MGB: Mining investment 60% higher than targetMGB: Mining investment
60% higher than target Monday, April 28, 2014 Sustained capital expenditures and the lifting of the moratorium on the issuance of new mining permits improved investment in the country's mineral sector, the Mines and Geosciences Bureau said over the weekend.
Investments in the mining industry reached $1.311 billion last year, exceeding by over 60 percent the $817.58 million target for the year, MGB Director Leo Jasareno said.
According to Jasareno, the increase in investments is traceable to the continuing capital expenditures by major mining projects.
These include Japan's Sumitomo Metal Mining Co. Ltd. HPAL project, the Sagittarius Mines Inc.'s $5.9-billion Tampakan copper-gold project, Philex Mining Corp's Silangan project, Lepanto Consolidated Mining Co.'s Far Southeast Project in Benguet, and Toronto-listed St. Augustine Gold and Copper Ltd.'s $2-billion King-king copper-gold project in Mindanao.
Also contributing to the robust mining sector were new mining projects, such as the TVI Resource Development, Inc.'s Agata nickel project in Agusan del Norte, ,” Jasareno said..
The mining bureau chief said they expect investments in the mining sector to reach $ 1.324 billion for this year, but said that it “will eventually slow down to $ 1.238.2 billion in 2015 and $ 659.7 million in 2016.”
In January 2011, the Philippines halted approving new mining permits pending Congress action on a new a bill increasing government's share from mineral extraction and the no-go zones map. The zone map is expected to guide potential investors to identify areas that are not accessible to mining.
The policy was spelled out in a new executive order signed by President Benigno Aquino III, intended at overhauling policies governing the industry to boost state revenues while putting in place measures to protect the environment, tourism and agriculture.
In March of last year, the government lifted the moratorium on the acceptance of new mining applications, including exploration permits and financial or technical assistance agreement, following the completion of “no-go” map.
Jasareno also said that the no-go areas, which include island ecosystems and tourism destinations, are critical component of the administration's mining policy to address environmental and social issues that had been disrupting the mining industry.
According to the MGB, under Administrative Order No.2013-10, also known as “Procedural Guidelines in the Filing and Processing of Applications for Exploration Permit,” the government increased the EP and MA application fee to P300 per hectare or no less than P200,000 per application, from P60 per hectare or no more than P50,000 per application.
The fee for an FTAA was increased to P300 per hectare or no less than P500,000 per application, from P60 per hectare or no more than P100,000 per application previously.
Further, Memorandum Order No. 20130-01, increased the minimum authorized and paid-up capital requirement for mining applicants pursuant to Republic Act No. 7942 or the Philippine Mining Act of 1995.
The MGB chief also said that “the minimum authorized capital requirement for applicants of EPs, MAs, and FTAAs has increased from P10 million to P100 million, while the minimum paid-up capital has risen to P6.25 million from P2.50 million previously.”
For those applying for FTAA, a minimum paid up capital of P500 million upon the grant of the said FTAA by the President of the Republic of the Philippines and prior to its registration with the MGB is required, while for new mining applications, the agency is setting a limit for each exploration permit to about 16,000 hectare per province while a total of 36,000 hectares is allowed for nationwide operation.*PNA
https://www.visayandailystar.com/2014/April/28/businessnews4.htm