Gov’t seen scaling down mining goal

The government may revise its $2.27-billion mining investment target for 2012 by the third quarter if the long-awaited mining policy will not be ready by then, according to a government official.

“The mining policy is crucial. The government maintains that it is an urgent matter,” Mines and Geosciences Bureau Director Leo L. Jasareno said.

“We know they (mining investors) are just holding the reins and they can spend the money anytime. It’s already programmed,” Jasareno said. However, he said the issuance of the mining policy by October might be too late for investors to get the clearances necessary for making disbursements by November.

Jasareno said that in order to meet this year’s mining investment target, the mining policy should come out “midyear, June or July.” If it does, there would be enough time for companies to pour in investments within the calendar year, he said.

Pending the mining policy, the government is maintaining the current moratorium on the issuance of mining and related permits. The suspension of processing of new mining applications has been in place since Jan. 18, 2011. The Department of Environment and Natural Resources, to which the MGB is attached, has also stopped issuing environmental compliance certificates since May and tree-cutting permits since last week, Jasareno said.

Miners said this situation was holding back investments in the sector.

Australia’s OceanaGold Corp., for example, has said near-mine exploration and development for the Didipio Gold Project in Nueva Vizcaya depended on when it could get necessary permits. OceanaGold needs tree-cutting permits to proceed with developments in its area.

In 2011, the Philippines missed its mining investment target of $1.44 billion due to the deferment of implementation of major projects. Mineral sales, however, grew as existing mines remained productive.

Mining investments in 2011 hit only $618.5 million, which came from ongoing developments in the Surigao Sumitomo HPAL Project, Didipio Copper-Gold Project, Siana Gold Project and the Runruno Gold Project.

The government is fairly optimistic on the sector’s production prospects, except for gold. Gold production may reach 756,482 ounces (oz.) this year from over 1 million oz. in 2011 as concerns on smuggling persist.