MANILA, Philippines — The government is urged to resolve delays in processing exploration permits to unlock the vast potential offered by the rich local mining sector.
Darren Bowden, president and CEO of Metals Exploration Plc and FCF Minerals, warned that the sluggish approval of exploration permits was stalling growth and pushing investors elsewhere.
“These timelines need to change,” he said. “As the President’s vision is to revitalize the Philippine mining industry as major economic driver, the permitting process has to be responsive to the commercial reality,” said Bowden.
Bowden, concurrently serving as chair of Yamang Minerals Corp., proposed a two-stage permitting and consultation framework.
In the initial phase of exploration, the focus will be on environmental safeguards and shorter review timelines. Benefit-sharing and consent negotiations will only take place if viability of the mine has been confirmed.
He also said lengthy timelines were incompatible with the financial realities faced by companies, which rely on early-stage results to raise capital and advance projects.
Moreover, Bowden cautioned that illegal mining operations would proliferate if delays and bureaucratic hurdles were unresolved.
Of IP rights
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One of the concerns raised by Bowden is the application of the Indigenous Peoples (IP) Rights Act during the exploration phase, saying there was no need to negotiate economic benefits of IPs at the exploration stage.
“That’s required for mine development, not exploration. Yet we go through a three-year process that costs hundreds of thousands of dollars—needlessly,” he said.
Bowden mentioned that IPs could provide their inputs or comments during the government’s review of the environmental work program.
Another bone of contention is the free, prior and informed consent (FCIP) process, a document stating IPs’ consent for any activities or projects undertaken on their land.
Bowden said the FPIC discussion was dragging on, which should be tackled instead at the development stage of the project.
READ: Philippine government to streamline mining application process
The Australian model
The company executive pointed out the gap between Australia and the Philippines in mineral exploration.
Bowden noted that in Australia, a company could start developing a mining project within 30 to 60 days as soon as it secures an exploration permit, which is issued within 24 to 48 hours.
In the Philippines, however, it takes years to obtain all the necessary approvals and permits from different government agencies to build a mine site.
Bowden said in terms of budget, Australia is spending 4.2 billion Australian dollars or about P150 billion on exploration as opposed to only $37 million exploration spending in the Philippines.
“We’re relying on 30 or 40-year-old deposits for our future. That is not how we’re going to grow this industry,” he added.
Metals Exploration is a gold production, exploration and development company listed on the London Stock Exchange. It owns the Runruno Gold and Abra projects, both located in the northern part of the Philippines.
Its subsidiary, FCF Minerals, has a controlling interest in Yamang Mineral, which holds an extensive exploration tenement in Abra.