Please read this critically and what do you t think about Indonesia?
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Description: In the first half of 2008 the Philippine government took a bullish position on the potential for new investment and development in the local mining industry. Private sector miners were on the whole much more cautious, however. In April presidential press secretary Ignacio Bunye gave the upbeat view. He noted significant interest and investment from foreign majors since a 2005 Supreme Court ruling that clarified ownership rights and opened up the industry. Total foreign investment in mining in 2004-2008 had been US$1.4bn. and Bunye expected another US$9bn to be invested by 2011, with the bulk of the money coming in between 2008 and 2010. By 2011 mineral shipments would be close to 6.5% of total exports, enough for the Philippines to be classified as a mining country based on World Bank standards.
Private sector miners were more guarded in their forecasts. Press reports noted that their concerns included rising costs, tough competition, gloomy financial markets and a number of specific local problems: land ownership disputes, communist and Muslim insurgencies and slow-moving bureaucracies.
'We have so many opportunities around the world available to us, if it's complicated, then we just couldn't be bothered to worry about it' Reuters news agency quoted Jesse James of US-based commodity fund Geologic Resource Partners saying.
The Philippines islands include 18 active volcanoes, and lie within the Pacific 'rim of fire', an orogenic belt associated with active ore-forming mineralisation. Three principal ore deposit types are associated with this volcanic arc environment - large-tonnage porphyry copper-gold deposits; disseminated and vein-type gold deposits, and volcanic sulphide deposits primarily constituting copper and gold.
The Philippines has had a long and established history of mineral production and once ranked among the world's top producers of chromite, copper, nickel and gold. According to various estimates, the Philippines hosts the world's fifth-largest gold and copper reserves. However, at the end of 2006, the nation's mining industry was valued at under US$2bn and accounted for less than 2% of GDP.
Considering the abundance of mineral potential in the Philippines, there are a number of factors that have constrained the domestic mining industry.
Production has been hampered for much of the last two decades by low foreign investment owing to political instability, accompanied by high costs of production, labour problems and natural disasters, including intense volcanic activity, cyclonic storms resulting in severe flooding and periods of extensive drought. Foreign investment has also been impeded by the requirement of 60% domestic equity control of the mining-processing facilities coupled with high excise taxes - mineral royalties - on production.
However, the Philippines mining scenario is not completely grim. An improving political situation, along with the fine-tuning of the Philippine Mining Act of 1995, has resulted in rising levels of mining development and exploration programmes throughout the nation. In 2004, the government unveiled the Mineral Action Plan (MAP), which identifies 24 large-scale mining projects. According to the Department of Environment and Natural Resources (DENR), these projects were expected to bring in US$4-6bn in investments and US$5-7bn in foreign exchange during 2004-2010. Mineral resources development has been identified by the government as an area of focus in the Medium-Term Philippine Development Plan, 2004-2010.
Industry Forecast The positive steps taken by the government towards mineral resource exploration and development are expected to bear fruit in the longer term. In the medium term, BMI forecasts a growth rate of 6.4% per annum on average over 2008-2012.
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The government must find what factors that cause mining sector get a low profit. Then government must get
ReplyDeletehardworking to solve the problem,for example ; regulate the rules, improve the mining production, and investment relation with the foreign.
Although Philippines has a good potential mining sector as same as Indonesian,
ReplyDeletethere is a lot of problem which come to this country that have impact to foreign investmen mining decreases.
Because of that, government will take some crucial steps to improve mining development their country, it seems this improvement will bring to a huge profit.
Seems, Our country must improve the mining development like the philipine wil be done.
The article above discusses the situation of Philippines local mining industry. The article state that in the first half of 2008 there is some potential condition which support the local mining industry developments. The support comes from the government’s in investmen policy and some private sector miners’s policy which increase the position of mining industry. But, i agree with the author idea that there is not only some factor which support the development but also some factor which impede it. The obstacles comes from the natural disasters and the imbalance of political situation in Philippine. However, i believe that there are solutions to the problem and agree with the opinion which states that the Philippines mining scenario is not completely hazy.
ReplyDeleteIn the article, the author stresses that the Philippines mining is not completely grim cause there is some potential support. The support is look like foreign investment which raise up to US$1.4bn, the concern of private sector in cost, financial markets, competition, and local problems, and the situation of Philippines environment which have deposits in gold and cooper. I agree with this opinion, the support from the government and the private sector is very important factors to raising the climate of investment in mining industry. Beside of that, the condition of mining resources in one country can effect the development of this industry.
The author not only stresses the support but also the obstacles in mining industry. An imbalance political situation and some natural disaster look like eruption, flood, and storm can impede the development of mining industry. I agree with this opinion too. When the political situation in one country is not stable, the government will concern in this political situation and forget to make a policy about investment in industry. The private sector also will get the effect from this situation. When the natural disasters happened, the mining production will be stopped because the government and some institution will concern in tackling the disasters. So, the investment of mining industri will dropped. But, don’t worry about this because the government have found the solution to prevent and solve this problem.
Finally, the author and I believe that there is a bright future in the development and investment of mining industry in the Philippines. There is a bright scenario of this industri in Philippines or in the other countries look like in Indonesia. If we have a good coorporation with the government, the private sector, and the environment, we will get a bright future in mining industry.
muhammad saladin