MANILA, Philippines – The mining industry wants to be included in Malacañang’s new action plan to reduce poverty in the country by increasing funding and assistance in 30 priority provinces that need heightened economic activity.
In a statement, the Chamber of Mines of the Philippines (COMP) said the mining industry should not be left out in this approach as a strong minerals development sector is a “critical component for industrialization.”
“The Chamber of Mines applauds this approach but we also urge the government not to forget minerals development in its plans as a vital gear in driving the economy forward,” said COMP.
During a recent full cabinet meeting, President Aquino ordered the employment of a so-called geographical and surgical approach to poverty reduction that entails increased support for the country’s 30 poorest provinces through job creation, trade facilitation and increasing their resilience to natural disasters.
“Of the 30 poorest provinces in the country, at least 10 provinces have significant mineral potential which, to date, remain largely unexplored and untapped,” said COMP.
“If these provinces’ mineral resources are properly harnessed, the economic growth that they experience will be transforming,” it added.
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COMP said that a “flourishing” mining industry could provide at least 410,000 jobs by 2018.
As provided for in Executive Order No. 79, also known as the New Mining Policy, no new mineral agreements shall be entered into until a law rationalizing the existing revenue sharing scheme between the government and mining companies have been passed.
Industry subsectors that produce commodities that are important to government projects and economic activities would be exempted from the moratorium as recommended by the Economic Development Cluster which comprises half of the Mining Industry Coordinating Council (MICC).
In the case of cement companies, this covers mostly public infrastructure.
The cluster is chaired by Finance Secretary Cesar Purisima.
Section 7 of the policy states: “No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect: Provided, that no expansion of existing contract areas shall be allowed by the DENR Secretary unless there is imminent and/or threatened economic disruption, such as a shortage of critical commodities and raw materials, that could adversely affect priority government projects and/or economic activities as determined by the Economic Development Cabinet Cluster.”
