THE PHILIPPINE MINING INDUSTRY'S WEEKLY NEWSPAPER

Mining6 6 Week6

xFEATURED STORY

EITI: Towards transparrency, better governancein mining industry

See back pageVOLUME 1 NO. 4 JUNE 24-30, 2013 P20 www.phminingjournal.com

THE relieved regional di-rector of the Mines and Geo-sciences Bureau in Caraga (MGB-Caraga) has confirmed the filing of administrative charge against his superior, MGB Director Leo L. Jasareno.

Director Roger A. de Dios, who was relieved by Di-rector Jasareno in May, said his lawyers from the Manila-based Kapunan Garcia and Castillo Law Offices filed the case before the Civil Service Commission (CSC) on June 21. Jasareno de-clined to comment because he has not yet received copies of the complaint.

De Dios’ 27-page com-plaint sought the nullification of Jasareno’s relief order and asked for the official’s “imme-diate” reinstatement.

His lawyers argued that Jasareno’s order was attend-ed by “serious irregularities” because it failed to observe “substantive due process,” nor did it cite the legal

INITIAL GOVERNMENT FIGURES, SCHEME SHOW RESEMBLANCE TO IMF-PREFERRED SIMPLIFIED TAX SCHEME

FINALLY, some definitive figures.After floating the range of 7 to

10 percent increase earlier, the government is now settled at impos-ing between 8 to 10 percent share from mining revenue, Environment Secretary Ramon Jesus P. Paje said on Friday, June 21.

Secretary Paje said the government is bent on getting a fixed share from gross revenues, which will be collected in various stages: paid upfront, partially or at the end of a business cycle.

Although the final rates or scheme had yet to be decid-ed by the Mining Industry Coordination Council (MICC), the initial scheme is consistent with MICC’s December 2012 pronouncement when it said it was considering two tax re-gime options: share based on a percentage of gross margin or to a percentage of gross revenue, where the income tax paid is deducted after computing the government share.

This means share collected upfront will be coming from ex-cise tax based on projected earnings, and the additional gov-ernment revenue will be collected from windfall earnings.

In a 2012 study, the International Monetary Fund (IMF) has cautioned the government against focusing too much on production-based levies, saying this would “make the fiscal regime unattractive for mining projects of low profitability.”

FULL STORY ON PAGE 4 k

Paje: Gov’t wants 8-10% share

xSTUFFBOXEntry submission

for Chamber of Mines

photo contest ongoing

BACK TO COURT. Retired Supreme Court Chief Justice steps once again in the halls of the Supreme Court, this time to argue on the side of the mining industry which seeks the junking of the petition to declare the Mining Act of 1995 unconstitutional. PHOTO COURTESY OF UNITED METHODIST CHURCH

xGOVERNANCE

xCOMMUNITIESMamanwa tribesmen lift barricade vsAdnama Mining

De Dios confirms Civil Service case vs JasarenoxRelieved MGB-Caraga director seeks imme-diate reinstatement xDisputes Dir. Jasareno’s claim that the latter was unaware of the OTPs granted to Nonoc nickel miner Shuley Mine

PAJE

Supreme Court should junkpetition vs

Mining Act —ex-CJ Puno

FULL STORY INSIDE k

THPAL starts commissioning Surigao Norte plantBIGGEST MINING INVESTMENT IN PHL TODAY

SURIGAO CITY—As a prelude to its commercial operations which will begin in September, the Tagani-to High-Pressured Acid Leach Plant (TPHAL) Nickel Corporation has started commissioning its hydro-metallurgical processing plant in Barangay Taganito in Claver town, Surigao del Norte.

Engr. Arturo Manto, Vice Presi-dent for Environment and External Affairs of THPAL Nickel Corporation,

disclosed this during the 18th Caraga Business Conference on June 13. He said the company will be spending two bil-lion pesos per year as part of the operations cost of all the pollution control facilities.

“The company will spend that much per year to mitigate the environmental impact,” he said.

He said the cost includes the maintenance and operation of their tailings storage and scrubber facilities.

FULL STORY ON PAGE 4 k

MANTO

BY ROEL N. CATOTO Editor

DE DIOS

grounds upon which De Dios’ relief was based.

Jasareno anchored the relief of De Dios on the May 10 memorandum of Depart-ment of Environment and Natural Resources Secretary

Ramon Paje, which command-ed Jasareno to withdraw all of De Dios’s signing au-thorities, including the signing of Ore Transport Permits and Mineral Ore Export Permits.

It also instruct-ed Jasareno to

assume the post “until a re-placement is designated.” However, over a month has passed and a replacement for De Dios has not yet been named, and division officials from the MGB central office currently alternate as acting director on weekly basis.

Secretary Paje’s May 10 memo disclosed that the Pri-vatization Management Office (PMO) had requested De Dios’s relief “in order to avert further loss to the government.”

FULL STORY ON PAGE 4 k

xCompany to spend Php2 billion per year for pollution control xOfficial cites value-adding benefits of US$1.5 billion nickel processing plant in Claver, Surigao del Norte

xHigher taxes to be paid in various cycles xBill contain-ing final rates and schemes still being finalized

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PAL CORPO

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Hosting majorityof operating mines, role of Mindanao in PHL mining industry cited

OR as a starter, who are we?

We are a group of full-time and freelance journalists. You may have already catched a glimpse of our bylines in national and provincial newspapers, or heard some of us over the radio. Nonetheless, the aus-picious circumstance that led us to form a mining-fo-cused weekly newspaper is no accident: we have been covering the extractive in-dustry for as along we can remember in our respective media careers.

None of us belong to the so-called “blocktimers,” or hao siao, as they call the common racketeers mas-querading as journalists (if you spot those outsized “media” IDs, beware). Our members have been editors and reporters of reputable news organizations, and are card-carrying members of prestigious national media groups.

What sets us apart as a news organization is our lo-cation: our correspondents are strategically situated in mining areas, enabling them to report with unique insight.

But why mining? Well, why not? The coun-

ty’s mining sector contin-ues to rise as an important economic driver and the way it is being present-ed to the public deserves context and depth. There is a whole cottage industy dedicated to covering UFOs and scantily-clad women on high heels; why not one for a sector that affects the environment and the lives of peoples (including the scantily-clad women in high heels on FHM)?

“But isn’t it a dirty indus-try?” asks one media col-league.

I responded by asking, al-beit jokingly, “If it’s too dirty to deserve media coverage, must the media also stop covering Congress? Or the politicians?”

The point here is that it’s not the journalist’s job to decide which information is good and which is not good for the public; the public ought to decide on that. The journalist’s job is to deliver the best available version of the truth, and let the public make an appreciation for its

is notable that the Chamber of Mines of the Philippines (COMP) has been engaging the public through its infor-mation caravan and school visits. The Chamber of Mines of Caraga Region, in particu-lar, has been holding mining summits and has organized public awareness events to bring the mining sector clos-er to the public.

A lot more can be done. We have heard leading in-dustry figures complain-ing about misconceptions about the industry and de-liberate disinformation by “anti-mining” advocates. If misconceptions and disin-formation contribute largely to how the industry is being currently perceived, then what remedy can be as ef-fective as being open and transparrent?

What we doTo achieve what we have

set out to do as a news orga-nization, we are called to de-fine in certain terms our area of coverage, e.g. the scope of information we are able to provide on regular basis.

As our media kit pro-claims, our intended read-ership comprises of industry leaders, government regu-lators, lawmakers or policy-

makers and leading thinkers in the academe, economic and professional sectors, in-terest groups and the gener-al public.

To these target groups we intend to deliver com-prehensive regulatory up-dates, policy changes, and everything and anything under the sun about mining: events, issues, movements, trends, etc.

Mining is a complex in-dustry and, recognizing the need for a diverse set of minds who can offer inci-sive and insightful thoughts about the industry, we are continuing to enlist colum-nists and writers into the fold. We will also be restless in picking the minds of our policymakers, industry ti-tans and other important figures that shape the future of the industry. Their insight would prove very valuable as the industry undergoes dramatic changes, chief-ly the new tax regime and the enforcement of no-go zones.

We will cover sustain-able mining practices in the areas of mine safety and health, environmental pro-tection, and how compa-nies impement their Social Development and Manage-

ment Plan (SDMP) and other responsible corporate citi-zenship programs.

We will ensure that our analysis and commentary are data-driven and fact-based, sourced not only from our own independent journalism but also from diverse voices all across the industry, from CEOs to com-munity stakeholders. Don’t be suprised to read your parsih priest or tribal leader in our pages. These diverse voices ensure that we give equal opportunity to all stakeholders in each side of the aisle.

They key here is diversity of opinions, which is what we intend to promote.

Anti, pro miningTime and again, I am

asked about our view on mining. That certainly emerged during our staff discussions, and each mem-ber of the team expressed varied sentiments. There emerged contrasting biases but in the end we agree that our job is to report objec-tively. And that job doesn’t call for neutrality; truth is often found inside the cof-fin of neutrality. Rather, it calls for dilligence in gather-ing information and doing research; it calls for sharp thinking and sound judge-ment; it calls for honesty .

But I digress, and the question of the day must be answered.

This might be a non-an-swer but as editor, I believe that for far too long we have been asking the wrong question, e.g. “Are you for or against mining?”

That seemed to me a trick question that only ne-cessitates a doctrainaire response. Worse, such ques-tion has already polarized the country, throwing it into a seemingly unending cycle of arguments and count-er-arguments.

I believe we are long past the issue of whether we ought to have mining in the Philippines or not (sadly, some mining companies are trapped in this time warp). The right question to ask should be, “What is respon-sible mining?”

That is the question that has the capacity to move us forward as a nation. That is the question that we ought to repeat time and again.

Comment&InsightWhy mining

MINE TO MARKET PUBLISHING

Mining Week is published weekly by MINE TO MARKET PUBLISHING, with office address at Vailoces Bldg., Capitol Road, Surigao City.

JOCELYN B. FEROLManaging Editor

ROEL N. CATOTONews Editor

| Telefax : +63 086 826.1302| Ediitorial : info@phminingjournal.com phminingjournal@gmail.com

DANILO V. ADORADOR IIIExecutive Editor

VIRGINIA ARCILLAS-AGTAYEditor-at-large

| Sales: sales@phminingjournal.com | Website: www.phminingjournal.com

| Closing time for Press Releases and Ad materials is 6 PM every Thursday. For media coverage, please contact our Editorial Team.

RICHARD BALONGLONGCordillera Administrative Region

DARWIN WALLY WEEZamboanga Peninsula

DISCLAIMER:MINE TO MARKET PUBLISHING, Publisher and owner of Mining Week and all of its officers, employees, correspondents, consultants and agents and related entities do not make any warranty whatsoever as to the accuracy or reliability of any information, estimates, opinions, recommendations or conclusions contained in this publication and, to the maximum extent permitted by Philippine laws, the Publisher disclaims all all liability for any direct or indirect loss or damage which may be suffered by any person or entity by relying on anything contained in, or omitted from, this publication whether as a result of negligence on the part of the Publisher or not.

CORRESPONDENTS

BEN O. TESIORNADavao Region

CHRIS V. PANGANIBAN Agusan Provinces

NEF LUCZONNorthern Mindanao Region

Bong S. SarmientoSoccsksargen

DULMAR M. RAAGASTechnical Consultant

DANILO V. ADORADOR III,Executive Editor

6own good. This, I believe, is the highest form of respect journalists can give to his or her audience.

Frontline coverageThese are exciting times

for the extractive industry and we don’t want to cov-er it from the distance. By distance I mean the current norms of coverage on the in-dustry, where mining articles are generally published only if they possess the element of “conflict.” Who can blame the gate-keepers of most large media outlets whose main job is to dig the next story that would sell? For the mining industry, however, that means negative stories outnumbering the positive ones, by about eight to two.

But lest we be mistaken, we are not here to attempt to provide balance to the equation. Anything in that order would only provide artificial outcomes. To put it bluntly, we are not here to defend the mining industry; only the industry can defend itself. There’s no substitute for responsible mining prac-ticies, and to the faithful adherence to the laws that govern mining operations in this country.

This is where we come in. Because our coverage fo-

cuses on the industry, we are able to provide a complete picture about every sig-nificant development and event, and not just cher-ry-pick based on what sells. Because we are on the front-line, we can understand complex issues better, break them down into simple bits, and deliver them effectively to the larger public.

In short, our focused cov-erage has the potential to make the industry more mainstream to public con-sciousness, its workings more comprehensible to the average working man, and gives it the ability to respond proactively to the tradition-ally biased media coverage. To this end, we will work with large media outfits to enable them to hook up with our content on a recip-rocal basis, allowing Mining Week-produced content to seamlessly seed to multiple platforms.

But all these require open-ness from industry players. Not that the industry is liv-ing in complete isolation. It

I believe we are long past the issue of whether we

ought to have mining in the Philippines or not (sadly, a

number of mining companies are trapped in

this time warp). The right question to ask

should be, “What is responsible

mining?”

‘Such question has the

power to examine our roots, our priorities, our principles, our core values, and wheth-er our goals have productive and equitable value.

What constitute the best responsible mining practic-es? Which companies ex-emplify these practices? Do we need more regulation to create an environment for encouraging these practic-es?

Does responsible mining mean equitable sharing of wealth from our non-re-newable, natural resources? How do we define equitable sharing? Does it entail more taxes?

Does responsible mining mean mining in small island ecosystems? How do we define small island ecosys-tems? What are the bound-aries?

These are hard, interest-ing questions.

And we do not have easy answers for them.

Nor do we intend to an-swer them for the industry, or for the government, or for the public.

Our job, as we see it, is to drive discussions on these questions. Our job is to pro-vide the medium that can effectively accommodate the widest possible range of voices from the industry, the government and the great-er public, all of whom play important roles in these dis-cussions. These interactions, these dialogues, have the potential to produce posi-tive outcomes—and we are interested in that.

By so doing, we will also have played the transforma-tional part of making all our readers sufficiently informed before they make deci-sions—intelligent decisions.

This is our job; this is our our commitment.

MainStories

JUNE 24-30, 2013 3

Ex-CJ Puno to SC: Junk petition vs Mining Act

BECAUSE the Mining Act of 1995 has been upheld as constitutional, the High Court should junk further challenges on the legality of the law.

This was the argument of retired Chief Justice Reynato Puno, who is representing the Chamber of Mines of the Philippines (COMP) in a petition asking the Supreme Court to junk the legal chal-lenge seeking to declare as unconstitutional sections 80 and 81 of the Mining Act, or Republic Act 7942.

Section 80 of the Min-ing Act specifies the gov-ernment share in Mineral Production Sharing Agree-ment (MPSA), while Section 81 governs government’s shares to taxes, fees and royalties in Financial or Technical Assistance Agree-ments or FTAAs.

Joined by retired Associ-ate Justice Vicente Mendo-za, Puno argued that consti-tutionality of the Mining Act has been settled in the case of La Bugal-B’laan v. Ramos in 2004. In their motion, the former justices maintained that there was “no compel-

ling reason for the high tri-bunal to abandon its previ-ous ruling.”

There had been no signif-icant change in the circum-stances of the Philippine mining industry, they not-ed, while pointing out that the SC heard the La Bugal ruling for six years before finding the Mining Act con-stitutional.

In asking for the SC to reverse its ruling, former Akbayan partylist Rep. Risa Hontiveros said Section 80 limits the government share on MPSAs to excise tax, while Section 81 con-fined government’s share in FTAAs to taxes, fees and royalties only.

Hontiveros and co-peti-tioners Quezon Rep. Loren-zo Tanada III, Bayan Muna partylist Rep. Teddy Casiño contended that Sections 80 and 81 foster inequita-ble sharing of wealth—and must be declared unconsti-tutional.

But Puno and Mendoza countered that an adverse ruling “not only undermines mining investments but also leads to a significant

loss of investors’ confidence, not only in the mining in-dustry but broadly across all industries, severely impact-ing the investment climate and harming the country’s credibility.”

They cited that about P173 billion ($4 billion) in mining investments were poured into the country since 2004 following the high court’s ruling.

They said the issue is for the Executive and Legisla-tive branches to resolve, not with the courts.

“To have the Supreme Court revisit its ruling so soon after the (La Bugal) decision became final in 2005 will definitely shake investor confidence and de-stabilize a critically needed industry,” they said.

The SC held an oral argu-ment on the petition last April, and continued hear-ing it last June 25—this time with the two retired justices as intervenors for the COMP.

COMP also warned that the tribunal’s reputation was at stake, if ever it flip-flops on the Mining Act rul-

ing.“It also challenges not

only the stability of the decisions of the Supreme Court, but also the high tri-bunal’s institutional integri-ty,” it said.

Named as respondents in the Hontiveros petition were the Secretary of the Department of Environ-ment and Natural Resourc-es (DENR), Sagittarius Mines Inc. (SMI), OceanaGold (Phil-ippines) Inc., TVI Resources and Development Philip-pines Inc. (TVIRD), and Asi-aticus Mining Corporation (AMCOR). MW

PUNO

Gov’t wants 8-10% share

SEC: PAJE:

Taxes and Fees Paid by Mining CompaniesCorporate Income Tax Minimum CorporateIncomeExcise Tax Royalty Fees (MGB) Customs on Imported Capital Equipment Waste and Tailing FeeWithholding Tax on Interest Payments Withholding Tax on Dividends Capital Gains Tax Royalties to Indigenous People (if applicable)Stamp Tax Other National Taxes Local Business Tax Real Property Tax Community Tax Residence TaxOccupation Fees Registration Fee Permit Fee Wharfage Fees Extraction Fee Other Local Taxes

The country’s mining sec-tor is currently taxed in three ways: one for Mineral Pro-duction Sharing Agreements (MPSAs) outside minerals reservations, MPSAs within mineral reservations, and Fi-nancial and Technical Assis-tance Agreements (FTAAs). Government takes a 50 per-cent cut for FTAAs.

MPSAs within mineral res-ervations must pay a 5 per-cent royalty tax. Out of 31 31 medium- and large-scale op-erating mines in the country, 11 pay the 5-percent royalty.

The IMF study recom-mended that the 5 percent royalty and the 2 percent excise on mineral production “should be combined into a single royalty that applies to mines inside and out of mineral reservations, with the combined royalty to be collected by the Bureau of

Internal Revenue.”Because the of the in-

creased royalty rate, “partic-ularly when combined with other production-based levies,” the study said min-ing companies should be allowed “a tax credit against their income tax for the amount of royalty payment in excess of 5 percent.”

This would ensure that the fiscal regime remains com-petitive, it said, while giving local and national govern-ments early revenue at the start of the project.

Paje said the proposed rev-enue-sharing scheme is con-tained in a bill that is being prepared by MICC for intro-duction at the new Congress when it convenes in late July.

He noted that the enact-ment of the law would enable the government to again ac-cept applications for mining permits, which were put on hold when President Aquino issued Eo 79 last year. MW

n FROM PAGE 1

THPAL starts commissioning Surigao plant

Manto said the Taganito project is the biggest min-ing investment in the coun-try so far at 1.5 billion dol-lars. He said at least 2,350 workers will be employed once the company starts commercial production in September.

Skilled workers from Coral Bay Nickel Corpora-tion, a sister company of THPAL based in Palawan are

conducting the training of locally-sourced workers for them learn the skill needed once the company starts full operations, he said.

Manto said the lifespan of THPAL is 30 years.

He added that the com-pany will produce at least 30,000 metric tons of nick-el sulfide and 2600 metric tons of cobalt sulfide from 4.8 million weight metric tons of waste ore per year.

Manto said these nickel

and cobalt sulfides will be sent to Japan for another refinery process.

The mine waste which is composed of limonite ore from Taganito Mining Cor-poration in Claver will be used by THPAL, Manto ex-plained.

“The mine waste from the nickel mining operation which has no value, will be bought for 15 to 20 US dol-lars per metric ton,” he said adding this would translate into additional income for the company and jobs for locals.

Aside from mine waste, low grade ore will also be used for the production, he said.

Last month, THPAL’s ma-jority owner Sumitomo Metal Mining Co. Ltd. (SMM) disclosed that that it has de-veloped a technology that extracts higher iron grade from nickel ore, which the company will use in its Pal-awan nickel processing plant.

In a disclosure to the local bourse, the company said it succeeded in raising the grade of iron extracted from tailings to 60 percent based on a review of the process

for recovering nickel and cobalt using the HPAL tech-nology.

SMM also holds majority stakes in Coral Bay Nickel Corporation, where it pro-duces nickel-cobalt mixed sulfides.

The tailings left by nickel and cobalt recovery in its Pal-awan operations contain iron in the form of hematite, Sum-itomo Metal noted. But the grade of the hematite, how-ever, is “low,” approximately 30 percent and 40 percent and cannot be used as raw material for iron and steel.

“SMM, has, however, through a review of the process after the leaching and recovery of nickel and cobalt using HPAL technol-ogy, succeeded in raising the grade of the iron in this tailing to approximately 60 percent, which is equiva-lent to normal iron ore,” the company said.

“When this technology is developed for commercial use, not only will it allow a more efficient utilization of resources but it will also make a large contribution to reducing the amount of waste disposed of in land-fills,” it added.

n FROM PAGE 1

PITCHING FOR THPAL.Engr. Arturo Manto, Vice

President for Environment and External Affairs of THPAL Nick-el Corporation, explains the value-adding benefits that his company’s operations can bring to Caraga Region and the Philip-pines in general during a gath-ering of the region’s businesses in Surigao City recently. PHOTO BY ROEL N. CATOTO

Mamanwa tribesmen lift barricade vs mining firm

JUNE 24-30, 2013 4

SURIGAO CITY—Mem-bers of the Mamanwa tribe have lifted their barricade against the Adnama Mining Resources Inc. (AMRI) after they were paid P10 million in royalty fees.

Datu Reynante Buklas, one of the Mamanwa chief-tains, said they lifted the blockade at the mine site of AMRI in Barangay Urbizton-do, Claver town in Surigao del Norte after they got their initial royalty payment from the company.

AMRI is extracting nickel ore within the 48,679-hect-are ancestral domain of the Mamanwas. The company ships the deposit to China.

Buklas said they set up last June 15 the barricade at the mining site, paralyzing the operations of the company, for non-payment of royalties due to them.

In a text message, the Mamanwa chieftain dis-closed that they got the ini-tial P10 million royalty pay-ment from AMRI last June

News Environment | Communities

19, paving the way for the company to resume opera-tions.

AMRI owes the Maman-was a royalty payment total-ing P30 million for the year 2012, he added.

But Dulmar M. Raagas, president of the Chamber of Mines in Caraga Region, de-nied that AMRI failed to pay its royalty obligation to the Mamanwa tribe, the holder of the ancestral domain title.

“It’s not the AMRI who failed to meet the obliga-tions. On the contrary, AMRI has fully paid its royalty payments on time. The de-lay was on the part of the National Commission on Indigenous Peoples (NCIP),” Raagas said.

He said he had talked with Omar Abanid, AMRI vice president and mine site manager, about the matter.

Raagas said the Maman-wa tribesmen should de-mand the NCIP to release their royalty fees.

Mining Week tried but

failed to reach AMRI and NCIP officials for comments.

Buklas said it was Abanid and another staff who gave them the check and had it deposited to their bank ac-count last Wednesday.

This was not the first time that the Mamanwa tribesmen held a barricade against a mining company in the area.

In 2009, Buklas and oth-er chieftains barricaded against Taganito Mining Corp., forcing the company to pay its royalty obligations from 2006 to 2008 amount-ing to P72.5 million.

It was touted as the “larg-est royalty payment” ever made to a tribe in the coun-try’s mining history.

Three other mining com-panies are operating in Claver— Shen Zhou Min-ing Group Corp., Platinum Group Mining Corp. and the Taganito High Pressure Acid Leach Nickel Corporation.

The latter has just started the commissioning for its hydrometallurgical process-ing plant in preparation for their commercial produc-

tion this September.Buklas stressed that if

mining companies in the area would not pay their royalty fees, they would not hesitate to hold a barricade against them to stop their operations.

“If they don’t want to pay, they should stop mining and get out of our lands,” Buklas said in Surigaonon.

Under the Mining Act of 1995 and the Ingenious Peoples Rights Act of 1997, Lumads are entitled to one percent of the gross earn-ings of mining operations in their ancestral areas.

BUKLAS

BY ROEL N. CATOTO News editor

The Philex headquarters in Sipalay City, Negros Occidental. PHILEX PHOTO

Mine workers retained despite temporary closure, Philex says

BACOLOD CITY—Philex Mining Corp. temporarily suspended exploration ac-tivities at its Bulog Project site in Sipalay City, Negros Occidental after it was raid-ed by the New People’s Army (NPA) last month, but assured there will be no mass lay-off of workers.

Philex marketing and communications officer Ro-chelle Hilario made the assur-ance after Mayor Oscar Mon-tilla expressed concern of unemployment as a result of the temporary mine closure.

Hilario said only the exploration and drilling activities have been sus-pended while works on en-vironmental care and main-tenance will continue.

Montilla had earlier said Sipalay residents were appre-hensive about the temporary suspension of the project since they are looking for-ward to more employment opportunities when the com-pany decides to fully operate in the future.

But Hilario said there is “no impact on current head-count. Environmental pro-grams and community proj-ects for health, education, and livelihood continue.”

Philex Mining Corp.ex-plores areas in barangays Nabulao and Camindangan in Sipalay.

Hilario said they were con-cerned of the safety of their geologists after the NPA reb-els attacked the Bulog mine

site last May 3.The Chamber of Mines of

the Philippines has recently condemned the recent NPA atrocities against the Philex Mining project in Sipalay and in other mine sites.

The Bulog Project is situ-ated in Sitio Umas, Barangay Camindangan. The mining firm’s Bulawan Project locat-ed west of the Bulog Project has long ceased operations and is currently on care and maintenance.

Hilario said that the Bul-awan mine operations had been put on hold since June 2002 due to unfavorable market prices for gold.

Philex had been operating the Bulawan Project since 1990, through its subsidiary, Philex Gold Phils. Inc. Pro-duction started in 1996 until its operations shut down in 2002. PNA

Mining reforms earn PH ranking in global resource management index

The Department of En-vironment and Natural Resources (DENR) has wel-comed the Philippines’ rank-ing in the recent global re-port issued by the Revenue Watch Institute (RWI), indicat-ing that the government has made “meaningful progress” toward better management of mineral resources in the country.

In its 2013 Resource Gov-ernance Index, the New York-based policy institute gave the Philippines a score of 63 out of 100 under the “institutional and legal set-ting,” its highest on any component, as a result of its “comprehensive mining leg-islation.”

The country also ranked 23rd overall among 58 re-source-rich countries sur-veyed on the quality of gov-ernance in the oil, gas and mineral sectors.

According to Secretary of Environment and Natural Resources Ramon J. P. Paje, such good showing for the country in the institutional and legal setting category was due to the Aquino ad-ministration’s initiatives to reform the mining sector.

He cited President Benig-no S. Aquino III’s Executive Order (EO) No. 79, which seeks to balance import-ant concerns on mining development in reinforc-ing environmental protec-tion measures, promoting responsible mining, pro-

viding a more equitable revenue-sharing scheme and providing coordinative mechanisms among stake-holders including local gov-ernment units (LGUs).

“The international com-munity has noted the comprehensiveness of our mining laws and how they facilitate transparency, ac-countability and open or fair competition,” Paje said.

He added, “This is indi-rectly a recognition that the issuance of EO 79 by Pres-ident Aquino was indeed the perfect vehicle to reform the mining industry and im-prove government royalty rates while at the same time ensuring intergenerational equity.”

EO 79 bans mining in prime agricultural and fish-ing areas as well as in 78 designated ecotourism sites, including almost the entire province of Palawan. It also bans the issuance of new mining permits until Congress passes a measure increasing the royalty tax imposed on the gross earn-ings of mining companies to five percent from the current two percent.

Based on the RWI study, the Philippines ranked in the top half of countries surveyed on all four com-ponents, “suggesting that the government has made meaningful progress toward improved resource gov-ernance.” Norway, United

States and United Kingdom topped this year’s survey.

Aside from institutional and legal setting, other in-dex components are report-ing practices, safeguards and quality controls, and en-abling environment.

RWI said the Aquino ad-ministration provides more information than its prede-cessors, noting that maps of licensing areas are posted online and copies of con-tracts can be requested from the Mines and Geosciences Bureau (MGB), an attached agency of the DENR.

The policy institute also said that the MGB regularly publishes information on mineral reserves, produc-tion, investments, approved operations and disaggregat-ed revenues.

RWI aims to promote effective, transparent and accountable resource man-agement through the re-source governance index, which measures the quality of governance in the oil, gas, and mining sectors of 58 se-lected countries.

The Philippines was par-ticularly measured for its mineral resources, having produced 11 percent of the world’s nickel in 2010. The country’s rich natural re-sources also include major copper deposits, chromi-um, gold, and silver; miner-als made up eight percent of merchandise exports in 2011. DENR Press Release

Anti-mining advocates lead bike tour vs Phl mining law

MANILA— Anti-mining advocates and bikers led a bike tour from the Depart-ment of Environment and Natural Resources (DENR) Central Office to the Su-preme Court in Manila today to highlight the negative social and environmental impacts of mining and call to repeal the Mining Act of 1995 (RA 7942).

This is in relation to the upcoming Supreme Court Oral Arguments on a peti-tion questioning the con-stitutionality of Sections 80 and 81 of RA 7942 and DENR Adm. Order 2007-12 that establishes the sup-posed income derived from Mineral Production Sharing Agreements (MPSAs) and Financial and Technical As-sistance Agreements (FTA-As) set on June 25.

Jaybee Garganera, na-tional coordinator of Al-yansa Tigil Mina and one of the convenors of “Tao Muna, Hindi Mina!” Cam-paign said: “We would like to emphasize the need to revisit the current mining regime, present how min-ing activities have impacted host communities, and let

the public judge if the failed promises of development are worth the social and environmental injustices caused by this destructive industry.”

The “Tao Muna-Hin-di Mina!” Campaign puts large-scale mining as a ma-jor issue that the govern-ment should respond to. It reiterates the cry of min-ing-affected communities for the government to pri-oritize people and environ-ment over mining.

Incoming Akbayan Rep-resentative Barry Gutierrez also urged the Supreme Court to rule against the constitutionality of the Min-ing Act of 1995 and vowed to file the Alternative Min-erals Management Bill (AMMB), a bill being pushed by SOS-Yamang Bayan Net-work.

The AMMB would serve to offset the negative im-pacts of mining on the environment, strengthen stakeholder participation in mining contracts and en-sure that local communities and the government have a greater share of mining profits. ATM Press Release

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JUNE 24-30, 2013 5

Environment | Communities

De Dios confirms Civil Service case vs Jasareno

DE DIOS JASARENO

Paje was referring to the mining operations of Shuley Mine Inc. (SMI) in Nonoc Is-land off Surigao City.

De Dios contended that both Paje and Jasareno’s or-ders lacked legal basis, nor did it afford him “any opportuni-ty” to present his side, accord-ing to the complaint.

The complaint pointed out that “government employees in the Civil Service, holding both career and non-career service positions, are entitled to protection from arbitrary removal or suspension, as “en-shrined in Article IX-B, Section 2, paragraph 3 of the 1987 Constitution, which states that “No officer or employee of the civil service shall be re-moved or suspended except for cause provided by law.”

It continued: “This consti-tutional edict of security of tenure is echoed Article IX, Section 36 of the Presidential Decree No. 807, otherwise known as the Civil Service Decree, which provides that “No officer or employee in the Civil Service shall be sus-pended or dismissed except for cause as provided by law and after due process.”

In the complaint, De Dios’ lawyers also explained that the official did not disobey his superiors pertaining to the SMI operations in Nonoc, which was the ultimate basis cited in the relief order.

De Dios pointed out that his issuance of OTPs to SMI was in compliance with an existing writ of injunction preventing MGB and other parties from impeding SMI’s operations.

“De Dios never disobeyed any order of his superiors in connection with the issuance of the OTPs in favor of SMI. On the contrary, Complainant De Dios only acted pursuant to the standing July 2011 Order and the Writ issued by the Surigao RTC and, at all times, faithfully and duly informed his superiors of his every ac-tion,” his lawyers contended.

De Dios had earlier belied Jasareno’s claim that despite several directives, De Dios had continued the issuance of OTPs for SMI. De Dios has maintained that Jasareno had full knowledge of all OTPs and documents relating to SMI operations in Nonoc.

“However, the numerous written correspondences and memoranda sent by Complainant De Dios to Re-spondent Jasareno only fell on deaf ears, as Complainant De Dios never received any advice or order directing him to suspend or revoke issu-ance of OTPs to SMI,” the draft complaint alleged.

TROSMI and PNPI sought

and were granted the TRO against MGB in July 2011 af-ter the agency issued a stop-page order on May of the same year. That injunction, De Dios’ complaint noted, re-mains in effect.

De Dios has said that when he assumed the Caraga post in October last year, he was obliged to follow the court order under the pain of being cited in contempt of court.

“Thus, Complainant De Dios, as the new Regional Director of MGB Caraga Re-gional Office No. XIII, suc-ceeding RD (Alilo) Ensomo, was duty bound to follow the July Order and the Writ that remained in force and effect. Under the circumstances, it was obligatory for Com-plainant De Dios to issue OTP and MOEP because the Writ commanded the desistance from the implementation of the order suspending issu-ance of OTP and MOEP,” his lawyers argued.

“Complainant De Dios was constrained to obey the terms of the Writ under pain of being punished for con-tempt of court if he fails to do so. Such issuance of OTPs, therefore, cannot be a basis for his sudden relief as Re-gional Director of MGB Cara-ga Regional Office,” it added.

The complaint also re-buked Jasareno for claiming he was unaware of De Dios’ actions.

“Respondent Jasareno cannot feign ignorance of Complainant De Dios’ actions pertaining to the processing of OTP applications because, throughout his post as Re-gional Director of MGB Cara-ga Regional Office No. XIII, he took pains in duly informing Respondent of his actions and decisions and even sought guidance from him. His in-tervening requests for advice and guidance were only ig-nored by Respondent,” it said.

It narrated that “as far back as September 2012, Respondent Jasareno was well aware that there were applications for OTP pend-ing before Complainant De Dios and that there was a standing July 2011 Order that prevents Complainant De Dios from ignoring the applications for OTP.

“Respondent Jasareno was consistently updated, in

writing, by Complainant De Dios about the processing of the OTP and MOEP applica-tions. To further ensure that he would be doing acts in accordance with the orders of his superiors, Complainant De Dios prudently sent Re-spondent Jasareno a Memo-randum dated 18 September 2012, categorically informing Respondent Jasareno that his Office was processing the is-suance of OTP to SMI in com-pliance with the July Order and the Writ.

Other relevant government agencies were also furnished a copy of the said 18 Sep-tember 2012 Memorandum. Despite Complainant De Dios’ request for guidance from Re-spondent Jasareno, no writ-ten response to the 18 Sep-tember 2012 Memorandum was given by the latter.”

Mining Week sources said De Dios may also file criminal and administrative charges against Jasareno and PMO chief Karen G. Singson before the Ombudsman. DVAIII

n FROM PAGE 1

MGB seeks hike in 2014 budget, cites ‘programs’

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WIRES

THE Mines and Geosci-ences Bureau (MGB) has pro-jected that it needs a budget of P1.24 billion next year to fund priority programs.

MGB wants P438.38 mil-lion for personnel services, P635.87 million for main-tenance and other operat-ing expenses, and P171.12 million for capital outlay. The sought incease is up 24 percent from P888 million this year.

The bureau cited the ne-cessity of have higher ap-propriations to allocate for the Geohazard Assessment and Mapping Program for disaster risk and reduction and preparedness, ground-

water resource assessment, promoting responsible min-ing, and measures increas-ing government’s share in mineral exploitation.

Under a new mining policy issued in July 2012, the bureau is seeking to maximize gains from the exploitation of mineral re-sources by having a greater share in revenues of mining companies.

Also related to the min-ing policy, the MGB is tag-ging no-go zones nation-wide—protected areas, prime agriculture lands and tourism sites—where min-ing activities are prohibited or restricted. MW

BRIEFLYUnregulated mining in Leyte

TACLOBAN CITY--The Mines and Geosciences Bureau (MGB) in Eastern Visayas has cautioned local government units here to regulate small-scale gold mining in landslide-prone areas in Southern Leyte.

Illegal small scale gold mining activities are still prevalent in Brgy. Pinut-an of San Ricardo and in a few villages in Saint Bernard.

Nonita Caguioa, MGB Regional Mining Environment and Safety Division chief, said while unregulated small-scale mining can cause landslide, there are also oth-er factors that have to be considered which could trigger a landslide.

She added that while mining can trigger landslides, it is not a major factor as the operation is small-scale but since Southern Leyte hills are already shattered, it is susceptible to landslide during the rainy season.

Destructive mudslides have occurred in San Ricardo and Saint Bernard in 2003 and 2006 which killed thousands of residents.

Napocor demands paymentNational Power Corp (Napocor) has asked Philex Mining Corp to pay the state-

owned firm at least P6 billion for the damage to its reservoir caused by last year’s tailings spill at the Padcal copper-gold mine.

In a disclosure to the Philippine Stock Exchange, Philex said it has received a letter of demand from Napocor seeking immediate removal of 13.5 million cubic meters of mine waste deposited on the state firm’s reservoir, or failing to do that, the immediate payment of P6.418 billion to finance the clean-up and restore the reservoir to its condition before the August 2012 tailings spill.

DMCI eyes London delisting of mining unitMANILA - Consunji-led DMCI Group will be seeking the approval of its share-

holders to delist its mining unit from the London stock exchange, a move meant to cut costs.

In a disclosure to the local bourse, on June 18, DMCI Holdings said it will need to comply with the rule of the London Stock Exchange to gather the approval of 75% of unit Toledo Mining Corp Plc shareholders before it can delist.

“With only 66.52% ownership, the decision to delist does not solely lie with the Company (through wholly owned subsidiary DMCI Mining Corp.) but requires further approval from other shareholders,” DMCI said.

DMCI Holdings said it prefers to deliste Toledo “to reduce costs, including listing costs.” Toledo is a unit of DMCI Mining Corp, the mining arm of DMCI Holdings Inc.

Miners group partners with Rizal provinceANTIPOLO CITY-- The Rizal provincial government forged a Memorandum of

Agreement (MOA) recently with the Eastern Rizal Miners Association (ERMA) on joint partnership undertakings on disaster risk reduction management (DRRM) and emergency response.

The public-private partnership agreement is in line with continuing efforts to address and respond to the threats of calamities and disaster hazards.

Rizal Governor and now Mayor-elect of Antipolo City Casimiro “Jun” Ynares and Angelita Lee, president of the miners’ group – ERMA are the MOA signatories.

Under the agreement, the Rizal provincial government informs accordingly the ERMA responders on the site or locality where the emergency responders will act and conduct their operations in times of calamity or disaster.

Vital role of Mindanao in PHL mining industry citedHOSTING over half of the

country’s operating metallic mines, Mindanao holds an important role as the coun-try is on the path of revital-izing the minerals sector.

This was according to Mines and Geosciences Bureau (MGB) chief Leo L. Jasareno, who disclosed that of the 39 currently op-erating metallic mines of the country, 21 are in Min-danao. The island also holds 106 of the 339 mineral pro-duction agreements, 16 ex-ploration permits out of 52

and one financial or techni-cal assistance agreement.

“The figures on operat-ing metallic mines are more interesting for Mindanao,” Jasareno said, adding “the numbers clearly demon-strate the very important role of Mindanao in the Philippines’ minerals indus-try today.”

Speaking at a forum on mining prospects in Min-danao recently, Jasareno noted that the country’s five major mining projects in the making, three are

in Mindanao, namely the $5.9-billion Tampakan cop-per-gold project; the Boy-ongan-Bayugo copper gold project of a group led by Philex Mining Corp. in Su-rigao del Norte and the Kin-gking copper-gold project in Compostela Valley.

Former Mindanao Devel-opment Authority chairman Jesus Dureza also highlight-ed the role of the mining in-dustry in bringing peace and development to the island.

Dureza pointed out that mining companies provide jobs and livelihood to Mind-anaoans, thus root causes of insurgencies in the region.

“Poverty is always a trig-ger in peace and order problems that we have. Since I have been part of government negotiations, I always keep in mind that signing a peace of paper with a peace agreement will not bring peace. It will only be a road map. But improv-ing the lives of the people will bring peace,” said Du-reza, the presidential ad-viser on the peace process during the Ramos adminis-tration.

Dureza cited the pres-ence of TVI Resources De-velopment in Siocon, Zam-boanga del Norte, which he

said has helped the town bring about peace and de-velopment.

He said TVIRD has greatly contributed to infrastruc-ture development in the remote town of Siocon, which, he said, is just one of the “neglected” areas in Mindanao.

He said that since it start-ed operation, TVIRD was able to contribute taxes that also boost the town’s status from a sixth-class municipality to a third-class municipality. It also benefit-ed, primarily, the members of the indigenous peoples over vast tracts of land in Mindanao.

However, Dureza said mining companies should be responsible enough to give something back to the people and the environ-ment, the same way that communities should be guardians of the environ-ment and partner of mining companies, being its prima-ry beneficiaries.

He said Mindanao is presently troubled by ille-gal small-scale mining. The entry of large-scale miners will ensure responsible min-ing that will be beneficial to various stakeholders, par-ticularly host communities.

ABOUT MINDANAO

o Mindanao is the 19th largest island in the world. It is also the second largest of the more than 7,000 islands that make up the country. It contains one-fourth of the national population and one-third of the land area. o Mindanao has 38 seaports, 4 strategic container ports and 15 air-

ports, two of which are international airports. It has a population of over 22 million.o Forty-four (44) percent of food consumed in the Philippines is pro-

duced in Mindanao, which is the country’s major producer of rubber, pineapple, banana and coffee.o Mindanao is near the rich fishing lanes of the West Philippine

(South China) and Celebes Seas, which bodies of water account for 35 percent of the country’s fish catch. o Most of Mindanao is located outside the typhoon belt. It has

abundant, available, fertile lands perfectly suited for agri-industrial de-velopment. Mindanao is endowed with eight major river basins, namely: Agusan, Tagoloan, Cagayan de Oro, Tagum-Libuganon, Davao, Buay-an-Malungon, Agus and the Mindanao River - all of which could supply water for irrigation and other related needs.

JUNE 24-30, 2013 6

News Environment | Mines&Money | Health & Safety

Take your message to the right audience.

THE PHILIPPINE MINING INDUSTRY'S WEEKLY NEWSPAPER.

Entrust it to the right medium.

TVI says DMPF for Balabag gold-silver project ready

Envri group urges no let-up action vs CDO illegal miners, coddlers

Google Map shows the location of TVI Pacific’s Balabag Gold-Silver Project in Zamboanga. TVI PHOTO

CALGARY - TVI Pacific Inc. has announced that it has completed and submitted the Declaration of Mining Project Feasibility (DMPF) for the Bal-abag gold-silver project to the Department of Environ-mental and Natural Resourc-es (DENR) and the Mines and Geosciences Bureau (MGB) for review and approval.

The Balabag gold-sil-ver project is located ap-proximately 75 kilometres east-northeast of TVI’s Canat-uan copper-zinc mine on the Island of Mindanao, Philip-pines.

The filing of the DMPF rep-resents an important mile-stone and follows on the filing of the Environmental Compli-ance Certificate (ECC).

The Environmental Man-agement Bureau (EMB) has previously reviewed and en-dorsed the ECC which is now under final review by the MGB in preparation for offi-cial signatures from the DENR. Both filings represent the final documents needed to be ap-proved to allow the Company to commence construction of the mine, mill and related facilities.

“The Balabag Project is ‘ready to go’, as soon as these documents get the final ap-proval of the government,” said Mr. Cliff James , Chairman and CEO of TVI Pacific Inc. “We have the funding in place, and we have completed all the technical requirements need-ed for approval. Once the documents are signed, we will

be in a position to accelerate development of the Balabag Project to the benefit of all stakeholders.”

The DMPF is a regulatory requirement including plans, documents and other certi-fications required in order to obtain approval from the Phil-ippine Government for the development of Balabag.

An ECC is a certificate is-sued by the DENR/EMB which certifies that based on the ap-plication the proposed proj-ect will not cause a significant negative impact on the en-vironment. The ECC contains specific measures and condi-tions that must be met before and during the operation of the project. The ECC also cer-tifies that the Company has complied with all the require-ments of the Environmen-tal Impact Statement (EIS) System and has committed to implement its approved Environmental Management Plan in the Philippines. The Company’s EIS submission was given a positive recom-mendation by the EMB in Q1 2013.

The Balabag epithermal gold and silver project has an estimated resource com-prising of 1.78 million tonnes averaging 2.34 grams per tonne of gold and 72.3 grams per tonne of silver containing 134,262 ounces of gold and 4,148,196 ounces of silver. TVI says it continues to con-duct exploration work with the goal of expanding the re-source. TVI Press Release

Extracting gold using bacteria?

THE Mines and Geosci-ences Bureau (MGB) is con-ducting a study to deter-mine the feasibility of using bacteria to help extract gold from mine waste.

Two kinds of bacteria, Thiobacillus ferrooxidans and Thiobacillus thiooxi-dans, are being considered for their bioleaching capab-alities of refractory gold ores, said the as MGB’s Metallur-gical Technology Division (MeTD). The ongoing study focuses on isolating and propagating the bacteria, it added.

Bioleaching is the ex-traction of metal from ores through the use of liv-ing organisms, one of the pre-treatment processes used when standard tech-niques such as straight cy-anidation leaching is not feasible.

According to the bureau, a refractory gold ore has particles covered with sul-fide minerals that prevent

contact between the cya-nide leach solution and gold particles.

Bioleaching dissolves the unwanted materials, envel-oping the precious metal prior to actual cyanidation.

“Its possible application here in the Philippines will be in the recovery of gold with grades 0.4 to 0.6 gram per ton present in tailings of old cyanidation plants, where appreciable amount of gold are trapped in sulfide minerals,” it added.

MGB chemists obtained samples from various ar-eas of Lepanto Consoli-dated Mining Company in Mankayan, Benguet last May.

The samples were brought to the National Institute of Molecular Biology and Bio-technology Laboratory in UP Los banos for proper bacte-rial propagation, which will then be used in the labora-tory scale pre-treatment of refractory ore. MW

CAGAYAN DE ORO CITY – Local civil society groups here have expressed elation over the sentencing of three Chinese nationals to two years in prison after they were found guilty of violat-ing the Philippine Mining Act of 1995.

But Noel Tito Mora, one of the founders of the civic group Save CDO Movement, said the Mines and Geosci-ences Bureau (MGB) in Re-gion 10 should also go after of local officials believed to be in cahoots with the Chi-nese nationals.

Mora said he finds it im-possible for the convicted aliens to conduct their illegal activities without protection from local officials.

“But how did those Chi-nese get to operate in Cagayan de Oro for such a long time? Are you not also

interested to go after their local hosts, patrons and pro-tectors? Lost in translation perhaps?” Mora said in one of the discussion groups over social media.

Celestino “Bob” Ocio III, who was also a member of Bangon Kagay-an Inc. (BKI), agreed with Mora, saying that MGB should also file cases against the protectors of the “mining barges” that operated at the Iponan Riv-er, where illegal mining ac-tivities proliferate.

“In the meantime, there are so many questions than answers? Who are these Chi-nese nationals working for?”

The 5th Branch of the Mu-nicipal Trial Court in the Cit-ies here recently sentenced Meng Chang, 47, Wu Feng, 38, and Yu Pingze, 41, all of Hunan, China, were sen-tenced to two years of im-

prisonment by Judge Maria Luna Llena Lanticse-Saba.

The Chinese are the first known foreigners to be sent to jail here for illegal min-ing since citizens’ groups stepped up the campaign and pressured officials to protect the environment fol-lowing the 2011 storm Sen-dong devastation.

The foreigners were sen-tenced to two years of im-prisonment by Judge Maria Luna Llena Lanticse-Saba of the 5th branch of the Munic-ipal Trial Court in Cities here.

Saba, in a two-page rul-ing, said the lawyer of the accused, Franco Espino, informed the court that the defendants agreed to plea-bargain after confer-ring with private and public prosecutors as well as offi-cials of the MGB.

The three foreigners were arrested for engaging in ille-gal mining operations in Ba-

rangay Tumpagon here this Jan. 24. The Chinese, who were charged with theft of minerals under Republic Act 7942 or the Mining Act of 1995, pleaded guilty. Saba also ordered Meng, Wu and Yu to pay P200 thousand each in damages.

The ruling came about almost a week after the Court of Appeals (CA) or-dered a Memorandum of Agreement (MoA) between government bofies and civ-ic groups to hammer out a framework of cooperation for the protection of the en-vironment.

The MOA, ordered by CA’s 22nd Division under Associate Justice Renato C. Francisco, was based on the Temporary Environmental Protection Order (Tepo) filed by KI, Save CDO Now Move-ment, Sulog – One Sendong is Enough and other con-cerned citizens.

BY NEF LUCZON Correspondent, Nothern Mindanao

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JUNE 24-30, 2013 7

Stuffbox

CROSSWORD PUZZLEACROSS1 A technology that helps clean coal using limestone and water.5 A mineral that looks likea shiny black rock. It’s formed from plants that were once alive.6 The force that pushes electricity or a current. In most US homes this force is 110 volts.8 The ability to do work. It comes in many forms such as light, heat, sound, and motion.17 In a power plant, it’s where coal is burned.18 This played a major role in expanding coal use in the United States. (2 words)22 Resources that are not replaceable after they have been used up and need to be conserved.23 Water at boiling temperature that spins a turbine.24 A form of energy that is used in homes. Coal helps make half of it in the United States.25 The amount of force that is pushed against an object, or that exists within an environment, like under water; or what you feel before a big test!26 The product or goods brought into a country from another country.27 An electric utility generating station. (2 words)28 Returning the land to the way it was or better than before mining.29 Describes a new generation of energy processes that reduce air emissions and other pollutants from coal- burning power plants. (3 words)30 Refers to a group of mining techniques used to extract coal from below theground. (2 words)31 An apparatus that cools the steam in a power plant.32 One of the greenhouse gases in our atmosphere; colorless and a waste product of burning fossil fuels. (2 words)

Mining Week aims to highlight in this page the important work that Community Relations officers do in their respective companies. Through pictures and simple words, this corner will give color to community events, company activities and other happenings in mining communities that best demonstrate the fun and colorful side of mining. Contribute now! It’s free!

DOWN2 Sealed vessel in a power plant where water is converted to steam.3 A type of fuel formed from the remains of plants or sea creatures millions of years ago. (2 words)4 A mining method inwhich the overburden(earth and rocks) is stripped away completelyto reach the underlying coal or other minerals. (2 words)7 A machine in a power plant that produces electricity by changing mechanical energy into electrical energy.9 Practically every form of electric power is generated using this type of engine.10 This is made from ancient plant material and gives coal most of its energy.11 A device that changes electricity from one

Mining firm donates school supplies to ComVal students

voltage to another voltage.12 Rain that has turned acidic because of pollution in the air (2 words)13 The process of changing into gas. It’s one of the best ways to clean coal.14 Technology to capture and permanently store carbon dioxide. (2 words)15 A unit of electric power, equal to one joule of work per second, and named after an inventor.16 A device for grinding coal into a fine powder for use in a power plant.19 Commodities (goods or services) sold to a foreign country.20 Carbon fuel produced by distillation of coal; not Coca-Cola!21 A form of energy. We use it in our homes during the winter.

PANTUKAN, Compostela Valley, June 30 (PNA) -- The King-king Copper and Gold Project (KCGP) based here donated hundreds of school supplies to indigent students in ten schools over the week-end.

KCGP is a partnership be-tween Nationwide Develop-ment Corporation (Nadecor) and St. Augustine Gold & Copper Ltd. (SAGCL). The two companies are work-ing together to develop the project while partnering with the community to meet the needs of Pantukan.

Nadecor president Conra-do Calalang noted that these donations continue to rep-resent Nadecor and SAGCL’s commitment to long-term educational enhancement.

For his part, Clyde Gilles-pie, SAGCL’s country manag-er, expressed his desire that the recipients will one day become future employees of KCGP.

Recipients were the indig-enous students of the Tag-dangua Elementary School, Sta. Teresa Elementary School in Barangay Magna-

ga, Bongbong Elementary School, Lahi Elementary School, Gumayan Elementa-ry School, Tugop Elementary School, Upper Camili Ele-mentary School, Panganason Elementary School, Doroteo de Castro Elementary School and Ayan Elementary School.

KCGP officials present during the donation turn-overs rites were Gillespie; Jonathan A. Bañez, St. Augus-tine Community Develop-ment Manager; and Debbie Ruth Yasay, St. Augustine En-vironmental Manager.

Carmen Agustin, DepEd’s district supervisor in Pantu-kan and Thelma Yugo, the wife of newly-installed Mayor Roberto Yugo, also accompa-nied the team in the distribu-tion in some schools.

The activity is in support to KCGP’s commitment to invest for the growth and de-velopment of the communi-ty through education, and to pursue Pantukan’s growth by helping the young people to-wards a brighter future. Look-ing after the welfare of the in-digent students gives them a better chance in school thus

better chance in life.During the turn over pro-

gram, Banez said that the KGCP is committed to provid-ing assistance to the students and education programs in Pantukan.

“Providing assistance to the students allows the KGCP the opportunity to provide an education that forms a foundation for success in their lives,” he said.

Receiving the donations in behalf of the IP students were Tagdangua ES principal Anabelle Isaac, Sta. Teresa ES teacher-in-charge Gloria T. Castilla, and Bongbong ES principal Orlando Dumagan.

“I would like to thank St. Augustine for the school supplies they gave to our students. This is a huge help for the students and for their parents since many of them can’t afford to buy those items. I can’t be more thank-ful with St. Augustine,” said Castilla, teacher-in-charge of Sta. Teresa Elementary School.

KCGP donated 120 packs of assorted school supplies per school. PNA

Entry submission for Chamber of Mines photo contest ongoing

With the theme “WORKING WITH NATURE: Mining and Biodiversity,” the Chamber of Mines of the Philippines (COMP) is holding a photog-raphy contest June 24 to Au-gust 25,.

Entries are accepted until 11:59 p.m. on August 25.

To enter, here are the rules:• Photography enthuasiast

must be at least 18 years old and above;

• Must be an employee, or an immediate family (chil-dren, siblings and spouses) of an employee, of any member of the Chamber of Mines of the Philippines.

• COMP directors, officers, employees, interns, volun-teers, fellows, research asso-ciates and their immediate families (children, siblings and spouses) -are ineligi-ble/disqualified to join. The COMP will determine win-ners’ eligibility in its sole dis-cretion.

The theme for this year’s photo contest is “WORKING WITH NATURE: Mining and Biodiversity” – photographs showing activities, events, objects, or scenery illustrat-ing that mining and biodi-versity can co-exist in pro-

tecting and enhancing the environment, and showing that productive and sustain-able co-existence takes place in the mining areas’ environ-ment; photographs that tell us what responsible mining is and provide a sense of what it is like to live in an area where mining companies operate.

Cropped photos are eli-gible. However, we will not accept digitally or otherwise enhanced or altered photos. Minor adjustments, including spotting, dodging and burn-ing, sharpening, contrast and slight color adjustment or the digital equivalents, are acceptable. If the judges de-termine that a photographer has altered his or her photo, they reserve the right to dis-qualify it.

For a photo in which a per-son is recognizable, you must secure a written release from the subject or, in the case of a minor, the subject’s parent or guardian and provide it to the COMP upon request.

Photographs that have won any other contests are not eligible. We define win-ning as having won a grand prize or 1st, 2nd, or 3rd place

overall. Photos that violate or infringe upon another per-son’s rights, including but not limited to copyright, are not eligible.

Entries should not be pre-viously published in a pub-lication or online. All entries must have been taken within six (6) months after the dead-line of submission of entries and should not have any wa-termark on the photo.

Entries must not contain obscenity, explicit sexual material, nudity, profani-ty, graphic violence, calls or incitement to violence, commercial solicitation or commercial promotion. Sub-missions also must not con-tain content or images that could be considered abusive, inflammatory, denigrating, or disrespectful to the Contest Sponsor, or to groups, indi-viduals or institutions.

Judging will be conducted by a 3-person Panel of Judg-es which shall determine winner eligibility in its sole and absolute discretion. All decisions made by the judg-es are final.

For more details and con-test rules, please visit http://www.chamberofmines.com.

LEPANTO STAMPSTO commemorate its 75th anniversary on

December last year , the Lepanto Consolidated Mining Corp. (LCMC) was honored with the re-lease of its own stamps.

Inscribed in the souvenir frames, which also contain the commemorative stamps and first day cover, were the words “…celebrates the 75 years of existence of one of the Philippines’ successful companies in the mining industry. It continues to explore and develop its properties with adher-ence to the principle of responsible mining and good corporate citizenship.”

The Lepanto commemorative stamps have two designs, one depicting the reforestation efforts being made by the company and the other showing responsible underground mining operations.

Before the approval of the printing and issu-ance of these commemorative stamps, the Na-tional Historical Commission of the Philippines issued a certification stating and recognizing the historical significance of LCMC and its valuable contribution to local and national community. phlpost.gov.ph

FEATURED STORY

>EITI and the Philippine Mining Industry:Towards transparrency, better governance

EITI Factsheet: Frequently asked questionsWhy is EITI important?In the effort to translate natural resource wealth into better

development for the local population, the EITI sits in the cen-ter of the value-chain, focusing on revenue transparency. In resource rich economies, oil, gas and mining companies make payments directly to governments. Normal channels of public accountability are often missing in resource-dependent coun-tries because the government has an autonomous source of revenue not dependent on taxing its citizens. Government re-liance on extractive revenues can result in lower public service delivery, increased opportunities for corruption and higher de-pendency on the extractive sector. The EITI aims to address this problem by increasing public information, empowering the public to more effectively hold government accountable for resource revenues. Some other benefits of increased revenue transparency include:8Improving revenue collection and management processes8Creating a more attractive investment climate8Building trust between governments, firms and citizens8Providing a forum to discuss broader extractive industry

governance issues such as physical and process audits, contracts transparency and sub-national revenues

How is EITI implemented?Although the EITI is a national process that varies from coun-

try to country, the EITI International Board has established a set of rules outlining the basic criteria and guiding countries through the three stages of implementation: sign-up, candidacy and compliance.

Countries voluntarily commit to the EITI by signing up to the initiative –yet they are not recognized as implementing EITI at this stage. In order for a country to become an EITI Candidate, it must first complete the four sign-up requirements and submit a proposal to the EITI International Board. If the Board is satisfied that these indicators have been fulfilled, the country will be offi-cially recognized as a Candidate country.

EITI Candidate countries have two years to complete the preparation, disclosure and dissemination phases. These phases include the establishment of the MSG which will oversee the various steps in the EITI process including: endorsement of the Country Work Plan; agreement on reporting templates; estab-lishing terms of reference for and choosing an organization to undertake the reconciliation; and review, comment and dissem-ination of the EITI report.

Within two years, EITI Candidate countries must undergo the EITI Validation process, which determines whether or not a coun-try has achieved Compliant status, may have its Candidate status extended beyond two years, or loses its Candidate status. The Validation is carried out by an independent Validator selected by

the MSG who must follow the methodology outlined in the EITI Rules. Validation will only result in the granting of EITI Compliant status if the EITI International Board deems that a country has met all the indicators in the Validation Grid.

What are the key debates during national EITI adaptation?Although the EITI Criteria and Validation Guide set the mini-

mum standards for EITI implementation, the EITI process is de-signed to be country driven. Variations in interpretation of the EITI criteria, and adaptations to country needs, can produce different outcomes within basic EITI implementation. Key areas where the basic EITI process is often adapted to local contexts include:

Determining “materiality” of the various extractive sectors, revenue streams and companies covered in the EITI Report. The EITI Rules stipulate that all material oil, gas, and mining pay-ments and receipts must be reported and defines materiality as any revenue whose ‘omission or misstatement could materially affect the final EITI Report.’ Countries have to decide, howev-er, where this threshold lies and how the result will impact the scope of the report.

Reconciliation or re-audit of government and company fig-ures. The EITI Rules require that all government and company re-ports are based on audited accounts to international standards. Even where reports are based on audited accounts, however, the MSG may decide to include further auditing in the EITI process. This may be the case particularly if there is significant public doubt about the underlying numbers.

Aggregating or disaggregating revenue flows and/or com-pany figures. While the EITI Rules do not require that reported data be published in aggregated or disaggregated form, a growing number of the EITI Reports are showing disaggregat-ed revenue flows and this is widely recognized as best practice. Publishing company figures in a disaggregated form has been more controversial but the benefits are slowly gaining recogni-tion and countries are increasingly adopting this as the norm.

Many countries have shown a desire to use the EITI forum to produce programs that go beyond the minimum EITI standards. For example, the MSG may decide to expand their work to in-clude:8Reporting on non-production related payments8Inclusion of non-extractive industry companies and sectors

such as timber or fisheries8Use and distribution of revenues by the government8Legislation backing EITI8Publication of contracts and fiscal terms8Information regarding volume and other industry processes

Source: www.eiti.org.

THE Extractive Indus-tries Transparency Ini-tiative (EITI) is a glob-

ally developed standard that promotes revenue transpar-ency in extractive industries. It promotes a robust yet flexible methodology for monitoring and reconciling private sector payments and government revenues at the country level.

In countries participating in the EITI, companies are re-quired to publish what they pay to governments and governments are required

to publish what they receive from companies.

Each implementing country creates its own EITI process that is directed by participants from the gov-ernment, the private sec-tor, and civil society. The EITI standard has two main elements: (a) Companies publish what they pay and governments publish what they receive in an EITI report; and (b) The process is over-seen by a multi‐stakeholder group of governments, com-panies, and civil society.

In the Philippines, EITI gained ground through Executive Order No. 79—Institutionalizing and Im-plementing Reforms in the Philippines Mining Sector. Around five regional semi-nars and trainings were con-ducted last year to promote EITI among local and nation-al stakeholders.

In this respect, civil soci-ety groups and NGOs have joined hands as government partners in implementing the EITI framework in the country under Bantay Kita.

Bantay Kita considers the EITI as one mechanism that can contribute to good gov-ernance by:

• reducing the risk of cor-ruption

• promoting corporate social responsibility, and (c) holding companies and governments accountable through the disclosure of taxes, fees and royalties paid to the government.

Bantay Kita sees the EITI as a good opportunity to engage the government and other stakeholders to

support Bantay Kita’s advo-cacy of transparency and ac-countability, as well as other policy reforms advocated by its member organizations.

Early this June, Australian Ambassador to the Philip-pines, Bill Tweddell, congrat-ulated the Philippines on achieving candidacy status with EITI, saying this “shows a welcome commitment by the Philippines to improve transparency in its mining sector.”

“By achieving EITI can-didacy the Philippines can build confidence amongst communities and business-es in the extractive indus-tries. This is a positive step towards developing the mining sector in the Philip-pines in an open and trans-parent way,” the Ambassa-dor said.

Australia contributed over P1 million (A$25,000) to Ban-tay Kita to facilitate commu-nity and civil society in con-sultations on the Philippines’ candidacy for the EITI.

Australia also supported the participation of a high level delegation from the Philippines in the recent Mining for Development and EITI conferences.

Earlier, Presidential As-sistant on Climate Change Secretary Elisea Gozun announced that the Phil-ippines’ candidacy was ap-proved by the international board last May.

EITI was launched by for-mer British Prime Minister Tony Blair in 2002. There are currently 37 countries par-ticipating in the EITI, 20 of which are already compliant and 17 are candidates.

By participating in the EITI and implementing in-ternationally recognized transparency standards, will demonstrate the country’s commitment to reform and anti-corruption, Gozun said in a press conference in Malacanang last April.

Sources: Bantay Kita/ATM, www.eiti.org/Australian Em-bassy

Diagram shows the basic EITI frame-work. Right, chart describes the process of EIT application for candidate-coun-tries.