Gov’t revises 2013 mining targets

MANILA, Philippines – The government has revised anew its mining investment projections for the next 4 years after the lifting of the moratorium on acceptance of new permit applications.

The investment inflows projection for 2013 was revised to $758.47 million from $718.47 as revised in November.

Mines and Geosciences Bureau (MGB) Director Leo Jasareno said there is still a possibility that investment inflows for 2013 may reach $1 billion, still below the previous $2 billion annual target set before the government introduced a new mining policy in July 2012.  

Previously, he expressed that this $1 billion target for 2013 is achievable. 

Investments in priority mining projects in various stages of development reached $791.69 million in 2012, data from the Mines and Geosciences Bureau (MGB) showed.

This already surpassed the revised expectations of $509.24 million for 2013.

Jasareno said he expects mining projects — such as the Toledo Copper Project of Atlas Consolidated Mining and Development Corp., Surigao Sumitomo HPAL project, Tampakan copper-gold project of Sagittarius Mines Inc. and Didipio copper-gold mine — to bring in substantial amounts of investment within the year.

Earlier, Sagittarius Mines, which owns the $5.9 billion Tampakan copper-gold project in South Cotabato, said they have moved the commencement of their $5.9 billion operations to 2019.

New policy, targets

The MGB in November 2012, slashed mining investment projections from 2012 to 2016 because of delays in the implementation of key projects amid industry concerns on the impact of Executive Order 79 issued by President Benigno Aquino III in July 2012.

The order imposed a moratorium on the acceptance of new permit applications pending the legislation of a new revenue sharing scheme and the identification of the so-called no go zones or areas where mining activities would be prohibited or restricted.

In March 2013, however, the MGB lifted the moratorium on the acceptance of applications for Exploration Permit (EP) and Financial or Technical Assistance Agreement (FTAA) as it completes the mapping of the no-go zones.

The moratorium on the mineral production sharing agreement (MPSA) will remain since EO 79 stipulates that “no new mineral agreements (MA) shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.”

The MGB grants three kinds of mining agreements to Filipino individuals and corporations: MPSA, Co-production Agreement, and Joint Venture Agreement. – Rappler.com