DENR TO HOST FORUM ON BIODIVERSITY, MINING

The Department of Environment and Natural Resources (DENR) is hosting a biodiversity and
mining forum with focus on the issues of sustainability, social justice and equity on the
extraction and use of natural resources for economic needs.

Slated for tomorrow, April 19, at the DENR Social Hall in Quezon City, the event dubbed as
"Forum on Biodiversity and Mining: The Way Forward" will bring together around 250
participants from various offices and units of the DENR, including field offices, and
representatives of non-government organizations.

DENR Secretary Gina Lopez is expected to welcome the participants and guests, and give
the opening message.

Lopez, a long-time environment advocate, has made it clear that she is for biodiversity
conservation and her commitment is to protect natural habitats and wild flora and fauna
across the country.

The environment chief also clarified that she is not against mining but to the suffering of
people in mining communities.

She said irresponsible mining does not bring social justice, which is the heart and soul of
the 1987 Philippine Constitution.

Invited resource speakers include William Holden, an associate professor of geography at

the University of Calgary in Alberta Canada. He will discuss the topic of mining and natural
hazard vulnerability in the Philippines.

Other resource speakers and topics at the forum are Dr. Edwino Fernando of UP Los Baos
Department of Forest and Biological Sciences (phytomining and terrestrial ecosystem) and
Dr. Rex Victor Cruz of UPLB Institute of Renewable Natural Resources (watershed
ecosystem);

Environmental lawyer Antonio A. Oposa, Jr. will give a video message on environmental law
in the Philippines.

The mining sector is currently faced with the situation where there is a growing awareness
on the importance of preserving the country's rich biodiversity.

Many have raised concerns on whether mining and biodiversity conservation can co-exist
and if mining should be stopped to preserve the natural resources.

The upcoming forum conforms with Section 38 of the 2017 General Appropriations Act,
which mandates all government agencies, and local government units to "ensure that
protection of biological diversity is integrated and mainstreamed into their development
programs and projects. ###

Headline Recommendations

1. Increase the growth of the mining sector by removing redundant approvals and non-
performing claims. Exploration and similar permits should be granted transparently at
the regional level within 6 weeks and renewed in one day at one-stop shops. Reduce
environmental compliance certificate (ECC) processing time. Allow pre-permitting
access to potential project lands. MGB should cancel permits after two years of non-
 performance. MGB should adopt Philippine Mineral Ore Resources Reserve Reporting
Code. Develop model best-practice regions.

2. Work closely with indigenous peoples; develop mining HR skills; monitor legal
developments. Since most mines are in ancestral domains, involve IPs as partners
from project commencement. Achieve a 50% increase in direct mining and milling
costs allocated for community development. Implement release to LGUs of their
share of mining taxes paid to the GRP. Improve salaries and practical skills of MGB
staff. Develop mining engineering programs at universities. Implement the current
Mining Act and avoid arbitrary application of the Writ of Kalikasan. Continue the
Minerals Development Council.

3. Carry out a public information campaign and increase dialogue with concerned
groups. Inform the public about responsible mining that minimizes the environmental
impact. Find common-ground solutions with LGUs, NGOs, religious leaders, and local
communities to issues raised against specific projects. LGUs should not have mining
bans against national policy. Encourage downstream processing/manufacturing.
Source supplies from local communities. Endorse Extractive Industries Transparency
Initiative.

Below is a list of key things to know about the mining industry in the Philippines:

1.The Philippines is the fifth most mineral-rich country in the world for gold, nickel, copper,
and chromite. It is home to the largest copper-gold deposit in the world. The Mines and
Geosciences Bureau has estimated that the country has an estimated $840 billion worth of
untapped mineral wealth, as of 2012.

2. All the regions (except NCR and ARMM) in the country allow mining operations. ARMM
ceased issuing permits due to the on-going peace process between the Moro Islamic
Liberation Front and the national government.

3. About 30 million hectares of land areas in the Philippines is deemed as possible areas for
metallic minerals. About 9 million hectares of land areas is identified as having high mineral
potential, according to MGB.

4. The Philippines metal deposit is estimated at 21.5 billion metric tons and non- metallic
minerals are at 19.3 billion metric tons, as of 2012.

5. According to MGB, there are 236,000 workers in the mining industry in 2016.

6. The mining industrys contribution to the countrys GDP is at 0.6% in 2016.

7. The contribution of minerals and mineral products to the countrys total exports is at 4%
and 0.3% for non-metallic mineral manufacturers in 2016.

8. The mining industry's gross production value declined in the last 2 years. From P208.2
billion ($4.2 billion) in 2014 to only P100.6 billion ($2 billion) in 2016, according to MGB.
9. The Mining Act of 1995 allows for foreign ownership of mining assets and exploration
permits. The Supreme Court upheld the constitutionality of the foreign investors'
participation in mining activities in 2004.

10. Mining tax is low at 2% for metallic and non-metallic minerals. During the Aquino
administration, a mining reform bill was drafted to increase revenues of the government. In
the bill, companies will either pay 10% tax on gross revenues or 45% to 55% tax on adjusted
mining revenues plus a percentage of windfall profit, whichever is higher.

11. As of September 2016, there are about 40 metallic mines and 62 non-metallic
mines operating in the country.

12. There are a total of 1,473 mining applications under process in the country as of 2016,
according to the MGB.

13. As of August 2016, mining companies have already committed P13.1 billion for the
development of their host and neighboring communities under their Social Development and
Management Programs, the MGB reported.

14. Meanwhile, mining companies have allotted a total of about P19.1 billion for the
implementation of approved projects and programs under their Environmental Protection
and Enhancement Programs.

15. From 2011 to 2013, the mining sector committed to reforest about 34,000 hectares,
under the National Greening Program. By December 2015, more than 47,000 hectares have
been reforested.

MANILA, Philippines - The mining sector will be an important source of economic growth for
the Philippines, according to world renowned economist, Nouriel Roubini.

Speaking at the Philippine Investment Summit 2013 in Makati City on January 30, Roubini
said that mining is going to become an important part of the country's economic growth in
the future, along with tourism.

However, before this growth can happen, Roubini warned that structural reforms are needed.

It is important to make sure that the effects of mining on the environment are taken into
account. It is important that these regulations are fixed to incentivize investors, said
Roubini.

Finance Secretary Cesar Purisima echoed these sentiments. Mining (production and
revenues) declined (in the last quarter's GDP growth announcement). Once we address the
issues that the President (Benigno Aquino III) wants to address, it can provide can provide an
extra gear to the Philippine growth story, he said.

Contribution to economy

In the 4th quarter of 2012, the mining and quarrying sector contributed a mere 0.2% to the
overall economy, bringing the overall impact of the sector to the GDP to a 0.1% contraction.

Nickel mining was the biggest contributor to the sector with a growth of 33.5%, a far cry
from the miniscule 7.7% the year before. However, the growth of the sector was weighed
down by a lackluster performance of Gold Mining, which declined by 50.9%.

The year 2012 was a rocky one for the mining sector. The country's biggest gold producer,
Philex Mining, stopped operations at its Padcal mine in Bengue province following a tailings
pond spill in August 2012.

In July 2012, the Aquino administration signed Executive Order (EO) 79 imposing a
moratorium on new mining permits pending the passage of a new law on the revenue-
sharing scheme between the industry and government.

Mining firms are awaiting the resolution of these, as well as legal issues, so they can go
ahead with their investments. The $5.9-billion Tampakan copper-gold project of Swiss mining
firm Xstrata and local partner Sagittarius Mines, for example, pushed back its commercial
operations to 2019 because of a South Cotabato provincial ban on open-pit mining.

The delayed Tampakan project was expected to account for at least 1% of gross domestic
product (GDP) per year of operations.

This has significantly hampered the growth of the mining sector. In the 3rd quarter of 2012,
following the signing of EO 79, Philippine GDP grew 7.1%, among the fastest in the world,
but the mining sector contracted by 2.2%. Prior to the release of GDP data, the government
significantly slashed its mining investment forecasts for 2013 to 2016.

Were hoping that Congress will legislate the [draft mining] bill. Starting in June or July when
the new Congress comes in the issue in income sharing and all related concerns in the
mining industry especially the many conflicting laws and regulations will soon be resolved,
said Socioeconomic Planning Secretary Arsenio Balisacan speaking at the announcement of
Philippines 2012 annual GDP growth.

Transparency

Speaking at the recent Extractive Industries Transparency Initiative, Purisima repeated this
saying that mining can contribute one to two percentage points to the countrys economy
growth if current governance issues are resolved and mining became more transparent.

The past two years and 10 months of the Aquino administration, youve seen how good
governance can change the fortunes of a country. In an economic environment where its
very difficult, weve seen the country do much better than its performance in the past when
the world economy was doing well, he said.

Purisima said there should be transparency in both contract granting and tax payments
made by mining firms.

Sitting on a Gold Mine: Will Mining Make or Break the Philippines?

In Compostela Valley, in the southern Philippines, a river streaked many shades of brown
cuts through farmland and jungle brush to release its muck into the sea. The slurry swells
around the coastline, muddying the emerald waters. The source of the blight is an eroded
mountainside peppered with blue tarps and tiny shacks, a gold mine nestled among green
hills. About 600 families reside on its steep slope, eking out a living by half-grams of gold.

They are, technically, squatters. An American company, St. Augustine Gold & Copper, holds
the rights to this mountain and those surrounding it. In their place, the company wants to
build massive pits to get at the estimated 962 million tons of precious metals beneath. They
also promise to clean the river, plant trees and create jobs. It is a massive undertaking that
will dramatically alter the landscape and displace the thousands of workers who have been
mining in the area, and fueling the local economy, since the 1980s.

The Philippine government, for its part, is rooting for the American firm, grounded in the
belief that large-scale mining can be a golden engine of economic growth. Corporate mining
permits have multiplied under President Benigno Aquino III, and new mining rules filed by his
administration this week will place new restrictions on where and what small-scale miners
can mine. But many Filipinos, especially those from mining communities, are wary of his
plans. They want an overhaul of current mining laws. They also want a bigger piece of the
profit.

(MORE: 10 Questions for Benigno Noynoy Aquino III)

Whats happening in the Philippines is echoing across a region where fast-growing

economies are weighing the costs and benefits of extractive industries. Indonesia this
year imposed a whopping 20% tax on mineral exports and, in an effort to foster domestic
downstream industries, now limits shipments of raw materials. Mining companies are,
naturally, critical of the turn, saying it discourages foreign investment. What good are high
taxes, after all, if there are no investors to pay them? Theres a flip side to that: What good
are investors if there is nothing to mine?

The Philippines, of course, has plenty to mine. Loaded with mineral wealth (worth about
$840 billion), it boasts some of the largest untapped gold and copper deposits in the region.
Unfortunately, it has not always been the friendliest place to do this kind of business. In
Mindanao, which holds more than a third of the countrys gold and houses all its
insurgencies, mining operations are susceptible to attacks and extortion from rebel groups.
Noncomplying companies have lost millions of dollars worth of equipment to vandalism and
arson. The government has long offered generous incentives extremely low taxes, state-
funded security, low accountability to entice foreign investment.

With adequate taxation, big mining could indeed fuel the economic growth the country
needs. But environmentalists, local leaders and even the influential Catholic Bishops
Conference of the Philippines have taken a stand against large-scale mineral extraction.
Besides obvious environmental concerns, they fear that big mining will displace indigenous
tribes and squelch the small-scale industry that has historically contributed the bulk of
mining tax revenues. On top of that, they argue, bureaucratic inefficiencies and likely
graft and corruption prevents what little mining revenue is collected from making its way
back to communities. As a result, at least 20 governors have banned some form of large-
scale mining in their provinces.

(MORE: Asia to Lead the Worlds Rich List)

The tension unfolding around St. Augustines Compostela Valley project underscores whats
at stake nationally. Just 1 years old, the project has received endorsements from every
level of government, a requirement under the 1995 mining law. It stands to be the largest
single mining operation in the countrys history (if a mining ban halting the nearby
Tampakan Gold-Copper Project holds up). Its executives say its setting a new standard of
socially responsible mining: hiring from the local population, planning postmine
rehabilitation and promoting reforestation. It also spends about $20,000 per month on
community-development efforts, according to Clyde Gillespie, the companys environmental
and permitting director, who also pointed out that no law requires them to do so. What
were doing now in the community is totally voluntary, he says. We think its the right
thing to do.

But local leaders from affected barangays, or villages, remain skeptical. I have 100%
doubts, says Captain Ferdinand Dultra, a leader of Barangay Magnaga, which endorsed the
project after the company reportedly donated 500,000 pesos to the construction of a
barangay hall. (Officials say the donation did not affect their decision.) While several leaders
said that they appreciate the companys investment in the community, they also point out
that mining reform might secure similar community benefits while guaranteeing corporate
accountability. It is very risky for us to support large-scale mining, says Elvie Baliar, a local
leader from Barangay Tambangon who also endorsed the companys exploration bid. Six
hundred households will be affected. They are in the area since 1987.

Under the 1995 law, small miners with a historical claim to an area can petition for Minahang
Bayan, or Peoples Mining, permits. The miners from this area began applying for such
permits in the 1980s, without success. Then, in 1992, the Mines and Geosciences Bureau
(MGB) granted a permit to Nationwide Development Corp., a Philippine logging company
that is now partnered with St. Augustine. From that point on, every miner on the mountain
has been illegal.

(MORE: Dynastic Duel: Its Arroyo Vs. Aquino in the Philippines Latest Political Battle)

Alexander Josol is one of those miners. He used to be a farmer, but now operates his own
tunnel, for which he pays royalties to the local indigenous council. The work is more
dangerous than farming (a mining-related landslide in January killed 40 people), but the pay
is decent. With his experience, hes the sort of miner that St. Augustine might hire. But Josol
says he doesnt have the mechanical skill to work in an open-pit and would also earn less as
an employee than as an independent miner, as the latter pays by the gold gram rather than
by the hour. He is working with about two dozen small-scale-mining leaders to oppose St.
Augustines project and secure the right to remain on the mountain. They want the
government to back off of large-scale projects and instead invest in the small-scale industry,
helping artisanal miners work more safely and efficiently.

Others just want better regulation of big mines. Under the 1995 mining law, foreign
companies typically pay no income tax, no export tax and just 2% excise tax which is in
large part why mining takes up less than 2% of the countrys GDP. That taxes are
determined by self-reported production figures presents another obvious problem:
underreporting of production. From 2000 to 2008, reported mineral production was between
17% and 45% lower than actual mineral exports, according to a 2010 study commissioned
by Action for Economic Reforms. The lack of oversight behind such a discrepancy is a major
criticism of the existing mining law. Father Edwin Gariguez, who won the 2012 Goldman
Prize, a prestigious international environmental award, for his work on mining, argues that
Aquino gives too much weight to the regulatory power of government agencies. He says
most agencies dont have the capacity or the will to enforce the law.

The IMF, which once called for the cheap privatization of the countrys natural resources,
now recommends that the Philippines revise its mining tax scheme. Executives at St.
Augustine acknowledge that the Philippines liberal mining laws and low taxation are part of
what attracted the company to the region, but Gillespie argues that stricter regulation and
reasonably higher taxes wouldnt necessarily turn them off. The payoff is too huge. If you
can get in here and get established, youll be in pretty good shape in the long term, says
St. Augustine chief operating officer Tom Henderson, of the countrys mineral potential.

The President, who has long promised to reform the industry, this week filed the
implementing rules for his new executive order on mining. They do not include provisions on
revenue sharing, protected habitats or ecotourism zones. Other stakeholders have taken
matters into their own hands, introducing three alternative mining bills at the Philippine
Congress (House bills 4379, 6342 and 4315), each more radical than the next in their
attempt to reform the industry. These alternatives are supported by the Catholic Bishops
Conference, environmental groups and indigenous rights organizations, who feel that any
one of these measures would add teeth to the Presidents plan.

Whether Aquino will respond favorably to the popular call, or uphold the decades-long status
quo, remains to be seen. But what happens in the Philippines could set a new standard for
extractive industries in other parts of the world.

MANILA, Philippines - Despite his objections to some of its provisions, President Duterte has
signed the landmark Paris Agreement on Climate Change that calls for the reduction of
carbon emissions, which have been linked to the occurrence of natural disasters and
extreme weather conditions.
Malacaang transmitted to the Senate on Feb. 28 the signed Instrument of Accession, copies
of which were furnished to the media yesterday.

The climate agreement has to be ratified by the Senate before it becomes binding.

After examining the text thereof, I find it advisable to accede to the Paris Agreement and
seek the Senates concurrence thereto, the President said in a letter to the Senate.

Duterte previously rejected the climate deal, calling it a stupid and unfair agreement
that could limit the industrialization of developing countries like the Philippines.

The President also noted that it did not enumerate sanctions for parties that failed to comply
with their obligations.If there is no sanction and you are asking somebody to do something
or not to do something, and there is no sanction or punishment or whatever, then its
nothing, Duterte said in a speech last November.

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In December 2015 in Paris, members of the United Nations Framework Convention on
Climate Change, including the Philippines, crafted the agreement, which aims to limit the
increase in the global average temperature to well below two degrees Celsius above pre-
industrial levels.

Signed by 175 countries in New York, on April 22, 2016, the pact took effect on Nov. 4 after
parties representing 55 percent of global greenhouse emissions ratified its provisions.

While not a major emitter, the Philippines promised to reduce carbon emissions by 70
percent by 2030 something Science Secretary Fortunato dela Pea believes is doable if all
sectors will cooperate. Whatever difficulties we may encounter, we are bound to extend our
support to that, Dela Pea said. With the approval, then we have to really focus our
programs on how to meet the commitment of the Philippines.

Dela Pea added his agency would intensify research on renewable energy, energy
conservation and other areas that would enable the Philippines to address the impact of
climate change.

Climate body lauds signing

Meanwhile, the Climate Change Commission (CCC) yesterday lauded Dutertes decision to
sign the Paris Agreement.

CCC secretary Vernice Victorio said the impending ratification of the agreement will allow the
Philippines to push for stronger compliance to the provisions of the pact.

As one of the most vulnerable developing countries to climate change, it is important that
we remain a strong voice and advocate of principles of historical responsibility and common
but differentiated responsibilities, Victorio added.

If the Senate ratifies the agreement before the next round of climate negotiations in Bonn,
Germany this November, the Philippines will be able to sit on the conference of parties that
will tackle the status of implementation of the Paris Agreement.
Victorio said the Philippines can strengthen its stand and voice on issues involving climate
change once it becomes a party to the agreement.

CCC said the Philippine accession to the agreement will include a declaration that will ensure
that our national laws and priorities will be upheld.

Also included in this declaration is a statement laying the groundwork for a comprehensive
review of the contributions that the country will provide to efforts that will address climate
change, according to CCC.

The review will include a wider consultation on the previously submitted conditional
emission reduction pledge of 70 percent towards the development of the Nationally
Determined Contributions and will take into consideration our capacity to implement such
contribution, support received from developed countries for climate action and our
development pathway, Victorio said.

Despite its support during the negotiations, the Philippines was not able to immediately
ratify the agreement following the change in administration.

Ratification by Earth Day

Senate committee on climate change chair Sen. Loren Legarda said they will immediately
begin the conduct of hearings to finalize the ratification process before Congress goes on a
six-week break starting March 16.

Legarda formally received the treaty, which was personally delivered by Deputy Executive
Secretary Meynard Guevarra to her office yesterday.

The Office of the President is pleased to transmit to the Senate, through Sen. Loren
Legarda, who is the principal author of the Climate Change Law. This instrument of accession
of the Philippines to the Paris Agreement was duly signed by the President yesterday,
Guevarra said.

Legarda noted that she had been pestering Malacaang to transmit the treaty to the Senate
for its concurrence.

The Philippines has not yet completed the ratification process, thus it only sat as an
observer in the ceremonial first meeting of the Parties to the Paris Agreement or the CMA
during the 2016 climate negotiations in Marrakech, Morocco.

Simply put, this is the signed climate agreement that we have all been waiting for. We can
see that this is a product of very close coordination between the legislative department and
the executive department, Legarda said.

She said that the Philippines would only stand to benefit from the treaty, particularly
because the country is the third most climate-vulnerable in the world.

She said her personal target is to have the Philippines complete the ratification process by
Earth Day, April 25.

DENR welcomes Rodys move

In a press statement, Environment and Natural Resources Secretary Gina Lopez welcomed
Dutertes signing of the landmark deal.

As one of the countries most vulnerable to climate change, the Philippines cannot abandon
its commitment in addressing the single greatest threat facing our planet. We are one with
the world in tackling the threat of climate change, Lopez said.

She added that Dutertes move has brought a silver lining of hope for Filipinos of the next
generations, as it would empower the government to better manage its natural resources
and empower localities to be disaster-resilient.

There is also no doubt we will be able to fully transform our communities toward climate
resiliency and embrace the principle of sustainable integrated area development as the way
forward to achieving a green economy, Lopez said.

In a related development, a Filipino climate change expert has been recently chosen as one
of the lead authors for the Intergovernmental Panel on Climate Change (IPCC) Special Report
on Global Warming.

Rosa Perez, who is assigned to the Climate Change Assistance Section of the Manila
Observatory, is one of 86 experts chosen from over 560 nominations based on technical
expertise, geographical representation and gender balance, among other criteria. With
Marvin Sy, Elizabeth Marcelo, Pia Lee-Brago