Katherine G. Adraneda
Philippine Star

Environment and Natural Resources Secretary Lito Atienza said the local mining industry is capable of growing five times in the next three years.

Atienza, who led the Philippine delegation in the Asia Mining Congress held in Singapore last week, told global mining investors and ranking state mining officials from different parts of the world that the country’s mining industry is capable of sustaining its growth with output seen soaring  by as much as five times to at least $10 billion until 2011.

“The bulk of the projected investments is expected to come in between 2008 and 2010 when the bigger, world class mining investors progress to the construction and development stages,” Atienza said.

DENR data shows that 43 mining processing and exploration projects, and 23 other exploration projects have invested a total of $1.4 billion from 2004 to end of 2007. These, it noted, have potential additional investments of another $9 billion up to 2011 for a total of $10.4 billion.

Atienza also disclosed DENR projections, which show a dramatic increase in volume of mineral production beginning this year in almost all sub-sectors: gold, nickel, copper, chromite, cobalt, zinc, ferronickel and calcined nickel.

The DENR projections also cover the priority projects and were based on their submitted production schedule.

“The rise in production volume will expectedly raise the production value of the minerals industry, which is seen to reach over $10 billion, which would be almost five times that of 2007’s $3 billion,” Atienza pointed out.

Based on Atienza’s calculation; the expected rise in the production value of the local mining industry at such level would make its contribution to Philippine exports reach the vicinity of 6.5 percent.

The 6.5 percent rate, Atienza stressed, would be enough for the Philippines to be classified as a “mining country” based on World Bank (WB) standards.

Although Atienza said that the that production figures could vary according to plans of the mining projects, he nevertheless predicted that production of certain minerals would reach, as follows: Copper production will rise four times from 216, 000 dry metric tons (DMT) in 2007 to 830, 000 DMT in 2008; chromite output would almost double from 37, 000 DMT in 2007 to 63, 000 DMT in 2008; gold production would increase twice from 1.2 million to 2.7 million ounces; and silver will shoot up six times from .89 million to 5 million ounces

On  direct nickel ore production, the DENR chief expects it to slow down by about 20 percent, but expects improvement in nickel concentrate production by almost 10 times with additional nickel processing plants coming on stream.

As for other minerals, Atienza said the government expects to have cobalt and zinc production of 4, 500 MT and 20, 000 MT, respectively; ferronickel production is projected at 50, 000 MT; while calcined nickel ore production is anticipated to reach around 300, 000 MT by 2011.

The government launched its revitalization program for the minerals industry in 2003 in a bid to utilize the country’s rich mineral resources in generating investments, and thus, boost the economy.

Since 2003, the government claimed it has grown, having generated more than $1.4 billion in mining investments from its priority projects, and improved metallic output in terms of volume and value owing to rise of new mines.

To date, the DENR said that of the 63 priority mining projects in the country, 10 are already in its production stage.  These are:  Palawan Nickel Project of Coral Bay/Sumitomo; Rapu-Rapu Polymetallic Project of Lafayette Mining; Canatuan Silver-Gold Project of TVI Philippines; Sto. Tomas II Copper Expansion Project of Philex Mining Corp.; Teresa Gold Project of Lepanto Mining Consolidated Co.; Berong Nickel Project of Atlas Mining and Toledo Mining; Masara Gold Project of Apex Mines; CTP and PGMC Nickel Projects of Surigao Integrated Resources Corp.; and PASAR Refinery Expansion.

The DENR said eight more projects are expected to go on-stream within this year and early 2009. These include Carmen (Toledo) Copper Project; Didipio Copper-Gold Project; Palawan HPAL Nickel Project (Line 2); Canatuan Base Metal Project; Filminera Masbate Gold Project; Iligan Ferronickel Smelter Plant; Manticao Ferronickel Smelter Plant; and Phisaga Gold Project.