philippine gold mining industry

philippine stocks lead asia higher on upbeat us data, currencies slip - markets - business recorder

Philippine shares jumped more than 3% on Wednesday, with sentiment across Asia lifted by a pick up in US manufacturing, but the region's currencies came under pressure as the data boosted the dollar on rising bets for policy normalisation.

The South Korean won and Indian rupee led losses among Asia's emerging currencies as investors now look ahead to US jobs data this Friday for further signs of a strong recovery that could engender further talk of policy tightening by the Federal Reserve.

"Philippine stocks are getting a boost from some foreign buying after being shunned for most of second quarter after strict lockdowns were re-imposed," said Nicholas Mapa, senior economist - Philippines, at Dutch-bank ING.

Philippine stocks are the region's worst performers but they have been rising since May 26 as the number of coronavirus cases decline, leading to hopes that restrictions will ease soon. Stocks are up 6.2% so far this quarter.

The Reserve Bank of India is expected to keep the interest rates at record lows and reiterate its commitment on liquidity, as the country suffers a devastating second wave of the pandemic that has locked down most of the country.

While strong U.S growth is a boon for the global picture, it has also raised talks of the Fed having to scale back support measures, threatening Asia's risk-sensitive markets which have held firm on the US central bank's reassurances of a continued dovish stance.

complete turnaround: philippines duterte lifts ban on new mining permits

MANILA President Rodrigo Duterte has issued an order to lift a nine-year moratorium on granting new mining permits in the Philippines. The order is expected to ease the entry of at least 291 existing mining applications, escalating threats to the environment and its defenders, anti-mining and environmental groups say.

The sector is expected to support important projects like Dutertes flagship Build, Build, Build infrastructure program, which the government says is pivotal to economic recovery. More mining would also create more jobs, the government says, in the country with one of the highest unemployment rates in Southeast Asia. Some 190,000 people were employed in mining in the Philippines before the pandemic, according to data from the Mines and Geosciences Bureau (MGB).

While other sectors in the country have declined due to the pandemic and the lockdowns imposed in response to it, mining actually grew by 1.13%, driven mainly by nickel demand from China and a high gold price. The precious metal peaked at $2,000 per ounce last August and is expected to average at $1,700 this year as investors seek out a safe-haven asset.

While mining industry revenue contributed just 0.76% of the Philippines GDP in 2020, according to the Philippine Statistics Office, the government expects an increase in earnings from excise tax collections. It attributes this to the Tax Reform for Acceleration of Inclusion (TRAIN) Act passed in 2017, which doubled the rate of excise tax on minerals, mineral products and quarry resources from 2% to 4%.

The Department of Environment and Natural Resources (DENR) and the Department of Finance are expected to formulate the terms and conditions in the new mineral agreements that will maximize government revenues and share from production, including the possibility of declaring these areas as mineral reservations to obtain appropriate royalties, in accordance to existing laws, rules, and regulations, the executive order stated.

As the government anticipates a boon, anti-mining and human rights groups say lifting the moratorium on new mines will be anything but. They expressed dismay at Dutertes executive order, which they say marks a complete pivot to a sector he condemned extensively in the early years of his presidency.

President Duterte has completed his turnaround, from claiming to protect and stop the destruction of forests by destructive mining, to a pro-mining president, Alyansa Tigil Mina (ATM), a coalition of anti-mining groups, said in a message to Mongabay. Lifting the moratorium exposes this administrations support for mining projects that will impact our water, food supply, forest, biodiversity, Indigenous communities and fragile island ecosystems.

When he assumed office in 2016, Duterte was outspoken in his opposition to mining, which he blamed for degrading the environment. He imposed aban on open-pit miningin 2017 and appointedGina Lopez, a staunch anti-mining advocate, as secretary of the DENR. In her one year in office, Lopez oversaw the closure and/or suspension of permits for 26 mining operations found in violation of environmental regulations.

By 2019, anti-mining groups noted thatDuterte had gone quiet over mining, making no mention of the sector in his public speeches. That same year, the DENRs MGB recommended the reopening of mines shuttered under Lopezs watch, including the operation of the OceanaGold-operatedDidipio gold minesin Nueva Vizcaya province whose permit lapsed that same year.

While Dutertes policies on mining have caused instability in the sector, experts anticipated the domestic industry would rebound after neighboring Indonesia, the worlds biggest nickel producer, imposed an export ban on the metal in January 2020. The Philippines, the No. 2 producer, stepped in to fill nickel demand from China, exporting 333,962 tonnes last year.

Even amid strict government-imposed lockdowns that banned travel by land, air or sea, the mining industry wasallowed to continue operatingin the Philippines. This raisedtensions with local governments, which wanted mining operations halted to curb the spread of COVID-19.

Last October, Secretary of Finance Carlos Dominguez III announced the governments plan torevive the mining industryby privatizing government-owned mines, including two abandoned nickel mines in Surigao del Norte province and Marinduque province. That same month, Duterte lifted an oil exploration moratorium in what the Philippine government calls theWest Philippine Sea, an area it claims in the South China Sea.

Mining was thedeadliest sectorfor environmental and land defenders in the world in 2019, according to the watchdog Global Witness. That year, the Philippines topped the list of countries with thehighest number of mining-linked deathsof environmental defenders.

Among the 16 fatalities that year was Datu Kaylo Bontolan, an Indigenous Manobo leader on the southern island of Mindanao, who was murdered after opposing illegal mining in his community in the Pantaron mountain range.

Displaced Indigenous groupsin Mindanao have linked an ongoing government crackdown against them as cover to clear ancestral domain lands for mining companies, particularly small-scale Chinese firms with pending mining applications. Since 2000, Chinese investments in the Philippine mining sector have been channeled through local elites in the artisanal small-scale mining (ASM) firms, astudynotes.

This support to more mining projects will encourage more Chinese investments to extract nickel, black sand and copper minerals here in the Philippines, anti-mining coalition Alyansa Tigil Mina said. All these will only benefit Chinese demands and not Philippine industrialization.

In Palawan province, one of the most biodiverse areas in the country, the order could potentially greenlight the operations of at least five mining applications, according to the Environmental Legal Assistance Center (ELAC). While the province is governed by a strategic environmental plan that bans mining, there has been an increase in mining applications, said ELAC executive director Grizelda Mayo-Anda.

The DENR and the PCSD [Palawan Council for Sustainable Development] must be reminded that under the Strategic Environmental Plan for Palawan law (Republic Act 7611), all natural forests are areas of maximum protection or core zones, Mayo-Anda said.

Leon Dulce, an activist with the Kalikasan Peoples Network for the Environment (Kalikasan), said he was unconvinced the new order will uphold environmental protection, given that the countrys mining law gives permit holders complete access to natural resources within their concessions.

The Mining Act provides auxiliary rights to mines that allow them to cut timber, deplete water, and ease out communities away from their lands, Dulce said in a message to Mongabay. As part of its investment guarantees, the Mining Act commits government to ensuring the removal of obstacles to mining, and that includes conflicting land uses such as agricultural lands and communities.

Dulce also noted provisions in the act that limit rehabilitation, such as token fines of just $1 per ton for companies disposing of waste in unauthorized areas, and similarly low compensation obligations for damage caused by mine waste and tailings. That leaves all mines prone to externalizing environmental costs, Dulce said. In other words, polluters will not pay.

gold rate today: live gold price per gram and ounce

Gold Rate uses professional grade data sourced directly from gold dealers, exchanges or brokers with direct exchange relationships. All data sources are vetted by our team of economists, data scientists and finance experts so that you have knowledge you need when taking the future into your own hands.

Rare metals have higher economic potential than common metals. Of the five precious metals, gold has the largest market. Some investors refer to gold as a monetary metal because of its use throughout the history as a form of currency. Gold as an asset has a high store of value because it maintains its value without degrading. The yellow metal is also used in industrial units because of its desirable properties such as being a good conductor, malleability, and resistance to corrosion.

Gold futures are exchange-traded, standardized contracts in which the buyer takes delivery of a specified quantity of gold from the seller against a predetermined price in the future. Market makers and gold producers hedge their investments against the volatilities in the market by using gold futures, and as an easy way to make quick returns based off of movements made in the market.

A gold futures contract is a legal agreement for delivery of the precious metal at an agreed price in the future. These contracts are used by hedgers to minimize their price risk on the sale of physical gold or an expected purchase. Hedgers also provide opportunities to speculators to take part in the market.

Two positions can be taken: A short position (sell) is for making delivery obligations, while a long position (buy) is for accepting delivery of physical gold. Most gold futures contracts are agreed prior to fulfillment of the delivery date. For instance, this happens when investors switch position from long to short before the delivery notice.

There is a difference between the price of gold futures and spot gold. Gold futures represent the due amount to be paid on a date of delivery in the future. The prices for gold futures are higher than spot gold, as is commonly observed in the market. This difference depends on several factors such as the market demand for immediate physical gold, interest rates, and how many days remain before the delivery contract date arrives. The Forward Rate is when the difference between the two is expressed in terms of annual percentage rates.

Spot Gold is normally exchanged by independent dealers while gold futures depend on centralized exchanges which are accessible by investors for almost 24 hours a day. The price for spot gold is completely left to the market and unregulated. In the case of gold futures, the prices are regulated by the Commodity of Futures Trading Commission (CFTC) and the National Futures Association (NFA).

The difference between the new prices of gold compared to the previous close is known as the change. Previous close doesnt always have to mean previous day, it mainly depends on the prior days value. In the case of New York, the market stops trading gold on weekdays from 5:00 PM until 6:00 PM This means we will use the last price quoted at the 5:00 PM mark as the close of that day. Change is then known as the difference between the new price and the old price at 5:00 PM. So if golds last price at 5:00 PM was $1,500 on February 16, then if it is 6:30 PM on February 17, and the price is $1,502, the change will be seen as +2.00. If the price of gold is $1,550 on February 18 at 5:00 PM, the new change is then +50.00 at the new time.

The most common positions that can be quoted are: A short position (sell), which is the obligation to make delivery, while long position (buy) is the obligation to accept the delivery of gold. Change occurs when an investor changes positions prior to the delivery notice.

Gold has a benchmark price that is set every day. The most common entities that make use of these benchmarks include producer agreements and commercial contracts. The benchmarks are based on the spot markets trading activity on decentralized OTC or over-the-counter markets.

OTC means that the prices are not set by formal exchanges and are negotiated privately by participants over the phone or electronically. While prices for spot gold are not regulated, financial institutions still play a valuable role by serving as market makers, providing an ask price and bids for the spot market.

Trading for gold takes place Sunday through Friday, 23 hours a day. It is common for OTC markets to overlap. No market actively trades between 5 PM and 6 PM ET. Because of the presence of OTC markets, there are no closing or opening prices for spot gold.

The big-ask spread is the difference between the bid and the ask price. Liquid markets such as silver and gold have narrow spreads in the market. Other precious metals such as palladium and platinum might have comparatively wider spreads to reflect more liquidity in the marketplace.

There are no official opening and closing rates for silver or gold. As a result, traders are forced to peg their investment decisions on benchmark prices which are decided by different organizations during different times of the day. The technical lingo for benchmarks is also known as fixings.

The leading organization that maintains benchmarks for different precious metals is the London Bullion Market Association (LBMA). It governs prices for gold and silver, both of which are well-respected benchmarks used by dealers in the precious metals marketplace.

The London Gold Fix was responsible for setting the benchmark price for gold for almost 100 years. This price was decided after a closed physical auction took place between participating bullion banks. These auctions are held twice daily, first in the morning followed by a second in the afternoon in London, England.

The London Gold Fix finally closed its operations in 2015, placing the entire responsibility for determining the benchmark prices on the LBMA, and this resulted in the inception of the LBMA Gold Price in March 2015. It was seen as a necessity since many banks moved their base of operations away from the Bank of England. This also marked the shift in price matching mechanism away from the traditional physical auction to the now open electronic auctions among participating members.

There are many participating banks that include Bank of Communications, Bank of China, Goldman Sachs International, China Construction Bank, ISBC Standard Bank, HSBC Bank USA NA, Morgan Stanley, JP Morgan, Standard Chartered, Societe Generale, UBS, Toronto Dominion Bank, and the Bank of Nova Scotia ScotiaMocatta.

The process to determine price follows the same mechanism as London Gold Price. The prices are determined twice every day from a 1kg contract, although the predominant currency is Yuan instead of the U.S dollar. The benchmark can be found listed on the Shanghai Gold Exchange.

A single ounce of gold will be similarly priced throughout the world. Large-scale transactions usually deal in US dollars because of its popularity. The value of gold heavily depends on the countrys currency and follows an inverse relationship. It is typical for stronger currencies to have a lower value of gold, while the opposite is true for weaker currencies.

The entire precious metals market in general quotes prices in troy ounces. Throughout history, countries have used different systems including the metric system to measure the weight of gold in grams, kilograms, and tonnes, and similar prefixes.

Troy ounce has been used historically by the Roman Empire to weigh and set prices for precious metals. Back then, all currencies were valued in terms of their equivalent weight in gold (or other precious metals). This process was later borrowed by the British Empire which tied one pound sterling to one troy pound weight in silver.

The US also used the troy ounce system in 1828. A troy ounce is bulkier than one imperial pounce by about 10 percent. A troy ounce is equivalent to 31.1 grams in weight, while an imperial ounce is equal to 28.35 grams.

It is possible to buy gold in just about any currency, but the US dollar is the most popular choice because all fiat currencies are compared to it. This is because of the privileged position of the US as the worlds largest and most stable economy. The US dollar is also used to pay for all global imports and exports, so it makes financial sense to measure gold value according to this currency.

As a result, the dollar is widely considered as reserve currency, which means that it is used in international transactions by major institutions and governments across the world. The US dollar has become the defacto reserve currency since the start of the 20th century.

The primary reason behind the large discrepancy in the value of gold and silver is due to their rarities. The usual market principles such as supply and demand play a pivotal role in determining the value of gold. Since gold is low in supply, it is also much harder to obtain than other metals.

Silver is much larger in supply and is easier to mine. In fact, silver is often obtained as a by-product of other metals during mining. Silver can be obtained at a rate of 0.07 parts per million. In contrast, the average occurrence rate of gold is 0.004 parts per million.

The gold to silver ratio involves simple mathematical principles. It shows you how many kilograms or ounces of silver it would take to buy a single ounce of gold. If this ratio is at 50 to 1, it means that 50 ounces of silver would be required to obtain one ounce of gold.

Gold is mined through various processes. Some of these methods include panning, placer mining, hard rock mining, dredging, by-product mining, and sluicing. Historians are unsure when and where gold was first mined, although the most conclusive evidence dates back to 7000 years ago.

The worlds largest gold mining companies by market cap are Newmont Mining, Barrick Gold, AngloGold Ashanti, and Newcrest mining. The highest producers of gold by quantity are Australia, South Africa, Russia, United States, China, Peru, and Canada.

The World Gold Council (or WGC for short) was first founded in 1987. It is the bullion industrys market development organization which is largely responsible for developing innovative uses of gold, creating new demand, and bringing new products to the market. The organization is based in the UK and has a roster of several members including major gold mining companies.

The London Bullion Market Association (LBMA) is based in London. It is an internationally recognized trade association which largely represents the precious metals market including gold, platinum, silver, and palladium.

It has a long list of members including 140 companies that comprise of fabricators, traders, refiners, and more. The LBMA is not listed as an exchange, although it is responsible for determining benchmark prices for precious metals and PGMs. The Good Delivery List is published by the LBMA, a benchmark standard for the quality of gold and silver bars around the world.

SPDR Gold Shares, short for GLD, is the largest gold-backed exchange-traded fund in the world. It is marketed and managed by the State Street Global Advisors. The market cap for GLD is $32.44 billion as of March 2019. The exchange-traded fund was first launched in November 2004. It originally appeared on the New York Stock Exchange under the name streetTRACKS Gold Shares.

Since gold is widely considered as a store of value and a monetary metal, any quantity of the yellow metal is worth it. A single gram of gold is a great way to diversify investment portfolios because of low barriers to entry. While small quantities of gold are affordable, there are other options of purchasing gold.

While gold has been the cornerstone of flourishing capitalistic markets, it has found numerous industrial uses such as the manufacture of electronic devices for GPD units, and personal use as jewelry. The latter is more popular in South Asian countries during the wedding season.

Gold is utilized in the medical field and is best for crowns, bridges, fillings, and other orthodontic applications because of being chemically inert. Many patients are not allergic to the metal, making it ideal for treatments. Scientists use trace amounts of isotopes of gold in diagnosis and radiation treatments.

Due to its luster, gold is used in awards, statues, and crowds. Its exceptional beauty and rarity has turned gold into a status symbol. The metal is used in everything from Olympic medals to Academy Awards, and holds high esteem throughout the world.

Although no investment is completely devoid of risks, gold is one of the few assets that come with no strings attached. It is a great way to diversify your portfolio because prices have historically grown with the passage of time. Many people see gold as a stable form of investment because prices continue to lurch ahead even though bonds, stocks, and the US currency come crashing down.

The Dow to gold ratio is a measure of the stock market in comparison to gold. The Dow gold ratio been observed to move downwards in the wake of panic associated with inflation and deflation. During the Great Depression, the Dow to gold ratio stood at 1:1. In January 1980, both the Dow Jones Industrials and gold prices sported a handle at 850, thus reaching 1:1 ratio.

The Dow to gold ratio has fluctuated from 16 to 20 between 2017 and 2018. Analysts believe that the ratio will fall in favor of gold during the next financial crisis while some believe that the ratio will return back to 1:1.

As an example, a 20,000 Dow and $20,000 gold price may seem impossible to achieve today but when panic spreads in the market, price extremes on either side could be reached, sometimes even simultaneously.

In many cases, dealers are not obligated to report the transaction to federal agencies or the IRS. The only exception is under the extremely rare condition when the transaction exceeds $10,000 in value and the payment is made in cash or using two or more instruments of cash (such as travelers check, money orders, or cashiers check).

Central banks are national banks that issue currencies and govern monetary policies in regards to their country. They also provide banking and financial services to the local government and helps regulate the commercial banking system.

The central bank has a lot of influence when it comes to money matters in the country. It directly controls the supply of money in the country to help stimulate the economy as needed. Some examples of central banks include the Federal Reserve in the United States, the European Central Bank (ECB), the Bank of England, Deutsche Bundesbank in Germany, and Peoples Bank of China.

Central banks control the countrys reserves, including foreign exchange reserves which consist of foreign treasury bills, foreign banknotes, gold reserves, International Monetary Fund reserve positions, short and long term foreign government securities, and special drawing rights.

Gold is one of the most important commodity markets in the world, with only crude oil being more valuable. Despite this, the bullions price doesnt function on the basis of supply and demand. As is typical of most commodities, their prices are determined by expected demand and market supply.

Some analysts like to think of gold as a currency instead of a commodity because of its intrinsic value. It is commonly believed that gold prices are driven by sentiment instead of traditional market factors. Gold has traditionally had an extremely inverse relationship with bond yields and the US dollar. Heres the rule of thumb: when the dollar and interest rates go down, gold rates soar.

Put simply, interest rates are the cost of borrowing money. Lower interest rates imply that it would be cheaper to use the countrys currency in order to borrow money. Interest rates tend to have a strong impact on economic growth. Central banks use it as an important tool to make decisions in regards to monetary policies.

It is common for central banks to decrease interest rates if they lead to better economic prospects. Lower interest rates result in increased consumption and investment by the local population. The disadvantage is the low interest rates decrease currency and bond yields, both of which positively influence gold prices.

Quantitative Easing was first utilized by central banks in 2008 to address financial crisis. Japan is the first country to use this monetary policy tool. It saw widespread use after the former chair of the Federal Reserve, Ben Bernanke, introduced the concept in the US. Ben used Quantitative Easing (QE) to respond to the fall of Lehman Brothers, a major investment bank.

QE was used to purchase bad debt from major commercial banks in order to prevent Lehman Brother from defaulting, all the while increasing the supply of money. After the success of the move, other central banks have implanted QE, including the European Central Bank.

QE is not without its risks, one example is the rise in inflation if excessive money is created to purchase assets. It can fail if the money provided by the central bank fails to reach the average consumer or businesses alike.

Gold is a great way of storing wealth and has been used for this purpose since the ancient Egyptians. Despite having a history of being highly volatile, gold has traditionally performed well above expectations during tumultuous periods such as economic weakness, political disruptions, and financial turbulence.

In order to stabilize the economy, central banks create dovish monetary policies and introduce fiscal initiatives to influence the countrys currency and stimulate more demand for gold. It is commonly observed by investors to buy gold when they tend to lose confidence in their currency.

While the use of gold as a means of creating wealth dates back several thousands of years, historians have found archaeological evidence of gold coins being first used by King Croesus of Lydia in present day turkey or 550 BC. Gold was commonly known as electrum in its earliest days.

All major manufacturers of gold print their own bullion coins. This product is a less risky means of storing physical gold. Only governments have the authority of producing gold coins with monetary face values, and even then, the face value is less than the coins intrinsic value. Private companies produce their own mints, also known as gold rounds.

It is not easy to predict when gold prices will pick up pace. The bullion after all, is not dependent on traditional demand and supply factors, and is based entirely on market sentiments. Gold has been observed to perform well in an inflationary environment, periods of high uncertainty, and when the nations currency deflates.

Although gold has had its fair share of historical highs and lows, the yellow metal has traditionally followed an upward trajectory of growth. September is usually the strongest month for gold. This is because many jewelers stock their supply of gold in order to prepare for the upcoming holiday season.

January is the second strongest month for gold because of strong purchase patterns observed among eastern nations to prepare for the Lunar New Year. The worst performing months for gold have been March, April, and June in order from bad to worst.

mining law 2021 | laws and regulations | philippines | iclg

ICLG - Mining Laws and Regulations - Philippines covers common issues in mining laws and regulations including the acquisition of rights, ownership requirements and restrictions, processing, transfer and encumbrance, environmental aspects, native title and land rights in 15 jurisdictions.

Philippine mining law is primarily regulated by the Philippine Constitution, which provides that all natural resources are owned by the State. National laws, i.e. Republic Act No. 7942 (the Philippine Mining Act) and its implementing rules and regulations (IRR) (as contained in Department of Environment and Natural Resources (DENR) Administrative Order No. 201021), local ordinances and executive issuances on mining must be consistent with the Philippine Constitution.

The DENR is the primary government agency responsible for the conservation, management, development and proper use of the countrys environment and natural resources. Line bureaus under the DENR, particularly the Mines and Geosciences Bureau (MGB) and the Environmental Management Bureau (EMB), are respectively responsible for the proper management and disposition of mineral lands and mineral resources and the implementation of environmental laws. Further, local government units (LGUs) also exercise powers that affect the mining industry pursuant to their mandate to promote the general welfare within their territorial jurisdictions, provided they do not contravene the Philippine Constitution and the Philippine Mining Act.

Republic Act No. 6969 (the Toxic Substance and Hazardous and Nuclear Wastes Control Act) regulates the importation, manufacture, processing, distribution, use and disposal of chemical substances and mixtures. Republic Act No. 8749 (the Clean Air Act) outlines measures to reduce air pollution. Republic Act No. 9003 (the Ecological Solid Waste Management Act) provides for a systematic ecological solid waste management programme. Republic Act No. 8371 (the Indigenous Peoples Rights Act) recognises and promotes the rights of indigenous communities by requiring their free, prior and informed consent (FPIC) in specified instances relating to mining activities, among others. Republic Act No. 7076 (the Peoples Small-Scale Mining Act of 1991) promotes viable small-scale mining activities.

Executive Order No. 79 (Institutionalising and Implementing Reforms in the Philippine Mining Sector, Providing Policies and Guidelines to Ensure Environmental Protection and Responsible Mining in the Utilisation of Mineral Resources) (EO 79) instituted reforms such as a review of the performance of existing mining operations and cleansing of non-moving mining rights holders, imposed a moratorium against the issuance of mineral agreements (MAs) until the enactment of legislation rationalising existing revenue-sharing schemes and mechanisms, and constituted the Mining Industry Coordinating Council (MICC), among others.

The current administration has taken a conservative position on mining and continues to implement a moratorium on new MAs. However, DENR Administrative Order No. 2018-13 lifted the moratorium on the acceptance, processing and/or approval of applications for Exploration Permits (EPs). DENR Administrative Order No. 2017-10, which imposes a ban on open-pit mining, remains effective.

The Chamber of Mines of the Philippines, which is a professional association of the countrys largest mining, quarrying and mineral processing companies, formed with the aim of promoting the responsible exploration, development and utilisation of minerals, has been working to lift the ban on open-pit mining, considering that most of the deposits are low-grade and are situated near the surface. The MICC has also recommended the lifting of the ban on the open-pit mining method for select minerals under DAO 2017-10. Local mining companies have agreed to commit to the Mining Association of Canadas Towards Sustainable Mining initiative, which advocates responsible mining.

Under the Philippine Mining Act, reconnaissance is subsumed under exploration, which requires an EP. A holder of an EP is granted the right to conduct exploration for all minerals in specified areas. Mandatory requirements for EPs include:

MAs are agreements between a contractor and the government wherein the government grants to the contractor the exclusive right to conduct mining operations within, but not title over, the contract area. The requirements for MAs include:

FTAAs may be entered into between a contractor and the government for the large-scale exploration, development and utilisation of gold, copper, nickel, chromite, lead, zinc and other minerals, except for cement raw materials, marble, granite, sand and gravel and construction aggregates. Requirements for FTAAs include:

Generally, the procedures for different minerals and different types of land are the same. FTAAs, however, may not be entered into with respect to cement raw materials, marble, granite, sand and gravel and construction aggregates. The Philippine Mining Act also allows qualified persons to apply for quarry permits for building and construction materials located within a maximum area of five hectares.

Presidential Decree No. 1857 (the Oil Exploration and Development Act of 1972) governs the procedure for natural oil and gas exploration. It provides that such contracts shall be executed with the Department of Energy (DOE), with the approval of the President, and only after due public notice, pre-qualification and public bidding. In the case that bids are requested and no bid is submitted, or the bids submitted are rejected by the DOE for being disadvantageous to the government, the contract may be concluded through negotiation.

Mining is considered a nationalised industry and is limited by the Philippine Constitution to Philippine citizens or corporations at least 60% of whose capital is owned by such citizens. Hence, only Philippine citizens or such corporations may be granted MAs. Nevertheless, non-Philippine nationals or corporations that are 100% foreign-owned may still apply for EPs and enter into FTAAs.

A Minerals Processing Permit (MPP) is necessary before engaging in the processing of minerals. MPPs shall be renewable for a period of five years but cannot exceed a total term of 25 years. However, in the case of contractors, holders of Quarry Permits and Industrial Sand and Gravel Permits, the approved Work Program for the production period is sufficient to process minerals in lieu of MPPs.

Parties engaged in mineral trading either domestically or internationally must be registered with the Department of Trade and Industry and accredited by the DENR. Marketing contracts and sales agreements involving commercial disposition of minerals and by-products are subject to approval by the DENR Secretary upon the recommendation of the MGB Director. The approved marketing contracts and sales agreements shall be registered with the MGB. Further, the sale must be made at the highest commercially achievable market price and lowest commercially achievable fees under prevailing circumstances. The parties must also negotiate sales terms and conditions compatible with world market conditions.

Yes. While the Philippine Mining Act contemplates that a single qualified person may apply for exploration and mining permits, it also allows the partial transfer or assignment of these rights to other qualified persons. The transferee may further assign or transfer its rights to others likewise qualified. This results in the subdivision of rights to conduct exploration and mining.

In cases where the permittees or contractors are corporations or partnerships, the rights granted under the permit or contract belong exclusively to the corporation or partnership to which they are given and are not held in undivided shares by those who compose the corporation or partnership.

The Philippine Mining Act is silent as to a permit holders right to explore or mine for secondary minerals. However, the MGB requires permittees and permit holders to indicate in their Annual Mineral Resource/Ore Reserve Inventory Report both primary and secondary or accessory minerals.

Yes. Permit holders are allowed to manage mine wastes and mill tailings produced by operations, provided that they acquire an ECC from the DENR and an Authority to Construct and Operate (ACO) from the concerned EMB Regional Office of the DENR.

Offshore exploration activities shall be carried out in accordance with the United Nations Convention on the Law of the Sea and in a manner that will not adversely affect the safety of navigation at sea and will ensure accommodation with other marine activities such as fishing, aquaculture, transportation, etc.

No. The ownership over the surface areas of the land remains with the landowners. However, permit holders and contractors may enter, occupy and explore mining areas or lands after notifying and paying just compensation to landowners, and may exercise easements for ingress and egress necessary to undertake mining activities.

The holder of a mining right is responsible for any damage to the property of the landowner, occupant or concessionaire because of the mining operations. The amount of compensation may be based on the agreement between the parties or the determination of the Panel of Arbitrators, the body of MGB officers authorised to resolve disputes involving surface owners, occupants, or claimholders. To guarantee the payment of proper and just compensation, the holder of the right shall post a bond with the concerned Regional Office.

The Philippine Mining Act provides that contractors properties are generally free from expropriation. However, the government may expropriate when the purpose is for public use or in the interest of national welfare or defence. In such cases, foreign investors or enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance.

An ECC is required prior to the approval of MAs or FTAAs. To secure an ECC, a proponent must prepare and submit an Environmental Impact Statement (EIS), which includes baseline environmental conditions, impact assessments and proof of consultation with stakeholders.

Permittees must first secure clearance from the MGB, without prejudice to other required permits from other DENR agencies, before constructing and operating building tailings or waste dams. Permittees are required to establish contingency and emergency preparedness plans to deal with significant events, which are assessed by the MGB prior to issuing the said clearance.

For the closure of mines, the Mining Act IRR require that a final mine rehabilitation and decommissioning plan (FMRDP) or mine closure plan be integrated into the EPEP to be submitted by contractors to the Mine Rehabilitation Fund Committee, to guide the rehabilitation of excavated, mined-out and disturbed areas.

After the termination stage of a mining operation, all open-pit work areas, underground workplaces, mine waste and tailings impoundment systems, quarry sites and other mining-disturbed landforms, including those disturbed during exploration, must be progressively rehabilitated according to the FMRDP as embodied in the ECC and/or EPEP. Additionally, mine site decommissioning and rehabilitation shall aim to establish a land use capability that is functional and proximate to the land use prior to the disturbance of the mine area, unless other more beneficial land uses are predetermined and agreed in partnership with local communities and LGUs.

Yes. Indigenous Cultural Communities (ICCs) and Indigenous Peoples (IPs) are given priority rights in the harvesting, extraction, development or exploitation of natural resources within their ancestral domains. No ancestral land shall be opened for mining operations without the FPIC of the ICCs and IPs concerned. The parties must enter into an agreement with ICCs and IPs indicating the royalty payment, which may not be less than 1% of the gross output. The said royalty shall form part of a trust fund for the socio-economic well-being of the ICCs and IPs.

Further, no MAs, FTAAs, or mining permits shall be granted in areas subject to certificates of ancestral domains or ancestral land claims or in areas verified by the Regional Office or other office or agency of the government authorised by law for such purpose as actually occupied by the ICCs under a claim of time-immemorial possession, except with their FPIC.

The Philippine Mining Act and its IRR are the principal health and safety laws for the mining industry. DENR Administrative Order No. 2000-98 on Mine Safety and Health Standards also imposes standards for health, sanitation and mine safety and the penalties for violation thereof. Other health and safety regulations which are also applicable to the mining industry may be found in the Philippine Labour Code.

On 8 May 2020, the DENR-MGB issued Memorandum Order No. 2020-004 implementing guidelines for the resumption of mining and mineral processing operations during the General Community Quarantine period. This Memorandum Order provides for protocols on personal profiling, physical distancing, personal hygiene, disinfection and sanitation requirements, and other measures needed to combat the spread of COVID-19, including how to manage suspected cases. Mining contractors, permittees and permit holders are also required to provide personal protective equipment and other necessary medical supplies for their employees in the mine/plant site.

The issuance strictly prohibits the boarding of any vessel without the necessary authorisation from the Philippine Ports Authority and corresponding clearance from the Quarantine Medical Officer. Shipments of minerals and mineral by-products are also subject to additional requirements such as the submission of a Shipment Report indicating the port of origin and the COVID-19 test results of the crew. Further, all mining contractors, permittees or permit holders shall adhere to reporting requirements and submit pertinent documents as required by the MGB.

Mining companies and export-oriented industries are required to follow social distancing and community quarantine protocols in accordance with national regulation and the respective ordinances of the LGUs where they operate. They are also expected to follow pertinent regulations regulating and limiting the operation of transportation through land, sea and air in accordance with Republic Act No. 11469 or the Bayanihan to Heal as One Act.

The MGB regularly publishes this data through its official website ((Hyperlink) The information published includes details on existing EPs, MAs, FTAAs, MPPs, pending mining applications and pending cases with the Mines Adjudication Board (MAB) and Panel of Arbitrators.

Under the Philippine Mining Act, a Panel of Arbitrators in the Regional Office of the DENR has exclusive and original jurisdiction over disputes involving rights to mining areas, mineral agreements or permits and disputes between or among surface owners, occupants and claimholders/concessionaires. The Panels decision or order is appealable to the MAB.

Under the Philippine Constitution, the State owns all natural resources, including minerals. The exploration, development and utilisation of mineral resources are under the full control and supervision of the State, which may directly undertake the same or enter into co-production, joint venture or production-sharing agreements with Filipino citizens, or corporations or associations at least 60% of whose capital is owned by such citizens. The president of the Philippines may also enter into agreements with foreign-owned corporations involving either technical or financial assistance for the large-scale exploration, development and utilisation of minerals, petroleum and other mineral oils. Because of the States full control and supervision over mining rights, owners of surface rights do not automatically have rights over mineral resources found within their properties.

The Philippines has entered into bilateral investment treaties (BITs) that generally apply to investments made by foreign nationals of states that are parties to the BITs. Thirty-two of these BITs are presently in force, and typically include provisions such as the prohibition of the expropriation of investments in the Philippines of nationals or permanent residents of a contracting state, and the obligation to accord fair and equitable treatment to foreign investors and investments. They also typically contain an investor-state dispute settlement provision, which allows the nationals or permanent residents of a contracting state to submit a dispute involving the Philippine government to international arbitration. There is currently no treaty specifically applicable to the mining industry.

Aside from the payment of income tax, mining entities are also liable for excise tax and value-added tax on mineral products, which are national taxes, and for customs duties. They are also liable for local business taxes and real property taxes, which are local taxes. Contractors in MAs and FTAAs are also granted fiscal and non-fiscal incentives.

Mining operations within mineral reservations are subject to a royalty paid to the MGB of not less than 5% of the market value of the gross output of the minerals or mineral products extracted or produced from the mineral reservations, exclusive of all other taxes.

The mining industry is also regulated by the ordinances issued by the local legislative bodies of the local government units. These ordinances must be confined to the imposition of reasonable limitations on mining activities conducted within their respective territorial jurisdictions, and must be consistent with national laws and regulations.

Abandonment of mining rights is allowed by the Philippine Mining Act if the holder deems the mining project to be economically unviable even after exerting reasonable diligence to remedy the cause of the problem. However, abandonment of the right does not release the holder from his financial, environmental, legal and fiscal obligations arising from his exercise of the right.

The holder of an EP must annually relinquish at least 20% of the permit area during the first two years of exploration and at least 10% of the remaining permit area annually during the extended exploration period. However, if the permit area is less than 5,000 hectares, the permittee need not relinquish any part thereof.

An FTAA is also subject to relinquishment as follows: (i) at least 25% of the original contract area during the first two years of the exploration period and at least 10% of the remaining contract area annually during the extended exploration period and pre-feasibility study period; (ii) during the exploration or pre-feasibility study period, the contractor shall finally relinquish to the government any portion of the contract area which shall not be necessary for mining operations and which is not covered by any declaration of mining feasibility, provided that each mining area after final relinquishment shall not be more than 5,000 hectares; and (iii) the contractor may, at its discretion, submit to the concerned DENR Regional Office a declaration of mining project feasibility over any portion of its contract area prior to the lapse of the exploration or pre-feasibility period. In such an event, the contractor shall have the right to continue its mineral exploration or feasibility studies during the exploration and feasibility periods, respectively, in respect of the remaining contract area.

Yes. With regard to an EP, the DENR Secretary, MGB Director or MGB Regional Director concerned may cancel the EP for violations by the permittee of the terms and conditions thereof, including the failure to secure the required proof of consultation with or project presentation to the legislative body of the LGU concerned within one year from the issuance of the permit.

The grounds for the cancellation, revocation and termination of an EP, MA or FTAA are: falsehood or omission of facts in the application for the above permits which may alter, change or affect substantially the facts set forth in said statements; non-payment of taxes and fees due to the government for two consecutive years; failure to perform all other obligations, including abandonment, under the permits or agreements; violation of any of the terms and conditions of the permits or agreements; and violation of existing laws, policies and rules and regulations.

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mining for gold in the philippines | gold mining companies | inn

As a result, the Philippines is far from the heaviest player in the gold space read about the top gold-producing countries here but its clear that the nation does play a role in producing gold. The Philippines was ranked 24th in terms of global gold production in 2018, producing 36.8 tonnes of the precious metal.

Heres a look at some of the challenges of mining gold in the Philippines, as well as its growth potential and an overview of the publicly traded companies that are currently mining and exploring for the yellow metal in that region.

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As mentioned, mining for gold in the Philippines is not an easy task. While vast mineral reserves and potential exist, the country holds to strict mining laws, citing environmental impact and worker welfare as key reasons for these rules.

This is why the country reportedly holds the worlds second-largest gold deposits, but they remain largely untapped extraction of the metal comes with concerns surrounding health, safety, environmental hazards and rights of local (indigenous) people who are at the receiving end of deadly wastewater.

This emphasis on environmental impact has been championed by the current president, Rodrigo Duterte. He has said that mining companies must shape up as they are causing harm to land and water systems. In 2017, he even accused Canadian mining companies of a destabilization plot.

Duterte continued this ill will towards the mining industry when in 2018 he made comments that he would like to shut down the sector entirely due to the alleged environmental damage it has caused the region. Under Dutertes rule, there have been several mine closures and permit denials.

In response, the mining community, including the Philippines Chamber of Mines, said the closures and permit denials would cause harm to 1.2 million workers in the industry. Miners also said that they were being treated unfairly because of a lack of due process in these bans.

Speaking during a radio interview, Cimatu said, (I believe) we can allow mining (as long as) its responsible, it does not destroy our environment, as long as it is properly handled. That said, after over two years in office, Cimatu hasnt lifted the ban on open-pit mining.

Mining accounted for US$4.26 billion in exports for the country in 2018. It also provided over 200,000 jobs and 25.7 billion Philippine pesos in taxes. While mining does not make up a huge portion of the Philippines economy, the effects and benefits are felt strongly in certain parts of the country. Regions like Mimaropa and Caraga disproportionately rely on the value and opportunities produced by mining.

In total, there are currently eight gold mines in the region, as well as three copper mines, 30 nickel mines, three chromite mines and four iron mines. Additionally, the country operates five processing plants (two gold processing plants, two nickel processing plants and one copper smelter plant). Finally, foreign companies are active in the 35 commercial-scale mines in the Philippines.

When considering why mining hasnt yet taken a firm hold in the Philippines, Forbes explains that access to the sector has been mired since the 1980s in klutzy laws, environmental battles and land rights issues. The Wall Street Journal corroborates that statement, noting that most indigenous people in the country are not in favor of mining, and have special rights that make gaining their approval essential.

While the political landscape in the Philippines continues to be less than favorable, there remains growth potential in the region, especially when you consider just how much untapped gold resides throughout its landscape.

The mining industry continues to be a growing contributor to the Philippine economy and based on the mining industry statistics released by the Philippine Mines and Geosciences Bureau, the gross production value of the first quarter of 2018 was 109.5 billion pesos. This valuation surpassed the gross production value of 2017, which came in at 108.6 billion pesos.

In addition to its monetary contribution to the region, the mining industry also helps maintain steady employment opportunities to the communities within the Philippines, as at least200,000 workers are employed within the mining industry. Indirectly, mining companies have also positively impacted the development of their stakeholder-communities.

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While the political climate of the Philippines has drawn back the confidence of the mining industry, there are still many gold operations investors should know about. Read on to learn more about them. All companies included had market caps above US$15 million at the time of publication.

Apex Minings main project is the Maco mine (formerly known as Masara), located on the island of Mindanao. Apex has been operating for 40 years and saw its mining income increase by 21 percent year-on-year in 2018. It attributes its success to improved operations at Maco it produced 70,564 ounces ounces of gold last year, its highest annual output to date.

Medusa Mining operates in the Philippines through its subsidiary Philsaga Mining. The companys Co-O project is situated on the southern island of Mindanao and produced 102,500 ounces of gold for its financial year ended June 30, 2019. The company also reported revenues of US$129.6 million for the period, representing a 4 percent rise year-on-year.

Metals Explorations main asset is the Runruno gold-moly project on the island of Luzon. The company acquired the project in 2005 and has since increased its ownership to 100 percent. Runruno has a defined mineral resource of 1.39 million ounces of gold and 25.6 million pounds of molybdenum; 1,050,000 ounces of gold are designated as measured and indicated, while 900,000 ounces of gold are listed as proven and probable reserves.

OceanaGold owns and operates the high-grade gold-copper Didipio mine, also located on Luzon. The company achieved commercial production at Didipio in 2013, and over its 16 year life the mines nominal production should be 100,000 ounces of gold and 14,000 tonnes of copper.

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At the beginning of July, the company filed an injunction in order to maintain production at its Didipio asset in the Philippines after the governor of Nueva Vizcaya told local government to restrain all operations pertaining to the miner.

Philex Mining was incorporated in the Philippines in 1955, and its subsidiaries fall under either Philex Mining (metals) or Philex Petroleum (energy). Philex Mining operates the Padcal mine, which is its largest revenue source. Padcal has been operating since 1958 and is expected to end its life in 2020.

Philex also owns the Silangan copper-gold mine, which encompasses the feasibility-stage Boyongan and Bayugo deposits. The company produced a total of 61,977 ounces in 2018, down from its 2017 output of 84,638 ounces.

St. Augustine Gold & Copper is currently developing the King-king project, which it bills as one of the largest undeveloped copper-gold deposits in the world. Mineral reserves at King-king come to 617.9 million tonnes at 0.3 percent total copper and 0.395 grams per tonne gold.

The project is expected to put out 3.16 billion pounds of copper and 5.43 million troy ounces of gold over a 25 year mine life. The company expressed concern over the possibility of open-pit mines being banned by the government in a managements discussion and analysis report.

RTG Mining is an Australian mining and exploration company that is focusing on gold in the Philippines. The companys key project is the Mabilo gold-copper site, which has an indicated mineral resource of 227,000 tonnes of copper and 762,400 ounces of gold. Its also exploring its Bunawan project, where high-grade mineralization of gold has been found, including 7 meters at 4.18 grams per tonne of gold. Its Nalesbitan projectis in the early exploration stage.

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The companys flagship asset, the OBrien Project, is located in the heart of the Bousquet-Cadillac mining camp and is home to the former OBrien mine, which is considered to be the largest producer of high-grade gold. the Abitibi greenstone belt at the time of its production (1,197,147 metric tons at 15.25 g / t Au for 587,121 ounces of gold between 1926-1957 and InnovExplo, May 2018).

Im in the Philippines now, and I see no movement to improve the mining sector. The industry is holding its breath until the President retires next May and a new one is elected if that new elected official chooses to cut through the maze of restrictive laws here then the industry may recover. Your article does not reflect on the moratorium on new mining applications, the threat to crack up royalties to an unsustainable level, and the already difficult burden of dealing with the Communities. In the Philippines, under the Mining Act of 1995 and the Indigenous Peoples Act of 1997, the locals have to provide their full and implied consent to any mining exploration or mine development. They want to be paid off and if they arent then they vote against the miners and the deal doent proceed. Mining is at a virtual standstill, aside from major mines that were developed and opened during the Marcos time. Your article is strange it paints a rosy picture yet the truth is that mining is simply not going forward at all. Why write such a misleading article?

Im in the Philippines now, and I see no movement to improve the mining sector. The industry is holding its breath until the President retires next May and a new one is elected if that new elected official chooses to cut through the maze of restrictive laws here then the industry may recover. Your article does not reflect on the moratorium on new mining applications, the threat to crack up royalties to an unsustainable level, and the already difficult burden of dealing with the Communities. In the Philippines, under the Mining Act of 1995 and the Indigenous Peoples Act of 1997, the locals have to provide their full and implied consent to any mining exploration or mine development. They want to be paid off and if they arent then they vote against the miners and the deal doent proceed. Mining is at a virtual standstill, aside from major mines that were developed and opened during the Marcos time. Your article is strange it paints a rosy picture yet the truth is that mining is simply not going forward at all. Why write such a misleading article?

Hi there, Thank you for commenting! Youre right on the mark, and weve updated the article accordingly hopefully now it more accurately reflects the mining situation in the Philippines. Thanks again, and feel free to get in touch with any further comments. Charlotte