Mining beckons, Gloria tells Chinese traders

By Joyce Pangco Pañares

http://www.manilastandardtoday.com/?page=politics04_june06_2006

PresidenT Gloria Macapagal Arroyo has urged Chinese businessmen to take position in the local mining sector and benefit from its resurgence.

Speaking before a 300-strong Chinese delegation led by Chinese Minister of Commerce Bo Xilai, Mrs. Arroyo said the local mining industry is booming. “The Philippines is well poised as far as mining is concerned. We have a $1 trillion mineral wealth and the Philippines is one of the world’s top five source countries for deposits of copper, gold, iron and nickel.” The President spoke at the closing ceremony of the two-day Philippines-China Economic Forum held at the Manila Hotel yesterday, with 200 company executives from the biggest companies in China among the audience.

One of the companies is Jin Chuan Shanghai Non-Ferrous Metals Corp., a major investor in the $1 billion rehabilitation and reopening of the Nonoc Nickel Mines in Surigao.

Mrs. Arroyo’s statement came as an assurance to multinational mining firms that the government remains committed to the full implementation of the 1995 Mining Law.

For his part, Presidential Spokesman Ignacio Bunye said Mrs. Arroyo will not seek the revision of the mining law, which allows foreign mining companies to operate on a large scale.

The government expects the mining industry to generate $5 billion to $7 billion annually in foreign exchange as well as create a quarter of a million jobs over the next six years.

Mining industry leaders have warned that a total ban will send the wrong signal to potential investors hoping to cash in on the country’s $1 trillion mineral wealth, adding that a balanced policy that will protect the environment while promoting a good business climate is needed.

President Arroyo has earlier urged foreign mining firms to spend at least 3 to 5 percent of direct mining and milling costs on the government’s environmental programs annually and to devote at least 10 percent of their capital expenditures to fund environmental projects.