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19 APRIL 2021, MONDAY ✓ Headline STRATEGIC April 19, 2021 COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 1 of 2 Opinion Page Feature Article

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19 APRIL 2021, MONDAY ✓ Headline STRATEGIC April 19, 2021 COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 1 of 2 Opinion Page Feature Article 19 APRIL 2021, MONDAY ✓ Headline STRATEGIC April 19, 2021 COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 1 of 2 Opinion Page Feature Article 100 New Mining Deals Could Net P21B—MGB BYJONATHAN L. MAYUGA APRIL 19, 2021 3 MINUTE READ WITH the lifting of the moratorium on new mining projects following the signing of EO 130 by President Duterte, the Mines and Geosciences Bureau (MGB) is looking at granting new mining contracts that could generate additional revenues and boost the economy within the next five years. Mines and Geosciences Bureau Director Wilfredo G. Moncano said at least 100 new mining projects currently in the pipeline can generate additional revenue of P20 billion in the form of excise tax and another P1 billion in annual revenue in the form of royalty tax. These new mining projects can generate at least 42,000 new jobs in the mining sector which currently employs around 230,000 persons. While the new mining projects can generate 42,000 new jobs, the employment opportunity from the multiplier effect of 4 persons for every 1 person benefiting direct employment will give mining hosts the much-needed economic boost, officials noted. “In the memo that we submitted to the office of the President, with the lifting of Section 4 of E.O. 79, we estimate additional taxes of P20 billion and royalty of about P1 billion. Plus there will be about an additional P58 billion worth of export because most of the minerals are exported. We estimate 42,000 new employment,” Moncano said in a radio interview. Under the Phase 1 Priority Mining Projects, there are at least 35 mining projects that are a step or two steps away from gaining their Mineral Production Sharing Agreement (MPSA), he added. This includes the US$700-million Silangan Project in Surigao del Norte, the lone big-ticket project likely to get the MPSA this year. Under the Phase 2 Priority Mining Projects, Moncano said around 65 new mining project applications are in the pipeline. Moncano said the impact of the new mining project will be strongly felt once the mining operation starts commercial production, explaining that mining’s gestation period is between 1 and 5 years. For a big ticket project like Silangan, he said the gestation period will take at least 5 years. He said it will take time before mining’s contribution to the national economy could be felt but it will definitely impact on local economic development. Some municipalities, he noted, started as a 5th class municipality but eventually became a first-class municipality or even a city because of mining. Moreover, Moncano said the lifting of the moratorium on new mining projects will also boost the small-scale mining sector, as he vows to expedite the processing of Minahang Bayan applications, which will boost the processing of small-scale mining permits by the Provincial Mining Regulatory Boards. Environmental Measures While conceding that mining has environmental impacts, Moncano assured the public the MGB will strictly implement environmental laws along with the mining law. Source: https://mb.com.ph/2020/09/03/denr-hit-for-planning-to-fill-manila-baywalk-with- ✓ Headline STRATEGIC April 19, 2021 COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 2 of 2 Opinion Page Feature Article Currently, there are 39 Minahang Bayans, mostly in Mindanao. He expects more Minahang Bayan to be established soon. “We have to admit that mining has an adverse environmental effect but we must also clarify that mining is a temporary activity and mitigation measures can be put in place,” he said. Some of the measures put in place by the Duterte administration include policies requiring mining companies to secure the topsoil and subsoil which must brought back as part of rehabilitation. This ensures that the mined-out area will still be productive as the topsoil and subsoil are needed, particularly in agriculture as well as reforestation. The topsoil and subsoil, he estimates, is about a 1.5 meter-thick layer of soil on top of an area to be mined. Before, the topsoil and subsoil are simply scraped by a bulldozer, leaving the area’s soil barren and unproductive. “There should be designated topsoil and subsoil stock area. That’s part of an administrative order that we want to strictly enforce,” he said. Also, Moncano said a new policy strictly enforces progressive rehabilitation and limits an area to be disturbed by the mining company during operation. “At any given time, the mining company will have a maximum area to disturb,” he said. He said by next week, a team of DENR experts will start working on the implementing rules and regulation for EO 130. Source: https://businessmirror.com.ph/2021/04/19/100-new-mining-deals-could-net-p21b-mgb/ Headline STRATEGIC April 19, 2021 ✓ COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 1 of 2 Opinion Page Feature Article Palace expects $4B in mining investments after ban lifted April 19, 2021 | 12:33 am TRUCKS load rocks and soil containing nickel-ore minerals onto a barge in Sta. Cruz, Zambales, Feb. 8, 2017. — REUTERS By Kyle Aristophere T. Atienza, Reporter THE Philippines is expecting about $4 billion in capital investments from three major mining projects, after President Rodrigo R. Duterte lifted last week the nine-year moratorium on new mineral agreements. If the projects of Sagittarius Mines, Inc., KingKing Mining Corp., and Silangan Mindanao Mining Co., Inc. “are any indication, we are looking at over $4 billion in capital expenditure,” Presidential Spokesperson Herminio “Harry” L. Roque, Jr. told BusinessWorld in a Viber message. Mr. Duterte on April 14 signed Executive Order (EO) No. 130, which allows the government to enter into new mineral agreements and review existing mining deals for possible renegotiation. Mr. Roque said new mining projects are also expected to generate P40 billion in local taxes and P20 billion worth of social development projects. Indigenous groups are also expected to benefit with around P15 billion in royalties expected to be collected from the major mining projects. “These, however, will not come immediately, since this will be spread over the life of the mining project,” he said. Mr. Roque said these mining projects would generate revenues to support the government’s key infrastructure programs as well as create more livelihood opportunities in the countryside. Then-President Benigno S. Aquino III in 2012 prohibited the grant of new mining deals in several protected areas, while awaiting the passage of a law that would increase the government’s share in mining revenues. Mr. Roque said the President lifted the moratorium as Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion Act, has already doubled the excise tax on minerals from 2% to 4%. The Palace official said the new order was also made after the Department of Environment and Natural Resources (DENR) “put in place the necessary rules, regulations, and policies to ensure that mining in the country is safe for the people and the environment.” Mr. Roque said the DENR, which has been criticized by the civil society for supposedly colluding with mining interests, already conducted a thorough review of the regulatory framework for mining. In February 2017, Regina L. Lopez, who was Environment secretary at that time, ordered the closure of more than 20 metallic mines in the country over alleged violations of local environmental laws. Three months after, her appointment as DENR chief was rejected by the Headline STRATEGIC April 19, 2021 ✓ COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 2 of 2 Opinion Page Feature Article In February 2017, Regina L. Lopez, who was Environment secretary at that time, ordered the closure of more than 20 metallic mines in the country over alleged violations of local environmental laws. Three months after, her appointment as DENR chief was rejected by the Commission on Appointments. Mr. Roque last year said illegal mining and logging activities contributed to the massive flooding in Cagayan Valley in the Northern Philippines. “As per the DENR, there are currently no legal large-scale mining operations happening in Isabela and Cagayan at present and the flooding that happened in those areas, the DENR added, may be attributed to other man-made causes like illegal logging,” Mr. Roque said. Environmental groups earlier said the new order would only result in more environmental violations and enable mining firms to evade accountability. Source: https://www.bworldonline.com/palace-expects-4b-in-mining-investments-after-ban- lifted/ Headline STRATEGIC April 19, 2021 COMMUNICATION & Editorial Date INITIATIVES Column SERVICE 1 of 2 ✓ Opinion Page Feature Article Mining boost Philequity Corner - Wilson Sy (The Philippine Star) - April 19, 2021 - 12:00am In a bold move last week, President Duterte signed Executive Order (EO) 130 to officially lift the moratorium on new mining projects. It is a law that will stimulate investments and create jobs, which are both suffering severely during this pandemic. In his statement, the President said that the mining industry could aid government projects by providing raw materials for the Build Build Build infrastructure drive. This will likewise generate additional tax revenues and increase employment in rural areas in support of the government’s Balik-Probinsya Program. A major transformation is unfolding, thereby boosting the performance of mining stocks in the Philippine stock market. Lifting of nine-year ban on new projects EO 130 overturns EO 79 which was issued in July 2012. EO 79 imposed a moratorium on new mining permits and mineral sharing agreements until a new revenue-sharing scheme was instituted. This condition was satisfied when excise taxes on mining were doubled to four percent with the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) in 2017.
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