$617M infused into mining industry in ’10

MANILA, Philippines—Mining investments in the Philippines increased by more than half in 2010 from 2009 as government support sustained investor interest in the country despite political challenges during the election year, according to stakeholders.

Preliminary data from the Mines and Geosciences Bureau (MGB) showed that the Philippines last year drew $617.07 million in mining investments, about 64.55 percent higher than the 2009 level.

The amount reached $57.07 million in the first half, when the country’s focus was on the national elections, and about $560 million from July to December.

“We will finalize 2010 figures this week,” MGB director Leo L. Jasareno said.

Controversies plagued the mining sector early into the election year with the strong opposition to Intex Resources Phils.’ nickel project in Occidental Mindoro and the banning of open-pit mining by the then outgoing leaders of South Cotabato, which threatened to affect the $5.9-billion Tampakan copper-gold project of the group of mining giant Xstrata Copper.

In May, the Philippine Mining Development Corp. postponed the submission and opening of bids for the “729 below 600m” parcel in the Diwalwal Mineral Reservation to make way for the national elections. The submission was deferred for the second time in July, as pre-qualified bidders sought additional time “to conduct due diligence.”

The Philippines expects mining investments to reach $17.35 billion by 2016 as the government streamlines the process of issuing permits and promotes the country as an investment haven, according to the Department of Environment and Natural Resources.

Cumulative mining investments since 2004 (the year when the Supreme Court allowed full foreign ownership of large-scale mining projects) reached $2.89 billion as of May 2010. –Riza T. Olchondra, Philippine Daily Inquirer