MANILA, Philippines ? The mining sector's growth is expected to remain unimpressive next year despite the industry's liberalization three years ago that was expected to boost the economy, the National Economic and Development Authority said.

Dennis Arroyo, director for policy and planning at the Neda, said there had been investments in mining since 2005 but pointed out that these have long gestation periods. Exploration for possible mines takes several years to implement, he explained.

Arroyo added that investments in mining had so far been lower than expected, in part due to the high level of resistance from pro-environment groups against mining operations in the country.

He said the chemical spills that happened in Rapu-Rapu, Albay, a few years ago is still fresh in the minds of project critics.

Neda figures show that the mining and quarrying industry contracted by 2.2 percent in the first three quarters of this year compared to the same period of last year.

Neda has no official growth forecast for the mining sector for 2009, but Arroyo said it is not expecting substantial growth.

He said it would take two or three more years before the mining sector fulfills expectations of being a growth driver for the Philippines, believed to be one of the world's richest in terms of natural resources.

"Mining will likely pick up in 2010 or 2011. It will take some more time before its potential is maximized," Arroyo said.

The government has promoted mining in the belief it has the potential to boost economic growth.

It believes that attracting investments in mining would help create more jobs and spur domestic consumption.

Earlier, Neda said the country has the potential to attract between $5 billion and $7 billion worth of annual investments in the mining sector.

Neda noted that the country has an estimated untapped mineral wealth of between $840 billion to $1 trillion.

Neda also pointed out that mining has a multiplier effect of six times, and if maximized can potentially add P1.8 trillion worth of economic output. Full development of one large-scale mining site alone requires $850 million to $1.2 billion in investments, according to Neda estimates.

Environmentalists have opposed the promotion of the Philippines as an investment site for mining, citing various mining-related disasters in the past that led to costly environmental damage.