an overview of minerals potential and opportunity in the philippines mining and minerals – the new...

AN OVERVIEW OF MINERALS AN OVERVIEW OF MINERALS POTENTIAL AND OPPORTUNITY IN POTENTIAL AND OPPORTUNITY IN

THE PHILIPPINESTHE PHILIPPINES

Mining and Minerals – The new drivers of growth

Mines and Geosciences Bureau

Department of Environment and Natural Resources

Mining Philippines 2005

PhilippinesPhilippinesPorphyry Cu beltsPorphyry Cu belts

Porphyry Cu beltsPorphyry Cu belts


N

Philippine Sea

Sulu Sea

Celebes Sea

Luzo

nT

rou

gh

So

uth

Ch

ina

Sea

PH

ILIP

PIN

E T

RE

NC

H

MA

NIL

A T

RE

NC

H

SULU

TRENCH

NE

GR

OS

TR

EN

CH

COT

ABATOT

R.

Simplified tectonicmap of the

PHILIPPINES

TRENCHES IN THE TRENCHES IN THE PHILIPPINESPHILIPPINES

Volcanic arc terrane(Au, Cu, Fe, Pb, Zn)

Ophiolite Terrane(Cr, Pt, Co, Ni, Cu-Pb-Zn, Au)

1.1. Manila TrenchManila Trench

2.2. Philippine TrenchPhilippine Trench

3.3. Negros TrenchNegros Trench

4.4. Sulu TrenchSulu Trench

5.5. Cotabato TrenchCotabato Trench


THE MINING INDUSTRY : THE MINING INDUSTRY : BRIEF OVERVIEWBRIEF OVERVIEW

PHILIPPINE MINING DATES BACK TO 16PHILIPPINE MINING DATES BACK TO 16THTH CENTURY CENTURY

RICH DIVERSITY IN BOTH METALLIC AND NON-METALLIC RICH DIVERSITY IN BOTH METALLIC AND NON-METALLIC MINERAL RESOURCESMINERAL RESOURCES

SIGNIFICANT CONTRIBUTION TO ECONOMIC DEVELOPMENT SIGNIFICANT CONTRIBUTION TO ECONOMIC DEVELOPMENT OF THE COUNTRY & SKILL TRAINING OF WORKFORCE OF THE COUNTRY & SKILL TRAINING OF WORKFORCE

INDUSTRY SUBJECT TO GROWING SOCIAL NEEDS AND INDUSTRY SUBJECT TO GROWING SOCIAL NEEDS AND DEMANDS, COUPLED WITH GREATER AWARENESS AND DEMANDS, COUPLED WITH GREATER AWARENESS AND ACTIVISMACTIVISM

FAST EVOLVING REGULATORY REGIMES – MINING ACT OF FAST EVOLVING REGULATORY REGIMES – MINING ACT OF 1995 (RA No. 7942) 1995 (RA No. 7942)

ONGOING REVITALIZATION OF THE MINERALS INDUSTRY ONGOING REVITALIZATION OF THE MINERALS INDUSTRY WITHIN THE CONTEXT OF SUSTAINABLE DEVELOPMENTWITHIN THE CONTEXT OF SUSTAINABLE DEVELOPMENT


ONSHORE MINERAL ONSHORE MINERAL RESOURCESRESOURCES

Mineral Land Distribution(In Hectares)

Total Land Area of thePhilippines

GeologicallyProspective Areas forMetallic Minerals

Total Land AreaCovered by ApprovedMining Tenements

30.0%

68.6%

1.4%

Only 1.4% are covered by mining permits

9 million hectares more of potential sites for metallic minerals


OPERATING MINESOPERATING MINES2 Big mines2 Big mines::

Victoria Gold MineVictoria Gold Mine

Padcal Copper MinePadcal Copper Mine

4 Medium-scale nickel mines4 Medium-scale nickel minesRio Tuba Nickel MineRio Tuba Nickel Mine

Cagdianao Nickel MineCagdianao Nickel Mine

Sigbanog Project of HMCSigbanog Project of HMCTaganito Nickel MineTaganito Nickel Mine

3 Medium-scale chromite mines3 Medium-scale chromite minesMasinloc Project of Benguet Corp.,Omasdang Project of Crau MineralsHomonhon Project of Heritage Res.

5 medium-scale gold mines5 medium-scale gold minesCanatuan Project of TVIAcupan SSM Operations of BenguetDiwalwal Direct State Development

Project of NRDCBanahaw Gold Project of Philsaga

Mining Corp.Johson Gold Mining Corp. in Panganiban

15 Cement plants and quarries15 Cement plants and quarries


ECONOMIC CONTRIBUTIONS ECONOMIC CONTRIBUTIONS OF THE MINERALS SECTOR (FY 2004)OF THE MINERALS SECTOR (FY 2004)

Production Value P 41.5 Billion or 19% increase from CY 2002

Value Added Contribution

P 18.0 Billion or 1.6% of Phil. GDPor 1.52% of the Phil. GNP (CY 2003)

Exports US$ 638 Million or 1.8% of total Phil. Exports

Paid-up Investments P 367 Million (CY2002)

Employment 104,000

Wages and Benefits P 4 to P5 Billion

Taxes and Fees Estimate

P 2.1 Billion (CY 2002)

Multiplier Effect For each mining job, 4 to 10 allied jobs created upstream and downstream


1122

4433

66

7788

9910101212

55

1111

Potential areas and deposits:Potential areas and deposits:1. Luzon Central Cordillera – Au,

Cu, Fe, Mn

2. Northern Sierra Madre – Cr, Ni, Cu

3. Zambales – Cr, Ni, Co, Pt, Cu, Au

4. Vizcaya-Aurora – Cu, Au

5. Bicol – Au, Fe, Cu

6. Southern Tagalog – Cu, Au, Ni, Co

7. Central Visayas – Cu, Au, Mn

8. Samar-Eastern Mindanao – Au, Cu, Fe, Cr, Ni, Co, Pt, Mn

9. North Central Mindanao – Cr, Cu, Au

10. Zamboanga Peninsula – Au, Cu, Cr, Fe

11. Southern Mindanao – Cu, Au

12. Palawan – Cr, Ni, Co, Pt, Au, REE


RESERVE: 163 million tons with 0.81% copper and 1.76 grams per ton gold; 1.8 Cu eq.

FAR SOUTHEAST porphyry FAR SOUTHEAST porphyry copper - gold depositcopper - gold deposit

RESOURCE: 300 million tons with 0.6% copper and 1 gram per ton gold.

BOYONGAN porphyry BOYONGAN porphyry copper - gold depositcopper - gold deposit

RESOURCE: 700 million tons with 0.81% copper and 0.32 gram per ton gold

TAMPAKAN porphyry TAMPAKAN porphyry copper - gold depositcopper - gold deposit

MAJOR DISCOVERIESMAJOR DISCOVERIES


Bato dacite(Pleistocene)

Epithermal Cu- Au/Au-(Ag-Pb-Zn-Cu)

Imbanguila dacite(Pliocene)

Bagon tonalite(Miocene)Basement rocks(Cretaceous-Miocene)

Porphyry Cu-Audeposit/prospect

1 km

N

Simplified geologic map of the Mankayan mineral district

Victoria golddeposit

Far Southeastporphyry copper

deposit

Lepanto Enargitedeposit

Mankayandistrict Far Southeast Far Southeast

porphyry-copper gold porphyry-copper gold deposit deposit

163 M tons reserve163 M tons reserve0.81% Cu0.81% Cu1.76 g/t Au1.76 g/t Au1.8% Cu eq.1.8% Cu eq.


Simplified geologic map

of Surigao peninsula

Boyongan porphyry-Boyongan porphyry-copper gold deposit copper gold deposit

300 million tons 300 million tons 0.6% Cu0.6% Cu1 g/t Au1 g/t Au


TampakanTampakanCu-Au depositCu-Au deposit

Tampakan Cu-Au Tampakan Cu-Au deposit deposit

> 1 billion T resource> 1 billion T resource0.7% Cu0.7% Cu0.3 g/t Au0.3 g/t Au


DIDIPIO porphyry copper - DIDIPIO porphyry copper - gold depositgold deposit (20.4 MMt, 0.65% (20.4 MMt, 0.65% Cu, 1.7 g/t Au)Cu, 1.7 g/t Au)

AROROY gold depositAROROY gold deposit (71.3 (71.3 MMt, 1.34 g/t Au)MMt, 1.34 g/t Au)

PALAWAN HPP ProjectPALAWAN HPP Project (11.5 (11.5 MMt, 2.3% Ni)MMt, 2.3% Ni)

PIPELINE PROJECTSPIPELINE PROJECTS

RAPU-RAPU polymetallic RAPU-RAPU polymetallic depositdeposit (7 MMt, 2.61g/t Au, 14 (7 MMt, 2.61g/t Au, 14 g/t Ag, 1.24% Cu, 2.06% Zn)g/t Ag, 1.24% Cu, 2.06% Zn)

CANATUAN gold projectCANATUAN gold project (954,763 Mt, 3.81 g/t Au; 1.4 (954,763 Mt, 3.81 g/t Au; 1.4 MMt, 2.6% Cu, 1.61% Zn, 1.07 MMt, 2.6% Cu, 1.61% Zn, 1.07 g/t Au, 63.3 g/t Au)g/t Au, 63.3 g/t Au)

DIWALWAL gold depositDIWALWAL gold deposit (>6 (>6 MMt, 0.8 g/t Au)MMt, 0.8 g/t Au)


BATONG-BUHAY porphyry BATONG-BUHAY porphyry copper-gold projectcopper-gold project (85.9 MMt, (85.9 MMt, 0.6% Cu, 0.25 g/t Au, 2.7 g/t Ag)0.6% Cu, 0.25 g/t Au, 2.7 g/t Ag)

SAN ANTONIO porphyry copper SAN ANTONIO porphyry copper projectproject (178.3 MMt, 0.44% Cu, (178.3 MMt, 0.44% Cu, 0.09 g/t Au, 1.19 g/t Ag)0.09 g/t Au, 1.19 g/t Ag)

AMACAN porphyry copper- gold AMACAN porphyry copper- gold projectproject (110 MMt,0.3% Cu, 0.43g/t (110 MMt,0.3% Cu, 0.43g/t Au; 133 MMt, 1.5-10 g/t Au)Au; 133 MMt, 1.5-10 g/t Au)

KINGKING porphyry copper-KINGKING porphyry copper-gold projectgold project (353.5 MMt, 0.39% (353.5 MMt, 0.39% Cu, 0.44 g/t AuCu, 0.44 g/t Au

OTHER PROJECTS

ATLAS porphyry copper ATLAS porphyry copper projectproject (872 MMt, 0.41% Cu)(872 MMt, 0.41% Cu)

COPPERCOPPER


TERESA gold projectTERESA gold project (7.3 MMt, (7.3 MMt, 5.29 g/t Au)5.29 g/t Au)

GOLDGOLD

SIANA gold projectSIANA gold project (18.8 MMt, (18.8 MMt, 1.9 g/t Au)1.9 g/t Au)

OTHER PROJECTS

DIWALWAL gold projectDIWALWAL gold project (9.7 (9.7 MMt, 7.0 g/t Au)MMt, 7.0 g/t Au)


OTHER PROJECTS

NICKELNICKEL

MINDORO nickel projectMINDORO nickel project (>200 (>200 MMt, 0.94% Ni)MMt, 0.94% Ni)

NONOCNONOC nickel projectnickel project (60 MMt, (60 MMt, 1.13% Ni, 0.094% Co, 33.31% Fe)1.13% Ni, 0.094% Co, 33.31% Fe)

ADLAY projectADLAY project (18 MMt, 1.6% (18 MMt, 1.6% Ni, 0.1% Co)Ni, 0.1% Co)


Other Mineral Exploration Projects1) Cordillera Au (Anglo-American) - Benguet

2) Surigao Cu (Climax) – Surigao del Norte

3) Siana Au (Red 5) – Surigao del Norte

4) Labo Au and Leyte Au (Indophil) – Camarines Norte & Southern Leyte

5) Nueva Vizcaya Au, Southern Leyte Au, Surigao Au (Oxiana)

6) Del Gallego Au (Phelps Dodge) – Camarines Norte

7) Pujada Ni (QNI/BHP-Billiton) – Davao Oriental)

8) New Bataan Au (Sur American) – Compostela Valley

9) Bayug Au (ZMC) – Zamboanga del Sur

10) Pan de Azucar Au and Lobo Cu-Au (MRL) – Iloilo & Batangas

11) Zambales Platinum (Kinloch Res.) - Zambales

12) Mabuhay Au (Pelican) – Surigao del Norte

13) Libona Au (Great Horizon) - Bukidnon

14) Pamplona Sulfur (Crew Dev) – Negros Oriental


OFFSHORE RESOURCES

Manganese

Magnetite

Magnetite

Magnetite

Chromite

Chromite

Chromite

Chromite

Gold

Gold

Philippines offshore area including EEZ 2.2 million Km2

• Placer minerals including gold, chromite, magnetite, silica

Potential offshore mineral resources:

• Aggregate resources (sand & gravel)

• Decorative stones, manganese nodules/encrustrations with associated copper, gold, zinc, cobalt

• Polymetallic sulphide deposits containing gold, copper, cobalt, etc.

• Offshore Palawan also holds resources of manganese


Areas of high interestCOPPER-GOLDCOPPER-GOLD• Relatively unexplored

extensions of mineral districts are highly prospective

Baguio-MankayanBaguio-Mankayandistrictdistrict

Northern LuzonNorthern LuzonCentral CordilleraCentral Cordillera

Vizcaya-EcijaVizcaya-Ecija

• Northern part of Luzon Central Cordillera remains relatively unexplored but is probably the best potential area• Encouraging geologic and mineral indications in Vizcaya-Ecija area

Known district

Areas of interest


• Surigao gold district holds promise for porphyry copper mineralization

COPPER-GOLDCOPPER-GOLD

Areas of high interest

• Time for rational exploration in Diwalwal-Masara area• Zamboanga is an emerging district

• Discovery of Tampakan grabs attention for Cotabato• Central Cordillera of Mindanao remains unexplored; gold panning activities reported.

Surigao-AgusanSurigao-Agusandistrictdistrict

Diwalwal-MasaraDiwalwal-Masaradistrictdistrict

ZamboangaZamboanga

CotabatoCotabato

MindanaoMindanaoCentralCentral

CordilleraCordillera

Known district

Areas of interest


We learn from success storiesRecognition of telescoped epithermal-hypothermal deposit pairs Recognition of telescoped epithermal-hypothermal deposit pairs

offers a new dimension in copper-gold explorationoffers a new dimension in copper-gold exploration


Recognition of telescoped epithermal-hypothermal deposit pairs Recognition of telescoped epithermal-hypothermal deposit pairs offers a new dimension in copper-gold explorationoffers a new dimension in copper-gold exploration

We learn from success stories


OTHER METALS

NICKELNICKEL• The Philippine nickel resource is the biggest in Southeast Asia• Improved technology makes low-grade lateritic ore viable

IRONIRON• The increasing demand for iron is reviving exploration for the

commodity in the Philippines• The spatial relationship of carbonate rocks with younger

intrusives in the Philippines offers the possibility of finding new skarn deposits

• Improving chromite prices could revive Philippine chromite mines in Zambales, Palawan, Samar, Dinagat and Zamboanga.

CHROMITECHROMITE

LEAD and ZINCLEAD and ZINC• Ophiolitic and Early Tertiary arc terranes in the Philippines

holds much promise for VMS deposits similar to those of Lafayette in Rapu-Rapu island.


THE NEW MINERALS INDUSTRY THE NEW MINERALS INDUSTRY AND SUSTAINABLE DEVELOPMENT AND SUSTAINABLE DEVELOPMENT

• Enshrined in the 1987 Philippine Constitution, acknowledged in Philippine Agenda 21 and recognized in the WSSD Plan of Implementation.

• Given flesh through the Philippine Mining Act of 1995, its revised implementing rules and regulations and recently, in EO No. 270, the National Policy Agenda Revitalizing Mining in the Philippines.

• Advances the critical shift from purely regulatory compliance to sustainable development where:

“Mineral resources development is undertaken in a transparent and sustainable manner guided by relevant laws, rules and regulations, industry guidelines and corporate responsibility and accountability; committed to the highest technical standards, management systems and practices; and engaged in a sustained process of consultation with local governments and communities, business groups, civil society and other industry stakeholders.”


FORTIFYING THE FOUNDATIONS FOR FORTIFYING THE FOUNDATIONS FOR A REVITALIZED MINERALS INDUSTRY A REVITALIZED MINERALS INDUSTRY

CLEAR, STABLE & PREDICTABLE POLICIES

Streamlined procedures for mining applications

Stable fiscal regime and equitable sharing

ADDRESS ENVIRONMENTAL & SOCIAL CONCERNS

Rationalize environmental standards

Strengthen protection measures and sureties

PROVIDE STRATEGIC DIRECTIONS ON MINERAL RESOURCES DEV’T


OUTCOME OF THE REVITALIZATION OF OUTCOME OF THE REVITALIZATION OF MINERALS INDUSTRYMINERALS INDUSTRY

• An industry with sustained exploration activities dominated by new generation, high profit potential mines able to absorb the profit objective of the contractor and the social and environmental costs of modern mining and contributing to the sustained economic well-being of the nation and in countryside community development;

• A value-added minerals industry that paves the way to industrialization by generating wealth, employment and other benefits in both rural and urban regions and exporting finished products rather than raw materials;


• Recognition of multinational and state corporations with proven track record as pace-setter in modern technologies in mineral exploration, mine environmental management and social culture, and experience in the application of innovative technologies from whom the country could benefit in the discovery of new mineral deposits and in the management of mines;

• Enhanced contribution of the mining sector to the economy with reduced social and environmental impacts;



• A socially accepted and vibrant minerals industry demonstrating a track record of good corporate practice and engaging in enduring relationships with stakeholders;

• Retrofitting of local operating mines & quarries and the management of public health & safety and environmental risks associated with abandoned/ inactive mines and their cost-effective transformation to targeted end-uses acceptable to local communities and other stakeholders;



• A culture of change leading to a self-regulating minerals industry driven by the highest degree of professionalism, responsibility and accountability and dedication to continual improvement and commitment to Best Practice and sustainable development;

• Improved environment for research & development and enhanced collaboration among Government, industry and academic research sectors, with increased participation of stakeholders, to build up the scientific base needed to support policy development and innovative response to unique industry challenges and opportunities;



• Strong linkage with international organizations and active participation in international initiatives to learn and share and be part in developing international consensus and response to common issues on mining; and

• Full government support at the local and national level, to mineral resources development as a development option for the country.



VISIONVISIONA MINING AND MINERALS INDUSTRY THAT IS

NOT ONLY PROSPEROUS BUT ALSO ECONOMICALLY, SOCIALLY AND

ENVIRONMENTALLY SUSTAINABLE, WITH BROAD COMMUNITY AND POLITICAL SUPPORT,

WHILE POSITIVELY AND PROGRESSIVELY ASSISTING IN THE GOVERNMENT’S PROGRAM

ON POVERTY ALLEVIATION AND CONTRIBUTING TO THE GENERAL ECONOMIC WELL-BEING OF

THE NATION


THANK YOU FOR YOUR ATTENTION

For more information visit our website at:

www.mgb.gov.ph

an overview of minerals potential and opportunity in the philippines mining and minerals – the new...

Documents