Louise Maureen Simeon (The
Philippine Star) - July 10, 2018 - 12:00am
MANILA, Philippines — The Chamber of
Mines of the Philippines (COMP) has warned that the delay in the resolution of
important mining regulations is attracting high risk investors.
“Given uncertainties in the mining
sector, we may attract high risk investors who are willing to take shortcuts.
And this is not good for us,” COMP executive director Ronald Recidoro said.
“There is a limited pool of
investment dollars reserved for mining and once these investors look elsewhere
and sink money in other country, it will be hard to attract them to spend more
here considering we have been delaying mining policies,” he added.
Investment opportunities in the
mining sector have been stalled for the past few years following the moratorium
on new mining projects issued during the last administration.
This was eventually worsened by the
continued anti-mining stance of the administration coupled with cancellation
orders and the ban on open pit mining.
Recidoro noted that Indonesia is
easing up on its own export ban.
“We are really seeing a dip in
nickel prices. We hope China begins to pick up demand for steel but global
demand for steel is complex. We are not positioned for it since there are no
new mining permits since 2010,” he said.
“We are a primary source of nickel
but nickel has been affected by China’s economy as it begins to shift from
manufacturing to more consumer-based,” Recidoro added.
Meanwhile, the Chamber is also
awaiting the official order from the government that will limit the areas to be
mined out to pave the way for progressive rehabilitation.
Environment Secretary Roy Cimatu is
expected to sign anytime soon the new DAO which will limit production areas
from 50 to 162 hectares only, depending on the mine’s annual production volumes.
Nickel mines that are producing up
to one million metric tons annually will be allowed to work on 50 hectares and
can reach up to 100 hectares for those with output of more than nine million
MT.
Mine sites with processing plants
can develop up to 162 hectares.
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