Sec Ramon J. P. Paje INSTITUTING POLICY REFORMS IN MINERAL RESOURCES DEVELOPMENT Mining Philippines 2011 September 14, 2011, Sofitel Philippines Plaza Hotel Manila, Philippines

1. INSTITUTING POLICY REFORMS IN
MINERAL RESOURCES
DEVELOPMENT
RAMON J.P. PAJE
Secretary
Mining Philippines 2011
September 14, 2011, Sofitel Philippines Plaza Hotel
Manila, Philippines

2. GROWTH HIGHLIGHTS 2010
• Gross Production Value: up 39% - from
PhP106.1B in 2009 to PhP144.4B in 2010.
– Metallic Sector: 77% or PhP111.1B
• Gold : PhP70.51B or 63%
• Nickel: PhP22.99B or 21%
• Copper: PhP15.78B or 14%
• Others: PhP 1.81B or 1.6%
– Non-Metallic Sector: 23% or PhP33.3B

3. PRODUCTION HIGHLIGHTS 2010
Metallic Sector
• Volume:
– Gold: up 11%; from 36.814 MT to 40.847MT
– Copper: up 16%; from 49,060MT to 58,412%
– Nickel: up 59% for DSO and 55% for
concentrate; from 8.31M DMT to
13.21M DMT
• Price:
– Gold: up 25.6%; $1,222.02/oz from
$973.01/oz
– Copper: up 49%; $3.40/lb from $2.28/lb
– Nickel: up 49.7%; $9.82/lb from $6.56/lb

4. GROWTH HIGHLIGHTS 1st Semester, 2011
• Metallic Sector up 31%.
• Gross Production Value: from PhP48.73B to
PhP63.92B; up by PhP15.19B:
– Gold : PhP42.18B or 66.13%
– Nickel : PhP11.00B or 17.25%
– Copper: PhP 9.19B or 14.42%
– Others: PhP 1.41B or 2.20%

5. 2011 PROJECTIONS
• Minerals Industry conservatively projected to
grow by 17%
• Metallic Sector: projected to go up by 24%
– Gold : 8%
– Copper : 23%
– Nickel : 56% for concentrate; 77% for
direct shipping ore
– Chromite : 10%
– Zinc : 106%

6. • 3 Copper mines (with
gold and silver)
• 1 Copper mine (with
gold, silver zinc)
• 5 Gold mines
• 2 Chromite mines
• 1 Magnetite mine
• 18 Nickel mines
• 1 Nickel Processing
Plant
• 1 Copper Processing
Plant
• 2000+ sand and gravel,
cement and other non-
metallic operations

7. 3,500.00
3,000.00
2,500.00
2,000.00
in M$
955.86
1,500.00 719.51
604.17
1,000.00
708.40
457.15
500.00
200.47 190.33
-
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
√From 2004 to 2010: $3.835 Billion;
√May reach up to US$18 billion up to 2016.

8. Runruno Gold-
Far Southeast Copper- Molybdenum Project
Gold Project
Didipio Copper-Gold
Project
Tampakan Copper Project
Boyungan Gold Project
Kingking Copper Gold
Project
Sumitomo Nickel Project

9. • Protection of mining investments
• New chapter in small-scale mining with DOJ
Opinion 9

10. • Completion of the First Phase of
implementation of the “Use It or Lose It”
policy
10

11. “Use It or Lose It” Policy Implementation
• Legal Basis: DENR Memo Order No. 2010-04
• Period Covered: Oct 2010 to June 30, 2011
• Target Applications: 2,196 (excluding 604
involved in cases)
• Accomplishments: 97% or 2,136 applications:
– Denied : 1,606
– Indorsed : 530
• MRs/Appeals- 24%

12. Immediate Action Plan
Review all Motions for Reconsideration
Conduct Technical Assessment of freed areas to
determine which of the areas can be viably
packaged.
Formulate Guidelines for Public Bidding and enter
into Joint Venture Agreements.
Lift the moratorium on the acceptance and grant of
mining applications.

13. Upgrade of
environmental
standards in mining
Absorption of
environmental cost
13

14. • Shift to value-adding activities
• Encourage downstream
processing of mine products 14

15. • Enhanced revenues from mining

16. • Strengthen public-private partnership
16

17. • Sustain information, education
and communication program
17

18. • Request for clarification RE: Section 2.2 (Exemption
from the ban on the issuance of tree cutting permits)
of Executive Order No. 23 (Logging Moratorium)
submitted to the Office of the President.
• Administrative Order that will clarify the jurisdiction
between the Mines and Geosciences Bureau and the
Environmental Management Bureau being finalized.
• “Codifying” corporate social responsibility.

19. • Completing the 1:10,000 scale geohazard
maps of the entire country being fast
tracked.
• Providing full support to the Office of the
Solicitor General in connection with the
increasing cases being filed against mining
projects (i.e., Writ of Kalikasan, Temporary
Environmental Protection Order, Writ of
Continuing Mandamus.

20. Thank You!