status quo

Economy

Posted on October 24, 2012 10:46:53 PM


BY NOEMI M. GONZALES, Reporter

Role of Australian firms in mining cited

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AUSTRALIAN companies could be the partner of the Philippines in the development of responsible mining in the country, leaders of both countries said, even as businessmen withhold investment commitments pending the passage of mining reform law here.
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Development of the mining sector and enhanced cooperation in trade and security were highlighted in the discussions of President Benigno S. C. Aquino III and Australian Prime Minister Julia Gillard during a bilateral meeting in Canberra yesterday.

A joint statement issued after the meeting said: “Prime Minister Gillard described the mining industry’s role in Australia’s economic success, its leadership in environmentally sustainable and socially responsible mining, and the contribution Australian companies could make in the responsible development of the Philippine mining sector, particularly the development of Mindanao.”

“The leaders also noted the development cooperation activities provided by Australia that will support responsible mining in the Philippines,” it added.

“VERY KEEN”
Discussions on mining were brought up by the Prime Minister as Australia is “very keen on investments in mining,” Secretary Ramon “Ricky” A. Carandang of the Presidential Communications Development and Strategic Planning Office said.

“We acknowledge that Australia is among the countries with the best practices and that we’re coming from a situation where there was a lot of ambiguity and that we’re trying to clarify the rules and generally we think that’s appreciated,” he added.

The Philippines in July issued Executive Order 79 that clarified the country’s mining policy.

One of the reforms includes a moratorium on new mining permits pending the passage of a legislation that would restructure the mining revenue scheme to allow a higher share for the government.

This order affected the $5.9-billion Tampakan copper-gold project of Sagittarius Mines, Inc. (SMI) in South Cotabato, which was denied an environmental compliance certificate due to a ban on open-pit mining in the area.

The said mining project is controlled by Australia’s Indophil Resources NL and Swiss-based Xstrata Plc, which have a 40% stake in SMI.

An appeal was submitted to Malacañang, but Mr. Aquino last week said it is prudent to wait for the new law from Congress before approving new permits for mining operations.

Mr. Carandang said business firms understood that the government is working on laying down clear mining rules.

“They (mining companies) know there’s a pending legislation as we’ve announced before... They want to see the rules as they come out first before we see new significant commitments,” he said in a press conference in Australia aired over state-run AM radio station dzRB.

A draft bill that will be submitted to Congress is already in the works, Mines and Geoscience Bureau Director Leo L. Jasareno said. “A TWG (technical working group) of the MICC (Mining Industry Coordinating Council) is working on a deadline to finish the draft bill,” he said in a text message.

Aside from mining, Ms. Gillard also announced a recent agreement to extend Australian market access for Philippine mangoes.

“This will be welcomed equally by Australian consumers and mango growers in the Philippines,” the joint statement said.

Both leaders also hoped the framework agreement between the Philippines and the Moro Islamic Liberation Front “would provide a basis for genuine, lasting peace in Mindanao.”

After the bilateral talks, the leaders witnessed the signing of the Air Services Agreement (ASA) between the Philippines and Australia.

The newly signed document provided for the update of the ASA to adhere to international aviation standards. It also helped lay the groundwork for increased trade and travel between the two countries.

The joint statement noted that Filipinos are one of the fastest growing immigrant communities in Australia, with some 225,000 currently living there.

In addition, some 6,000 Filipino students are currently enrolled across all sectors of the Australian education system.

Mr. Aquino flew in to Australia yesterday after a two-day state visit to New Zealand where he met with Prime Minister John Key and several business groups.

He is set to meet with members of the Australian-parliament and attend a business forum today. Mr. Aquino is set to return home tomorrow.