COMP urges next administration: allow mining industry to ‘flourish’ | Inquirer Business
Close  
GROUP CALLS FOR STABLE POLICIES

COMP urges next administration: allow mining industry to ‘flourish’

/ 05:14 AM March 31, 2022

The Chamber of Mines of the Philippines (COMP) said the next administration must ensure a stable business environment whereby policies are reliable, contracts and investments are protected and rules are not changed mid-stream.

“But first, please allow us to flourish. Modern mining technology, global mining standards, and the increasingly stringent laws of the land governing mining have evolved in the last two decades to assist, enable and guide the industry to become a responsive partner. We like to think that we have also evolved in lockstep with these developments,” said COMP chair Michael Toledo in a speech before diplomats and consular officers on Wednesday.

ADVERTISEMENT

He said such a stable environment would enable the industry to support the country’s postpandemic recovery efforts.

Toledo said mining “has a tremendous potential to contribute to socioeconomic growth,” adding the country has an estimated untapped mineral reserves of $1 trillion, equivalent to three times its gross domestic product (GDP) in 2021.

FEATURED STORIES

The mining industry used to be a huge contributor to the Philippine economy, particularly in the 1980s when it accounted for 21 percent of the country’s export earnings and over 2 percent of GDP.

However, in 2020, the industry’s share in total exports and the Philippine economy dropped to 8 percent and 0.6 percent, respectively.

Toledo attributed the decline to a combination of factors, among them the “policy roadblocks” that included the nine-year moratorium on new mining projects and the four-year ban on open-pit mining.

At the same time, the industry is asking the next administration “to harmonize local and national laws to avoid conflicts on the ground.” Toledo alluded to the Tampakan mining project in Mindanao, which is being stalled by a provincial code that still bans open-pit mining.

Tampakan, along with two other copper-gold projects Silangan and Kingking, can increase yearly national government revenues by P12 billion a year, local government revenues by P1.5 billion, exports by almost $2 billion and social expenditures by close to P800 million per year, he said.

Royalties to indigenous tribes, meanwhile, would increase by over P600 million annually, he added.

“We in the Chamber are determined to be a strong partner in nation building—one with a strong focus on social development, on minimizing the impact of our operations on the environment, and on ensuring a fair division of economic and financial benefits of mining,” said Toledo.

—Jordeene B. Lagare
Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Chamber of Mines of the Philippines (COMP), mining industry
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.



© Copyright 1997-2022 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.