The Philippines has one of the world’s worst mining policies, according to a yearly study by the Canadian think tank Fraser Institute.
Results of Fraser Institute’s 2016 survey of mining companies show that the Philippines plunged back to the bottom 10, ranking 100th out of 104 mining jurisdictions in terms of the policy environment.
The survey, conducted from Aug. 30 to Nov. 18 in 2016, covered the opinions of executives and representatives of 350 mining and exploration companies.
Based on the survey’s Policy Perception Index (PPI), the country scored 28.68 points out of a possible 100, returning to the worst 10 in the roster.
The list includes Venezuela, Afghanistan, Zimbabwe, Mongolia, Indonesia, Chubut (Argentina), South Sudan, Mendoza (Argentina), and Ecuador.
The Philippines emerged from the list of the 10 worst jurisdictions in the world in the previous survey, ranking 89th out of 109 jurisdictions in 2015.
To explain the Philippines dropping by 11 notches in the PPI, the Fraser Institute said in its 74-page report that investors indicated increased concern over uncertainty regarding the administration, interpretation, or enforcement of existing regulations; uncertainty concerning protected areas, uncertainty concerning environmental regulations, and uncertainty concerning disputed land claims.
In February, Environment Secretary Regina Lopez announced she wanted 23 mines shut down and five others suspended, mainly because most of these were located in a watershed. For the same reason, Lopez said she wanted 75 mineral production sharing agreements cancelled.
The PPI is composed of survey responses to policy factors that affect investment decisions.
Such factors include uncertainty concerning the administration of current regulations, environmental regulations and the legal system and taxation regime.
However, based on another index—the Best Practices Mineral Potential Index (BPMPI), which rates geological attractiveness to investors—the Philippines was among the best, ranking 10th out of 104.
This was an improvement from the 2015 survey, when the Philippines was 35th out of 109.