NEWSLETTER
No. 2 OCTOBER 1999
It is with deep regret we report the untimely death of PMEA member and prominent mining identity BRUCE ROBERTSON on 28th July as a result of a plane crash on the way to the Lepanto Mine site. He is very much missed by us all. Our deepest sympathies to his wife Cathy and family.
INTRODUCTION
Welcome to the second edition of the PMEA newsletter. We were very pleased with the positive response that we received from the first newsletter that was emailed to approximately 200 people. We trust you will find this edition both interesting and informative.
Despite the continued severe winter for the exploration industry we remain optimistic for the future particularly when we look at the obvious potential of the Philippines for significant discoveries. Recently there has been a rise in the gold price with the change of policy on two key issues: the hedging strategy of many producers and the selling down of reserves by Central Banks. Many people are now more bullish on gold, which is all very encouraging.
You will also see from the contents of this letter there have been a number of positive actions by the Philippine Government recently The first half of the year has seen PMEA receive strong support with over 45 financial members and attendance at meetings regularly exceeding 60 people. We have had a number of excellent speakers at the monthly meetings, a very frank question and answer evening with the DENR/MGB and ran a very successful seminar on Creating Relationships with Communities and Local Government. The Association maintains an excellent relationship with the DENR and the MGB and is continually strengthening links with the Chamber of Mines.
The PMEA Website is now functioning and you can contact us on www.pmea.com , your comments and suggestions for improvement are very welcome.
SIGNIFICANT EVENTS
- In a keynote address to a conference on the "State of the Art in Mining Environment Management" staged by the Chamber of Mines of the Philippines (August 26-27,1999), the Secretary of the Department of Environment and Natural Resources (DENR), Secretary A. Cerilles made a clear statement that the Estrada Administration strongly supports the Mining Industry. He reiterated that the Philippines would fully implement the Mining Act. He added that he intends to encourage foreign investments in the industry and that the future of the country rests on the responsible development and utilization of its rich mineral resources.
- At the same conference the Director of the Mines and Geosciences Bureau (MGB) Director Horace Ramos presented the latest draft of the National Mineral Policy. A copy of this has been made widely available to interested parties for review and comment. A copy is available from PMEA.
- Secretary Cerilles has convened a Minerals Advisory Council under the Chairmanship of Assistant Secretary Pedro Caleon. Both the PMEA and the Chamber of Mines are represented on the council. The main purpose of the Council is to keep the Secretary and the President informed and well advised on mineral matters and in so doing to promote the Industry. The first meeting went very well and a number of key issues affecting the industry were discussed.
- The PMEA were recently invited to make a written submission, answer a number of prepared questions and appear before the Office of the President, Preparatory Commission on Constitutional Reforms. The main discussion centered around the recommendation to remove 60/40 ruling in the Constitution and the negative impact this provision has been on foreign investment over the past decade.
- The Department of Trade and Industry, through its Eminent Persons Group is canvassing the state of play in various industries. It invited a presentation and submission from both the PMEA and the Chamber of Mines on the factors inhibiting the growth of the Philippine Mining Industry.
- The MGB has issued the first draft of it's "Policy Guidelines and Standards for Mine Wastes and Mill Tailings " for public review and comment. In releasing the draft Director Ramos particularly requested contributions from people with international experience in this area. Copies of the draft are available from PMEA.
- The MGB, as part of "Environment Month - June 1999", held A Forum on Mining and the Environment, at Mines Geosciences Bureau, Quezon City on June 22-25. An excellent selection of papers examined environmental, community development, stakeholder and Indigenous Peoples issues as they relate to exploration/mining activity.
- The final Draft of the Administrative Order on the Pro Forma FTAA has been issued for review and comment. Comments were submitted by PMEA on behalf of members.
COMMUNITY RELATIONS SEMINAR
The PMEA ,supported by Coffey Philippines Inc., organised a one-day seminar and workshop on August 10, 1999 on the topic of:"Community and Local Government Relations in the Minerals Development Industry". This was an initiative to generate a greater awareness of the necessity and steps involved in creating and maintaining good community relationships.
Speakers covered the international and national perspectives of the role of host communities; World bank guidelines required for social acceptability aspects of financing sign-off; the interrelationship of the Local Government Code and the Mining law; the main aspects of the cultural differences between Filipinos and nationals from other countries and the key points of the process of how to initiate and maintain good community and local government relationships.
The workshop formulated a paper entitled "Guidelines for Creating Community and Local Government Relationships" which, when finalised, will assist companies to initiate and build on these important relationships without which a project will not succeed.
COMPANY NEWS
Climax Mining Ltd. announced on August 20 that a major milestone in the development of its Dinkidi gold/copper project was reached with the signing of the projects Environmental Compliance Certificate (ECC) by DENR Secretary Cerillies. Climax is currently negotiating with banks and other groups to provide funding for the U.S. $138 million project.
The TVI Pacific Group is currently focusing on the development of the Canatuan Project in Zamboanga del Norte, approximately 110 km north of Zamboanga city and 20km east of the poblacion of Siocon. Canatuan is a polymetallic deposit with a distinct gossan gold-silver zone and a sulphide copper-zinc-gold-silver zone. TVI has an MPSA and an ECC to develop the property. TVI is currently carrying out a small diamond-drilling program to obtain samples for metallurgical testing. This program has been interrupted by demonstrators made up of small- scale miners, indigenous people, NGO's and church groups. It appears that this situation has been resolved and the drilling is expected to commence shortly. If the metallurgical tests prove successful, TVI will be entering into a joint venture with a Japanese group to put the mine into production.
Billiton Philippines BV has completed one diamond drillhole of a proposed four hole program on their Claveria project in Northern Luzon, a JV with Climax. Drilling activity has been suspended pending a successful resolution of access problems.
Lafayette recently announced results of an updated ore reserve estimation for the Rapu Rapu polymetallic project, a joint venture with TVI Pacific and Philippine interests. Proven and probable reserves are estimated at 5.7 million tonnes at 1.34% Cu, 2.18% Zn, 2.61g/t Au and 31.72 g/t Ag. The results of a preliminary feasibility study have been reported by Lafayette and indicate a positive economic outcome warranting the progression to a bankable feasibilty study.
Minoro Mining and Exploration Corp. has entered into a debt for equity swap arrangement with Atlas Consolidated Mining & Exploration Corp. Minoro has acquired a 58% stake in the project and is seeking funding of $124 million to rehabilitate the Toledo copper mine.
Southern Exploration Corporation, an associate company of Indophil Resources has completed an 1800m, 8 hole diamond drilling program at their Manat exploration project in Mindanao, a JV with the Alanatara Group. Results are currently being evaluated. Drilling of their Labo Project is planned for January.
Minorco (Anglogold) and Philex Mining Corporation have announced the formation of a joint venture company (Minphil Exploration Philippines Inc.) to explore Philex's mineral claims and areas in Benguet Province and Surigao del Sur.
MRL Gold (Phils.), Inc. in conjunction with its local partner Minimax Mineral Exploration Corporation, has commenced drilling on its Agata Project in Surigao del Sur. Drilling of their Pan de Azucar Project, Panay Island, is planned for January.
CONTACT FOR INFORMATION ON PMEA:Philippines 1229Hayley at (632) 810-1399
C/o Indophil Resources Phils., Inc., Level 3, L&F Building, 107 Aguirre St., Legaspi Village, Makati City,
Tel. No. (632) 810-1399 Fax No. (632) 752-1446
E-mail: pmea@info.com.ph
