FOR THE PHILIPP FOR THE PHILIPPINE INE MINING MINING INDUSTRY: - PowerPoint PPT Presentation

THE REVITA THE REVITALIZATION LIZATION PROGRAM PROGRAM FOR THE PHILIPP FOR THE PHILIPPINE INE MINING MINING INDUSTRY: INDUSTRY: Str Stren engt gthe hening ning th the e Fo Foun unda dation tion to to Ensu Ensure re Co Comp mpet etitive itivene ness ss HO HORACIO IO C. . RAMOS OS Sec Secreta retary ry Dep epartme artment of nt of Environme Environment an nt and d Na Natura tural l Resou esource rces s Rep epub ubli lic of c of the the Phil Philippine ippines Asi sia a Mining ining Con ongre gress ss, , Marc arch 25 h 25, , 20 2010 10, , Singa Singapo pore re

PHILIPPINE PHILIPPINE MINING MINING INDUSTR INDUSTRY Y PERFOR PERFORMA MANCE NCE

MINING MINI NG IN INDU DUST STRY Y IN INDI DICA CATORS RS (2009/2010 (2009/2010-est) est) 2010 2010 2008 2008 2009 2009 (Projec (Pr ojections) tions) PhP1 Ph P106.5 .5 Bi Bill llion ion Gr Gross oss PhP PhP 87 87.0 B .0 Bil illion ion PhP138 PhP1 38.5 .5 Bil illi lion on (U (US$ S$ 2.2 2.22Bi Bill llion ion) Prod Pr oduc uction tion V Value alue (US$1 (U S$1.95Bi .95Bill llion) ion) (U (US$ 2.95 S$ 2.95Bil illi lion on) esti stima mate tes PhP Ph P 100.5 Bi .5 Bill llion ion Con Contribu tribution tion to to PhP Ph P 89.5 Bi .5 Bill llion ion PhP PhP 11 110.4 B 0.4 Bil illi lion on (U (US$ S$ 2.1 2.10 B Bil illi lion) ) GDP GDP (cu (curren ent t US$ S$2.01 .01 Bi Bill llion ion US$ US$2.30 2.30 Bil illi lion on (1.3% (1 .3%) ) (1 (1.2% .2%) ) (1 (1.4%) .4%) pr prices) ices) estima estimates tes Tota tal l Exp Exports ts of US$ US$ 2.720 2.720 Bil illion ion US$ S$2.48 .482Bi Bill llion ion US$2.98 US$ 2.980 0 Bil illi lion on Mi Mine nerals als an and d (5.4%) (5 .4%) (5.2% (5 .2%) (5 (5.4%) .4%) estimates estima tes Mi Mine neral al Pr Prod oduc ucts ts Taxes, s, Fees s and PhP PhP7.50 7.50 Bil illion ion PhP7.62 PhP7 .62 Bil illion ion PhP8.00 PhP8 .00 Bil illion ion Royalties alties esti stima mate tes Employmen Emplo yment t in in Mining Mi ning (an (and d 158,00 ,000 166,00 16 6,000 166,00 16 6,000 Quarrying) Qua ying)

OPE OPERA RATING TING MINES MINES Copper 8 Major Mines : Gold Masbate Gold Operation of Filminera-PGPRC Nickel Lepanto’s Victoria and Teresa Gold Mines Philex’s Padcal Copper Mine Chromite Rapu-rapu Polymetallic Project. Polymetallic Banahaw Gold Project, Philsaga Mining Corp. Processing Carmen Copper Project Plant Canatuan Copper-Zinc Project of TVI Resources 1 Medium-scale Chromite Mines Redondo Project of Krominco, Inc. 10 Medium-scale Nickel Mines Cagdianao Mining Corporation, Berong Nickel Project, Quezon, Dinagat Province Palawan Rio-tuba Nickel Mining Corp., Bataraza, Palawan Hinatuan Mining Corp. – CRAU Mineral Resources Corp. – Sta. Cruz-Candelaria Nickel Tagana-an Project, Surigao del Norte Project, Zambales Taganito Mining Corp. – Claver, CTP Constn, and Mining Corp. – Surigao del Norte ACT Project and Carrascal Nickel Projects, Surigao del Sur Platinum Group Metals – SR Metals Inc. – Tubay Nickel Cagdianao Nickel Project, Project, Agusan del Norte Surigao del Norte 4 Medium-scale Gold Mines Gold mine of Johnson Gold Mining Corporation Maco Mine, Apex Mining Company Inc. Diwalwal Direct State Development Project Acupan Gold Operations of Benguet 16 Cement Plants and Quarries 1 Nickel Processing Plant in Palawan 1 Copper Smelter (PASAR) in Leyte 2000+ Small scale mines and quarries

AP APPR PROVE VED D MIN MININ ING TEN TENEMEN EMENTS TS Total otal no no. of . of e exist xisting ing appr pproved ed mining mining tenements tenement Mi Mine neral al Pr Prod oduc uction tion Sharing Sharing 299 299 Ag Agree eemen ment t (MP (MPSA) SA) 4 Fina inancial ial or r Technica ical l Assistan Assistance ce Ag Agree eemen ment (FT t (FTAA) AA) Explor Exploration tion Per ermit mit (EP (EP) 56 56 Oth Other ers s (ISA (ISAG, , ML MLC/PL C/PLC/L C/LLC/SMP C/SMP , , 355 355 SME SMEP/MPP P/MPP) TOTAL AL 714 714 Only 853,950 hectares or 2.85% of the Philippine land area is covered by the 714 approved mining tenements

THE GOVERNMENT’S REVIT REVITALIZA ALIZATION TION PR PROGRA OGRAM M FOR FOR THE THE PHILIPPI PHILIPPINE NE MINING MINING INDUSTR INDUSTRY

PRE PRESIDENTIAL SIDENTIAL SUPP SUPPOR ORT T TO O MINING MINING Executive Order No. 270 The National Policy Agenda on Revitalizing Mining in the Philippines – Based on the policy declaration of H.E. President Arroyo in 2003; – Product of a 10-month consultation process among the 3 key stakeholders; – Led to (a) the development of the Miner Mi neral al Action Action Plan Plan , the current industry roadmap; and (b) the Mi Mine neral als creation of the De Develop elopmen ment Counc Council il , which was recently amended to include representatives from the Leagues of Provinces and of Municipalities of the Philippines and the creation of Regional MDCs.

TEN TEN BENEFITS BENEFITS OF THE OF THE REV REVIT ITALIZA ALIZATION TION PR PROGRAM OGRAM

1. Since 2004, investments from the Priority Projects has reached US$2.80 billion, with total investments up to 2013 estimated at around US$13.5 billion.

2. Increase in the number of operating mines from fourteen (14) in 2003 to twenty-three (23) in 2009 with five (5) more metallic mines (one gold and four nickel mines) plus a cement plant expected to operate in 2010. Number of Operating Metallic Mines 35 Number of Operating Mines 30 25 20 15 10 5 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year

PRIORIT PRIORITY Y MINERAL D MINERAL DEVEL EVELOPMENT OPMENT, , MINERAL PR MINERAL PROCESS OCESSING ING AND AND EXPLORA EXPL ORATI TION ON PR PROJECTS OJECTS OPERATING/EXPANSION PROJECTS FEASIBILITY/FINANCING STAGE • Lepanto Mining and Consolidated Corp. - Teresa Gold Project • Tampakan Copper Project • Philex Mining Corporation - Sto. Tomas II Cu Expansion Project • Silangan Copper Project • Rapu-rapu Polymetallic Project • Acoje Nickel HPAL Project • Philippine Associated Smelting and Refining • Runruno Gold Project • Berong Nickel Project • • Coral Bay Nickel Corp. - Palawan Ni Project (Line 1 &2) Nonoc Nickel Project • Surigao Integrated Resources Corporation - PGMC • Mindoro Nickel Project • Surigao Integrated Resources Corporation - CTP • Itogon Gold Project • TVI Canatuan – (Silver-Gold & Base Metal Projects) • Far Southeast Gold Project • Apex Mining Corp. - Maco Mine • • Philsaga Co-o (Gold & Gold Expansion Projects) King-King Copper-Gold Project • Tubay Nickel Project- SR Metals • Sta. Cruz Nickel Project-Eramen • Sta. Cruz Candelaria Nickel Project- CRAU • Balatoc Tailings Project-Benguet • Carmen (toledo) Copper Project • Rigid Lammin Iron Project • Filminera Masbate Gold Project • Carrascal Nickel Project- CNC/CTP • Oriental Mountain Top Nickel Project-Minahang Bayan ng Dinagat Is., Inc. • Urbiztondo South Nickel Project-Oriental Synergy • ADVANCED EXPLORATION STAGE Sta. Cruz Nickel Project-Benguet • Cantilan Nickel Project- Marcventures • Colet Mining – Colet Cu/Au Project • Casiguran Nickel Project-Century Peak • MRL Gold – Agata Cu/Au/Ni Project • TVI – Balabag Project • Hallmark Mining/BHP Billiton – Pujada Ni Project CONSTRUCTION AND DEVELOPMENT STAGE • Didipio Copper-Gold Project • Iligan Ferronickel Smelter Plant OTHER PROJECTS • Manticao Ferronickel Smelter Plant • PMDC – Amacan Cu/Au Project • Akle Cement Project • PMDC – Batong Buhay Cu/Au Project • Surigao Sumitomo HPAL Project • PMDC – Diwalwal Direct State Utilization • Siana Gold Project Project • Isabel Nickel Project • Tiboli Gold Project 4/5/2010

PR PROJECTS OJECTS IN THE IN THE AD ADVANCE ANCE ST STAGE GE • Siana Gold Project – Greenstone Resources Corporation • Sta. Cruz Nickel Project – Benguet Corporation • – Cantillan Nickel Project Marcventures Mining and Development Corporation • Casiguran Nickel Project – Century Peak Corporation • Urbiztondo South Nickel Project – Oriental Synergy Mining Corporation • Zinc Plant - Canatuan Base Metal Project – TVI Resources Development Philippines, Inc. • Akle Cement Project – Eagle Cement Corporation

Increase in the production volume for the country’s top three mineral 3. produce – gold, copper, and nickel. The increase is very evident in the case of nickel which increased by 651% over a five (5) year period (from 21,150 MT in 2003 to 137,351 MT in 2009) in view of the operation of new mines, higher demand and favorable price and in copper which increased by 141% over the same period (from 20,414 MT in 2003 to 49,060 in 2009). With a number of projects currently being developed or subject of on-going feasibility studies, gold and copper production is expected to increase within the next three to four years. NICKEL DIRECT SHIPPING ORE PRODUCTION VOLUME (1997-2009) 9000.00 8000.00 7000.00 6000.00 THOUSAND DMT 5000.00 4000.00 3000.00 2000.00 1000.00 0.00 1999 2000 2001 2002 2003 2004 2005 1997 1998 2006 2007 2008 2009 YEAR