Mineral Resources from

the Earth: The Philippine

Mining Industry

Zareth L. Quimba
M.S. Geology
UP-NIGS
Philex Mining Corporation

Philippine Mining Trend

What is Mining?
It is the extraction of valuable minerals or
other geological materials from the Earth.
Examples:
Metals ; gold, silver, copper, iron, platinum
(mining)
Non-metals ; sand, gravel, cement,
(quarrying)
Petroleum ; oil, natural gas
Any material that cannot be grown from
agricultural processes is mined.
Benefits of Mining Products
Houses

Steel nails, wire, roof

lining
Saw for cutting of
Nipa Hut
wood, hammer
*Sand, gravel
* Cement limestone,
gypsum
* Steel iron, nickel
* Glass - Philippine Mining Trend
Bungalow
Benefits of Mining Products Buildings
Sand, gravel
* Cement limestone,
gypsum
* Steel iron, nickel
* Glass silica

CMC Burj, Dubai. Currently the

tallest building

Philippine Mining Trend

Benefits of Mining Products
Appliances

Metals
* electronic
raw material.
Fridge Gas stove
Copper, silver,
gold,
aluminum, etc

Old TV New TV
Benefits of Mining Products

Vehicles
* Metal raw
material.
Copper,
stainless steel,
1895 Peugeot, Oldest car aluminum, etc. Jeep

Ex. Ship,
airplane,
tricycle, bicycle,
motor cycle.
Lamborghini, Newest car Tain
Benefits of Mining Products
Public Infrastructure
* Metal raw
material.
Copper,
stainless steel,
San Juanico Bridge
aluminum, etc. NAIAirport
Sand, gravel
* Cement
limestone,
gypsum
* Steel iron,
nickel
Angat Dam * Glass silica Port of Manila
Benefits of Mining Products
Fuel / Electricity
Fossil fuel
Light bulb

Powerlines

Philippine Mining Trend

Offshore oil rig
Benefits of Mining Products
Medicine & Health
Metals
* electronic
raw material.
Copper, silver,
gold,
Prescrition drugs
aluminum, etc CT Scan

Medicines
*minerals

Microscope Ultrasound
Benefits of Mining Products
Gadgets

Metals
* electronic
raw material.
Copper, MP3 players
Mobile phones
silver, gold,
aluminum,
etc

Handheld game modules

Laptops
STAGES OF A MINING PROJECT
EXPLORATION
2-8 yrs

PRE-FEASIBILITY
5 yrs max
------------------------
DEVELOPMENT
PRODUCTION 2- 50 yrs max
* MINING *

50 yrs max
FINAL MINE
PROGRESSIVE DECOMMISSIONING
REHABILITATION

Philippine Mining Trend

 Philippine Mining Laws
1987 CONSTITUTION (Article XII, Sec. 2)
National Economy and Patrimony

All lands of the public domains, waters,

minerals, coal, petroleum, and other
mineral oils, all forces of potential energy,
fisheries, forests or timber, wildlife, flora
and fauna, and other natural resources
are owned by the State. x x x The
exploration, development, and utilization
of natural resources shall be under the
full control and supervision of the State.

Philippine Mining Trend

 Philippine Mining Laws
DECLARATION OF POLICY (RA 7942)
All mineral resources in public and private
lands within the territory and exclusive
economic zone of the Republic of the
Philippines are owned by the State. It shall
be the responsibility of the State to promote
their rational exploration, development,
utilization and conservation through the
combined efforts of the Government and
private sector in order to enhance national
growth in a way that effectively safeguards
the environment and protects the rights of
affected communities.
Philippine Mining Trend
 MINERAL RESOURCES POTENTIAL

9 million hectares are high potential

sites for copper, gold, nickel,
chromite, etc.
Only 1.4% covered by mining permits
Has the potential to be top 10 largest
mining power in the world

Philippine Mining Trend

 MINERAL RESOURCES ENDOWMENT

Mineral Endowment the amount of

total metal known and inferred to occur
within a region divided by the regions
total area
3rd in the world for gold;
4th in the world for copper;
5th in the world for nickel;
6th in the world for chromite

Philippine Mining Trend

 23 Mining Projects
Ongoing Exploration (7)
Feasibility Stage (12)
Construction (2)
Operating (4)

Philippine Mining Trend

 Responsible Mining

enhances economic growth, in a manner

that adheres to the principles of
sustainable development and with due
regard for justice and equity, sensitivity to
the culture of the Filipino people and
respect for Philippine sovereignty
- Executive Order No. 270

Sustainable Development = economic growth

+ environmental protection + social equity

Philippine Mining Trend

 Executive Order No. 270

National Policy for the Revitalization of

the Minerals Industry
Issued on 16 January 2004, with
amendments on 20 April 2004
(containing stronger emphasis on IPs
rights)
Calls for formulation of Minerals Action
Plan

Philippine Mining Trend

 Minerals Action Plan
Inter-agency formulation in
consultation with industries and NGOs
Contains 57 strategies & 126 activities
to address the problems of mining
Approved by the President thru MC No.
67 issued on 13 Sept. 2004

Philippine Mining Trend

 Minerals Action Plan, cont
o promote rational use of mineral resources
Comprehensive mineral exploration program to
be able to produce geologic maps covering 40%
of the entire country and inputs for geohazard
maps
To conserve mineral resources & ensure optimum
use of mineral products
Develop downstream industries & promote value-
adding livelihood
Promote use of efficient technologies

Philippine Mining Trend

 Environmental Principles for
Responsible Mining (EO 270)
Multiple land use & sustainable
utilization of minerals
Remediation & rehabilitation of
abandoned mines
Protection of the environment
Safeguarding the ecological integrity
of areas affected by mining

Philippine Mining Trend

ECONOMIC CONTRIBUTION
2006 DIRECT and INDIRECT TAXES

TOTAL: P 248.4 MILLION

P190.1 M Direct
Taxes
Indirect
Taxes
P58.3 M

TOTAL TAXES PAID

(from 1956 to 2006)
P 9.45 BILLION
 2007 EXCISE TAX ALLOCATION

Excise Tax Paid for 2007 = P 213.5 M

60 % P 17.1 M
National Govt (20%) 40 % LGUs
P 38.4 M
P 128.1 M (45%)

P 29.9 M
(35%)
Brgy. Camp 3 and
Brgy. Ampucao

National Provincial Municipal Barangay

Excise Tax paid (1991-2007): P 1.08 B

 TUBA REALTY TAX COLLECTION
2000-2006
ACTUAL
YEAR CAMP 3 OTHER BARANGAYS
COLLECTION
2000 5,663,284.25 2,648,392.33 8,311,676.58
2001 3,366,717.09 3,485,535.28 6,852,252.37
2002 3,477,503.89 4,349,086.90 7,826,590.79
2003 4,883,508.00 3,839,923.93 8,723,431.93
2004 3,476,471.95 5,652,974.63 9,129,446.58
2005 4,262,835.59 3,463,283.79 7,726,119.38
2006 3,885,502.50 4,463,812.52 8,349,315.02
Total
(Pesos)
29,015,823.27 27,903,009.38 56,918,832.65

Camp 3 Other
51% Barangays
49%
 PHILEX MINE WORKFORCE
2,226 Full Time Employees
& 482 Under Contractors

9% higher than
P369.00 N.C.R. wage rate
400
350
300 PHILEX 400
250 P 235.00
C.A.R. 350
200 300
150
P369.00
250
100 200 P325.00 PHILEX
50 N.C.R.
150
0 100
Aug. 02, 2006
50
0
68% higher than Feb. 1, 2006
government wage rate
WAGE RATE COMPARISON
 Wage and Benefits
CASH FRINGES NON-CASH FRINGES

Overtime Pay/Premium Housing Benefits

Night Shift Differential Domestic Water Services
Rest Day Work Power & Lighting

72%
Holiday Pay/Premium Sanitation & Fire Protection
Regular COLA Medical & Dental Services
Rest day Allowance Police Protection
13th Month Pay Recreation & Facilities
Canao bonus Education
Vacation Leave Pay Safety Gadgets

of basic salary
Sick Leave Pay Company Share
Medical Assistance PhilHealthContribution
Miners Bonuses: Pag-IBIG Fund
Meterage Bonus Union Welfare Fund
Core Bonus Rain Coat Supply
Hi-Packing/Bouldery Rubber Boots Supply
Rice Subsidy