Adoption of responsible mining urged

MANILA, Philippines — Investors in the mining sectors have been asked to be more sensitive to the needs of indigenous and farming communities.

This was urged by former environment secretary Horacio Ramos, in his paper, “Opportunities and Threats to the Competitiveness of the Philippine Mineral Industry, delivered during the recent China-ASEAN business and investment summit in Guanxi, China.

Ramos suggested the adoption of responsible mining, balancing economic, environmental and social objectives of mining companies.

He also urged mining contractors in the Philippines to equitable share the benefits between them and the government.

The 50-50 sharing of net mining revenue under the Financial and Technical Assistance Agreement (FTAA) has been considered as most acceptable to investors since it takes into account the costs of operations and prevailing mineral prices.

Ramos noted that in large-scale mining ventures, it is also suggested to set a cap for the government’s share at 50 percent of the net revenue to be able to lure the big mining players into investing in the Philippines.

He noted the differences between Western and ASEAN styles of conducting business on the ground. “While most Western companies adopt a more consistent, structured and rigid business culture and policies, Asian companies are more flexible when it comes to issues concerning their stakeholders and are thus more adept in handling social and political concerns,” Ramos claimed.

He said the Philippine setting is unique since environmental concerns play a big role in the social acceptability of mining projects.

The Philippines has a big mineral resource base, with potentials for copper, gold, nickel, chromite and iron. Government also reported hefty growth rates in volume and value over the last six years as it sought to revitalize mining. –MARVYN N. BENANING, Manila Bulletin