Govt moves to help mining firms increase production

MANILA, Philippines - President Gloria Macapagal-Arroyo instructed the environment department to encourage five major mining projects to increase their production this year. According to Environment Secretary Joselito Atienza, the Chief Executive issued the order after a report indicated that the Philippines’ total mineral exports fell by 6.8 percent in the first three months of the year. “The mining industry was one of the critical sectors identified by the President that can reverse the low export performance," Atienza said, referring to projects undertaken by Oceana Gold, Atlas Mining, CGA Filmenera, Coral Bay (expansion) and Philsaga. “The opening of the five projects will increase mining investments by 101.8 percent [from $892 million in 2008 to $1.8 billion in 2009] and increase the value of production by 25 percent from [$3.6 billion in 2008 to $4.5 billion in 2009]... The President instructed [the DENR] to undertake faster resolution of any issues that are being encountered by these projects and encourage them to open earlier...," the DENR said in a report. The Coral Bay- Sumitomo Metal Mining Co. Ltd. is adding a second high-pressure acid leaching plant at Coral Bay to produce additional 10,000 tons of nickel a year and is scheduled to be completed in September 2009. Philsaga has several mining projects all over the Philippines. Considered as the fourth-biggest source of nickel ore deposit in the world, the mine in Berong, Palawan, is a joint-venture operation of Atlas, Toledo Mining Corp. and Australian mining firm Investika. Australian-listed Oceana Gold has operations in Didipio village in Kasibo in Nueva Vizcaya. Oceana Gold has initially committed $180 million for the project. Meanwhile CGA Mining Ltd. entered the Philippine mining industry when it acquired the interests of Thistle Mining Inc. over the Masbate Gold Project, one of the government’s priority exploration projects. The project is located in Aroroy, Masbate province and is co-owned by Filipino company Filminera Resources Corp. under a Mineral Production Sharing Agreement and Mineral Processing Permit. It is also expected to generate a thousand jobs during the construction phase and another 600 during the production phase. The project is expected to start full commercial production by the end of 2008, with estimated production rate of 200,000 ounces of gold annually and remittance of $4 million in excise taxes. Project capitalization is placed at $200 million. - Cheryl M. Arcibal, GMANews.TV