Mining target met but…

THE GOVERNMENT met its mining investment target last year but the result was down a quarter from 2011 due to a halt in the issuance of new permits.

Data provided by Mines and Geosciences Bureau (MGB) chief Leo L. Jasareno to reporters set 2012 mining investments at $791.69 million, exceeding the year’s $509-million goal. It was, however, substantially lower than the previous year’s result of $1.053 billion.

The 2012 target was substantially slashed last November from $2.27 billion, with officials then noting that Malacañang, via Executive Order 79, had kept a halt on new mineral agreements until Congress enacts a law rationalizing the revenue-sharing scheme for the industry.

Mr. Jasareno, however, said “deferred investments” and not the ban was not to blame for year-on-year drop. He identified the ventures that had been delayed as including San Miguel Corp.’s Nonoc nickel project and the Silangan copper project of Philex Mining Corp.

Chamber of Mines of the Philippines communications manager Jimbo B. Gulle, however, insisted: “the drop in investments is to be expected after the moratorium imposed by EO 79.”

With the 15th Congress having failed to act on the Palace’s call for a new revenue-sharing scheme, the MGB expects to record a lower $758.47 billion this year. The amount is expected to rise to $901.75 billion in 2014, dropping again to $757.6 billion and $619.5 billion, respectively, in 2015 and 2016.
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