MINING “SECTION 4. Grant of Mineral Agreements Pending New Legislation. No new mineral agreements shall be entered into until a legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect. The DENR may continue to grant and issue Exploration Permits under existing laws, rules and guidelines.” - Executive Order No. 79, July 6, 2012.

1. PART 3
SEVEN BIG WINNER SECTORS
Mining
Recommendations: 32
Active
2013
Dormant
Active
2012
Dormant
Active
2011
Progress:
8
Improved
Dormant
3
Declined
20
No Longer Relevant
1
Backward/Regression
13
Started
4
Substantial Progress
Steady
Rating:
1
11
2
Not Ongoing
Completed
137

2. PART 3
SEVEN BIG WINNER SECTORS
MINING
“SECTION 4. Grant of Mineral Agreements Pending New Legislation. No new mineral
agreements shall be entered into until a legislation rationalizing existing revenue sharing
schemes and mechanisms shall have taken effect. The DENR may continue to grant and
issue Exploration Permits under existing laws, rules and guidelines.”
- Executive Order No. 79, July 6, 2012.
With an estimated $1.4 trillion in reserves, Philippine mining potential ranks fifth in
the world, covering an estimated 9 million hectares, but less than 2% of these have
mining permits. After long stagnation, the sector began coming back after a 2005 SC
decision affirming RA 7942, considered a world-class legal framework for sustainable
development. Minerals development should be a government priority and has great
potential for jobs and revenue. Government has identified over 60 priority PPP mining
projects. Mining can support poor rural areas through high quality jobs, local tax
payments, and community development. The national government receives substantial
royalty and tax payments. Government revenue from mining has more than doubled
to PhP 22.2 billion in 2011 from PhP 10.4 billion in 2007. Full development of the
sector, however, continues to face significant challenges. Lengthy tedious approvals
for Exploration Permits (EPs) continue to impede investment. Several LGUs have closed
their provinces to mining. Industry is concerned that the Writ of Kalikasan might disturb
lawful activities. An investor cannot tell easily if land is ancestral land. Skilled Mines and
Geosciences Bureau (MGB) personnel often leave public service. EO 79 has imposed a
moratorium on new mining permits, pending the passage of a new law on the revenue
sharing scheme between industry and government. Designation of “no-go” areas may
undervalue areas closed to mining for minor tourist or agricultural value. The immediate
future for the growth of the mining sector is not positive.
138 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

3. 2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
PART 3: SEVEN BIG WINNER SECTORS: MINING
139

4. 2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Backward/Regression
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
140 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

5. 2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
PART 3: SEVEN BIG WINNER SECTORS: MINING
141

6. Mining and Quarrying Gross Value Added (GVA), 1990-2003
160
80%
Gross Value Added
YOY Growth, rhs
120
60%
80
40%
40
20%
0
-40
0%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: NSCB; Old series (1997-back) New series (1998-onwards)
2011 Rating
2012 Rating
2013 Rating
Substantial Progress
Substantial Progress
Completed
Mineral Products Exports , 1990-Nov 2013
4.0
200%
Value, in Bn US$, lhs
Series2
3.0
150%
2.0
100%
1.0
50%
0.0
0%
-1.0
-50%
-2.0
-100%
Source: NSO
142 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT
-20%

7. 2011 Rating
2012 Rating
2013 Rating
Backward/Regression
Backward/Regression
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
PART 3: SEVEN BIG WINNER SECTORS: MINING
143

8. 2011 Rating
2012 Rating
2013 Rating
Substantial Progress
Started
Substantial Progress
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
No Longer Relevant
Backward/Regression
Backward/Regression
144 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

9. 2011 Rating
2012 Rating
2013 Rating
Started
Started
Not Ongoing
Mining Goods Exports Distribution, Jan-Nov 2013
Iron Ore Agglomerates,
3.3%
Chromium Ore, 0.5%
Gold, 2.2%
Copper Metal, 19.9%
Others, 60.6%
Copper Concentrates,
13.6%
Source: NSO
PART 3: SEVEN BIG WINNER SECTORS: MINING
145

10. Share in ASEAN-6 Total Mineral Products Exports, 1995-2012
60%
Indonesia
Thailand
Singapore
Malaysia
Philippines
Vietnam
50%
40%
30%
20%
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
0%
1995
10%
Source: UNCTAD; Includes ores, metals, precious stones and non-monetary gold
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Substantial Progress
146 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

11. 2011 Rating
2012 Rating
2013 Rating
Started
No Longer Relevant
Completed
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Backward/Regression
Not Ongoing
PART 3: SEVEN BIG WINNER SECTORS: MINING
147

12. 2011 Rating
2012 Rating
2013 Rating
Backward/Regression
No Longer Relevant
No Longer Relevant
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
148 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT

13. 2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Started
Started
2011 Rating
2012 Rating
2013 Rating
Not Ongoing
Not Ongoing
Not Ongoing
2011 Rating
2012 Rating
2013 Rating
Started
Substantial Progress
Started
2011 Rating
2012 Rating
2013 Rating
Started
Started
Started
PART 3: SEVEN BIG WINNER SECTORS: MINING
149

14. 2011 Rating
2012 Rating
2013 Rating
Substantial Progress
Substantial Progress
Substantial Progress
2011 Rating
2012 Rating
2013 Rating
Substantial Progress
Substantial Progress
Started
2011 Rating
2012 Rating
2013 Rating
Started
Substantial Progress
Substantial Progress
150 ARANGKADA PHILIPPINES 3rd ANNIVERSARY ASSESSMENT