REVITALIZATION OF THE MINERALS INDUSTRY

MINES AND GEOSCIENCES BUREAU REGION 6

Department of Environment and Natural Resources

I. REVITALIZATION OF THE MINERALS INDUSTRY

In 2003, the government made a policy shift from mere tolerance to promotion for the revitalization of the minerals industry.  The government believed on the potential of the minerals sector to attract new investments, generate revenues for the government and provide additional jobs and livelihood opportunities.  However, these should be anchored on the basic principles of sustainable development.

Thus, the government undertook a social preparation process through the conduct of regional workshops and consultations, local and international mine visits and a national mining conference to thresh out the issues and concerns on mining.

After the 9-month engagement process, Executive Order No 270 or the National Policy Agenda on Revitalizing Mining in the Philippines was issued on 16 January 2004 with amendments on 20 April 2004 in EO 270-A..

It contained the 12 guiding principles for responsible mining towards sustainable development.  These principles are the points of convergence during the 9-month engagement process.

It also called for the formulation of a Minerals Action Plan (MAP) which will detail the strategies and activities for the attainment of the goals of EO 270/EO 270-A.

NEW PARADIGM ON MINING

  • Shift from tolerance to promotion in mining policies;
  • Promotion of mining as an engine for economic growth and in the alleviation of poverty in the countryside; and
  • Strict adherence to the principles of sustainable development.

NATIONAL POLICY AGENDA ON REVITALIZING MINING IN THE PHILIPPINES

  • Issuance of E.O. 270 or the National Policy Agenda on Revitalizing Mining in the Philippines was issued on January 16, 2004 and amended in E.O. 270-A on April 20, 2004.

12 GUIDING PRINCIPLES OF E.O. 270/270-A.

Economic principles

1.    Recognition of the critical role of investments in the minerals industry in support of national development and poverty alleviation goals;

2.  Provision of clear, stable and predictable investment and regulatory policies to facilitate investments;

3.  Development of downstream industries or value-adding of minerals;

4.  Support to small-scale mining in order to rationalize their activities;

5.  Adoption of efficient technologies to ensure judicious extraction and optimum utilization of non-renewable mineral resources;

Environmental principles

6.  Protection of the environment in every stage of mining operations;

7.  Safeguarding the ecological integrity of areas affected by mining;

8.  Pursuing mining within the framework of multiple land use;

9.  Rehabilitation of abandoned mines;

Social principles

10.          Ensuring the equitable of benefits among direct stakeholders;

11.          Sustained information, education and communication ((IEC) programs and respect for the rights of the indigenous people and communities; and

12.          Continuous and meaningful consultations with stakeholders.

MINERALS ACTION PLAN (MAP)

  • Formulated by DENR in consultation with other government agencies & stakeholders
  • Approved by the President thru Memorandum Circular No. 67 dated 13 September 2004
  • Contains 57 strategies & 126 activities to address the problems of mining
  • On-going implementation, with regular review of status and accomplishments with various sectors of civil society

MINERAL RESOURCES POTENTIAL OF THE PHILIPPINES

  • The Philippines ranks among the world’s most endowed countries in terms of mineral endowment, with a huge 30% identified as geologically prospective for metallic minerals alone in the approximately 30 million hectares of Philippine territory.
  • Yet, our mineral resources are vastly untapped.  To date only 1.4% (or about 240,000 hectares) of our country’s total land area is covered by mining permits.
  • There is an estimated 9 million hectares more of potential sites available for mineral rights approval and exploration.

ECONOMIC POTENTIAL OF THE PRIORITY PROJECTS UNDER THE

REVITALIZATION PROGRAM

  • Identified (23) priority medium to large-scale metallic mining projects under the Revitalization Program

Projected Economic Potential (2004)

US $ 90.8 B -        Estimated Gross value of mineral deposits

US $ 6.5  B   -        Foreign direct investments

US $ 3.4  B   -        Annual sales/foreign exchange

US $ 61.4 M  -        Annual excise tax on minerals

US $ 432 M   -        Annual corporate income tax

200,000       –        Additional direct & indirect employment

Economic Contributions of the Minerals Sector (FY 2006)

Indicators 2006
Gross Production Value P 68.4 Billion
Gross Value Added (contribution to GDP) P 14.1 Billion (1% of total GDP)
Total Exports US $ 2.06 Billion
Employment Contribution 141,000
Taxes, fees, royalties from mining P 6.3 Billion

II. MINERALS INDUSTRY PROFILE OF WESTERN VISAYAS

2.1. Minerals Resources Found in Region 6 :

Metallic

Gold

Aklan           Malinao, Madalag, Buruanga

Antique        Barbaza, Patnongon and Valderrama

Capiz            Cuartero and Maayon

Guimaras      Jordan and Nueva Valencia

Iloilo             Ajuy, Concepcion, Barotac Viejo, Dingle, Balasan, Lemery, Janiuay and Carles

Negros Occ. Hinoba-an, Cauayan, Sagay City and Sipalay City

Copper

Capiz            Madalag, and Pilar

Guimaras  Jordan and Nueva Valencia

Iloilo         Ajuy, Concepcion, Barotac Viejo, Dingle, Balasan

Negros Occ. Sipalay City and Hinobaan

Chromite

Capiz           Madalag

Manganese

Aklan           Ibajay, Nabas, Lezo and Tangalan

Antique     Belison, Pandan and Sibalom

Capiz Ivisan

Iloilo Anilao, Sara, San Dionisio, and San Joaquin

Negros Occ.  Kabankalan City and Calatrava

Iron

Antique       Libertad

Capiz           Roxas City and Ivisan

Guimaras     Jordan and Buenavista

Iloilo            Concepcion

Links: (Geologic Maps)

Geologic Map of Aklan

Geologic Map of Antique

Geologic Map of Capiz

Geologc Map of Guimaras

Geologic Map of Iloilo

Geologc Map of Negros Occidental

Non-Metallic

Marble

Aklan           Nabas

Antique        Libertad and Pandan

Silica

Aklan            Nabas, Malay and Ibajay, Aklan

Antique        Libertad

Guimaras      Buenavista and Jordan

Negros Occ. Hinoba-an and Sagay City

White Clay

Iloilo            Carles, Concepcion, San Dionisio, Batad

Red-burning Clay

Antique        Tibiao and Caluya

Iloilo            Ajuy, Leon, Oton, Sta. Barbara, San Miguel, Pototan, Tigbauan and Cabatuan

Negros Occ.  Silay City

Limestone

Aklan           Malay, Madalag and Buruanga

Antique        Culasi, Pandan and Libertad

Capiz            Pilar and Tapaz

Guimaras      Buenavista and Jordan

Iloilo            Dingle, Passi City, Carles and Dumangas

Negros Occ.  Cadiz City, Cauayan, Kabankalan City, Toboso, Sagay City, Escalante City, Cadiz City and Toboso

Guano and Phosphate Rock

Capiz            Dumalag, Dumarao, and Pilar

Guimaras      Buenavista and Jordan

Iloilo            Carles, Dingle, Passi City and Igbaras

Negros Occ.  Toboso, Sipalay City, Ilog, Calatrava and Escalante City

Semi-Precious Gemstones

Antique        San Remegio and Sibalom

Iloilo            San Joaquin

Aggregates (Sand and Gravel) Various river systems in the region

2.2.    Status of Large-Scale Mining Operations in Region6

  • At present, there are no large scale mining operations in Region 6.


See list of Approved/Pending Mining Rights Applications




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