Minding Mindanao's mining industry

First posted 04:20am (Mla time) Aug 03, 2006
MINDANAWORLD

By Joji Ilagan- BianInquirer

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13201

THE Philippine mining industry is one of the most promising industries in Asia. The country has vast mineral resources and its strategic location makes exports to other Asian nations easier.
Our proximity to China and India, which are the biggest markets for mineral products in Asia, makes investors from South Korea, Japan, Australia, Canada, the United States, and South Africa interested in investing in the industry.

The country is at the Circum-Pacific belt of fire where the earth's tectonic plates collide and the process of volcanism most active.

These processes of volcanism and plate convergence result in the formation of important metallic mineral deposits, such as gold, copper, iron, chromate, nickel, cobalt and platinum. Based on past production and defined resources, the Philippines is the fifth most mineralized country in the world and has established reserves of 13 known metallic and 29 non-metallic minerals. The country has nine million hectares of mineralized land, of which only 420,000 hectares have been tapped.

Two decades ago, the local mining industry was among the top five largest mineral exporters in the world with annual export revenue of $1.2 billion. Global ranking in mineral deposits in the 1980s placed the Philippines at the second spot in gold deposits, fourth in copper deposits, fifth in nickel deposits, and sixth in chromate deposits.

At present, the industry's export contribution has been reduced by almost 50 percent from its performance in the 1980s.

The National Economic and Development Authority estimates that $840 billion worth of mineral wealth in the country is untapped. Mindanao is said to account for 70 percent of the national total mineral deposits. The decline in the mining exploration activities in the country has greatly affected Mindanao's economic development.

Of the 23 major metallic projects operating in the Philippines, nine are in Mindanao (primarily in the Caraga and Davao regions).

According to the Mines and Geosciences Bureau (MGB), existing mining rights in Mindanao account for only 1.4 percent of the mineral areas.

The 516 tenement applications under study by the MGB, if approved, would raise the rate to 15 percent.

Exploration companies operating in Mindanao include Silangan Mindanao Exploration Co. (in Tubod town in Surigao del Norte province), Tampakan Mineral Resources Corp. (in Tampakan, South Cotabato), and Toronto Ventures Inc. (in Siocon, Zamboanga del Norte). These companies are engaged in activities aimed at promoting the development of their host communities through infrastructure support and provision of livelihood.

Mining could bring considerable wealth to remote areas -- providing jobs, developing local industries, and improving physical and social infrastructure. Hence, the development of the industry can be an effective peace and development strategy in Mindanao.

Notwithstanding the presence of such companies, most of Mindanao remains untapped for its mineral potential.

Mining, social development

Agriculture and mining are the oldest industries in the world. The world could not have developed without the use of minerals and metals. The negative perception on mining arises from the old mining laws that did not provide for adequate environmental protection and social development.

Mindanao business leaders are very much aware of the significance of an active mining industry to the socio-economic development of the island. The government and the private sector have joined together to revitalize Mindanao's mineral industry.

The Mindanao business sector is pushing for responsible mining with the primary objective of maximizing environmental, economic and social benefits.

Mining remains one of the country's options to free itself from the economic deprivation and attain a better quality of life for its people. The hard reality is that we do not get most of the minerals that we need for industrialization from our own resources; instead, we import them. However, there is always a choice of producing the minerals ourselves.

Social responsibility

Mining companies are mandated to spend at least 1 percent of their annual direct mining and milling costs for community development and the development of mining technology and geosciences. Of the amount, 90 percent should be earmarked for community development under a social development and management program (SDMP). SDMP should provide alternative livelihood opportunities for employees and their dependents, and for neighboring communities during the life of the mine.

If strictly implemented, this will greatly benefit Mindanao, in terms of infrastructure and financial resources development.

Case in point is Silangan Mindanao Exploration Co., a joint venture between Philez Gold Philippines, Inc. and Anglo American Exploration Philippines Inc.

While conducting exploration activities, Silangan employed over 200 people in the area and initiated a number of community development programs. It has since played a vital role in the improvement and repair of community roads, water system, and other infrastructure support. It has contributed immensely to community health care.

There are many ways to push for the development of mining activities in Mindanao, while simultaneously protecting the environment and empowering the people living in the mining community. The proper enforcement of the mining law of 1995 is necessary. The development of effective and credible monitoring is vital in ensuring strict compliance of national standards.

E-mail comments to jojibian2@yahoo.com.