Mining in Mindanao

MINING IN MINDANAO:
COMPETITIVE AND RESPONSIBLE
RAMON J. P. PAJE
Secretary
Department of Environment and Natural Resources
22nd Mindanao Business Conference

August 8-10, 2013
SMX Davao Convention Center
SM Lanang Premier, Davao City

Republic of the Philippines
MINERAL POTENTIAL
• More than half of the estimated mineral wealth of
the Philippines is found in Mindanao, where
almost 50% of gold and 65% of nickel reserves
of the country are located.
MINING TENEMENT INFORMATION
Major Approved Mining
Mindanao National
Tenement (July, 2013)
Mineral Production Sharing

106 339
Agreement
Exploration Permit 10 56
Financial or Technical
1 6
Assistance Agreement
Total 117 401

MINING TENEMENT INFORMATION
• MINING APPLICATIONS IN MINDANAO
Of the 589 mining applications filed, as of 2011,

448 were denied under the Use It or Lose It
Policy of the DENR on the same year.
Of the total 89 Exploration Permit (EP)

applications accepted by the Mines and
Geosciences Bureau after the lifting of the
moratorium in March 2013, 37 are located in
Mindanao.
MINING OPERATIONS
Number of Operating Metallic

Mindanao National
Mines (July 2013)
Nickel Mines 14 23
Gold Mines 4 7
Copper Mines 2 5
Chromite Mines 1 2
Iron Mines - 3
Total 21 40
UPCOMING MAJOR MINING PROJECTS
PROJECT MINING COMPANY LOCATION
South Cotabato, Sultan

Tampakan Copper- Sagittarius Mines, Inc./
Kudarat and Davao
Gold Project Xstrata Copper Plc.
del Sur
Boyongan-Bayugo
Mainit and Placer,
Copper-Gold Philex Mining Corporation
Surigao del Norte
Project
Sumitomo H-PAL Taganito Mining Claver, Surigao del

Project Corporation Norte
Nationwide Development
Kingking Copper- Corporation/Russel Pantukan, Compostela
Gold Project Mining-St. Augustine Gold Valley
Mining Corporation
ISSUES ON MINING
• LACK OF BASELINE DATA
ON THE MINING INDUSTRY;
• POLICY INCONSISTENCIES
BETWEEN THE NATIONAL AND
LOCAL LAWS;

ISSUES ON MINING
• GOVERNANCE AND LAW
ENFORCEMENT
CONCERNS;

ISSUES ON MINING
• LACK OF TOTAL ECONOMIC
VALUATION FOR THE MINING
INDUSTRY;

ISSUES ON MINING
• INSUFFICIENT GOVERNMENT SHARE IN MINING
REVENUES; AND
• ADVERSE EFFECTS OF ENVIRONMENTAL
DEGRADATION AND CLIMATE CHANGE.

INSTITUTING POLICY REFORMS
 Created the Mining Study
Group per instruction of the
President in October 2011
 Tasked to finalize the mining
industry policies
 Composed of the DENR
Secretary, Presidential
Assistants on Climate Change
and on Environmental
Protection, and Vice-Chair of
the Climate Change
Commission

EXECUTIVE ORDER NO. 79
 Institutionalizing and Implementing

Reforms in The Philippine Mining Sector,
Providing Policies and Guidelines to
Ensure Environmental Protection and
Responsible Mining in the Utilization of
Mineral Resources
 Signed on 06 July 2012

HIGHLIGHTS OF THE NEW MINING
POLICY
 Clarifying the Areas Closed to Mining
Applications.
 Full Enforcement of Environmental Standards.
Sibuyan Island

HIGHLIGHTS OF THE NEW MINING
POLICY
 Review of the Performance of Existing Mining
Operations and Cleansing of Non-Moving
Mining Rights Holders.
 Freeze in Grant of Mineral Agreements Pending
New Legislation on Revenue Sharing.
 Grant of Mining Rights thru Competitive Public
Bidding.

HIGHLIGHTS. . .
 Declaring Abandoned Ores

and Tailings as Assets of
the State for Bidding.
 Development of
Downstream Industries for
the Mineral Sector.
 Constituting the Cabinet- Dizon Mine’s Tailings Pond
Level Mining Industry San Marcelino, Zambales
Coordinating
Council.

HIGHLIGHTS. . .
 Rationalizing Small-
Scale Mining Activities.
 Addressing the
Conflicts between
Local Ordinances and
the National Laws.
 Creating a One-Stop
Shop for All Mining
Applications.
 Joining the Extractive
Industries Transparency
Initiative.
HIGHLIGHTS. . .
 Creation of a Centralized Database for the

Mining Industry.
 Creation of an Integrated Map System for
Mining.
 Creation of an Anti-illegal Mining Task Force.
 Use of the Programmatic Environmental
Impact Assessment in Mining

ACTIONS TAKEN:
1. On the Integrated Map System
 The No-Go Zone Map has been prepared as a major

input to the Integrated Map; clearly shows the areas
closed to mining.
2. On the Creation of One-Stop-Shop (OSS)
 Regional OSS to be created in the Regional Level

ACTIONS TAKEN:
3. On the Participation in the Extractive Industries
Transparency Initiative (EITI)
Philippine candidacy accepted

 MGB and other government agencies concerned to
populate database systems, for full transparency and
disclosure of information on mining.
4. On Measures to Improve Small-Scale Mining
Nationwide consultation held on drafting of the Small-

scale Mining guidelines; draft guidelines presented to
MICC for approval.
Expediting establishment of Minahang Bayan.
ACTIONS TAKEN:
5. On the Establishment of Mineral Reservations
15 Mineral Reservations are targeted to be identified

and assessed for this year.
6. On the New Revenue Sharing Scheme
Draft bill to be presented to MICC ; for final review

and submission as draft bill to Congress

ACTIONS TAKEN:
7. On the Review of Performance of Existing Mining

Operations
Multi-sectoral team to be created in every Regions.

Cleansing process for approved mining tenements
have been started; show-cause letters sent.
8. On the Illegal Mining
Task Force on Illegal Mining created, led by DILG;

anti-illegal mining operations launched.

EXPECTED OUTCOME OF MINING
POLICY REFORMS
THE GOVERNMENT IS NOW ENSURING THAT

CLEAR AND PREDICTABLE POLICIES FOR A
MORE SECURED MINING INVESTMENTS WILL BE
SET IN PLACE UNDER GOOD GOVERNANCE AND
THE PRINCIPLE OF RESPONSIBLE MINING.
MINDANAO, WITH ITS HIGH MINERAL POTENTIAL,

STANDS TO GREATLY BENEFIT FROM THE
PURSUIT OF RESPONSIBLE MINING.

THANK YOU and
MABUHAY…..


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MINING IN MINDANAO:

COMPETITIVE AND RESPONSIBLE

22nd Mindanao Business Conference

Department of Environment and Natural Resources

Mineral Production Sharing

Total 117 401

Of the 589 mining applications filed, as of 2011,

Of the total 89 Exploration Permit (EP)

Number of Operating Metallic

South Cotabato, Sultan

Sumitomo H-PAL Taganito Mining Claver, Surigao del

Department of Environment and Natural Resources

Department of Environment and Natural Resources

Department of Environment and Natural Resources

Department of Environment and Natural Resources

Department of Environment and Natural Resources

 Institutionalizing and Implementing

Department of Environment and Natural Resources

Department of Environment and Natural Resources

Department of Environment and Natural Resources

 Declaring Abandoned Ores

Department of Environment and Natural Resources

 Creation of a Centralized Database for the

Department of Environment and Natural Resources

1. On the Integrated Map System

 The No-Go Zone Map has been prepared as a major

2. On the Creation of One-Stop-Shop (OSS)

 Regional OSS to be created in the Regional Level

Department of Environment and Natural Resources

Philippine candidacy accepted

4. On Measures to Improve Small-Scale Mining

Nationwide consultation held on drafting of the Small-

5. On the Establishment of Mineral Reservations

15 Mineral Reservations are targeted to be identified

6. On the New Revenue Sharing Scheme

Draft bill to be presented to MICC ; for final review

Department of Environment and Natural Resources

7. On the Review of Performance of Existing Mining

Multi-sectoral team to be created in every Regions.

8. On the Illegal Mining

Task Force on Illegal Mining created, led by DILG;

Department of Environment and Natural Resources

THE GOVERNMENT IS NOW ENSURING THAT

MINDANAO, WITH ITS HIGH MINERAL POTENTIAL,

Department of Environment and Natural Resources

Department of Environment and Natural Resources

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