Category Archives: Resources Industry

An Economy Built on Mining – Learning from South Africa

On 11 March 2017, President Rodrigo Duterte says he is willing to let go of the P70-billion earnings the government collects from mining operations. “We can live without it. I would rather follow Gina. Maghanap-buhay na lang tayo ng iba, get the P70 billion somewhere else and preserve the environment. ‘Wag na tayong magbolahan,” he said on Saturday.

P70-billion is no small amount. This is a substantial amount of money which can be used to develop areas and communities that are beyond the reach of the government. A substantial amount of money that can be utilized by the Filipino people whose battle-cry has long been ‘inclusive growth’.

Based on the World Bank for the current 2017 fiscal year, and calculated using the World Bank Atlas method:

Low-income economies are defined as those with a GNI per capita of $1,025 or less.

Lower middle-income economies are those with a GNI per capita between $1,026 and $4,035. Fifty-two (52) countries including the Philippines are in this bracket.

Upper middle-income economies are those with a GNI per capita between $4,036 and $12,475. Fifty-six (56) countries including South Africa are in this bracket.

While High-income economies are those with a GNI per capita of $12,476 or more. Seventy-nine (79) countries such as Australia, Canada, and the United States are included in this list.

How can a country such as the Philippines move from a low-income economy to a high-income one? The best way is to take a long hard look at its neighbors.

Though jumping from a low-income economy to a high-income one may be a tall order, and the Philippines using the mining models of Australia, Canada and the US are too idealistic, it would be to the country’s best interest to redirect its gaze to a country with similar trades, businesses and the challenges that go with it. When it comes to minerals development, South Africa is the country closest to the Philippines.

The billion dollar question (no pun intended) which begs to be answered: Can an economy be built on mining?

South African Ambassador to the Philippines, His Excellency Martin Slabber shares with us his insights on what Africa was, to what it is now because of mining. A privileged discussion, this story was crafted in the hopes of giving the Philippine government a glimpse of “what our economy could be” if ethical and responsible mining practices were done in the Philippines.  

For the full story, refer to page 38 of the Philippine Resources Journal with the subject – An economy that was built on mining: How the Philippines can learn from South Africa by Maria Paula Tolentino

For more information about this story, contact its author:
MissTolentino  
Twitter – @misstolentino22  
Facebook – www.facebook.com/misstolentino22/

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Lopez fights for DENR Post, CA still to give nod

What is the Commission of Appointments and How Powerful Is It?2

The CA is a constitutional body under the 1987 Constitution. It is an independent body separate and distinct from the Legislature, although its membership is confined to members of Congress.*

The CA does not curtail the President’s appointing authority but serves as a check against its abuse. It assures that the President has exercised the power to appoint wisely, by appointing only those who are fit and qualified…

‘Cognizant of the fact that the power of appointment is vested in the President of the Philippines, and that the President, in the exercise of that power, had carefully considered the fitness and qualifications of nominees or appointees, the Commission on Appointments shall accord the nomination or appointment weight and respect, to the end that all doubts should be resolved in favor of approval or confirmation.

‘On the other hand, the Commission, being part of our republican system of checks and balances, shall act as a restraint against abuse of the appointing authority, to the end that the power of disapproval should be exercised to protect and enhance the public interest.’

*Pimentel Jr. vs. Ermita (G.R. No 164978; 472 SCRA 587)

How is the Appointment Process done?2

The regular appointments which are contemplated under the 1987 Constitution go through the following stages:

  • nomination
  • consent
  • appointment
  • acceptance by the nominee

What the President sends to the Commission is just a nomination. After the Commission has given its consent, the President issues the appointment. It is only when the last stage has been completed may the officer concerned take his oath of office.

The second paragraph of Article VII, Sec. 16, of the 1987 Constitution also empowers the President to issue appointments while Congress is not in session. Such appointments are called ad interim appointments, and it goes through the following stages:

  • appointment
  • confirmation

An ad interim appointment is permanent in nature and takes effect immediately. Thus, one who was issued an ad interim appointment may immediately enter upon the discharge of his functions. An ad interim appointment ceases to be valid upon disapproval by the Commission on Appointments or, if not confirmed, until the next adjournment of Congress.


Engaging in innuendo and intrigues, DENR Chief-apparent Lopez takes flak.

Lopez’s unfair remark is the “height of irresponsibility” and puts undue pressure on Commission on Appointments.

Lopez told members of the Rotary Club of Makati of an alleged bribe offer of P50 million for every CA member  who would vote against her after she ordered the closure of 23 mines and the scrapping of 75 mining contracts. She did not name names, and neither did she say where she got the information. But she said then: “I was told every congressman was offered P50 million if they voted against me. Well, people talk. Let the dice fall where it may.”

However, Lopez on Thursday admitted that she could not substantiate her claim, stressing that she made the allegation “casually.”

But two CA members criticized Lopez  on Thursday, accusing  her of sowing intrigue ahead of the confirmation hearing.

“It is the height of irresponsibility,” said Iloilo City Rep. Jerry Treñas, the assistant minority leader on the CA, a constitutional body composed of senators and House members with the power to approve or disapprove appointments made by the President. “I was personally hurt by her statement,” Treñas told the Inquirer.

Isabela Rep. Rodolfo Albano III, the CA’s majority leader, said Lopez should name the people she claimed were involved in this “alleged attempted bribery” so they could face investigation. Otherwise, she was just “merely engaging in innuendo and intrigues,” Albano said.“Is that an example of how she will run the DENR (Department of Environment and Natural Resources) should she be confirmed?” he said.

House Majority Leader Rodolfo Fariñas said Lopez’s “unfair” remark “now puts undue pressure on the way they (the CA) will vote.”1

After the controversial bribery comment, Lopez sends a message to the CA in an interview with DZMM:

http://players.brightcove.net/1878978674001/rkebVmmV4_default/index.html?videoId=5328280076001

Meanwhile, the mining industry which has taken a beating since Lopez took office, is strongly against her confirmation. In a separate email sent by the Philippine Mining & Exploration Association (PMEA) on February 27 2017, the group listed down individuals and organizations against Lopez’s confirmation. The group put in detail strong grounds why Lopez is unfit for the position of DENR Chief.

Download the “Grounds for Opposition Against Regina Paz Lopez  for the position of DENR Secretary” here: opposition-against-confirmation-of-denr-sec-lopez

Lopez who has been very vocal in her bias against mining, and through the nod of the Commission on Appointments, will stand to rid the country of employed miners estimated at 42.79% if she secures the cabinet post permanently.

The role of mining when it comes to employment generation whether direct or indirect in the rural areas cannot be overly emphasized. It is estimated that about four (4) indirect jobs may be generated from every direct employment in the upstream and downstream sectors. (source: MGB)

Confirmation hearings for the DENR post will commence on March 1, 2017.

References:
1 http://newsinfo.inquirer.net/874821/gi-lo-blames-inquirer-for-bribe-story#ixzz4ZwetL0s9
2 http://www.comappt.gov.ph/about-us/the-commission-on-appointments

A throwback to Rio Tuba Nickel Mine

Midst all the controversy the mining industry is going through, I couldn’t help but look back on the stories I’ve done for the industry as a whole.

Nickel Asia Corporation was my first mine. It was also what set the benchmark earlier on in my profession as a Journalist, what an ethically-run mine looked like.

Once you’ve seen the best, it would be beneath anyone to look for anything less. The standards they’ve set up for their employees, adopted communities and IPs, operations, health and safety are extremely hard to live up to.

Allow me to get this out: This is by no means a paid ad. I am only showing you, my dear reader, what it was like for me when I took the plane there and saw for myself how professional mines are run. Together with Diwata & Atty. Patricia Bunye, I am glad I took that trip years ago.


The night of 16 July 2014, typhoon Glenda  with international name Rammasun, struck the country with ferocity. My colleagues from Diwata waited restlessly for the airline companies to cancel flights. No announcement came.

First thing on the morning of 17 July, we all flew to Puerto Princesa, Palawan to visit nickel mining company Rio Tuba Nickel Mining Corporation at their mine site in Bataraza.

The 1 hour flight was uneventful. The road trip was a different story. The party I was with were going topsy-turvy in their seats because of the rough road with bags flying everywhere. It was a hilarious and glorious 4 hours of rough road!

What awaited us when we arrived at the hotel was a quick break and a shower. Eventually we all had to head out to explore the mine site, the communities and learn what mining has really done for that small patch of Palawan.

Below are  memories captured in photographs.

 

 

I apologize if these photos don’t do much justice for the experience, but this is as far as I can share: You have to go there and see for yourself.

Ask a geologist, engineer or someone from the academe. Ask them what makes a responsible mine. Do your own research.

It’s not enough that you read it on the news or watch it on TV or the internet. Ignorance is dangerous and we cannot afford ignorance right now especially if millions of lives hang on the balance.

Even before the term ‘responsible mining’ was trendy, Rio Tuba was already at the forefront. It may have been my first mine, but it certainly won’t be my last.

 

Liked this story? please contact the Author:
MARIA PAULA TOLENTINO
mpatolentino at gmail dot com

 

 

 

PH Senator pushes for Energy R&D

senate-bill-1290-win-gatchalian

In a bid to bring the Philippine energy sector up to speed with innovative international technologies and make the industry more responsive to the demands of consumers and sector players, Senator Win Gatchalian has filed Senate Bill No. 1290, which proposes the establishment of a Philippine Energy Research and Policy Development Institute (PERPDI) in the School of Economics of the University of the Philippines in Diliman.

“The energy sector is naturally characterized by rapidly changing technologies. Unfortunately, most of the country’s policy instruments cannot keep up due to limitations in local research and technical capacity. This bill seeks to address these limitations by establishing an institution which will bridge research and policy gaps in pursuit of Philippine energy security, affordability, and sustainability,” said Gatchalian, the Chairman of the Senate Committee on Energy.

In executing its mandate, the PERPDI will also be charged with ensuring that the results of energy research and policy development activities are utilized to improve the energy sector, the economy, and the lives of the people.”

Through the PERPDI, Gatchalian said the government will be armed with the capacity to formulate multidisciplinary research-based policies and strategies for the cost-effective use of energy resources towards environmentally-sound energy development.

“Formulating and executing a concrete blueprint for the future of the energy sector is critical to fostering inclusive long-term growth and development for our country. The creation of PERPDI will be an important milestone in our quest to achieve these ambitious socio-economic goals,” said Gatchalian.

For the complete press release, refer to this link: PH Senator pushes for Energy R&D

Underutilized natural resource in the Philippines could answer energy deficit

The Philippines is the largest consumer of electricity yet is a huge geothermal source which could answer and provide for its own energy needs. Worldwide, the Philippines ranks second to the United States in producing geothermal energy, with Mexico coming as third.  

Leyte is one of the islands in the Philippines where the first geothermal power plant started its operations on July 1977. Other geothermal areas located in the Philippines include Bacon-Manito (BacMan), Makiling-Banahaw (MakBan), Mindanao, Palinpinon, Tiwi and Tongonan.

geothermal-energy-in-philippines_mpat_02012017