MAKA-KALIKASANG UMAGA PO SA INYONG LAHAT!

HISTORY AND POTENTIALS OF THE MINERALS INDUSTRY:

WE ARE HERE TODAY TO ADDRESS AN INDUSTRY THAT HAS INCREASINGLY CAPTURED THE MINDS OF MORE AND MORE PEOPLE OF OUR SOCIETY: THE MINERALS INDUSTRY.

THE PHILIPPINE MINERALS INDUSTRY HAS A LONG HISTORY THAT CAN BE TRACED BACK TO THE 10TH CENTURY. THIS WAS THE TIME WHEN SUCH METALS AS GOLD, COPPER AND IRON WERE BEING BARTERED FOR HOUSEHOLD WARES WITH CHINESE TRADERS.

CHALLENGES FACING THE MINERALS INDUSTRY:

I DO BELIEVE THAT WE SHOULD OPTIMIZE THE NATURAL RESOURCES GOD HAS GIVEN US. THIS INCLUDES MINERAL RESOURCES. EVEN THE WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT AFFIRMED THAT RESPONSIBLE MINING CAN REALLY CONTRIBUTE TO SUSTAINABLE DEVELOPMENT. PARAGRAPH 6 OF ITS PLAN OF IMPLEMENTATION RECOGNIZES THE IMPORTANCE OF MINING, MINERALS AND METALS TO THE ECONOMIC AND SOCIAL DEVELOPMENT OF MANY COUNTRIES. IT FURTHER TAKES NOTE THAT TO ENHANCE THEIR CONTRIBUTION TO SUSTAINABLE DEVELOPMENT, THERE IS A NEED TO ADDRESS THE ENVIRONMENTAL, ECONOMIC, HEALTH ANDSOCIAL IMPACTS AND BENEFITS AND ENHANCE THE PARTICIPATION OF STAKEHOLDERS THROUGHOUT THE LIFE CYCLES OF MINING OPERATIONS.

SECTION 2, ARTICLE XII OF THE PHILIPPINE CONSTITUTION PROVIDES THAT THE EXPLORATION, DEVELOPMENT AND UTILIZATION OF MINERAL RESOURCES SHALL BE UNDER THE CONTROL AND SUPERVISION OF THE STATE. SECTION 1 OF THE SAME ARTICLE ALSO PROVIDES THAT THE ALL SECTORS OF THE ECONOMY AND ALL REGIONS OF THE COUNTRY SHALL BE GIVEN OPTIMUM OPPORTUNITY TO DEVELOP. ON THE OTHER HAND, SECTION 16 PROVIDES FURTHER THAT IT IS THE STATE’S POLICY TO PROTECT AND ADVANCE THE RIGHT OF PEOPLE TO A BALANCE AND HEALTHY ECOLOGY IN ACCORD WITH THE RHYTHM AND HARMONY OF NATURE.

BUT FOR MANY YEARS, THE INDUSTRY WAS PERCEIVED TO HAVE FOCUSED ON ONLY ONE ASPECT OF SUSTAINABLE DEVELOPMENT, SPECIFICALLY ECONOMIC DEVELOPMENT. WE HAVE OVERLOOKED THE OTHER CRUCIAL PILLARS OF SUSTAINABLE DEVELOPMENT – ENVIRONMENTAL PROTECTION AND SOCIAL DEVELOPMENT.

FORTUNATELY, ENVIRONMENTAL PROTECTION AND SOCIAL DEVELOPMENT ARE NOW ENSHRINED IN THE PHILIPPINE MINING ACT OF 1995 AND IN RELATED ENVIRONMENTAL LAWS.

THE PHILIPPINE MINING ACT OF 1995 PROVIDES THAT “IT SHALL BE THE RESPONSIBILITY OF THE STATE TO PROMOTE THE RATIONAL EXPLORATION, DEVELOPMENT, UTILIZATION AND CONSERVATION OF MINERAL RESOURCES THROUGH THE COMBINED EFFORTS OF GOVERNMENT AND THE PRIVATE SECTOR IN ORDER TO ENHANCE NATIONAL GROWTH IN A WAY THAT EFFECTIVELY SAFEGUARDS THE ENVIRONMENT AND PROTECT THE RIGHTS OF AFFECTED COMMUNITIES.”

FOR ITS PART, THE MINERALS INDUSTRY HAS LONG RECOGNIZED THAT ITS SHARE IN NATION-BUILDING EXTENDS BEYOND PAYING THE APPROPRIATE TAXES AND FEES TO GOVERNMENT. IT HAS NOW LEARNED THE VALUE OF TAKING CARE OF THE ENVIRONMENT AND THE HOST COMMUNITIES.

AS WE ALL KNOW, THE EXTRACTIVE NATURE OF THE MINERALS INDUSTRY HAS ALSO BROUGHT ABOUT SERIOUS CHALLENGES. THEREFORE, THE NEED TO PROTECT THE ENVIRONMENT, ECOLOGY, HEALTH AND SOCIAL CONDITION OF THE POPULATION IS ALSO ENSHRINED IN OUR STATUTES. INDEED, WITH THE INCREASING AWARENESS TO SECURE A FRAGILE WORLD, PEOPLE ARE NOW SHOWING MORE CONCERN AND TAKING MORE INITIATIVES TO CHART THEIR FUTURE. GONE ARE THE DAYS WHEN DEVELOPMENTAL PROJECTS CAN BE EASILY LAUNCHED WITHOUT THE INVOLVEMENT OF THE HOST COMMUNITIES. IT HAS BECOME A REALITY THAT THE DECISION OF ALLOWING ANY DEVELOPMENT PROJECT, INCLUDING MINING PROJECTS, NOW TAKES MORE THAN JUST ACQUIRING A PERMIT.

THE OPPOSITION TO MINING IN THE PHILIPPINES DID NOT COME FROM PURE IMAGINATION. THAT MINING IS AN ENVIRONMENTAL DESPOILER IS GIVEN CREDENCE BY THE SO-CALLED LEGACY MINES. THESE ARE MOSTLY THE MINES ABANDONED BY THEIR OWNERS AND LEFT TO THE ELEMENTS. MILL TAILINGS SPILL INCIDENTS SUCH AS THE WORLD FAMOUS MARCOPPER INCIDENT HIGHLIGHTED THE NEGATIVE IMPACTS OF IRRESPOSIBLE MINING. ACCOUNTS OF DISPLACEMENT OF INDIGENOUS PEOPLES AND DEGRADATION OF THE ENVIRONMENT BROUGHT ABOUT BY MINING PROJECTS WORSENED THE SITUATION. QUESTIONS OF PRINCIPLES FURTHER FUELED THE DEBATES, SUCH AS THOSE ON SOCIAL EQUITY AND DEVELOPMENT, NATIONAL PATRIMONY AND EVEN SUSTAINABILITY.

BUT THERE HAS TO BE A COMMON GROUND, WHEN OBJECTIVES ARE SHARED .

INDICATIVE POLICY FRAMEWORK AND GUIDING PRINCIPLES ON RESPONSIBLE MINING:

THE GOVERNMENT RECOGNIZES THE CRITICAL ROLE OF INVESTMENTS IN THE MINERALS INDUSTRY, PARTICULARLY IN THE FIGHT TO ALLEVIATE POVERTY. IT IS, THEREFORE, THE POLICY OF GOVERNMENT TO PROMOTE RESPONSIBLE MINERAL RESOURCES EXPLORATION, DEVELOPMENT AND UTILIZATION IN A MANNER THAT ADHERES TO THE PRINCIPLES OF SUSTAINABLE DEVELOPMENT. TOWARDS THIS END. PROVIDING THE NECESSARY SUPPORT MECHANISMS FOR A SUSTAINED MINERAL EXPLORATION PROGRAM, RESPONSIVE RESEARCH AND DEVELOPMENT PRIORITIES AND CAPABILITY BUILDING FOR INDUSTRY MANPOWER, WILL ENSURE THAT THE FUNDAMENTALS FOR A VIBRANT MINERALS INDUSTRY ARE IN PLACE.

CLEAR, STABLE, PREDICTABLE AND HARMONIZED INVESTMENT AND REGULATORY POLICIES SHALL BE INSTITUTED, TO PROVIDE FOR A LEVEL PLAYING FIELD AND LESSEN COUNTRY RISK. IN CONJUNCTION, THE PERMITTING SYSTEM HAS TO BE SIMPLIFIED AND STREAMLINED TO FACILITATE INVESTMENTS AND THE GENERATION OF JOBS AND INCOME.

THE PURSUIT OF MINING WITHIN THE FRAMEWORK OF MULTIPLE LAND USE SHALL BE CLEARLY LAID OUT, TO PROVIDE A WORKING ARRANGEMENT TO COMPETING LAND USES AND, THEREBY, ENHANCE LAND ACCESS FOR MINERAL EXPLORATION AND STILL PROVIDE FOR THE OTHER DEMANDS ON THE LAND AND NATURAL RESOURCES THEREIN.

HOWEVER, A MINING PROJECT”S LICENSE TO OPERATE DEPENDS NOT ONLY ON THE CAPABILITY TO MEET ITS ECONOMIC OBJECTIVES, BUT ALSO IN ITS CAPACITY TO ABSORB THE SOCIAL AND ENVIRONMENTAL COSTS. IN THIS RESPECT, THE PROTECTION OF THE ENVIRONMENT AND ECOLOGICAL INTEGRITY OF AFFECTED AREAS SHALL BE OF PARAMOUNT CONSIDERATION. PROGRESSIVE REHABILITATION MEASURES SHALL BE INTEGRAL COMPONENTS OF EVERY MINING OPERATION.

THE REMEDIATION AND REHABILITATION OF ABANDONED MINES AND PURSUING ACCOUNTABILITY, WITHIN EXISTING LEGAL JURISPRUDENCE, SHALL BE ACCORDED TOP PRIORITY TO ADDRESS THE NEGATIVE IMPACTS OF MINING. WE RECOGNIZE THAT THIS IS THE SINGLE BIGGEST SOURCE OF CONCERN AND LACK OF CONFIDENCE IN THE DEVELOPMENT OF THE MINERALS INDUSTRY. THIS WILL REQUIRE CONSIDERABLE AMOUNT OF RESOURCES. BUT WE WILL NOT ALLOW OURSELVES TO BE IDLE AND DO NOTHING WHILE WAITING FOR THE RESOURCES TO COME. TO CITE AN EXAMPLE, WE HAVE ALREADY CREATED A MULTI-SECTORAL TEAM FROM OUR ENVIRONMENT, FORESTRY, BIODIVERSITY AND MINING TO ASSESS THE ABANDONED BAGACAY MINES IN SAMAR AND INITIATE DOABLE MEASURES WITHIN OUR EXISTING RESOURCES AND TECHNICAL CAPABILITIES. WE HAD MANDATED MARICALUM TO REHABILIATE ITS ABANDONED TAILINGS POND TO PREVENT DUST STORMS WHICH AFFECT THE HEALTH OF THE PEOPLE IN SIPALAY, NEGROS OCCIDENTAL. WHILE THERE WAS HARDLY ANY VEGETATIVE COVER WHEN I ASSUMED OFFICE, THE AREA IS NOW FULLY PLANTED.

VALUE-ADDING AND ADOPTING EFFICIENT AND CLEANER PRODUCTION TECHNOLOGIES ARE ALSO NECESSARY TO ACHIEVE GREATER PRODUCTIVITY, AND OPTIMIZE THE UTILIZATION OF MINERALS TO ENHANCE SUSTAINABILITY. WE SHOULD NOT ALLOW OURSELVES TO BE MERE EXPORTER OF RAW MINERAL RESOURCES. WE NEED TO DEVELOP FURTHER THE VERTICAL AND HORIZONTAL LINKAGES AND THE FORWARD AND BACKWARD INTEGRATION OF OUR MINERALS INDUSTRY TO ENSURE GREATER BENEFITS TO OUR COUNTRY AND OUR PEOPLE.

AND WHILE GOVERNMENT IS WELL AWARE OF THE CAPITAL-INTENSIVE NATURE OF MINING PROJECTS, IT DOES NOT LOSE SIGHT OF THE FACT THAT THE MINERALS INDUSTRY IS ALSO HOST TO THOUSANDS OF SUBSISTENCE MINERS. OUR APPROACH IN DEALING WITH THE SOCIAL ISSUES IN DIWALWAL HAS SET THE TONE OF OUR POLICY. THIS WILL BE PRESENTED IN MORE DETAIL IN THIS CONFERENCE. SMALL-SCALE MINING SHALL BE PROMOTED AS A FORMAL SECTOR OF THE INDUSTRY, TO EXTEND THE BENEFITS OF MINING FARTHER DOWN TO THE LESS PRIVILEGED SECTORS OF SOCIETY. THIS SHALL BE PART OF GOVERNMENT’S BIGGER THRUST OF ENSURING THAT THE ECONOMIC AND SOCIAL BENEFITS OF MINING ARE EQUITABLY SHARED BY AND AMONG THE VARIOUS UNITS OF GOVERNMENT AND THE AFFECTED COMMUNITIES.

CONTINUING DOUBTS SHOULD BE FACED SQUARELY THROUGH A SUSTAINED INFORMATION, EDUCATION AND COMMUNICATION CAMPAIGN PURSUED JOINTLY BY GOVERNMENT, THE INDUSTRY AND OTHER STAKEHOLDERS. ALONG WITH A CONTINUOUS MEANINGFUL CONSULTATION PROCESS WITH THE INDUSTRY AND ALL STAKEHOLDERS IN RESOURCE MANAGEMENT POLICY AND PLANNING, WE NEED TO FURTHER ENHANCE PUBLIC AWARENESS AND EDUCATION TO ENSURE THAT INFORMED DECISIONS ARE TAKEN BY ALL.

THE NATIONAL MINING CONFERENCE: PROCESS AND EXPECTATIONS:

THIS NATIONAL MINING CONFERENCE MARKS A MILESTONE IN OUR PURSUIT OF RESPONSIBLE MINING, GIVEN THE SIGNIFICANT DEVELOPMENTS IN THE AREAS OF ENVIRONMENTAL PROTECTION, SOCIAL EQUITY, BIODIVERSITY, INDIGENOUS PEOPLES AND MINING TECHNOLOGIES. IT ALSO MARKS A LEAP FORWARD TO REVITALIZE THE MINERALS INDUSTRY AS ENUNCIATED BY THE PRESIDENT EARLY THIS YEAR, ESPECIALLY SINCE THIS CONFERENCE INVOLVES DISCUSSING ISSUES AIMED AT INSTITUTING CLEAR, STABLE AND HARMONIZED POLICIES AND MEASURES USING THE MULTI-STAKEHOLDERSHIP APPROACH. MORE IMPORTANTLY, IT WILL MARK THE FIRST TIME IN RECENT MEMORY THAT A NATIONAL FORUM ON MINING OF THIS MAGNITUDE IS CONVENED BY GOVERNMENT TO ADDRESS NATIONAL CONCERNS AND ENSURE THE CONTINUED CONTRIBUTION OF MINERALS TO ECONOMIC GROWTH AND POVERTY ALLEVIATION.

AT THE MOMENT, WHILE THE PHILIPPINES IS RECOGNIZED TO BE RICH IN MINERAL RESOURCES, WE HAVE AN INDUSTRY THAT IS BELOW US$ 1 BILLION IN ANNUAL SALES, LOWER THAN THE US$ 3.6 BILLION OF INDONESIA AND MUCH LOWER THAN THE US$ 13 BILLION OF CHILE. AND, VIETNAM IS FAST CATCHING UP.

THE ROAD THAT WE TOOK LEADING TO THIS CONFERENCE HAS NOT BEEN AN EASY ONE. WITH THE WIDE DIVERSE VIEWS FROM GROUPS OF DIFFERENT PERSUASIONS, REACHING A CONVERGENCE IS DIFFICULT. THIS EXPLAINS WHY THE CONFERENCE FURTHER MARKS A MILESTONE IN THE PROCESS OF MEANINGFUL ENGAGEMENT AMONG THE GOVERNMENT, INDUSTRY AND CIVIL SOCIETY, WHICH WAS INITIATED ABOUT NINE MONTHS AGO.

THAT PROCESS INVOLVED A SERIES OF SUSTAINED INTERACTIONS AMONG THE 3 KEY STAKEHOLDERS - REGIONAL WORKSHOPS, ISLAND GROUP WORKSHOPS FOR LUZON, VISAYAS AND MINDANAO - TO BRING THE ENGAGEMENT DOWN TO THE GRASSROOT LEVEL, VISITS TO MINING AREAS IN THE REGIONS TO ASSESS AND HAVE A GRASP OF ACTUAL SITUATIONS, AND INTERNATIONAL MINE VISITS IN PERU, CANADA AND AUSTRALIA TO LEARN FROM THE EXPERIENCES OF THESE COUNTRIES.

MUCH EARLIER, THE DEPARTMENT HAD STARTED A LONG SERIES OF PRESENTATIONS TO VARIOUS STAKEHOLDERS AS FAR BACK AS FOUR YEARS AGO. THIS CONFERENCE, THEREFORE, TAKES THE FORM OF A NATIONAL CONSULTATION TO INTEGRATE ALL THE DISCUSSIONS, LESSONS AND EXPERIENCES DERIVED FROM THE ENGAGEMENT PROCESS.

WE EXPECT THE CONFERENCE TO SERVE AS A VENUE FOR ELUCIDATING THE VARIOUS PERSPECTIVES BY THE GOVERNMENT, INDUSTRY AND CIVIL SOCIETY ON MINING. SO IT SHALL FOCUS ON PRIORITY AREAS OF CONCERN IN MINING: ENVIRONMENTAL PROTECTION AND ECOLOGY, INCLUDING ABANDONED MINES; SOCIAL AMELIORATION, INCLUDING THE COMMUNITIES, SMALL - SCALE MINERS AND INDIGENOUS PEOPLES; CORPORATE GOVERNANCE; AND THE CRITICAL ROLE OF MINING IN POVERTY ALLEVIATION AND ECONOMIC GROWTH. WE HOPE TO LEARN FROM THE EXPERIENCES OF OTHER COUNTRIES THAT HAVE FACED CHALLENGES SIMILAR TO OURS.

CLOSING: THE ROAD AHEAD AND NEED FOR MULTI-STAKEHOLDERSHIP APPROACH:

ALMOST A YEAR AGO, THE PRESIDENT MADE THE PRONOUNCEMENT ABOUT THE GOVERNMENT’S POLICY SHIFT FROM TOLERANCE TO PROMOTION OF MINING. THIS PRONOUNCEMENT RECOGNIZES THE HISTORICAL NEED FOR ECONOMIC GROWTH TO FIGHT POVERTY. GOVERNMENT IS VERY MUCH AWARE THAT OUR ASIAN NEIGHBORS ARE ON THEIR WAY TO RECOVERY AND THAT WE CANNOT AFFORD TO MISS THE OPPORTUNITIES AND BE LEFT BEHIND AGAIN. TO REALLY DEVELOP THE ECONOMY AND CREATE A STRONG REPUBLIC, THERE HAS TO BE TRUE REFORMS IN THE WAY OF POLITICS AND THE ECONOMY. AMONG THE REFORMS IDENTIFIED WAS THE REFORM OF MINING POLICY, TO MAKE IT A POTENT FORCE IN WINNING THE FIGHT AGAINST POVERTY.

MAKE NO MISTAKE THAT WE REFER ONLY TO RESPONSIBLE MINING. THE TRIPLE BOTTOM LINE OF THE PRINCIPLES OF SUSTAINABLE DEVELOPMENT, THAT IS, THE ECONOMIC, ENVIRONMENTAL AND SOCIAL CONSIDERATIONS, WE SHALL KEEP WATCH INCESSANTLY.

WE RECOGNIZE THAT THE CHALLENGES ARE FORMIDABLE. IN THE EFFORT TO IMPROVE THE QUALITY OF LIFE OF ITS PEOPLE, GOVERNMENT WILL ALWAYS TAKE TOUGH DECISIONS, BELIEVING THAT THESE ARE THE RIGHT DECISIONS. IT MAY NOT ALWAYS BE POPULAR, BUT WHAT COUNTS MOST IS BY ALLOWING STAKEHOLDERS TO CONTINUE TO ENGAGE IN OPEN AND MEANINGFUL DISCUSSIONS, GOVERNMENT IS PROVIDED WITH THE GUIDANCE TO ENSURE THAT IT IS ABLE TO UTILIZE OUR MINERAL RESOURCES AS A POTENT TOOL FOR ECONOMIC GROWTH, SOCIAL EQUITY AND POVERTY ALLEVIATION.

WE DO NOT AND SHOULD NOT EXPECT CONSENSUS ON ALL ISSUES. BUT IT IS ONLY RIGHT THAT WE WORK TOGETHER FOR THE GREATEST GOOD OF THE GREATEST NUMBER.

IN CLOSING, WE SHOULD LIVE UP TO THE MEANING OF “AURUM,” THE LATIN WORD FOR GOLD MEANING “GLOWING DAWN.” I BELIEVE THAT GOVERNMENT AND THE VARIOUS SECTORS OF THE PHILIPPINE MINERALS INDUSTRY MUST WORK HAND-IN-HAND TO ACHIEVE A GOLDEN FUTURE FOR THE INDUSTRY, THE COMMUNITIES, AND THE COUNTRY.

TOGETHER WE CAN MAKE A DIFFERENCE.

I HOPE THAT WE WILL ALL HAVE A PRODUCTIVE CONFERENCE.

MARAMING SALAMAT AT MABUHAY PO KAYONG LAHAT!