MORE GOLD. A salesclerk stands beside a sign in a jewelry store Tuesday, Sept. 13, 2011 in Manila, Philippines. With the high price of gold, the government is anticipating a gold rush and gave warning against the proliferation of illegal and dangerous mining as investors flee to the relative safety of the metal amid the continuing financial volatility in the United States and Europe. AP/Pat Roque
MANILA, Philippines— Philippine officials pledged support Wednesday for the mining industry as it undergoes a boom but warned companies they cannot dirty the environment, hide revenues or obtain mining permits only to raise funds on the stock market.
Environment Secretary Ramon Paje said mining is forecast to grow 17 percent this year, with the metals sector seen rising 24 percent. He said investments may reach $18 billion by 2016, nearly fivefold the $3.8 billion over the last six years.
Executive Secretary Pacquito Ochoa said the country will ensure transparency in revenues by participating in the London-based Extractive Industry Transparency Initiative that requires companies and governments to publish what they pay and receive.
The officials spoke before a mining conference, where industry leaders appealed for more government support.
The Philippines is the world’s fifth most mineralized country, with large reserves of minerals including gold, copper and nickel.
Benjamin Philip Romualdez, president of the Chamber of Mines of the Philippines, said the local mining industry is on the verge of its biggest boom in history as robust metal prices draw more local and foreign investors.
But he said a government moratorium on mining permits and a concerted campaign by environment activists against mining are threatening $14 billion to $20 billion in potential investments in the next five years.
Last year, investments reached $956 million and could have surpassed $1 billion had some projects not been delayed, he added.
“As we allow you to mine, we cannot allow you to dirty the environment,” environment secretary Paje told the conference.
Paje also clarified that the government has not suspended the issuance of permits but wants to first find out what happened to the 500 mining permits it has issued, since only 30 — or 6 percent — are in operation.
He said 94 percent of the permits have apparently been sold, traded or used to raise company shares in the stock market.
“Those who want to mine are welcome, those who will not mine are not welcome,” he added.
Ochoa said the mining industry is understandably being scrutinized by various sectors because of past harm done to the environment and communities.
“For mining to be acceptable, it must be guided by the principles of sustainable economic development, environmental protection, social equity and of course, good governance,” he said.