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
Department of Environment and Natural Resources
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;
Department of Environment and Natural Resources
Republic of the Philippines
ISSUES ON MINING
• GOVERNANCE AND LAW
ENFORCEMENT
CONCERNS;
Department of Environment and Natural Resources
Republic of the Philippines
ISSUES ON MINING
• LACK OF TOTAL ECONOMIC
VALUATION FOR THE MINING
INDUSTRY;
Department of Environment and Natural Resources
Republic of the Philippines
ISSUES ON MINING
• INSUFFICIENT GOVERNMENT SHARE IN MINING
REVENUES; AND
• ADVERSE EFFECTS OF ENVIRONMENTAL
DEGRADATION AND CLIMATE CHANGE.
Department of Environment and Natural Resources
Republic of the Philippines
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
Department of Environment and Natural Resources
Republic of the Philippines
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
Department of Environment and Natural Resources
Republic of the Philippines
HIGHLIGHTS OF THE NEW MINING
POLICY
Clarifying the Areas Closed to Mining
Applications.
Full Enforcement of Environmental Standards.
Sibuyan Island
Department of Environment and Natural Resources
Republic of the Philippines
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.
Department of Environment and Natural Resources
Republic of the Philippines
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.
Department of Environment and Natural Resources
Republic of the Philippines
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.
Department of Environment and Natural Resources
Republic of the Philippines
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
Department of Environment and Natural Resources
Republic of the Philippines
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
Department of Environment and Natural Resources
Republic of the Philippines
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.
Department of Environment and Natural Resources
Republic of the Philippines
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
Department of Environment and Natural Resources
Republic of the Philippines
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.
Department of Environment and Natural Resources
Republic of the Philippines
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.
Department of Environment and Natural Resources
Republic of the Philippines
THANK YOU and
MABUHAY…..
Department of Environment and Natural Resources
Republic of the Philippines
