Department of Environment and Natural Resources (DENR) Secretary Angelo T. Reyes on Tuesday announced that he has approved additional 11 mineral agreements and exploration permits, a move that will prop up more activities in the mining industry and is expected to bring in at least P224.7 million in investments in the next two years.

Reyes made the announcement before global mining leaders attending the Asia Pacific Mining Conference and Exhibition 2007 at the Shangri-la Hotel in Makati City. The conference, organized by the ASEAN Federation of Mining Associations and the Chamber of Mines of the Philippines, is showcasing the mining industries of the various Asia Pacific countries including the Philippines.

Stressing that the Philippines is serious in its effort to build up a competitive mining industry, Reyes also announced three more crucial policy reforms that would facilitate the grant of mining contracts.

Topping these reforms is the simplification of procedures in the grant of mining permits particularly by reducing the time for posting of mining application, and streamlining the requirements on National Commission on Indigenous Peoples (NCIP) clearance and endorsements from local government units.

Reyes said the DENR is also issuing in the coming weeks an order that will delegate the approval of new exploration permits (EP) to the Regional Directors of the Mines and Geosciences Bureau (MGB), and their renewal to the MGB national Director.

The Environment chief said he shall also soon issue a policy to cleanse non-performing applications and mining permits, a move that will likewise strengthen security of tenure of mining contracts.

Just last week, Reyes issued an order that transferred the disposition of 65 previously cancelled permits from the MGB to the Philippine Mining Development Corp. (PMDC), thus opening up over 68,000 hectares of mineral land for development by more serious investors.

11 new projects
The 11 newly approved projects include 6 mineral production sharing agreements (MPSA) and 5 exploration permits.

Granted MPSAs were: Hard Rock Mineral Trading Inc. for the exploration and development of nickel and cobalt deposits in Zamboanga City; two separate MPSAs for East Coast Mineral Resources Co. Inc. to be operated by Cagdianao Mining Corp., one for nickel, cobalt, chromite and iron development in Loreto, Surigao del Norte, and another project involving the same minerals in Libjo, Surigao del Norte; Holcim Philippines Inc. for exploration and development of limestone in La Union; Apex Mining Co. Inc. for gold, copper, silver and zinc development in Compostela Valley; and Berong Nickel Corp. for development of nickel, cobalt, chromite and iron deposits in Palawan.

EPs signed included: Ivanhoe Philippines Inc. for the exploration of copper and gold in Bohol; three EPs for Colossal Mining Corp. for exploration of magnetite sand in three separate offshore areas in Cagayan, Laoag City and Ilocos Sur; and Norte de Oro Mining and Industrial Corp. for the exploration of copper and gold in Bukidnon.

Some P196.35 million in investments are expected to flow from the initial exploration activities of the 6 new MPSAs. About P28.44 million in initial exploration funds have been allocated for the five new EPs.

Six of the 11 new projects have foreign partners. Ivanhoe Philippines is a subsidiary of Ivanhoe Holdings of British Virgin Island, while Berong Nickel is affiliated with Toledo Mining Corp. PLC, a company listed in the London Stock Exchange. Apex Mining is controlled by Crew Gold Corp. of Canada, and Colossal Mining is a partner of Bonaparte Diamond Mines NL, the only company in Australia that conducts marine diamond exploration.

Reyes said the new developments undertaken by the DENR for the minerals industry emphasize the strong desire of the government to revitalize a sector that he believes could serve as a development and growth driver for the economy.

“We are desirous in sustaining the growth momentum of our minerals industry, for sustained economic growth, for a better quality of life for the Filipino people and mining communities, and for protection of the environment,” Reyes said.

Latest economic figures from the National Statistics Coordination Board revealed that mining and quarrying escalated from a 1.8 % growth in the first quarter last year to 11% expansion this year. Mining and quarrying accounted for 1.75% of the country’s Gross Domestic Product.

These indicators are seen to further improve with more and more projects advancing to development and construction, and production, Reyes said.

June 5, 2007