Mining investment in the next 10 years is expected to grow by $22 billion to $30 billion, the Chamber of Mines of the Philippines (COMP) said on Thursday.
Given a favorable policy environment under President Rodrigo R. Duterte, mining industry’s big players, represented by COMP, are expected to infuse billion of dollars of investment into the local and national economy.
The mining sector’s contribution to the national economy in terms of GDP remains less than 1 percent, as mining’s so-called economic takeoff remains to be seen under the past 15 years under two administrations—nine years under President Gloria Macapagal-Arroyo’s mining- liberalization policy and six years under the Aquino administration’s mining-reform agenda.
Secretary Gina Lopez, President Duterte’s chosen alter ego in the Department of Environment and Natural Resources, however, is a known antimining advocate, and her appointment is expected to give the mining industry a hard time to achieve projected growth targets. Lopez’s appointment alone last week caused shocks in the Philippine stock market, affecting stock values of large-scale mining companies.
A list of potential mining investment from COMP revealed that the bulk of these investments will come from ongoing projects, as well as the inclusion of new projects, that will start commercial operation within the period of three to five years, during the six-year administration of Mr. Duterte.
The breakdown of these mining investments include $2.25 billion this year, $6 billion in 2017, $14.75 billion in 2018 and $2 billion in 2019, plus about $18 billion in exploration expenditures.
This include the $5.9-billion Tampakan Gold Project of Sagittarius Mines Inc. in South Cotabato, the $2-billion Silangan Project of Philex Mining Corp. in Surigao del Norte, the $2-billion Kingking Copper-Gold Project of Nationwide Development Corp. in Davao del Norte, the $2-billion Asiaticus project in Davao Oriental, the $2-billion from Lepanto Mining Corp. for its project in Benguet and a $2.5-billion project of Intex Resources for its Mindoro project.
The other investments are coming from Philsaga Mining in Masbate, worth $2 billion; Philnico (San Miguel Corp.), worth $2 billion for Surigao, Balabag; a $2-billion TVIRD project in Zamboanga del Sur; Global Ferronickel’s $250 million in Palawan; and the $350-million Balatoc project in Benguet.
These investments are expected to increase production and exports of minerals and metals, and produce an incremental export receipt of $2 billion annually.
The government, meanwhile, is expected to generate close to $50 million annually from mining, the COMP said.
These investments from mining will generate more than 3 million jobs in the next three to five years and more in indirect and induced employment in the rural areas.
Given the unhampered development of these projects, mining is expected to spur economic activities through creation of industries in rural areas and economic growth centers, the COMP added.
The COMP said it remains optimistic, and issued a statement congratulating Duterte as he took his oath of office as president along with other newly elected and reelected national and local officials.
The group vowed to work hand in hand with the Duterte administration for the national interest and expects President Duterte will support the industry’s growth, as well.
“Building a strong country does not rest on one man alone. It is a collective effort of pushing for an inclusive growth within the bounds of the law, honoring legitimate transactions and implementing transparency in all activities that affects the lives of the people,” the COMP said.
“Members of the Chamber of Mines of the Philippines vow to work for the national interest by fulfilling our obligations as prescribed by the law; by promoting the development of rural and indigenous communities and by complementing the delivery of government’s social services in education, health, livelihood and infrastructure. We shall continue investing in human development and environmental protection through our strengthened Environmental Protection and Enhancement Programs,” the COMP said.
According to COMP, its members will continue to adhere to the core values of discipline, accountability and integrity “in all that we do and expect the same from the Duterte administration.”