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Sunday, April 13, 2008

 

Investors see rapid growth for Filipino-owned mining operations

 
Mining as a goldmine of opportunity for a struggling country such as the Philippines is an accepted fact. But it’s an opportunity fraught with inherent danger if left in the hands of fundamentally profit-driven entities.

Issues such as the dislocation of indigenous peoples in the Philippines whose ancestral lands nurture a great part of the country’s mineral resources were tackled during the recent monthly meeting of the Philippine Mining and Exploration Association (PMEA) sponsored by GHD Philippines. Over 70 members representing companies and investors gathered to percolate ideas on the best ways to push for a sustainable mining industry that will propel the country towards the longed-for economic independence without scarring the land and disrupting the lives of people.

Addressing the thorny issue of ancestral domain, Fraser Watt, GHD Philippines country manager, said: “If everything is properly managed and the environmental concerns are adequately addressed during the planning stage, and there are sufficient reviews to make sure that mining companies do what they say they’re going to do, the Philippines could be a very wealthy country.”

Watt, an environmental chemist, said further, “The country is sitting on significant resources of minerals, including copper and nickel, perhaps also zinc, silver and gold; literally a gold mine under the ground just waiting for its opportunity to be leveraged.”

Ranked as one of the top 30 engineering and architecture companies in the world, Australia-based GHD is an international professional services company that leverages a global network of 6,000 people in 80 offices through­out Australia, New Zealand, Asia, the Middle East, the Americas and Europe. Its company profile points to clients who “seek to work with professional advisors who operate in a socially, environmentally and economically responsible manner.”

In keeping with this background, GHD’s general manager for mining, Paul Currie, flew to Manila to make a special presentation to PMEA members.

“Overall, [the mining operation] has to be beneficial to the community, the country, the world and the planet in some way. Net gain is what we are trying to achieve,” Currie said in his presentation.

Emphasizing that a mining operation must address community concerns, or else the project must be shelved, Currie batted for participation of the indigenous community, saying “they should be receiving benefits from the project, not just monetary benefits.”

But for anyone to start benefiting from the industry, it must be viable. “There will be need for significant foreign investments and considerable inputs from overseas technology to make the industry viable,” Watt interjected.

He said: “The Filipinos have a great deal of value they can impart onto transnational companies as employees. The difference here is that these people would have been trained in transnational corporations to understand the environmental and technical aspects of mining. And I think that’s something missing at the moment.”

On environmental safety, Watt said, “There have been one or two unfortunate incidents and no one is trying to disguise those, but if you look at the number of mines that operate absolutely safely and securely all over the world in comparison to those that have had incidents, the number of incidents is remarkably small. The aim for all responsible mining companies, the government and the community is to manage projects to eliminate major incidents.”

How bullish is he then about the Philippine mining industry? Watt said: “The tourism potential in the Philippines is massive. We also see the potential of the mining industry in a similar light. And just like the tourism industry, the development phase that we are going through is just at the crest of where the wave is going to be. But it will take some commitment from government to provide infrastructure. For example, tourists want to fly in and get on to a nice coach, drive along a nice road to a nice beach where there is a nice hotel where they can spend their tourist dollars. Mining industries also want to have the infrastructure in place and a degree of stability in place to conduct business easily. They need to be able to import the machinery and the technology required and they will need to draw upon local resources and markets. They also want the processes involved in obtaining mining licenses and operating mines to be fairly applied, with no favoritism. And I think the hardest thing for any mining company is when the regulatory regime under which they operate is either difficult or changes during the operation of the mine. Stability is the key and it is what mining operators look for.”
-- Nini P. Yarte

   
 

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