of Science and Technology’s [IST] Antonio De Leon designed these two experimental airplanes using WOBEX (Woven Bamboo Experimental), a technology that uses reinforced bamboo as materials in aviation. IST was founded in 1946 which aims to develop science and technology in the country. It was later named National Science Development Board in 1958. Eventually in 1981, President Marcos reorganised its agencies with a new name, National Science and Technology Authority. Then, it was later renamed as Department of science and Technology (DOST) by President Corazon Aquino in 1987.
Bamboo is also called a “Super Grass”. Yes, a super grass that presents sustainable solutions from rehabilitation of mined-out land. It also offers proven ecological solutions to climate change and social economic problems. No other plant offers the same package in such a short period of time.
Ahead of its time, nearly 70 years ago, bamboo-technology was already used for aviation. Today, there are many fascinating stories on how bamboo can impact our country’s advancement, not only with bamboo technology, but manifold social enterprises and agro-industries that grow from planting bamboo with the end in mind.
These powerful topics were discussed by Atty. Leo G. Dominguez during the Mining Philippines Conference in September 2018. Atty. Dominguez connected the dots for many people in several sectors of society (such as the mining industry) with the introduction of high value product design, planting programs, social enterprise manufacturing, and how holistic agriculture can greatly benefit from the super grass.
Atty. Dominguez presented a report entitled “Bamboo: From Advocacy to Changing the Conversation about Mining in the Philippines”. He is the President of OLLI Consulting Group, Inc. and an advocate in promoting the bamboo’s socio-economic importance and its role in the mining industry.
He began his report by comparing the super grass with trees. Trees are only useful if they are fruit-bearing and can offer economic value to a community. “If trees are planted within Mining Communities but if they are not fruit bearing, they will eventually be cut down in the name of poverty, mainly for firewood, or the freshly-planted forest could mysteriously burn down, so that the community that planted the initial trees would be paid again to replant them. Since the bamboo is not a tree (but is actually classified as a grass in Botany), it has qualities that make it a compelling, lucrative and sustainable alternative,” he stated.
Bamboo is coined as a “Super Grass” because it is the fastest-growing plant in the world. It can grow up to 35 inches a day in ideal conditions. Bamboo addresses climate change by sequestering carbon 400 times more than trees, and reducing carbon release. In general, bamboo is flexible and adaptive. If offers restoration to mined out areas and provides numerous possibilities for livelihood enterprises.
Moreover, Atty. Dominguez stated that, “Because bamboo is a grass, it is not subject to the heavy government regulations affecting the cutting of trees. Depending on species, soil and climate conditions, bamboo can live about 60-100 years. Bamboo can be harvested continuously during its lifetime.”
He then asked the audience, “Now, what does bamboo have to do with mining?”
Atty. Dominguez continued by saying, “In his talk before the Philippine Mining Luncheon on 8 June 2018, Department of Environment and Natural Resources (“DENR”) Secretary Cimatu emphasized that mining companies must use their Social Development Management Program (“SDMP”) funds to create truly sustainable economic activities for their mining communities. In his State of the Nation (“SONA”) Address in 2018, President Duterte said to the mining industry, ‘Do not just give me taxes. I can get it from other sources. Give me what needs to be given to my countrymen.’”
In relation to this, we the following questions:
1. How will the DENR achieve its commitment under the National Greening Program to plant 1 million hectares of bamboo to help address climate change?
2. How will Department of Trade and Industry (DTI) implement its 3 years-in-the-making Bamboo Industry Development Roadmap without the land to do it on and the people/communities to do it with?
3. How would the people in the mining communities achieve sustainable livelihoods even beyond the life of the mines?
4. More importantly, how will the mined-out areas be greened to the satisfaction of the President?
His answer to all of these? Bamboo - The Super Grass.
Atty. Dominguez points out, “Now, how do we make bamboo the tool to reinvent mining?
Bring together DENR, DTI, Design Center Philippines, DOST, Department of Agriculture, the mining industry -- a unifying target, a win-win for all.”
Secretary Ramon Lopez of DTI and Chair of the Philippine Bamboo Industry Development Council pointed out that if the mining industry would contribute mined out and other available areas for planting bamboo, and then work with DENR, all can work together under the DTI Bamboo Roadmap and their applications. The DTI Bamboo Roadmap covers the following:
1. planting technology
2. identifying low to high value bamboo products
3. training the community to design and manufacture these products
4. assisting in the marketing of bamboo products to pre-targeted buyers and consumers
The next big question: “Who will fund the planting of bamboo and the training of the mining communities to work with bamboo?”
The funds will come from the mining companies who are required by law to spend specified amounts on their respective Environment Protection and Enhancement Programs (“EPEP”) and SDMP’s.
There are many misinformed people who seriously believe that mining is bad for the country. How can the bamboo industry change this negative conversation about mining? From his report, Atty. Dominguez states, “Bamboo will not only be a source of sustainable livelihood. With inputs from all the partners involved in the Bamboo Roadmap, bamboo has the potential to launch the mining communities into agro-industrial enterprises of the future. This bamboo rocket ship would not be possible without the mining industry as the launch pad for all these endeavors.”
What about the money? How profitable is a bamboo plantation?
Based on his study and report, a family that farms 10 hectares of bamboo plantation has potential income, as follows:
~ Cost/10 hectares = Php960,000
~ Revenue/10 hectares = Php6.3 million
~ 1 hectare contains 210 bamboo clumps
~ price/bamboo = Php100
~ 210 x 30 x Php6.3 million gross value of poles/10 hectares
Therefore, projected net family income/year/10-hectare bamboo plantation = Php1.4 million
How does this “super grass” connect Mines and Agriculture?
Historically, mining companies first remove minerals that normally make mineralized lands inhospitable to agriculture. “These minerals eventually make their way into things that we use like our cars, jewelry, cellphones and devices, refrigerators, watches, houses, and so on. After this, mining companies are required to rehabilitate and transform the mined-out land into agricultural land. Then, mining companies plant trees to fulfill their obligation to re-vegetate the mined-out area.”
Land rehabilitation has always been a part of mining operations of responsible mining companies, and yet many misinformed people blame mining for the loss of agriculture land.
Atty. Dominguez clarifies that, “One of the major problems of our country is that it is rapidly losing food-producing agricultural land to real estate development. The mines actually generate agricultural land. The mining industry has in fact, all along, been addressing the loss of agricultural land to real estate by transforming mineral lands (which by their nature are not good for agriculture in the first place) into agricultural lands.”
He suggests that mining companies can take this further if they accomplish the following:
~ Help the country comply with its commitment to plant bamboo to address climate change;
~ For the first time, plant something that can be harvested and used by their mining communities in many ways to generate sustainable livelihoods for their communities;
~ Provide the mining communities with long-term sustainable enterprises that can go on beyond the life of the mine.
With regard to the overall reputation of the mining industry, bamboo could be a crucial catalyst that can change the way people see the industry. “The success of mining companies could also be evaluated by how successful mining communities, [who are] working with bamboo, have become.”
In summary, in his presentation, Atty. Dominguez, emphasized the following:
~ The mining industry is an unsung hero. It actually transforms non-agricultural to agricultural land.
~ When you plant bamboo on this newly-created agricultural land, you actually launch sustainable social enterprises and economic empowerment for the mining communities.
~ Over time, even beyond the life of the mine, these communities could become agro- industrial port cities of the Filipino future.
He concludes, “All of this would not be possible without the mining industry as the launch pad, working in collaboration with the DENR, DTI, and hopefully the DOST and the DA as well.”
[1] https://en.wikipedia.org/wiki/Science_and_technology_in_the_Philippines and https://en.wikipedia.org/wiki/Department_of_Science_and_Technology_(Philippines)
[2] https://en.wikipedia.org/wiki/I.S.T._XL-14_Maya
[3] https://en.wikipedia.org/wiki/I.S.T._XL-15_Tagak
Acknowledgment:
Mr Leo G. Dominguez and Mr Christopher Lacson
UK mining Company Bezant has since the beginning of 2018 refocused towards the development of an international copper gold portfolio focused on the Mankayan project in Luzon.
In this period Bezant with its partner and MPSA holder Crescent Mining and Development Corporation ( “Crescent”) has:
Appointed a new Bezant management team led by Colin Bird and Laurence Read
Incoming Chairman of Bezant, Colin Bird, is founder and chairman of the highly successful Jubilee Metals, one of the UK’s most profitable independent metals companies and oversaw the exploration of the Kalumbila copper project in Zambia, which was sold to First Quantum for $260m. Alongside him Laurence Read was appointed as CEO, who has a track regard in a major independent mine development financing and transaction.
With Crescent reassessed the extensive historical project data
This has included site visits with strategic groups undertaking new, independent geological and engineering assessments, extensive relogging of historical drill data, creation of a fly through graded model of the resource and culminated in an economic report published in February 2019. Asked in Manilla recently for the rationale behind the strategic change towards Mankayan and the Philippines Laurence Read, CEO, said “Changing copper market dynamics means Mankayan is ready to be a standalone, underground mine and our focus is on delivering that. Copper is about to see a major upheaval in price due to demand issues and the Mankayan project is a tier 1 asset which you can drive directly to from Manilla airport.“
The Mankayan project has grid power access, infrastructure, a highly skilled work force and as a block cave underground mine with a long life is not affected by the current Philippine restrictions on open pit mining.
Over the last ten years the world copper supply shortage and improvements in mining techniques have meant that sustainable mining grades have fallen from 1% plus copper equivalent to slightly over 0.6% in just a decade. This means Mankayan with a life of mine copper equivalent grade of 0.63% to 0.65% depending on mining strategy is an attractive
proposition with a Snowden resource estimate defining an indicated resource of 1.1 million tonnes of contained copper and 3.7 million ounces of contained gold and an inferred resource of 0.2 million tonnes of contained copper and 0.6 million ounces of contained gold.
Highlights of the new independent economic study by Mining Plus released in February 2019 are
11 different mining strategies modelled
For the first time, a Sub-Level Caving (“SLC”) ‘stepping stone’ scenario, with two main Block Caving (“BC”) routes identified for progression, with life of mine production grade in excess of 0.64% copper equivalent (“CuEq”).
Various sub $19/t cost options
The study focused on delivering the project into production with highly robust copper equivalent production grade, with a high gold content and uniformly sub $19/t costs. The three main representative options summarized below, are taken from the 11 modelled (the option numbers being those used in the study)
Asked what lay ahead in 2019 Laurence Read said; “We have a lot of important strategic decisions to make but what we aren’t worrying about is the copper and the gold in the ground or that this will be major mine for the Philippines. Picking the right path for the mid to long term is key for Crescent and Bezant, but whoever we work with to develop this mine will have access to significant amounts of physical, cost effective, copper and gold from Mankayan production and will be able to command a major strategic advantage in the global metals space for the next forty years.
On 7 May 2009, China submitted the Nine-dashed Lines Map to the United Nations. Their map gobbles up large areas of the Exclusive Economic Zone (EEZ) and Extended Continental Shelf (ECS) of the Philippines, Vietnam, Malaysia, Brunei and Indonesia. China’s Nine-Dashed Lines Map shows that China is claiming 85.7% of the entire South China Sea. Their claim covers 3 million square kilometers out of the 3.5 million square kilometers surface area of the South China Sea. [1] This is the root cause of the South China Sea dispute, because China did not provide a legal basis for the dashes. The dashes also had no fixed coordinates. With that, the Philippines, Malaysia, Vietnam and Indonesia protested against China’s claim. This story is more than about defending our territorial or maritime rights. It is also of geological significance and fighting for our own natural resources.
In January 2013, the Philippines formally initiated arbitration proceedings against the PRC’s claim on the territories within the “nine-dash line” that include the Scarborough Shoal. [2]
Justice Antonio T. Carpio, Senior Associate Justice of Republic of the Philippines Supreme Court, defended the Philippines’ right of ownership of the little islands within our territory to the international Arbitral Tribunal. His strategy in explaining our claim was simple – pointing out our legal rights through legitimate historical records. In his presentation “The South China Sea West Philippine Sea Dispute”, he enumerates several important facts about our territory.
To begin with, what is the significance of the South China Sea to the world? There are US$5.3 trillion of ship-borne goods that travel through the South China Sea annually. This is almost one-half of the world’s shipborne trade in tonnage. A great percentage of the petroleum imports of South Korea, Japan, Taiwan, and China pass through the South China Sea. The annual global fish catch from South China Sea is worth US$21.8 billion. Additionally, 2 billion people live in the 10 countries bordering the South China Sea where hundreds of millions of people depend on fish there for their protein. More importantly, maritime area that are close to the coast of the countries bordering the South China Sea are rich in oil and gas resources.
South China Sea is also rich in methane hydrate which is a potential source of energy. [3]
Over 250 small islands, atolls, shoals, reefs, cays and sandbars are located at the South China Sea. These small land area have no inhabitants. The features are grouped into three archipelagos namely, Macclesfield Bank, Scarborough Shoal, Pratas Islands, Paracel Islands and Spratly Island. [2]
How does the Nine-dashed Line Map affect the Philippines? The Philippines loses about 80% of its EEZ facing the West Philippine Sea. This includes the entire Reed Bank and part of the Malampaya gas field. This loss covers 381,000 square kilometers of maritime space and 100% of the Philippines’ ECS which covers an estimate of over 150,000 square kilometers of maritime space.
In 2012, China seized Scarborough Shoal (Panatag) from the Philippines. It is a small ring of reefs that is located about 230 km from the Philippines, but 650 km from the nearest major Chinese land mass (southern island of Hainan province). Scarborough Shoal is rich in marine life where fishermen from the Philippines, China and Vietnam have been fishing for several years. It is in the Philippines EEZ. [4]
Martin Luther King, Jr. once said, “Learn a little about your past, and you may end up with a pretty nice future”. Looking back in our history was indeed the winning strategy on how the west was won in this dispute. Here are some of the historical proofs and legal basis presented by Justice Antonio T. Caprio before the Tribunal.
1. Official and unofficial maps of China from 1136 during the Song Dynasty until the end of the Qing Dynasty in 1912 show that the southernmost territory of China has always been Hainan Island, and not the areas of the Nine-Dashed Lines. On the other hand, there are various official and unofficial maps of the Philippines from 1636 until 1933 that consistently illustrate that Scarborough Shoal has always been part of the Philippines. Centuries ago, the name of Scarborough Shoal was “Panacot” according to the Murillo Velarde Map in 1734. This was published in Manila while the Philippines was still a colony of Spain. [5]
2. The Franciscans arrived in the Philippines in 1578. In 1695, the Coronelli Map of Southeast Asia (entitled Isloe dell’ Indie) shows the Spratlys as part of the Philippines. The map was illustrated by the Franciscan monk, Venetian Vincenzo Coronelli. The map was published in Venice in 1695. Coronellie is well-known for his accurate atlases and globes, and as the Father General of the Franciscan Order.
3. In 1899, the map “Islas Filipinas, Mapa General Observatorio de Manila” was published in Washington, D.C. by the U.S. Coast of Geodetic Survey. This old map resembles the modern Philippine map that we use today.
4. In 1898, when the Philippine Revolution was about to end in victory to end 300 years of Spanish rule, Spain secretly sold the Philippines to the United State of America under what is known as the 1898 Treaty of Paris between Spain and the United States. This agreement did not include the little islands surrounding the main islands of the country, thus another treaty was made called the 1900 Treaty of Washington.
5. The Treaty of Washington entails that Spain had given to the United States “all title and claim of title, which (Spain) may have had at the time of the conclusion of the Treaty of Peace of Paris, to any and all islands belonging to the Philippine Archipelago, lying outside the lines” of the Treaty of Paris. Therefore this agreement clarifies that Spain ceded Scarborough Shoal to the United States under the 1900 Treaty of Washington (or the Treaty between Spain and the United States for Cession of Outlying Islands of the Philippines, signed November 7, 1900).
6. Additionally, Secretary Cordell Hull of the U.S. State Department mentioned in his Memorandum of July 27, 1938 to Harry Woodring, Secretary of War: “In the absence of evidence of a superior claim to Scarborough Shoal by any other government, the Department of State would interpose no objection to the proposal of the Commonwealth Government to study the possibilities of the shoal as an aid to air and ocean navigation.”
Finally, on 4 July 1946, the Treaty of Manila has been signed granting the Philippines full independence from the United States of America.
7. Scarborough Shoal was also used by the United States and the Philippine military as an impact range for their warships and warplanes from 1960s – 1980s. The International Maritime Organization of the United Nations was notified of such activities. During those years, there were no protests from any country about these activities.
In conclusion, “The Philippines today is engaged in a historic battle to defend over 531,000 square kilometers of its maritime space (EEZ and ECS) in the West Philippine Sea, an area larger than the total land area of the Philippines of 300,000 square kilometers. This huge maritime space is part of Philippine national territory since the Constitution defines the ‘national territory’ to include ’the seabed, the subsoil, and other submarine areas’ over which the Philippines has ‘sovereignty or jurisdiction’. Under UNCLOS, the Philippines has ‘jurisdiction’ over this huge maritime space. Can the Philippines prevent China from gobbling up this huge maritime space? All citizens of the Philippines - both government personnel and private individuals – have a solemn duty to prevent the loss of this huge maritime space. It is a duty we owe to ourselves, and to future generations of Filipinos. The Historic Battle for the West Philippine Sea.” [5] (From the presentation of Justice Antonio T. Carpio)
On 12 July 2016, the Permanent Court of Arbitration (PCA) tribunal in Netherlands agreed unanimously with the Philippines. They concluded that there is no evidence and "no legal basis for China to claim historic rights" over the area within the nine-dash line. The tribunal also judged that the PRC had caused "severe harm to the coral reef environment" [6] and had violated the Philippines’ sovereign rights in its EEZ by interfering with Philippine fishing and petroleum exploration (such as restricting the Filipino fishermen at Scarborough Shoal). PRC rejected this ruling. Their president Xi Jinping said that, "China's territorial sovereignty and marine rights in the South China Sea will not be affected by the so-called Philippines South China Sea ruling in any way", nevertheless the PRC would still be "committed to resolving disputes" with its neighbours. China afterwards sent more warships in the Scarborough Shoal. [7][8]
Disclaimer: Regarding “The South China Sea West Philippine Sea Dispute” by Justice Antonio T. Caprio – The views expressed in the presentation are the personal opinion of the author and do not necessarily represent the position of the Philippine Government.
[1] “South China Sea Arbitral Award” - https://www.slideshare.net/SamGalope/south-china-sea-arbitral-award
[2] South China Sea - https://en.wikipedia.org/wiki/South_China_Sea
Scarborough Shoal - https://en.wikipedia.org/wiki/Scarborough_Shoal
[3] Justice Antonio T. Carpio. “The South China Sea West Philippine Sea Dispute” - https://www.slideshare.net/SamGalope/lecture-the-south-china-sea-west-philippine-dispute-justice-antonio-t-carpio-philippine-social-science-center
[4] “5 facts on Scarborough Shoal” (8 Feb. 2017) by Agence France-Presse and ABS-CBN News - https://news.abs-cbn.com/news/02/07/17/5-facts-on-scarborough-shoal
[5] https://www.slideshare.net/7philippines/the-south-china-sea-west-philippine-sea-dispute
[6] Perez, Jane (12 July 2016). "Beijing's South China Sea Claims Rejected by Hague Tribunal". The New York Times.
[7] Tom Phillips, Oliver Holmes, Owen Bowcott (12 July 2016). "Beijing rejects tribunal's ruling in South China Sea case". The Guardian.
[8] "South China Sea: Tribunal backs case against China brought by Philippines". BBC. 12 July 2016.
For the past centuries, the mining industry in the Philippines was greatly affected by the changes of government or colonisers, events around the world and more. It seems that whenever there is war, there is also a rise in the demand in certain mineral resources or a fall in the production rate of some minerals.
August is History Month in the Philippines as promoted by Government and Education sectors. The Philippines is rich in natural resources, cultural heritage and more noticeably, we are rich in history which brought progress or hindrance in economic growth through the years. Last August, during the Philippine Mining and Exploration Association (PMEA) Monthly Membership Meeting, one of the keynote speakers is Mr Hernulfo “Nonoy” Ruelo, Geologist Consultant. The title of his presentation is “Copper-Gold Discoveries and Mine in the Philippines - Understanding the Past, in order to make sense of the Current, and the Future”. It was a well-researched report and analysis on how historical events, like wars or change in leaders, affected the mining sector and the socio-economic status of the country. The presentation takes us back in time with some rare vintage photos from the past.
During the pre-Spanish Period, the earliest use of metal in the Philippines by our Filipino ancestors was the use of copper for ornamentation, not for tools or currency. Other metals used were gold and tumbaga (copper alloyed with gold). “Gold was the major form of ‘currency’ among the early Filipinos and one of the first things they [ancestors] taught their children was the knowledge of gold and the weights with which they measured.” (From the book by Evelyn J. Caballero, 1996. “Gold from the Gods: Traditional small-scale miners in the Philippines”. Giraffe Books, Quezon City.( p 196 and 263) On note, the pre-colonial mining methods had no environmental impact on land, water, air and people.
Pre-Spanish Period Mining in the Philippines started in the 3rd century when gold was traded with China and the Javanese empire where the height of this trade was during 12th to 14th century. The Chinese were the first foreign miners. Gold is both a commodity and a medium of exchange.
When the Spaniards arrived in the 1521, gold was already being mined, traded and used as jewelry or ornamentation by the native Filipinos. In fact, 16th century Filipino noblemen were decked in gold.
Colonial Period Under Spain 1500s - 1898: Paracale and Cordillera were the oldest goldfields. From 1500s - 1700s, gold was one of the tributes collected by the Spanish government and given to the King of Spain. In 1583 and 1595, an expedition was sent to mine in Cordillera but was a failure due to the resistance of the Igorots.
“Gold mining before the coming of the Americans was primarily in the hands of enterprises organized in the Philippines by Spaniards and Chinese mestizos and Filipinos, with a few other companies trying, without success, to produce commercially.” (Ref. - Wirkus 1974)
In 1600 to 1700, about 10,000 ounces of gold per annum were shipped to Spain, and the gold shipments to Spain increased from 1800 to 1895. For copper, the Spaniards opened the first copper mine in the country in 1842, called the Carawisan copper mine in Antique province. From 1864 to 1874, the Contrabro-Filipino Company operated Mankayan Copper Mine. Gold mining made its comeback in commerce in 1892 where concessions to foreigners were first granted. The British explorer, Frank Karuth of Philippine Mineral Syndicate, led the commercial-scale hard-rock and alluvial gold operations in Paracale District until 1895. (Ref. - Chaput 1987)
Philippine Revolution 1896 – 1902: With the rise of the Philippine revolt against Spain, in 1896, mining operations at Paracale dwindled until 1902 when the Filipino-American War ended. The Organic Act of 1902 was created which organized companies, issued patents, and established the Geological & Mining Science Department. By 1927, gold was the third best export commodity and initiated by the Philippine (Manila) Stock Exchange.
In the following years, the Mining Act of 1935 was released (Commonwealth Act 137) which introduced the Regalian Doctrine, the concept of Mining Lease, and the establishment of Bureau of Mines. The Americans invested US$ 34.2M in gold production. Mining for copper was reopened in 1936, the same time when the Japanese savvy for copper was high and led to the ‘discovery’ of the first large porphyry copper deposit in the country.
Commonwealth Period 1937 - 1941: This period in Philippine history was considered a golden era when Manila was highly modernised and was one of the most beautiful cities in Southeast Asia. In fact, in 1937, we had the best and well-equipped airport in the Southeast Asia, the Nielson Airport. (This is now Ayala Triangle Park in Makati City, and the original Nielson Tower is now “Blackbird” Restaurant.) Although this elegant airport was primary used as an aviation school, it also paved the way for trade and commerce for foreign investors. Philippine Airline made its first commercial flight in 1941, from Nielson Airport to Baguio. The Philippines was the largest gold producer in Asia and second only to California in world production. During the American period, 9 million oz of gold was produced from 1906 – 1941.
Japanese Occupation 1942 – 1945: Being a colony of United States of America, the Philippines got itself involved in war against the Japanese who invaded Manila in 1942. The Japanese took over Lepanto and the Hixbar mines (Rapu-rapu) and was able to mine and extract 11,000 tonnes of copper. No gold production was recorded. With the aggressive strategies of conquering their neighboring countries, Japan was unstoppable that time in their collection of natural resources that were needed to fuel their warships and planes and the production of weapons. Battleships Musashi and Yamato where the two giants in naval power that made Japan feared by other nations. The two battleships were defeated though in the Philippines during the Battle in Leyte Gulf in October 1945 which paved the way to the Liberation of Manila and eventually the whole country.
Post-war Reconstruction 1946 – 1954: Those post-war years were hard times for all war-torn countries. However, with the need for repairs infrastructure after WWII, there was an increase in the global demand for copper. Some gold mines in the Philippines were rehabilitated but the problems were lack of capital and low market demand. Copper production re-started in 1947. Since Manila was the ground zero and battlefield of the war that ended WWII in the Pacific (Battle of Manila in 1945), there were serious damages in the country’s economy and on the mining industry.
Korean War 1954 – 1960: For the Filipino soldiers who fought the Japanese during WWII, the Korean War was the first time for them to fight a battle in a foreign land. Although this war affected Southeast Asia directly, the gold prices maintained. However, in mid 1950s, the gold mines collapsed due to a recession period. The copper price rose slight due to high world demand. More Philippine copper mines opened.
Vietnam War 1960-1975: In 1972, U.S. President Nixon took dollar off the gold standard. It was fixed at $35 since 1934, but gold prices are allowed to float free which devalued dollar to $38. In 1973, world gold price jumped from $38 to $120. World copper rate hit high at $0.90 in 1974. World copper mine production was at its peak.
Martial Law 1972 - 1986: During Martial Law in the Philippines, copper price trended upward where the country’s copper production continued and boomed in 1980 where it reached its peak. It was in 1980 when Philippine copper production was recorded the highest at 306 Kt. However, the World Oil Crisis in 1973 - 1980 brought about a decline in copper demand. World Recession in 1982 – 1984 pulled down the copper prices. Philippine inflation devalued the Philippine peso and there was an increase in production costs, materials and equipment. The Global recession resulted in a decline in copper demand. The Philippine gold production was sustained and gold prices surged from 1978 to 1980. The modern Gold Bloom in 1980s brought about the rise of unregulated Small Scale Mining.
In summary, the explanatory variables of growth and decline in PH copper industry in the 1950s-1980s are:
- For Copper resources: risk capital or investments, development in the world’s copper market, technology, human capital in mining, domestic social, legal, and political environment .
- For the gold industry: gold resources, competition, commodity price, production costs, technology (bulk mining, milling, treatment), damages – natural & man-made disasters
(Reference). T.M. Santos 2001 . Growth of Copper Production: Determinants and Empirical Evidence. Social Science Diliman, July-December 2001. 2:2, 1-49.)
There were other historical events in the Philippines that followed like:
EDSA Revolution: 1986-1992 - gold averaged $381, copper $1.02 – There was investment uncertainty and several mines closed. New mining laws were crafted like the 1991 RA 7076 (Small Scale Mining Act). The 1987 Constitution replaced Leasehold into Agreements system.
From 1990s – 2004, there was collapse of the local mining industry. However from 2004 – 2009, there was a revitalization of the mining industry with EO 270 National Policy Agenda – Mineral Action Plan. Gold price surged from $410 to $873. Copper production hit lowest in 2004 at 16 Kt since 1957. The year 2005 brought global gold boom where Philippine gold-copper mines had expansion and reopening.
The Aquino Administration from 2010-2016 was within the Global Mining Boom period (2010 - 2013). It was a successful period for Philippine mine exploration, prospect drill-testing, and resource evaluation drilling.
In conclusion, Mr Ruelo presented a list of challenges that miners will need to face at the present time, namely:
- Fewer outcropping “easy-to-find” deposits are now left except in high-risk and “inaccessible” areas.
- Current mining operations will encounter increasing real costs (labor, materials, energy, environmental, community impact) that will affect production.
- The next generation of lower-grade copper/gold projects require significantly higher metal prices to justify development.
- We need to discover high-quality or better gold/copper resources, even deeper ones that can be economically mined – e.g. in greenfields and brownfields.
“Nickel is all around us. As popular myths and research continue fanning endless debates on mining, an unpopular truth remains, the Philippines holds a strong track record for safe, responsible and sustainable mining. These practices catapulted the country into the roster of top nickel exporters worldwide. “ (an excerpt from the video presentation of Phil. Nickel Industry Association)
Last August, Philippine Mining Club event presented Mr Isidro C. Alcantara, President of Marcventures Holdings Inc. as keynote speaker and as representative of Philippine Nickel Industry Association, Inc. or PNIA.
PNIA is a non-stock, non-profit association duly registered with the Securities and Exchange Commission. The association was established in 2012 with a goal to promote and develop the nickel mining industry in the country, and aims to represent the Philippine nickel industry as the single voice to champion its cause with various stakeholders. The mining industry is a major backbone of the Philippine economy, and for that, PNIA believes that the government and the private sector have a big role as partners in developing this segment in the economy.
The speaker, Mr Alcantara has a remarkable background related with banking and finance. He is a senior banker and former President and CEO of the Philippine Bank of Communications (PBCom), Executive Vice President of Equitable PCIBank, Senior VP of HSBC-Manila, and served four years as a Director of the Bankers Association of the Phils. (BAP). He is a certified public accountant and graduated with honours as magna cum laude with a degree in Economics and Accounting from De La Salle University, Manila. He also took Special Studies in Finance at Wharton School, University of Pennsylvania, U.S.A.
He began his speech with gratitude for the attendees of the event who gathered to listen to the message of PNIA about the mining community. He states, “…hopefully we can inform, clarify and provide a factual and objective picture of the real status of the Philippine nickel industry. The Philippine nickel industry in particular and the entire mining industry is under scrutiny for its supposed shortcomings and inadequate environmental compliances. We beg to disagree. We contribute to the national economy and more significantly in a major way to the specific towns and provinces we are based in. Based on the [27th] information from the MGB in the Caraga region where the nickel belt is, the total socio-economic contributions and payments amounted to 467 million.”
“If you follow the foundational wisdom and thinking from monetary authorities, which I am an alumni of, the money released from wages and other payments, this is the velocity of money that they talk about, the circulation of money. The contribution in provincial areas is 3 to 4 times. In Metro cities, the circulation of money is 11 times. So when they talk of the mining industry contributing 70 billion, that is really a contribution of at least 300 billion. And that a truism that you check with the Central Bank.”
Mr Alcantara states that they believe that mining is a force for good and that overall, the industry contribute significantly to the upliftment of the socio-economic lives of the people in their host communities, where before there were none. “In our communities, we have provided education from nursery to high school levels, built clinics and healthcare facilities, initiated livelihood projects and created jobs, extended scholarships that allow the college education for our indigenous brothers and sisters. Taxes that allowed our LGUs to build roads and bridges and constructed much needed hospitals to give emergency and primary healthcare services. We are the only business where we are mandated to contribute 1.5% of our operating cost [directly] to our host communities for poverty alleviation.”
He also noted that they, the member companies of PNIA, are doing a great job in the environmental programs and that in fact, they do beyond compliance.
Why is nickel one of the leading minerals in the industry? From PNIA’s report, nickel is one of the most versatile minerals on earth that is so powerful that it plays a vital role in the development of various industries. It is used in healthcare, agriculture, and communication. Nickel is all around us.
How does mining in Philippine context shape up? From a video presentation by PNIA, it states, “Massive advances in technology have transformed and improved the mining productivity over the years giving birth to safer, more efficient and more sustainable techniques. Philippine nickel mines use contour mining method where the process of benching is adopted to properly patch or extend the slope, hence the term contour mining, because it follows the slopes of the mountains by making benches for access in mining. With this type of surface mining, the ore extracted is closer to the surface ranger from only 3 – 25 meters below the ground.” In order to limit its side-effects on the environment, their method systematically removes a thin layer of overburdened or top soil to extract the desired deposit.
However, despite all these systematic methods and well-regulated mining practices, there are still endless concerns about their long-term effects on the environment. How then can we make mining environmentally sustainable? The answer is, environmental rehabilitation and reforestation.
After the speech and presentation by Mr Alcantara, a panel discussion took place with Clarence T. Pimentel, Jr., Chairman Emeritus of PNIA and President/CEO of CTPCMC; Ferdinand Pallera, President, Citinickel Mines and Development Corp.; Engr. Cesar F. Simbular, Jr. President, DMCI Mining Corp.; Tulsidas Consunji-Reyes, Vice President for Marketing, DMCI Mining; and Antonio L. Co, President, Carrascal Nickel Corporation.
Running for 8 years now, the Philippine Mining Club is closely affiliated wiht the Melborne Mining Club. The group was formed to create better relationships across all areas of the mining industry whose aim is to uphold a professional networking environment in promoting the exploration, extraction and minerals industry of the country.
Mining Philippines 2018 International Conference and Exhibition was held last 18-20 September 2018 at the Sofitel Philippine Plaza Manila. It was a three-day event organised by the Chamber of Mines of the Philippines (CoMP) with the theme “Strategic Synergies: Communicating the Gains of Responsible Mining”. The mining summit aims to give emphasis to the many innovations, technologies, and interventions undertaken by the mining industry which is often unknown to most people. The event also focuses on the environmental programs for local communities, best practices in mining, and the Chamber’s communication strategies in addressing the rampant misconception about the mining industry.
The Chamber of Mines of the Philippines is a professional association of the country’s largest mining, quarrying and mineral processing companies. The Chamber was established with an objective to promote the responsible exploration, development, and utilization of minerals.
Day 1 of the event had a lively start when the General Headquarters Band of the Armed Forces of the Philippines led the Philippine National Anthem. This was followed by their upbeat music lineup starting off with Glenn Miller’s 1939 hit “In the Mood” and then a medley of songs that pays tribute to the rock legend, Freddie Mercury of the band “Queen”.
Mr Gerard H. Brimo, the Chairman of the Chamber of Mines of the Philippines and CEO of Nickel Asia Corporation covered various important topics about the industry in his opening speech. Regarding the landslide in Benguet in September that was triggered by Typhoon Ompong and killed many small-scale miners, he said, "It did not take long for our detractors to point fingers at the mining industry in general, and that is one problem we have been experiencing over the years -- the lack of distinction between small-scale and the formal large-scale mining industry.”
He states, “As we grieve for the small-scale miners and their families over the tragedy, we must go on record that we in this room, are not connected with small-scale activities in any way, and we have done so yesterday in the media… I believe we should also go on record that we are not against small-scale mining. They do have a role to play and it is a valid occupation, but the activity has to be done legally and with proper supervision."
Mr Brimo also gave recognition to two members of the Chamber who won awards during the First Asean Mineral Awards (AMA), namely Oceanagold’s Didipio gold-copper mine for “Best Practices in Sustainable Resource Development in Mineral Processing” [1] and Nickel Asia Corporation’s Rio Tuba for “Best Practices in Sustainable Mineral Development Award” in the Mineral Mining Category.
"Imagine that, amidst all the criticisms, the best mine and the best plant in the Asean region is right here in the Philippines, voted no less by the various Asean mining ministers," said Mr Brimo. "While we continue with the struggle, your participation in the Chamber activities by your membership and through conferences such as these, is much appreciated and we thank you."
During a short break period, Mr Brimo had a quick interview by the members of the press. One of the topics discussed was regarding the House Bill 7951 or the Mining Tax Reform Bill filed by Rep. Estrelita B. Suansing of the First District of Nueva Ecija province last July 24. [2] Mr Brimo emphasized that the Philippines is at risk of losing investments in the mining sector if Congress passes the proposed law that will impose a 5% tax on all its metal and nonmetal mines, regardless if they were declared as mineral reservations or not. The HB 7951 could make mining companies suffer and overall, the country could lose quality investments which could affect around 100,000 families who are dependent on the mining industry.
Mr Melo Acuna, journalist and radio broadcaster, asked the question, “What is the impact of the President's statements about mining and how will it impact on your investment and your partners?” Mr Brimo replied, “We're concerned particularly with the Mining Tax Bill that has been filed recently in Congress… We've analyzed it and what we've done is we've compared that mining tax structure with the very large mining countries like Chile, Peru, South Africa, Canada and Australia. The way to figure out if the tax structure is expensive or not, or fair, is to do comparisons. So we know the exact tax structures of mining in very big mining countries and we have made a comparison. And that bill puts us more expensive than the five very large mining countries that we have done comparative study on.”
He describes the proposed law as, “punishing”. “We are talking to the legislator to see what can be done about it, because you can't expect investors to come here under that tax structure, but it's actually more than that. You put in an additional 5% royalty on gross revenues, and we in the nickel space, most of the nickel mines are already in mineral reservations, so a lot of us are paying that 5%. But copper and gold is a different thing. They have never been under mineral reservation. Prices are low. Everybody thinks they're making a lot of money but the reality is they're not. In fact, one of them is losing money and has lost money for the last two years. So, you introduce an additional 5% royalty to the tax structure and you run the risk of those mines closing down, and these are big mines. These are copper and gold mines, bigger than nickel. One of them in particular has a community of 20,000 people. So you can imagine the closure of one of those mines and the impact on the area if that happens.”
Mr Brimo stressed that this proposed tax structure will be a problem for new projects. “If that bill passes, we are not going to see investments in our mineral sector anymore from quality companies. We want to attract in this country quality companies. Companies that are large, that are technically knowledgeable, that have a lot of resources, and that can do things properly. And they operate all over the world, so they know what they're doing. They do things very carefully. But they will not come here with a tax structure that is too expensive.”
Therefore, with this possible forecast, how much investment do we expect to lose if this law pushes through? “There are three large copper and gold developments that are pending. I don't have the figures for one of them, but we're talking in the billions of pesos of lost investment, lost taxes, more importantly, employment and social development and that is critical.”
Referring to first-class municipalities such as Claver in Surigao del Norte, Cantilan in Surigao del Sur, Toledo City in Cebu, and others, “What a formal large-scale mining industry does is that it develops entire areas in the countryside… You will see the development that takes place there. It is huge. These municipalities are all first class. And why are they first class? It's because of the mining industry that's there. And you will lose all that down the road. And for a country that is as blessed like us with mineral resources that would be a shame. I don't know of any mineralised country that does not encourage a vibrant mining industry to develop their natural resources. And we might just very possibly be the first, and that would be a shame, because we need exports, we need employment, we need countryside development.”
Additionally, Mr Brimo also shared his insight about how taxes should be done in mining. “If you study the tax structure of these other mining countries, most of their mining taxes are on profits. They're not on revenues and that's the right way to do it because it is progressive. In other words, the more money you make, the higher your operating margin, [and] the higher the special mining tax rate [will be]. In our country, we do it in the reverse. We're very high in terms of the imposition of revenues and it's not geared towards the profits. And that is very evident in our studies and we've shared that with the DENR, MGB and DOF as well, and we continued to do dialogue with them to see where we can all end up here.”
[1] Didipio Mine Wins Asean Mineral Awards – retrieved from the website of Mines and Geosciences Bureau
[2] Gomez, Eireene Jairee. (20 Sept. 2018). The Manila Times. “PH to lose investments under mining bill – mining chamber”. https://www.manilatimes.net/ph-to-lose-investments-under-mining-bill-mining-chamber/443089/
In terms of taxes, fees and other charges of the Government to mining companies, how much are mining companies really contributing to the country? How much funds are mining companies giving to local communities through their social development programs? And moreover, at the present time, how may trees have mining companies planted on the land area that they have mined and rehabilitated? With all the negative media and misinformation about the industry where most people think that the mining industry is not contributing much in this country, DENR Secretary Roy A. Cimatu addressed these issues during his speech at the Mining Philippines 2018 last 18 September 2018 at Sofitel Philippine Plaza Hotel.
Additionally, the Secretary emphasized the mechanics of “reinventing mining” for the benefit of people where they can utilize the mineral resources of the country. On Day 1 of the mining summit, Secretary Cimatu was in Baguio to attend to the problems relating to the landslide brought about by typhoon Ompong. On his behalf, Environment Undersecretary Analiza A. Rebuelta-Teh read his speech. The Secretary attended on Day 2 of Mining Philippines 2018.
Mining Philippines Conference and Exhibition is an annual event that is organised by the Chamber of Mines of the Philippines. The event is a venue that showcase the achievements and best practices of mining companies. The participants also discuss current relevant topics that surround the mining industry. This year’s theme is “Strategic Synergies: Communicating the Gains of Responsible Mining”.
Here is Sec. Cimatu’s speech during the Opening Session of Mining Philippines 2018.
“To the members of the board of trustees of the Chamber of Mines headed by its Chairman, Mr Gerard Brimo, and also to the mine officers of the Chamber, Ambassador Delia Albert, Ambassador Martin Slabber from South Africa, Ambassador Win Naing of Myanmar, Ambassador Lý Quôc Tuân from Vietnam, and Canadian Trade Commissioner Crista McInnis, the Australian Senior Trade Commissioner Elodie Journet, and of course colleagues from the government and especially MGB Director Moncano and Assistant Director Uykieng.
“To all the guests and participants to the mining summit, a pleasant morning. During the last forum on mining which the DENR convinced regularly as a venue to address with the mining companies the various issues confronting the industry, I mentioned about the need to reinvent mining as pronounced by the President. Why reinvent? Why not regaining and rebuilding as we call our rehabilitation efforts in Boracay? Why not reforming mining?
“Reinvent means to change something so much that it appears to be entirely new. It means to take up a very different way of life. So why reinvent mining? Because that is what exactly the industry needs now. We need to change to be almost entirely new. We need to take up a very different way of life.
“That is the only way to go if we are to preserve the industry’s gains in promoting sustainable mineral resources development. So how do we intend to reinvent mining? When I say “we”, not just “we”, the National Government. “We” includes the mining companies, the local government units and other stakeholders. Let us look first at where the mining industry is now.
“According to reports the total Philippine metallic mineral production value advanced by 4% as of June 2018, from 52.42 billion pesos to 54.57 billion pesos year on year, or an increase of 2.14 billion pesos. The positive trend was brought about with the improved metal prices in the world market. In terms of gross value added, mining contributed 53 billion pesos during the first half of 2018. Mineral exports during the first quarter reached 1.1 billion dollars. Total employment during the same period totalled 215,000 workers. In terms of royalties, fees and other charges collected by the government from mining operations, a total of 644.4 million pesos was recorded with additional 292.6 million pesos in taxes, fees and charges collected by local government units from mining. As of July this year, the mining industry committed a total fund of 16.42 billion pesos for social development programs benefiting 966 barangays affected by mining operations.
“In terms of environmental protection and enhancement programs, the amount committed reached 18.39 billion pesos and another 2.55 billion pesos for final mine rehabilitation and the commissioning programs. Under the Mining Forest Program 107 mining companies reported that they have planted 26,023.62 hectares of trees numbering 28,349,833.
“So can we say, not that bad? Or maybe we should say we can do more or even better we should do more. And when we say that we should do more, we are reinventing mining. We are changing the industry’s way of life. Is the government on the other hand providing the enabling policy environment to support the growth of mining industry with high regard to environmental considerations? There are several policy issuances that I have signed as initial efforts to reinvent mining.
“DENR Administrative Order 2018-13 Lifting the Moratorium on the Acceptance, Processing and Approval of Applications for Exploration Permit for Metallic and Non-metallic Minerals following the completion of the audit on all mining operations pursuant to DENR Memorandum Order 2016-01 or the Audit of All Operating Mines and Moratorium on New Mining Projects.
“Administrative Order No. 2018-19 or The Guidelines for Additional Environmental Measures for Operating Surface Metallic Mines was issued to provide new environmental policies that will ensure sustainable environmental conditions at every stage of the mining operation and minimize the disturbed area of a mining project at any given time.
“Administrative Order No. 2018-20 or Providing for a New Guidelines in the Evaluation and Approval of the Three-year Development/Utilization Work Program provides standards in the evaluation and approval of the said program that is consistent with the approved feasibility study, the provisions of mining laws, rules and regulations, and the terms and conditions of the mining permit and contract. The new guideline was also designed to provide for an efficient monitoring system of operating mines. The review conducted by the Mining Industry Coordinating Council or the MICC technical review teams showed that mining industry really needs to shape up as a sector.
“Even if there are responsible mining companies, those which still disregard environmental laws unfortunately affect not just the overall image of the sector but also provides an impression of this malperformance of this industry in general.
“The reviews specified major reforms needed. For example, on adequate mine tailings pond and the very slow rehabilitation of the disturbed mined areas. It also pointed out unacceptable practices regarding stock pile areas, location of tailing storage facilities, and dumping of toxic and hazardous waste. I believe that enforcement is critical to usher in a new era of doing mining in the country. Reinventing mining entails improving the MGB monitoring of operations and compliance of mining companies to mining and environmental laws, rules and regulations; enforcing fines, penalties, suspension and closure to demonstrate no-nonsense, putting-into-force compliance and promoting deterrence for commission of violations is imperative. Most importantly, reinventing mining in the Philippines is providing actual benefits to the people, who must benefit first and foremost from the utilization of the country’s mineral resources as pronounced by the President in several instances.
“We can do more not by imposing additional taxes, or giving incentives, or implementing social development programs. We can do more by strictly complying with the protection and conservation of the natural resources to ensure that future generation will benefit. So let us continue undertaking reforestation programs as a mining sector. Let us implement progressive rehabilitation in our mining areas. Let us provide appropriate mitigating measures to protect our watershed and water bodies. But most of all, let us follow strictly the environmental guidelines in all aspects of mining operation.
“As the scheduled re-opening of Boracay gets near, we will be able to demonstrate that effective enforcement and coordination among concerned agencies and stakeholders can lead to successful rehabilitation and improve environmental quality.
“As a military man, I have received several commendations that anyone could be proud of, but the truth is, the things that we have done and accomplished to make Boracay “cessful no more” gives me more satisfaction than any military award that I have received, maybe because I know I am doing something for the environment, for our children’s future and our children’s children’s future. And now the challenge is for us all to work together to make something that we will all be proud of and satisfied. We should do more. We can change mining’s way of life. Let us change the face of mining in the Philippines, a sector that is capable to discipline itself, that has high regard for the environmental protection, one that works genuinely with the communities.
“I would like to congratulate the Chamber of Mines of the Philippines and its partners in organizing this mining summit. As we engage each other in sharing experiences in discussing policy issues and recommendations, in just by getting to know more each other, we are undertaking efforts to unite the industry towards our common goal, sustainable development of our resources, economic upliftment of the people, and progress for our country. Maraming salamat po at mabuhay!”
Filminera Resources Corp. is a company involved in mining and quarrying of gold, silver, nickel, copper and chromite. Masbate Gold Mine was acquired in an acquisition in January 2013. It was in April 2010 when exploration drilling began. The mine site is located in Aroroy, Masbate (Region V) which is around 350km south of Manila. The mine site is a brownfield, an open-pit mine, and is a major gold producer in the Philippines. [1]
Gold processing in a mine site could result into environmental issues if not managed properly. In the case of Masbate Gold Project, how do they manage the Acid Rock Discharge from the site?
During the MinECon 2018 in Surigao City last June and the PMEA Monthly Membership Meeting last September, Engr. Elvira Pelleja- Acleta, Senior Mine Engineer of Filminera Resources Corp. presented the topic “Acid Rock Drainage Management at Masbate Gold Project”. Her technical presentation addressed various issues like environmental protection and rehabilitation in their gold mine project.
“Acid Rock Drainage or ARD is the discharge of acidic water from the mine. It may come from the active pit or from dumps and stockpiles as a result of oxidation of sulphide minerals, predominantly Pyrite (FeS2).” [2]
The chemical equation goes:
Pyrite + Oxygen + Water = Iron hydroxide + Sulphuric acid FeS2 + O2 + H2O = Fe(OH)3 + H2SO4 (exothermic)
This processing stage produces acid, salinity (in the form of sulphate, calcium, magnesium mainly), dissolved metals (iron, aluminum, and can also contain elements such as As, Cd, Cu, Mn, Pb, Se, Zn etc. and other trace metals based on mineralogy). The contact water can be acid or metallifeorus. It may also be neutral, alkaline and saline, depending on the balance of oxidation or neutralisation reactions. Carbonate minerals and silicates act as buffer for the acidity, thus maintaining elevated pH and low metal concentrations.
Why is ARD a potential environmental hazard? According to her report, ARD is one of the key issues of the Mining Industry due to its potential for water contamination, possible damage to flora and fauna, and human health hazards when it contaminates drinking water, food crops and fish stocks. Additionally, ARD can increase soil erosion and dump stability issues, increase cost for closure, long-term liability and possible negative company reputation.
The good news is, for the record, in prior years, they avoided mining potential acidic areas. In 2015, they have done preliminary studies with Environmental Geochemistry International (EGi). By 2016, more results came out and ARD awareness spread to the mining groups and other departments and contractors. Further studies were done in 2017 to determine criteria for segregation, instrumentation and monitoring commence cover design studies. This year, more site supporting, instrumentation, cover design completion and monitoring are executed.
The objective of Masbate Gold Project is to create a Management Plan for ARD that is science-based, financially viable, globally acceptable using international standards and practices, compliant to local regulations, and the approach is preventive rather than reactive.
In order to reach the objective, key programs are established and applied on the site namely:
- Geochemical Testing - for classifying Potential Acid Forming (PAF) and Non Acid Forming (NAF) Waste Rocks
- PAF/NAF Delineation and Modelling
- Integrate Segregation Criteria into Mine Planning and Operations
- Dump Cover Systems to ensure long term control of ARD
- Oxygen and Surface Water Quality Monitoring Programs to ensure detection of ARD effects
- Drilling campaign on existing Waste Rock Dumps
- Continuous collaboration with EGi provides specialized services in mine waste geochemistry and mine waste management
Geochemical Testing and Leaching provides a scientific approach in identifying Potential Acid Forming (PAF) versus Non-Acid Forming (NAF) waste rocks. It is important to identify PAF vs NAF because the results are used for the PAF/NAF modelling and blocking. These models are produced by Leapfrog Software. Using Geovia Surpac, a software specializing in geology and mine planning, PAF/NAF are blocked together with High Grade and Low Grade Ore to produce dig blocks. The software provides information for material scheduling and selective handling.
The next stage is integration into planning and operation where actual dig blocks are marked on the ground using flagging tapes. Ore spotter will now guide the Excavator and Truck Operators on material loaded and its destination. This prompts review of dumping strategy and monitoring.
Dump Cover Systems are used to control oxygen advection/diffusion and infiltration. The system must also have the capability to neutralise by encapsulation (NAF outside/PAF inside).
Following this is the rehabilitation of the final lift using with Compacted Barrier with Vegetation. Rehabilitation along the slopes minimizes erosion and water infiltration via evapotranspiration.
[1] https://www.mining-technology.com/projects/cga-mining/
[2] Elvira Pelleja-Acleta, Genn Russell Abad. “Acid Rock Drainage Management at Masbate Gold Project”
There are numerous entrepreneurs and environmentalists who have concluded from their research and studies that the bamboo is an excellent choice in a reforestation project. Last year, CTP Construction and Mining Corporation launched their Bamboo Plantation as part of their reforestation program.
CTP Construction and Mining Corporation operates the Adlay Mining Project and Dahican Nickel Project in Surigao Del Sur. The company actively participates in the National Greening Program (NGP) of the Department of Environment and Natural Resources (DENR).
From our previous articles about CTP Construction and Mining Corporation (PRJ Issues 2 and 3 – 2018), we had featured the company’s reforestation project and their notable implementation of environmental protection and rehabilitation in their mine site.
The company launched Project Gaia in 2017 where their team is composed of women from Barangay Adlay who are assigned for the company’s reforestation activities (plant nursery operations, planting, landscaping and maintenance).
The company has a variety of tree species in their reforestation program but why is the bamboo a special part of this endeavour? It is a grass, not a tree. Trees are traditionally planted to create or rehabilitate a forest, so why is a grass like bamboo an excellent choice in a reforestation planning, according to the bamboo experts? Mr Leo Dominguez, President of OLLI Consulting Group, Inc. and an advocate for bamboo planting states that there is an advantage in planting bamboos instead of trees. “I am a lawyer in the responsible mining industry. Since 2015, I have been advocating to the mining industry the planting of bamboo.
Traditionally, the mining industry has planted trees in the rehabilitation of mine sites. By law, mining companies are required to spend 1.5% of their OPEX on SDMP or Social Development Management Programs. Trees are highly regulated. You cannot cut a tree without permits from the DENR." He further explains that, “Bamboo is a grass. Consequently, bamboo is not subjected to the same burdensome regulatory protocols as trees.”
Additionally, the bamboo is very effective in cleaning the air compared with other plants or trees. According to the study of Mr Dominguez, bamboo works 400 times better than trees in terms of carbon sequestration. Mr Dominguez was a presenter at the Mining Philippines 2018 last September and in his report, he featured photos of CTPCMC as one of the mining companies who are currently advocates of planting bamboo for environmental and socio-economic reasons. Bamboos are also fast-growing, low-maintenance, resilient plants with high survival rate. Eventually when the bamboos grow in height, their upper stalks may be cut down, leaving the lower stalks on the grown for it to regrow again. The bamboo can be utilised for other purposes like as building materials for houses, furniture, bicycle framework, and more. It has a lifespan of 80 to 100 years. Therefore, they can provide livelihood to mining communities for decades. This is a remarkable benefit that not all plant or tree varieties may provide.
In order to establish a mother source of bamboo for future bamboo production of the company, last September 2018, a total of 9 seedlings of bamboo planted at Area 1 (rehabilitated area) for initial stage. Species planted were Laak, Kajali and Guadua. These were planted by Mr Clarence “Carlo” J. Pimentel, Jr. (President and CEO of CTP Construction and Mining Corp. and co-founder of the Philippine Nickel Industry Association), Atty. Ross Romanillos and Engr. Charlo R. Basadre. Today, there are 580 bamboo seedlings produced from the nursery of the company with Laak species.
From the startup nursery, CTPCMC Bamboo plantation was finally created in October 2017 where the planting on site started the following month. There were 301 bamboo seedlings planted in Dahican Nickel Project (DNP) and 300 for Adlay, therefore a total of 601 bamboo seedlings planted. They planted Giant Bamboo species at the 2B rehabilitated area of the mine site. Bamboo production and planting is a continuous activity as part of the company’s reforestation program.
CTPCMC is 100% Filipino owned and has been operating since 2007. It is one of the top 5 nickel mines in the Philippines. It is also the second nickel mine in the Philippines that was awarded a triple ISO certifications namely, ISO 9001, ISO 14001, and OHSAS certifications last 2016 and in February 2018. It upgraded to latest versions namely ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System) along with its existing OHSAS 18001:2007, certified by TÜV Rheinland.
The European Chamber of Commerce of the Philippines (ECCP) is organizing the 1st Philippine Natural Resources Development Forum on April 26, 2019 at Marriott Hotel Manila with the theme “Harnessing Natural Resources for inclusiveness and Sustainable Development”.
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 and share value can be further enhanced through better regulatory and enabling policies, best practices in value sharing, environment-friendly technologies and socially responsible investments.
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 sub sectors to discuss challenges, opportunities, policy reforms and best practices in harnessing the country’s natural resources and their contribution to sustainable development.
Visit https://www.eccp.com/events/?id=499 for more information.
Powering Future Energy Solutions
Witness the 2nd edition of the country’s most comprehensive energy trade event!
The 3-day exhibition, RE EE Philippines 2019 will highlight ways and means to attain alternative energy advancements and productivity. Increase your audience reach as it brings together key players and top practitioners from the industry, while also inviting target visitors and some government authorities for building new profitable partnerships and a lot more proactive business opportunities.
It will showcase a wide range of technologies suppliers and equipment from various segments in the industry including:
- Solar
- Wind
- Hydroelectric
- Biomass
- Geothermal
Supported by the Philippine Energy Efficiency Alliance (PE2), Renewable Energy Association of the Philippines (REAP) and Philippine Independent Power Producers Association, Inc. (PIPPA), this professional trade show is the best platform to build connections and transform it to mutually beneficial relationships.
Renewable Energy & Energy Efficiency (RE EE) 2019 is just one of the successful energy series spearheaded by UBM, which includes ASEAN Sustainable Energy Week (Thailand), Renewable Energy India, Renewable Energy Myanmar, Renewable Energy Vietnam, Solar Asia and Green Energy Malaysia.
Visit https://www.renergyphilippines.com/ for more information
Follow on LinkedIn:
Philippine Resources Journal
Be the "First" to get our exclusive Digital Magazine & Weekly Newsletter.
