MINING IN THE
PHILIPPINES
•
MINING IS A SOURCE OF MINERAL RESOURCES
IMPORTANT FOR MAINTAINING AND UPGRADING
LIVING STANDARDS. IT IS THE EXTRACTION OF
VALUABLE AND NON-RENEWABLE MINERALS OR
OTHER GEOLOGICAL SUBSTANCES FROM THE EARTH.
•
MATERIALS ACQUIRED THROUGH MINING INCLUDE
METALS, LIMESTONE, ROCK SALT, GEMSTONE, COAL,
OIL, GRAVEL, GOLD AND CLAY.
•
MINING IS INTENDED TO OBTAIN RESOURCES THAT
CANNOT BE PRODUCED THROUGH AGRICULTURAL
ACTIVITIES OR MANUFACTURED ARTIFICIALLY IN A
LABORATORY OR FACTORY.
FACTS
THE MINING INDUSTRY IN THE PHILIPPINES IS CONTROVERSIAL AGAIN AFTER ENVIRONMENT
SECRETARY GINA LOPEZ ORDERED THE CLOSURE OF ABOUT 23 MINING OPERATIONS AND
CANCELLATION OF A TOTAL OF 75 MINERAL PRODUCTION SHARING AGREEMENTS (MPSAS) IN
WATERSHEDS EARLIER THIS YEAR.
BELOW IS A LIST OF KEY THINGS TO KNOW ABOUT THE MINING INDUSTRY IN THE PHILIPPINES:
1.THE PHILIPPINES IS THE FIFTH MOST MINERAL-RICH COUNTRY IN THE WORLD FOR GOLD, NICKEL,
COPPER, AND CHROMITE. IT IS HOME TO THE LARGEST COPPER-GOLD DEPOSIT IN THE WORLD. THE
MINES AND GEOSCIENCES BUREAU HAS ESTIMATED THAT THE COUNTRY HAS AN ESTIMATED $840
BILLION WORTH OF UNTAPPED MINERAL WEALTH, AS OF 2012.
2. ALL THE REGIONS (EXCEPT NCR AND ARMM) IN THE COUNTRY ALLOW MINING OPERATIONS.
ARMM CEASED ISSUING PERMITS DUE TO THE ON-GOING PEACE PROCESS BETWEEN THE MORO
ISLAMIC LIBERATION FRONT AND THE NATIONAL GOVERNMENT.
3. ABOUT 30 MILLION HECTARES OF LAND AREAS IN THE PHILIPPINES IS DEEMED AS POSSIBLE AREAS
FOR METALLIC MINERALS. ABOUT 9 MILLION HECTARES OF LAND AREAS IS IDENTIFIED AS HAVING
HIGH MINERAL POTENTIAL, ACCORDING TO MGB.
4. THE PHILIPPINES METAL DEPOSIT IS ESTIMATED AT 21.5 BILLION METRIC TONS AND NON- METALLIC
MINERALS ARE AT 19.3 BILLION METRIC TONS, AS OF 2012.
5. ACCORDING TO MGB, THERE ARE 236,000 WORKERS IN THE MINING INDUSTRY IN 2016.
6. THE MINING INDUSTRY’S CONTRIBUTION TO THE COUNTRY’S GDP IS AT 0.6% IN
2016.
7. THE CONTRIBUTION OF MINERALS AND MINERAL PRODUCTS TO THE COUNTRY’S
TOTAL EXPORTS IS AT 4% AND 0.3% FOR NON-METALLIC MINERAL MANUFACTURERS
IN 2016.
8. THE MINING INDUSTRY'S GROSS PRODUCTION VALUE DECLINED IN THE LAST 2
YEARS. FROM P208.2 BILLION ($4.2 BILLION) IN 2014 TO ONLY P100.6 BILLION ($2
BILLION) IN 2016, ACCORDING TO MGB.
9. THE MINING ACT OF 1995 ALLOWS FOR FOREIGN OWNERSHIP OF MINING ASSETS
AND EXPLORATION PERMITS. THE SUPREME COURT UPHELD THE CONSTITUTIONALITY
OF THE FOREIGN INVESTORS' PARTICIPATION IN MINING ACTIVITIES IN 2004.
10. MINING TAX IS LOW AT 2% FOR METALLIC AND NON-METALLIC MINERALS.
DURING THE AQUINO ADMINISTRATION, A MINING REFORM BILL WAS DRAFTED TO
INCREASE REVENUES OF THE GOVERNMENT. IN THE BILL, COMPANIES WILL EITHER
PAY 10% TAX ON GROSS REVENUES OR 45% TO 55% TAX ON ADJUSTED MINING
REVENUES PLUS A PERCENTAGE OF WINDFALL PROFIT, WHICHEVER IS HIGHER.
11. AS OF SEPTEMBER 2016, THERE ARE ABOUT 40 METALLIC MINES AND 62
NON-METALLIC MINES OPERATING IN THE COUNTRY.
12. THERE ARE A TOTAL OF 1,473 MINING APPLICATIONS UNDER PROCESS
IN THE COUNTRY AS OF 2016, ACCORDING TO THE MGB.
13. AS OF AUGUST 2016, MINING COMPANIES HAVE ALREADY COMMITTED
P13.1 BILLION FOR THE DEVELOPMENT OF THEIR HOST AND NEIGHBORING
COMMUNITIES UNDER THEIR SOCIAL DEVELOPMENT AND MANAGEMENT
PROGRAMS, THE MGB REPORTED.
14. MEANWHILE, MINING COMPANIES HAVE ALLOTTED A TOTAL OF ABOUT
P19.1 BILLION FOR THE IMPLEMENTATION OF APPROVED PROJECTS AND
PROGRAMS UNDER THEIR ENVIRONMENTAL PROTECTION AND
ENHANCEMENT PROGRAMS.
15. FROM 2011 TO 2013, THE MINING SECTOR COMMITTED TO REFOREST
ABOUT 34,000 HECTARES, UNDER THE NATIONAL GREENING PROGRAM. BY
DECEMBER 2015, MORE THAN 47,000 HECTARES HAVE BEEN REFORESTED.
SOCIAL CONTRACT MINING IN THE PHILIPPINES.

AT THE START OF HIS CAMPAIGN FOR PRESIDENT, BENIGNO AQUINO STATED IN AN
ADVERTISEMENT THAT HE WAS NOT A THIEF AND THAT HE WOULD NOT STEAL USING A
PLAY ON THE FILIPINO WORD “MAGNANAKAW” WHICH MEANS BOTH “THIEF” AND “TO
STEAL”. A SIMILAR STATEMENT WAS ISSUED BY HIS LATE MOTHER, EX-PRESIDENT
CORAZON AQUINO TWENTY FIVE YEARS EARLIER WHEN SHE RAN AGAINST FERDINAND
MARCOS.

SO INGRAINED AND APPARENT WAS THE GREED THAT MOTIVATED CANDIDATES TO
PURSUE PUBLIC OFFICE THAT IT HAD BEEN ASSUMED TO BE THE CASE AMONG ALL OF
THEM. WITH THE INSTALLATION OF PRESIDENT-ELECT AQUINO AT 12 NOON ON JUNE 30
2010, THERE ARE A FEW ASSUMPTIONS REGARDING THE STATE AND ITS ROLE IN SOCIETY
THAT ALSO NEED TO BE CHALLENGED.

IN A PATERNALISTIC SOCIETY SUCH AS THE PHILIPPINES, IT IS THE ROLE OF THE STATE TO
DOLE OUT BENEFITS TO THE CONNECTED, BY THAT I MEAN BOTH THE WEALTHY AND THE
NEEDY. THE STATE IS CAPTURED FROM BOTH ABOVE BY THE WEALTHY WHO SEEK
REGULATIONS THAT FAVOR THEIR COMMERCIAL INTERESTS AND FROM BELOW BY THE
INCESSANT DEMANDS OF CONSTITUENTS WHOSE NEED FOR SUPPORT DRIVES THEIR
ELECTED REPRESENTATIVES TO CAPTURE “RENTS” FROM GOVERNMENT TRANSACTIONS
TO PROVIDE PERSONAL HELP AND THUS PERPETUATE THEIR ELECTABILITY.

MANY COMMENTATORS HAVE SEIZED ON THE POTENTIAL FOR
TRANSFORMATION UNDER A NEW AQUINO PRESIDENCY BASED ON ITS
REPUTATION FOR PROBITY. IN ORDER FOR IT TO BE TRANSFORMATIONAL,
IT WOULD HAVE TO RESTRUCTURE THE “RULES OF THE GAME” OR
NEGOTIATE A NEW SOCIAL CONTRACT BETWEEN THE STATE AND ITS
STAKEHOLDERS. THE NEW ARRANGEMENT WILL HAVE TO RESOURCE THE
STATE APPROPRIATELY TO LESSEN THE NEED FOR ITS CONSTITUENTS TO
RELY ON PERSONAL INTERVENTIONS BY THEIR REPRESENTATIVES.

IT WILL HAVE TO ENSURE THAT THE WEALTHY CONTRIBUTE A FAIRER SHARE
OF THEIR PROFITS TO THE STATE. THE PRODUCTIVE SECTORS IN TURN
WOULD EXPECT A PREDICTABLE REGULATORY ENVIRONMENT AND A
SKILLED LABORFORCE ENABLING THEM TO TAKE ADVANTAGE OF NEW
OPPORTUNITIES. FOR THIS TO HAPPEN, A SERIES OF REFORMS ARE NEEDED
IN AREAS SUCH AS SOCIAL WELFARE, HUMAN CAPITAL, REGULATION AND
TAXATION WHICH ARE DISCUSSED HERE.

SOCIAL WELFARE REFORM. THIS INCLUDES THE RE-ALIGNMENT OF POORLY TARGETED,
IMPROPERLY DESIGNED AND INEFFECTIVE PROGRAMS TOWARDS THOSE WITH GREATER IMPACT.
THE RICE SUBSIDY PROGRAM IS ONE EXAMPLE OF A PROGRAM WHICH HAS SUFFERED A
LEAKAGE OF 71%, WHOSE COVERAGE OF INTENDED RECIPIENTS IS A MERE 18%, AND IS COSTLY
TO ADMINISTER. IT COST THE GOVERNMENT ABOUT PHP40 BILLION IN 2008 ALONE. OTHER
SIMILAR PROGRAMS THAT PROVIDED REBATES ON ELECTRICITY SUFFERED SIMILAR FLAWS, BUT
WERE HURRIEDLY ENGINEERED DURING THE HEIGHT OF THE GLOBAL FINANCIAL CRISIS AND ARE
NON-RECURRING. THE GRAINS PROGRAM ON THE OTHER HAND REPRESENTS A RECURRING
EXPENSE FOR THE GOVERNMENT.

EDUCATION AND SKILLS REFORM. THE NEXT STEP WOULD BE TO UNDERTAKE REFORMS THAT
WOULD IMPROVE THE STOCK OF HUMAN CAPITAL THROUGH EDUCATIONAL AND HEALTH
REFORM. AS SCHOOL CHILDREN IMPROVE THEIR PARTICIPATION AND COMPLETION RATES, IT
BECOMES NECESSARY TO STRENGTHEN THE CONTENT OF THEIR EDUCATION TO ENSURE THEY ARE
EQUIPPED WITH NECESSARY SKILLS AND KNOWLEDGE NEEDED IN THE WORKPLACE BOTH HERE
AND ABROAD. PART OF THE SOLUTION LIES IN EXTENDING THE YEARS OF SCHOOLING FROM 10
TO 12 YEARS WITH THE OPTION OF LEAVING SCHOOL AFTER YEAR 10. THE SENIOR YEARS OF
HIGH SCHOOL SHOULD OFFER STUDENTS THE OPTION OF EITHER COLLEGE PREPARATION
OR VOCATIONAL EDUCATION AND TRAINING (VET). THERE IS A NEED TO ADDRESS THE
IMBALANCE BETWEEN COLLEGE AND VET THAT IS LEADING TO THE STRANGE ANOMALY OF
SKILLS SHORTAGES ALONGSIDE HIGH UNEMPLOYMENT. WORK-BASED APPRENTICESHIPS AND
TRAINEESHIPS IN PARTNERSHIP WITH INDUSTRY CAN ALSO BE INTRODUCED. THE “ADOPT A
SCHOOL” PROGRAM CAN BE LEVERAGED IN ORDER TO PROVIDE SUCH A PARTNERSHIP.

HEALTH AND SOCIAL INSURANCE REFORM. THE PHILIPPINES HAS A HEALTH SYSTEM AKIN
TO THE US, WHERE A MIXTURE OF PUBLIC AND PRIVATE HOSPITALS ABOUND AND THE
STATE FUNDS THEM THROUGH WHAT AMOUNTS TO A HEALTH INSURANCE PROGRAM
CALLED PHILHEALTH, THE KEY CHALLENGE HERE AS IT IS IN THE US WOULD BE TO INCREASE
THE COVERAGE OF THE PROGRAM. THIS CANNOT BE DONE WITHOUT MANDATES AND
CONCURRENT SUBSIDIES TO FIRMS THAT EMPLOY PEOPLE TO INCREASE CONTRIBUTIONS.
PART OF THE REFORM PROCESS ALSO INVOLVES LOOKING AT THE FUNDING RATE OF
VARIOUS TREATMENTS. CHRONIC DISEASES ARE ON THE RISE IN DEVELOPING COUNTRIES.
WHILE THE PHILIPPINES DOES NOT HAVE AN AGEING POPULATION, THERE IS A HIGH
DEPENDENCY RATIO. THIS MEANS THE PROBLEM CONFRONTED BY HOUSEHOLDS AT-RISK
OF SLIPPING INTO POVERTY DUE TO LOST INCOME OF PRIMARY BREADWINNERS HAS TO
BE ADDRESSED THROUGH A COMBINATION OF SOCIAL AND HEALTH INSURANCE
IMPROVEMENTS.

REGULATORY REFORM. THE COST OF DOING BUSINESS IN THE COUNTRY HAS TO BE
LOWERED THROUGH REGULATORY REFORM. THIS ENTAILS OPENING UP MANY SECTORS
INCLUDING AVIATION, PORTS, POWER AND TRANSPORTATION TO GREATER
COMPETITION. IT ALSO INVOLVES RED-TAPE REDUCTION AND STRENGTHENING THE
PROPERTY RIGHTS OF INVESTORS. A COMPREHENSIVE REVIEW AND CONSULTATION
PROCESS NEEDS TO TAKE PLACE TO GIVE DIRECTION TO MANY OF THE REFORMS IN THESE
AREAS. A MIX OF POLICY TOOLS COULD POTENTIALLY SOLVE MANY OF THE BOTTLENECKS
IN THE PROCESS OF BUSINESS REGISTRATION AND LICENSING. STAKEHOLDER
CONSULTATION WOULD SHED LIGHT ON WHICH TOOLS TO USE.

TAX REFORM. FROM THE MID-90S TO THE MID-NOUGHTIES THE TAX COLLECTION
EFFORT MEASURED IN TERMS OF COLLECTION TO GDP RATIO DETERIORATED
FROM 17 PERCENT TO 12 PERCENT. IT RECOVERED SLIGHTLY WITH THE HIKE OF
THE VAT RATE FROM 10-12%, BUT LEAKAGES SUCH AS THE GRANTING OF FISCAL
INCENTIVES FOR THE COUNTRY’S FREEPORTS AND SPECIAL ECONOMIC ZONES
AND THE NON-INDEXATION OF SIN TAXES HAVE OFFSET MUCH OF THE
IMPROVEMENTS IN TAX COLLECTION. THE REDUNDANCY AND INEFFICACY OF
MANY FISCAL INCENTIVES HAVE BEEN EXTENSIVELY DOCUMENTED (SEE FOR
INSTANCE THE ARTICLE BY DR. RESIDE BELOW). MEANWHILE CORPORATE AND
PERSONAL INCOME TAXES IN THE COUNTRY REMAIN HIGHER THAN ELSEWHERE
IN THE REGION.

THE FIRST STEP OF ANY REFORM PROCESS IS FOR THE LEADER TO BE HONEST AND
COMMITTED TO IT. MR AQUINO SATISFIES THIS CONDITION WITH HIS PROBITY
AND POLICY SERIOUSNESS. DURING THIS PERIOD OF TRANSITION, HIS FIRST TASK
INVOLVES ASSEMBLING A COMPETENT TEAM TO HELP HIM IN THIS EFFORT. THEY
SHOULD FOCUS ON ASSEMBLING A COHERENT PACKAGE OF REFORMS WITH
THE HELP OF PARTNERS AND STAKEHOLDERS IN THE COMMUNITY AIMED AT
RESTRUCTURING INCENTIVES IN THE PHILIPPINES THAT WOULD TRANSFORM THE
CURRENT SET OF ASSUMPTIONS ABOUT THE STATE AND ITS ROLE IN IT.
DIFFERENT ISSUES OF MINING IN THE PHILIPPINES
IN CASE OF CLARIFICATIONS, FEEL FREE TO COMMENT ON THIS ANSWER. I MAY OR MAY NOT
ADD TO THIS ANSWER. YOU WON’T SEE POVERTY AS A PROBLEM IN THIS LIST BECAUSE POVERTY
IS AN EFFECT, NOT A CAUSE, AT LEAST IN MY OPINION.
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POLITICAL CORRUPTION - CRONYISM, NECROPOLITICS, NARCOPOLITICS, POLITICAL
DYNASTIES
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LACK OF AGRICULTURAL REFORM AND NATIONAL INDUSTRIALIZATION - WITHOUT THESE WE
WILL NOT ATTAIN FOOD SECURITY AND WOULD NOT BE ABLE TO ESTABLISH PROPER HEAVY
INDUSTRIES
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RISE OF NEOLIBERALISM IN A NON-COMPETENT ECONOMY - OVERSATURATION OF FOREIGN
GOODS IN THE MARKET RESULTING IN LOCAL INDUSTRIES DYING. BECOMING A PART OF AN
ASSEMBLY LINE OF PRODUCTS WITHOUT ACTUALLY PRODUCING INDUSTRIAL GOODS FOR
OUR OWN BENEFIT. PRIVATIZATION OF SOCIAL SERVICES. MONOPOLIES ARE ALLOWED TO
EXIST EVEN THOUGH IT IS ILLEGAL.
•
LACK OF SEPARATION OF CHURCH AND STATE - THE CHURCH MAINTAINS INFLUENCE ON THE
STATE
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UNEMPLOYMENT AND HOUSING - LACK OF AFFORDABLE HOUSING IN JOB HOTSPOTS; LACK
OF JOB HOTSPOTS IN RURAL AREAS RESULTING IN RURAL TO URBAN MIGRATION THUS
CAUSING OVERPOPULATION IN CITIES
•
LACK OF RELIABLE INFRASTRUCTURE - INTERRUPTING TRANSPORTATION, LOGISTICS AND
COMMERCE
•
RED TAPE IN THE GOVERNMENT - PART OF CORRUPTION BUT THIS ALSO AFFECTS LEGAL
BRANCHES OF THE GOVERNMENT TOO
•
LACK OF RELIABLE, AFFORDABLE, AND QUALITY SOCIAL SERVICES - HEALTHCARE
REMAINS EXPENSIVE, PUBLIC SCHOOLS ARE OVERCAPACITY AND THE QUALITY OF
EDUCATION LEAVES MUCH TO BE WANTED, MASS TRANSPORT REMAINS SHITTY
•
POLITICS REMAINS TO BE A POPULARITY GAME - THIS IS AN ISSUE OF VOTERS THAT DO
NOT FEEL A PERSONAL RESPONSIBILITY TOWARDS THE NATION AND THE SYSTEM WHICH
ALLOWS MEDIOCRE POLITICIANS WHO DO THE BARE MINIMUM TO CONTINUALLY RUN
FOR PUBLIC OFFICE
•
LACK OF REGARD ON THE USAGE OF NATURAL RESOURCES - THE MINING INDUSTRY
REMAINS EXTRACTIVE, WE DO NOT HAVE THE NECESSARY INDUSTRIES TO PROCESS
THEM AND THEY ARE EXPORTED TO BE PROCESSED BY OTHER COUNTRIES TO BECOME
PRODUCTS THAT WILL THEN BE SOLD TO US.
BENEFITS OF MINING IN THE PHILIPPINES

MINING INDUSTRY IN THE PHILIPPINES HAS BEEN A CONTROVERSIAL ISSUE ONCE
AGAIN, AS THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
(DENR) SECRETARY GINA LOPEZ ADVOCATES THE TOTAL BAN OF MINING FOR
RESPONSIBLE AND SUSTAINABLE MINING IN THE COUNTRY.

MINING IN THE PHILIPPINES HAS BEEN KNOWN EARLY AS YEAR 1521. THE
PHILIPPINES IS ACTUALLY THE FIFTH MOST MINERAL-RICH COUNTRY IN THE WORLD
FOR COPPER, NICKEL, GOLD AND CHROMITE. THIS HAS BEEN A HOME TO THE
LARGEST COPPER-GOLD DEPOSIT IN THE WORLD. ACCORDING TO MINES AND
GEO-SCIENCES BUREAU THE COUNTRY HAS $840 BILLION WORTH UNTAPPED
MINERAL WEALTH.

ALL REGIONS, EXCEPT NCR AND ARMM ALLOW MINING OPERATIONS. ABOUT 30
MILLION HECTARES OF LAND AREAS IN THE COUNTRY IS DEEMED AS POSSIBLE
AREAS FOR METALLIC MINERALS. THE LABOR OF DEPARTMENT STATISTICS SHOWS
THAT THE MINING IN THE COUNTRY HAS CREATED 211,000 JOBS IN 2011 ALONE.
THUS, THE GOVERNMENT SHOULD REALLY TAKE A STAND ON IMPLEMENTING ITS LEGAL
MEASURES ON MINING TO PREVENT DESTRUCTION ON MINERAL RESOURCES.
BELOW ARE THE LIST OF EFFECTS OF MINING INDUSTRY IN THE PHILIPPINES.
o
AIR- MINING HAS AN EFFECT ON THE QUALITY OF THE AIR. COAL MINES RELEASES
METHANE THAT CONTRIBUTES TO ENVIRONMENTAL ISSUES SINCE IT CONTAINS
GREENHOUSE GAS. SOME COOLING PLANTS MAY RELEASE THESE OZONE-DEPLETING
SUBSTANCES YET THE AMOUNT RELEASED IS JUST VERY SMALL. HEAVY METALS LIKE SULFUR
DIOXIDE IS POLLUTED INTO THE AIR BY UNSAFE SMELTER OPERATIONS WITH INSUFFICIENT
SAFEGUARDS.
o
WATER- WHEN SULFIDE IS OXIDIZED THROUGH CONTACT WITH AIR VIA MINING, IT FORMS
SULFURIC ACID AND WHEN THIS IS COMBINED WITH TRACE ELEMENTS, IT HAS A NEGATIVE
IMPACT ON GROUNDWATER. THIS HAPPENS BOTH SURFACE AND UNDERGROUND MINES.
o
LAND- IMPACTS ARE IMMENSE IN MINING WHICH INVOLVES MOVING LARGE QUANTITIES
OF ROCK AND IN SURFACE MINING. ALMOST ALL OF THE MINED ORE OF NON-FERROUS
METALS BECOME WASTE. MINING ACTIVITIES MIGHT AS WELL LEAD TO EROSION WHICH IS
VERY DANGEROUS FOR THE LAND. THIS ALSO LEADS TO DESTRUCTION OF RIVER BANKS
AND CHANGES HOW THE RIVER FLOWS, WHERE IT FLOWS, WHAT LIVES IN IT, ETC.
o
ECOSYSTEM- DEEP SEA MINES ARE AT RISK IN ELIMINATING RARE AND
POTENTIALLY VALUABLE ORGANISMS. MINING ALSO DESTROYS ANIMAL HABITATS
AND ECOSYSTEM. THOSE ACTIVITY THAT SURROUNDS THE MINE WHICH INCLUDES
EXPLOSIONS, TRANSPORTATION OF GOODS, ROAD CONSTRUCTION, THE
MOVEMENT OF PEOPLE, THE SOUND MADE, ETC. ARE ACTUALLY HARMFUL TO THE
ECOSYSTEM AND WILL CHANGE THE WAY ANIMALS HAVE TO LIVE SINCE THEY
WILL HAVE A NEW WAY TO COPE WITH THE MINE AND LIVE AROUND IT.
o
LOCAL COMMUNITIES- LOSS OF AGRICULTURAL AND LIVELIHOOD. DUE TO HUGE
ENVIRONMENTAL, SOCIAL AND CULTURAL COSTS, THIS PUTS EXTREME STRESS ON
HEALTH, FOOD SECURITY, DISPLACEMENT, AND RESPIRATORY DISEASES. MINING
COMPANIES WHO PROMISED TO PROVIDE SCHOLARSHIPS AND LIVELIHOOD TO
THE AFFECTED PEOPLE ARE MERE PALLIATIVES IN COMPARISON TO THE MASSIVE
ENVIRONMENTAL DESTRUCTION AND ARE LONG-TERM NEGATIVE HEATH IMPACTS
OF UNSUSTAINABLE MINING PRACTICES. MINING IS STILL CONSIDERED AS A
HAZARDOUS INDUSTRY, THOUGH IT HAS ITS ADVANTAGES YET THE
DISADVANTAGES FAR OUTWEIGH THE ADVANTAGES OF ITS EXISTENCE.

ON THE OTHER HAND, PRESIDENT RODRIGO DUTERTE ALSO SAID THAT
HE CHOSE TO APPOINT LOPEZ BECAUSE SHE SHARES HIS STAND ON
RESPONSIBLE MINING AND ENVIRONMENTAL CONSERVATION.

DUTERTE ALSO STATED THAT, THE FILIPINO PEOPLE OWN THE MINERAL
RESOURCES , HOWEVER THE CURRENT LAW DOES NOT PROVIDE FOR
PAYMENT FOR THESE RESOURCES.

MOREOVER, MINING CONTRIBUTES LITTLE TO THE ECONOMY, IT IS NOT A
HUGE EMPLOYMENT GENERATOR. THE TOTAL CONTRIBUTION OF
MINING IS ONLY 234,000 IN YEAR 2015 OR 0.6% OF TOTAL EMPLOYMENT
IN THE COUNTRY. THUS, THE CHALLENGE ON THE CURRENT
ADMINISTRATION IS TO CHAMPION AND INSTITUTIONALIZE THE GENUINE
REFORMS IN THE MINING SECTOR.
OVERVIEW

THE PHILIPPINES IS ENDOWED WITH US$ 1.4 TRILLION IN MINERAL RESERVES, INCLUDING
GOLD, COPPER, NICKEL, ALUMINUM, AND CHROMITE. THE MINING POTENTIAL IS ONE OF
LARGEST IN THE WORLD; BEING SECOND IN IN GOLD AND THIRD IN COPPER RESOURCES.
THE COUNTRY IS ALSO RANKED TOP FIVE IN THE WORLD FOR OVERALL MINERAL RESERVES,
ALTHOUGH LESS THAN 2% HAS RECEIVED MINING PERMITS.

THE GOVERNMENT HAS PROPOSED TO SIGNIFICANTLY RAISE TAXES ON THE MINING
INDUSTRY, AND WITH NATIONAL ELECTIONS TO BE HELD IN MAY 2016, THE INDUSTRY IS
WAITING TO SEE WHAT THE NEXT ADMINISTRATION’S POLICY WILL BE WHEN IT COMES TO
MINERALS DEVELOPMENT. THERE IS DISCUSSION TO DECLARE SOME JURISDICTIONS AS
“MINING-FREE” ZONES, BOTH THROUGH LOCAL ORDINANCES AND NATIONAL LAW.

THE PHILIPPINE MINING INDUSTRY IS PROMOTING THE PASSAGE OF A RATIONAL AND
COMPETITIVE MINING FISCAL REGIME THAT GIVES THE GOVERNMENT A FAIR SHARE IN
MINING REVENUES. IT WOULD ALLOW FOR INCLUSIVE GROWTH IN HOST COMMUNITIES,
AND GIVE INVESTORS SECURITY AND ALLOWS THEM A FAIR AND REASONABLE RETURN ON
THEIR INVESTMENTS.