Friday, September 19, 2008

Export ore compliance urged






A mining industry leader noted that permits for exporting ore is necessary.

Chamber of Mines of the Philippines president Benjamin Philip G. Romualdez urged the industry stakeholders to adhere to the government requirement.

Mining companies and mineral traders are required to get a mineral ore export permit (MOEP) from the Department of Environment and Natural Resources (DENR) before they are allowed to ship out all kinds of minerals and their byproducts outside the country.

According to Environment and Natural Resources Secretary Lito Atienza shipments of mineral products, including gold bullions and mine tailings, will be confiscated if the shipper or transporter cold not show the MOEP issued by his office as well as the proof of payment of the required excise tax.

The guidelines for the MOEP is covered under Administrative Order No. 2008-20 entitled “Issuance of Mineral Ore Export Permit for Transport/Shipment Outside of the Philippines of Mineral Ores, Including Tailings” which takes effect 15 days after publication in a general circulation newspaper. The order is pursuant to the Mining Act (RA 7942) and Executive Order 469 as amended.

The MOEP will be able to address many of the issues that seem to defeat the purpose of the revitalization of the mining industry.

The MOEP also established a mechanism to monitor the shipment of mineral products, to ensure that they are extracted legitimately, pay the proper taxes, and declare the correct tonnage, grade and volume of shipment.

Mining firms and traders used to seek an export clearance from the government before shipping out mineral products, but this requirement was eliminated after the government pursued a policy of export liberalization.

In relation to this Romualdez encouraged also the mining industry stakeholders to adhere to the requirement of the government by giving their share back through legitimate extraction as well as adhere to responsible mining.

“Without it we will not be granted that social license and also if we can not prove that to the community that we are into responsible mining,” he added.

Lehman Brothers collapse no effect to RP ?

The Philippine banking system remains sound despite the collapse of US investment firm Lehman Brothers said Bangko Sentral ng Pilipinas Governor Amando Tetangco

The country's banking system has not been significantly affected. Furthermore, the Philippine domestic banks' exposure to structured products issued by Lehman are well-cushioned by the banks' capital base, the government authorities kept on assuring the public.

The government also vowed to continue to monitor developments in the global financial markets since these could effect impact not just in the banking sector but in economic growth as well.

We only hope it will not affect really the Philippine economy because if it does it will be the small ones that will be hit badly although the poor would not care maybe on the collapse of the Lehman Brothers, they would not even know who could they be.

But what they are more concern is when the value of peso would be getting smaller and smaller. We hope that the Lehman Brothers bad state will be the only and the last. Or are there others on the line too. I hope none so far - God Forbids if others are marching down the line !




Thursday, September 18, 2008

Korean-Filipino mining partnership starts exploration in Sultan Kudarat



A Korean investor with local partners in Sultan Kudarat started mining exploration in barangay Kinayao, Bagumbayan town within the 4,500 hectares with approved mineral production sharing agreement (MSPA) issued to FADICASU.

The partnership was registered under FMC & GRCO Fadicasu Mining Corp & General Resources Co. Ltd.

The corporation's operation manager, Rudolf Joseph C. Lopez said Fadicasu Mining Corp is the Filipino partner while General Resources Co., Ltd. is the Korean investor.

Fadicasu represents the name of the Filipino shareholders that all reside in Bagumbayan namely Faducan, Dida, Caspe and Subere.

Although the MSPA was approved in 1998, the exploration only started May 2008 and work is already into its 600 meters depth drilling of 10 holes.

Mineral deposits within the Daguma Range are copper and gold but the resource is more of copper with the gold deposits of 22 K.

Drilling has to go down to 2,000 meters to determine the volume of the reserves which is expected to be complete by December this year with 100 holes.

With an initial investments of over P100 million, the company plan to put up processing plant in the area only after determining the volume because what they will ship to Korea are copper concentrate.

Within the Damuga Range are about 11 MPSA holders and for the whole of Sultan Kuradat some 50 of them including mineral tenements were issued same agreement.

Like in any other mining explorations there are issues raised and one of this is the siltation in the Allah River, the threat to landslide and other related issues.

But the company officer said prior to their entry in the area siltation is already present and the threat to landslide is outside of the approved MPSA.

However. he said they are closely cooperating with the local government unit because they have the responsibility to play in relation to their investment in the area.

Both sector agreed to forge an agreement on how to handle the issues even as the pr

government is supporting investors like this company because it is the only foreign investor in the province.

Wednesday, September 17, 2008

Hotel industry notes positive trend towards yearend



Tourists continue to come despite the economic slowdown as the hotel industry noted a positive trend towards the yearend.

One player, the Millennium Plaza Serviced Residences of Makati City, noted good business as it experienced enjoys occupancy rate of 88 percent, with 45 percent of their clients are tourists both international and local.

In the Davao City sales blitz sales manager Desiree Gernale-Posadas and Joaquin F. Mercado II, rooms division manager expressed the need to reach out to the prospective provincial clients considering that many of their clients are businessmen from either Davao and Cebu.

Based on their tracking of guests these guests accounted for only 3 percent coming from the out- of-town because they still do not know about the place and they wanted reach out to them as they aimed to increase the provincial guests to at least 15 percent.

The Millennium Plaza offers personalized service to their guests of five-star service at surprisingly affordable rates with special promotional packages. Foreign tourists booked on line, other travel agents also handle the account for their guests.

The Millennium Plaza also as part of their package, extend sweet deals to students who can avail of the "Stay and Learn Package" for as low as P2,900 for four persons sharing a room while conference and banquet packages are also available at discounted rates and the promo runs until April 2009.

Most of the guests have transactions in embassies as it is located nearby among others the Canadian Embassy.

Hotel staff goes out of their way to assist the guests as to their purpose of coming considering that the hotel is strategically located near the business offices as well guide them on how and where to get there as well as and other concerns.

Add-on privileges are given to frequent guest offering them free overnight accommodation on their 8th visit with set breakfasts. Privilege cards are also given to Overseas Filipino Workers which entitles them to special discount to partner establishments like Barrio Fiesta, St. Tropezz Bar and Restaurant and Music 21.

Their partnership with Baron Travel allows their guests to a city tour through their Discover Manila Package that pass through Intramuros, Rizal Park or Fort Santiago, the Mall of Asia and others and to large group which are given discounts for a minimum of 10 rooms booked.

The Millennium Plaza also caters to long staying guests and they are mostly expats and CEOs of corporations.

These guests stay for a month or up to six months with special packages and access to amenities like unlimited use of internet at the business center with free breakfast daily, availability of gym and beauty salon facilities of partner establishments, etc. and entrance passes to Karl Edward Bazaars for the year 2008

Malaysia willing to share tourism expertise










With the huge volume of tourists that Malaysia hosts each year, the latest figure in 2007 pegged at 20 million, the country is willing to share their expertise to other neighboring countries insofar as tourism related services is concerned.

Malaysia Consul General to Davao Hon. Nik Mustafa Kamal Nik Ahmad in an interview at the Club 888 Forum of the Marco Polo Davao said projects like exchange studies would allow students to have wider exposure to the international tourism industry.

He said the Filipino trainees while in their country must work hard because the Malaysian and other tourists there love to dine and all hotels and restaurants are open 24 hours and their long exposure would make them more skilled as they would interact with tourists of different nationalities.

Malaysia is among the top 3 destinations in Asia and tourism industry workers will be exposed among others to clients in the Middle East.

"With more exposure they will have the good chance of increasing their marketability," he said.

Meanwhile he observed that there is not enough Malaysian coming to Mindanao because of their impression that the island is dangerous.

They (Malaysian) do not even know that there is a consulate base in Davao City even as he said that their government has not issued travel advisories banning their nationals to come to Mindanao.

"Issuing travel advisory is unfair and we do not want to do that to our neighbor," he said.

The other concern aired there number of people coming to Manila instead to Davao because of the lack of air linkages.

It is a good thing that Cebu Pacific had started the route and hopefully there would be more Malaysians traveling here because they love to travel and when they travel they want to go to several destinations.

He said tourists destinations here are really beautiful and has rich resources but it needs a lot of promotion.

The sites are comparable to places in Malaysia, Indonesia and Thailand only that it was not extensively promoted and there are a lot of untouched destinations here worth exploring.

Mining stakeholders urge Philippine government to relax mining exploration application


Stakeholders of the mining industry in Mindanao, Philippines urged the government to relax the rigid process on the application of permits for mining exploration.

The business sector in the island will submit a resolution through Secretary Lito Atienza to look at the issuance of mining exploration permit during the Mining Summit that will be held in Davao City on September 18 to 19, 2008 even as they are saying there is no point in making different rules of miining exploration application.

It was learned that at the Mines and Geo-Sciences Bureau office based in Davao City there are 14 pending applications while 20 applications were endorsed to MGB central office and none so far have been approved.

The business sector of Mindanao supports the mining industry and they are there to see to it that mining investment must be protected. But the country has antiquated mining laws and this has to be addressed.

The country has been ranked in the top ten for mineral reserves yet it also falls among the top 50 countries with no investments.

These reserves must be explored inorder for the government to know how much of these resources are there said the business sector even as they expressed that application of mining permits should not be caught with bureaucratic red tapes even and they vowed they will not take it sitting down.

In fact he said they had conducted dialogues with different sectors including the religious because they want to know the sentiments of all sectors.

At the Mining Summit there will be workshops and sessions and among these are discussions on social responsibility within the community and for the business sector to see mining investors comply with responsible mining.

The business sector want responsible mining to take place in Mindanao otherwise they will also be the first to take action against those who will exploit the mineral resource even as they warned that proper mitigation be applied to ensure that the resource is protected.

It may be recalled that with the passage of the Philippine Mining Act in 1995 (RA 7942), the mining industry experienced slow investments pouring into the country. As this developed, a National Policy Action Plan was crafted which prompted President Arroyo to sign Executive Order No. 270, the National Policy Agenda on Revitalizing the Mining Industry in the Philippines to boost investments in the industry.

Over the years, emerging issues crop up brought about by the tedious process of applying for mining permit and the practice of some applications to sit on their mining claims for more than two years.


Travel advisories affect completion of review and assessment of Mindanao 2000


The completion of the review and assessment of the Mindanao 2000 both by the government and the private sector has been affected by the travel advisories issued by various embassies due to the ongoing conflict in Central Mindanao.

With the participation of the Australian government as one of the donor countries to fund projects in Mindanao, the embassy of Australia does not allow the team to visit all areas where the (Australian government) has programs and projects.

The team is only allowed to travel to the cities of Davao, Butuan and Cagayan but not in the cities of General Santos, Zamboanga and Iligan although request was already raised to repeal the ban inorder to come up with a comprehensive study. Participating the review are 21 government agencies and the Mindanao Business Council representing the private sector.

The review will run for 48 days on whether the plan has been implemented and properly funded.

Already on its 14th day of work initially finding surgaced that there are policies that are inconsistent citing for instance on food security where the Philippines wants to move up from agriculture dependent to industry. On food security aspect certain policies allow the country to import rice. Rather than this strategy it should adopt food sufficiency and focus on local production as well as subsidizing inputs like seeds and fertilizers to encourage more people to go back to farming.

The country's subsidy for buying rice is getting bigger and if this will continue there is nobody to farm and the next generation would not be encouraged to go farming. Through food sustainability government should focus on giving subsidy for production.

The completion of the review and assessment of the Mindanao 2000 would allow the team to come up with a development framework for Mindanao 2020

Under this framework emphasis should be on ownership of the plan by stakeholders to ensure that the programs and plans are implemented accordingly.

The Mindanao Development Plan was formulated in 1995 and will end in 2010 and with the new plan for the island dubbed as Mindanao 2020 those involved must be part of it.