The Government Mining Policy and Mindanao (Part 2 of 3)

Q. Any chance of a clearer mining policy?

A. House Bill No 3763 filed on December 1, 2010 want to regulate rationally the exploring and use of minerals. Malacañang wants to get more mining royalties. The Problem is in existing mining agreements the royalty is only 2% but in minerals reservation areas, the royalty is 5%. A new Executive order containing the new mining policy will declare 21 mining operations as mineral reservations so that the royalty will not be 2% or 5% but 7% for all mining. The president not to include as mineral reservations the richest areas which they have stakes/claims so that instead so that instead of paying 5% royalty they will only pay 2% of the 9 minerals reservation areas, Surigao Del Norte, Comval and North Zamboanga.

Q. Good News?

A. Rio Tuba mining, one of the world’s biggest nickel companies has a nickel smelter plant in Palawan. It plans to operate in Surigao, a second smelter with ore coming from 3 nickel corporations they also own in Taganito, Cagdianao and Hinatuan.

Q. What else?

A. In 2013 Compostela Valley nearly began mining copper/ gold in Mainit/ Nabunturan and NADECOR in Kingking Pantukan. These two will be paying yearly about 300 to 500 million pesos of taxes to COMVAL plus give 3 to 5,000 direct jobs, Bacnotan Holcim Cement Corp. will be getting limestone for making cement from their 5,000-hectare quarry in Lupon, and Pantukan while Sino Phil Corp will operate its 3,000-hectare chromite operation in Sigaboy Davao Oriental.

Q. Bad News.

A. Opposition from the green groups’ government bureaucratic red tape and corruption will further delay everything

Q. Where will the nickel and chromite go?

A. China and Japan for high grade nickel/ Philippine smelters will process low grade ore.

Q. Gold and Silver.

A. Davao Del Norte and Davao De Oro buy the biggest volume of mercury used to separate gold from dirt in Mindanao yet Davao central Bank says it’s good if in one week, they can send gold to Manila