Connect with us

Hi, what are you looking for?

Economy

Open-pit ban, mining permit freeze seen holding back industry’s GDP contribution

MINING INVESTMENT has been hindered by inappropriate policy, including the freeze on new mineral production sharing agreements and the current ban on open-pit mining, preventing the industry from contributing to the economy, the head of the mining industry association said.

At the 9th Arangkada Philippines Forum Wednesday, Chamber of Mines of the Philippines Chairman Gerard H. Brimo said: “The industry has been stymied by policy problems, resulting in no new investments and therefore no growth.”

Citing 2019 data from the Mines and Geosciences Bureau, Mr. Brimo said the metallic mining industry accounted for 0.6% of gross domestic product (GDP), equivalent to P124.5 billion, and around 6.3% of exports at $4.38 billion.

“For such a highly-mineralized country, the large scale metallic mining sector does not substantially contribute to the national economy,” Mr. Brimo said.

Mr. Brimo said the open-pit mining ban deprives the country of export receipts, tax revenue, and social programs.

“The open-pit mining method is practiced all over the mining world. For most types of near-surface mineral deposits, there is no alternative,” Mr. Brimo said.

Mr. Brimo said the three open-pit mining projects that are on hold include the Tampakan Copper Project of Sagittarius Mines, Inc., the King-King Copper-Gold Project of Nationwide Development Corp. and St. Augustine Gold & Copper Ltd., and the Silangan Copper and Gold Project of Philex Mining Corp.

“The three pending projects, all located in Mindanao, can bring the industry’s contribution to exports to 9% and total contribution to GDP to 1.5%,” Mr. Brimo said.

Separately, Cargill Philippines, Inc. Corporate Affairs Director Christopher A. Ilagan said the agribusiness industry should focus on organic and free-range exports while participating in the e-commerce revolution.

Mr. Ilagan said at the same forum: “Efforts should also be done for improved data collection and analytics to support agricultural production and market systems, while also allowing for a more effective targeting of government support programs in the agriculture sector.” — Revin Mikhael D. Ochave

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Diego Gabriel C. Robles THE Philippine economy expanded by 7.4% in the second quarter — slower than expected — as rising inflation weighed...

Economy

By Abigail Marie P. Yraola, Researcher THE Philippines’ merchandise trade deficit hit another record in June as imports continued to outpace exports despite a...

Economy

THE National Government’s (NG) outstanding debt as a share of the gross domestic product (GDP) eased to 62.1% at the end of June. Data...

Economy

By Keisha B. Ta-asan SOURED LOANS held by Philippine banks fell for a fourth straight month in June, bringing the nonperforming loan (NPL) ratio...

Economy

Smart says third telco player’s PCC complaint meant to avoid liability By Arjay L. Balinbin, Senior Reporter GLOBE Telecom, Inc. on Tuesday said it...

Economy

DMCI Holdings, Inc. reported on Tuesday that its second-quarter consolidated net income went up by 73% to P9.03 billion from P5.23 billion, driven by...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

Instagram still holds the top spot for social media in terms of building brand reputation and expanding business potential. Every day, more and more...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.