| On
January 17-19, 2005, Department of Environment and Natural Resources
(DENR) Secretary Michael T. Defensor, along with Department of Trade
and Industry (DTI) Secretary Cesar Purisima and Chamber of Mines
of the Philippines (CMP) president Philip Romualdez, led a Philippine
delegation to China in a roadshow to discuss with officials of the
Chinese government possible investment opportunities and cooperation
in mining. Upon his arrival in the Philippines, DENR Secretary Defensor
reported the following accomplishments resulting from the roadshow:
1.
The Chinese Ministry of Commerce and DTI Secretary Purisima agreed
in the ministerial level that they would encourage and push mining
investment and cooperation with Chinese corporations in the Philippines.
2.
A memorandum of understanding (MOU) was entered into between the
DENR, the Philippines Chamber of Mines and the China Metallurgical
Corporation to invest in several mining projects in the country.
3.
Alongside the MOU, China Metallurgical Corporation also signed a
letter of intent for an investment of US$100 million in the Philippines.
4.
Defensor also reported a pledge from another Chinese firm to invest
US$200 million for a mining project in the country. The signing
of the intent will be held during a mining conference to be called
by President Gloria Macapagal-Arroyo in Manila next month (February).
5.
Defensor also reported that his team was able to negotiate with
other Chinese companies to invest in the country’s nickel
mining projects. He said that Jinchuan Non-Ferrous Metals Corporation,
the biggest nickel corporation in China, and Shanghai Baosteel Group
Corp. are intending to invest $1 billion in Philnico, a mining firm
located in Surigao del Norte. Negotiation on this is expected to
be finalized within a month, according to Defensor.
6.
“The investment in Filnico will be the single biggest investment
of a Chinese corporation, so far, in a nickel mining company in
the Philippines”. Defensor said.
7.
Defensor said that they have already discussed the re-structuring
of the debt of Filnico as the company is under the Asset Privatization
Trust.
8.
During the roadshow, the DENR was also able to conclude negotiations
for another $300 million in new investment from a Chinese glass
manufacturing company. The company will occupy a 70-hectare area
in Subic Bay. Defensor said the company will bring its corporate
and technical people to the Philippines by the end of the month
(January) to finalize the relocation.
9.
Optimism on the Philippines’ mining potentials was confirmed
with the Chinese government’s pledge to send a delegation
composed of 100 participants in the International Mining Conference
to be held on February 2-4, 2005 in Manila.
Backgrounder
1.
Local and foreign investors will pump US$6 billion in investments
with the start of 23 major mining operations within the next six
years.
2.
Also expected to become active during the period are 37 exploration
projects with annual expenditures worth US$92 million.
3.
The 23 mining projects now in the pipeline have the capacity to
generate $3 billion in annual gross sales, $61.4 million in excise
tax and income tax worth $434.3 million annually.
4.
Click here
for the profile of the 23 mining projects.
January
25, 2005
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