mining arangkada-3rd-anniversary-assesment
DESCRIPTION
MINING “SECTION 4. Grant of Mineral Agreements Pending New Legislation. No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect. The DENR may continue to grant and issue Exploration Permits under existing laws, rules and guidelines.” - Executive Order No. 79, July 6, 2012.TRANSCRIPT
136 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 137
Recommendations: 32
Progress:
Rating:
8 Improved 3 Declined 20 Steady
Mining
PART 3 SEVEN BIG WINNER SECTORS
1 Backward/RegressionNo Longer Relevant1 13 Not Ongoing
4 Substantial ProgressStarted11 2 Completed
2013
2012
2011
Active Dormant
Active Dormant
Active Dormant
138 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 139
PART 3
SEVEN BIG WINNER SECTORS
MINING“SECTION 4. Grant of Mineral Agreements Pending New Legislation. No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect. The DENR may continue to grant and issue Exploration Permits under existing laws, rules and guidelines.” - Executive Order No. 79, July 6, 2012.
With an estimated $1.4 trillion in reserves, Philippine mining potential ranks fifth in the world, covering an estimated 9 million hectares, but less than 2% of these have mining permits. After long stagnation, the sector began coming back after a 2005 SC decision affirming RA 7942, considered a world-class legal framework for sustainable development. Minerals development should be a government priority and has great potential for jobs and revenue. Government has identified over 60 priority PPP mining projects. Mining can support poor rural areas through high quality jobs, local tax payments, and community development. The national government receives substantial royalty and tax payments. Government revenue from mining has more than doubled to PhP 22.2 billion in 2011 from PhP 10.4 billion in 2007. Full development of the sector, however, continues to face significant challenges. Lengthy tedious approvals for Exploration Permits (EPs) continue to impede investment. Several LGUs have closed their provinces to mining. Industry is concerned that the Writ of Kalikasan might disturb lawful activities. An investor cannot tell easily if land is ancestral land. Skilled Mines and Geosciences Bureau (MGB) personnel often leave public service. EO 79 has imposed a moratorium on new mining permits, pending the passage of a new law on the revenue sharing scheme between industry and government. Designation of “no-go” areas may undervalue areas closed to mining for minor tourist or agricultural value. The immediate future for the growth of the mining sector is not positive.
138 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 139
2011 Rating 2012 Rating 2013 Rating
Backward/Regression Not Ongoing Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
PART 3: SEVEN BIG WINNER SECTORS: MINING
140 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 141
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Backward/Regression Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
140 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 141
2011 Rating 2012 Rating 2013 Rating
Started Started Started
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
PART 3: SEVEN BIG WINNER SECTORS: MINING
142 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 143
-20%
0%
20%
40%
60%
80%
-40
0
40
80
120
160
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Gross Value Added
YOY Growth, rhs
Mining and Quarrying Gross Value Added (GVA), 1990-2003
Source: NSCB; Old series (1997-back) New series (1998-onwards)
2011 Rating 2012 Rating 2013 Rating
Substantial Progress Substantial Progress Completed
-100%
-50%
0%
50%
100%
150%
200%
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0Value, in Bn US$, lhs Series2
Mineral Products Exports , 1990-Nov 2013
Source: NSO
142 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 143
2011 Rating 2012 Rating 2013 Rating
Backward/Regression Backward/Regression Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Started Started Started
2011 Rating 2012 Rating 2013 Rating
Started Started Started
PART 3: SEVEN BIG WINNER SECTORS: MINING
144 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 145
2011 Rating 2012 Rating 2013 Rating
Substantial Progress Started Substantial Progress
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
2011 Rating 2012 Rating 2013 Rating
No Longer Relevant Backward/Regression Backward/Regression
144 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 145
2011 Rating 2012 Rating 2013 Rating
Started Started Not Ongoing
Copper Concentrates, 13.6%
Copper Metal, 19.9%
Gold, 2.2%
Iron Ore Agglomerates, 3.3% Chromium Ore, 0.5%
Others, 60.6%
Source: NSO
Mining Goods Exports Distribution, Jan-Nov 2013
PART 3: SEVEN BIG WINNER SECTORS: MINING
146 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 147
0%
10%
20%
30%
40%
50%
60%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
IndonesiaThailandSingaporeMalaysiaPhilippinesVietnam
Source: UNCTAD; Includes ores, metals, precious stones and non-monetary gold
Share in ASEAN-6 Total Mineral Products Exports, 1995-2012
2011 Rating 2012 Rating 2013 Rating
Started Started Started
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Started Substantial Progress
146 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 147
2011 Rating 2012 Rating 2013 Rating
Started No Longer Relevant Completed
2011 Rating 2012 Rating 2013 Rating
Started Started Started
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Backward/Regression Not Ongoing
PART 3: SEVEN BIG WINNER SECTORS: MINING
148 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 149
2011 Rating 2012 Rating 2013 Rating
Backward/Regression No Longer Relevant No Longer Relevant
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Started
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Started Started Started
148 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 149
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Started Started
2011 Rating 2012 Rating 2013 Rating
Not Ongoing Not Ongoing Not Ongoing
2011 Rating 2012 Rating 2013 Rating
Started Substantial Progress Started
2011 Rating 2012 Rating 2013 Rating
Started Started Started
PART 3: SEVEN BIG WINNER SECTORS: MINING
150 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT 151
2011 Rating 2012 Rating 2013 Rating
Substantial Progress Substantial Progress Substantial Progress
2011 Rating 2012 Rating 2013 Rating
Substantial Progress Substantial Progress Started
2011 Rating 2012 Rating 2013 Rating
Started Substantial Progress Substantial Progress