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Palace eyes auction of mineral rights, metals miners up output by 9%
As the Mines and Geosciences Bureau (MGB) reported Thursday a nine percent increase in metal mining output traced to operations of new investors, Finance Secretary Cesar Purisima revealed the same day that the “auction of mineral rights” is a policy option Malacañang is seriously considering. “If they can auction mineral rights in Canada and the US, how come it’s not possible in the Philippines? In other countries they actually auction these rights. They auction telecommunications frequencies and various other franchises,” Purisima said in a briefing at the Palace. The Finance chief explained that proceeds from the auctions would serve as added resources for government “to invest in infrastructure, schools, hospitals, better government, better institutions and better environment.” Only last Feb. 18, deputy presidential spokesperson Abigail Valte disclosed on government-run dzRB radio that a Palace technical working group has circulated a rewritten draft “for inputs from stakeholders” and presentation later to President Benigno Aquino III. Studying various models is reviewing different alternatives and models to hopefully find the right mix of options that will, among other objectives, mean more revenues for the national treasury. He said that while the mining industry earned over P1.2 trillion last year, revenue collections from them amounted to only P2 billion. Secretary Purisima said the government, in drafting the EO, is looking at various models and alternatives in the hope that all the interests of the different sectors are addressed. “Unfortunately in the past, the way the laws were implemented, it was not a true win-win situation where the government actually was not able to get its fair share from mining activities,” he said. The MGB of the Department of Environment and Natural Resources said metals mining production output reported for 2011 rose 9 percent to P122.15 billion. Output in 2010 was P10.18 billion less at P111.97 billion. MGB attributed the higher output to the entry of new mining firms, as well as elevated prices of metals in the world market. Among the new mining firms and operations are:
- Benguet Corporation for the Sta. Cruz nickel project in Zambales;
- Cambayas Mining Corporation for the Homonhon chromite project in Eastern Samar;
- Nicua Corporation for the Leyte magnetite project;
- Citinickel Mines and Development Corporation for the Toronto nickel Project in Palawan; and
- Oriental Synergy Mining Corporation/Adnama Mining Resources, Incorporated for the Urbiztondo nickel project in Surigao del Norte;
