Philippine Resources Journal - Issue 3, 2022

CONTENTS MINING 18

MINERS EYE GOLDEN OPPORTUNITIES IN ‘22

20

ASEAN-AU NZ FREE TRADE AGREEMENT: BENEFITS FOR PH

24

PH-AU MATESHIP, BAYANIHAN THROUGH ASEAN

26

USE OF POWDER DIFFRACTION FOR MINING -- Q&A

28

BAYANIHAN AMID PANDEMIC BATTLE: CTPCMC VS COVID-19

29

COMMENTARY

PHIL. DEPT. OF MINES AND ENERGY?

By Fernando Penarroyo / page 6

COMMENTARY

HMC SPENDS P4M FOR ADOPT-A-TOWN IN SURIGAO

30

TMC WINS GAWAD KALASAG AWARD

32

ROTORK: INTELLIGENT VALVE ACTUATORS FOR EFFICIENT MINING

LEADERSHIP LESSONS FROM PRESIDENT FVR

By Patricia A.O. Bunye / page 14

CONSTRUCTION 36

PHILCONSTRUCT GEARS UP FOR ANOTHER SHOW

37

P2.5B ALLOCATED FOR UPGRADING PROVINCIAL AIRPORTS

40

KOREAN EXIMBANK OFFERS TO FUND DPWH PROJECTS

52

4

ABOITIZ TALK ON INDUSTRIALIZATION AND INVESTMENTS

MINING

CONSTRUCTION

Miners say sector may lose gains / page 16

Following success of Cebu-Cordova link / page 35

CHAMBER BUCKS NEW TAX BILL

MPIC WEIGHS P90-B CEBU-BOHOL BRIDGE

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RESOURCES COMMENTARY

PHILIPPINE RESOURCES THE MAGAZINE FOR MINING, CONSTRUCTION AND INDUSTRY Philippine Resources is published independently for executives in Philippine mining, construction, resources, and associated business sectors.

Publisher Elizabeth Galura Consulting Publisher Greg Brimble Editor Jimbo Owen Gulle Sales and Marketing Manager Matt Brimble +63 927 721 6622 Matthew@philippine-resources.com Account Manager Merian Jay Fallan +63 955 738 0266 merian@philippine-resources.com Administration Cecilia Pamular +63 917 308 1971 cecille@philippine-resources.com Design/Production Elizabeth Galura Journalists Marcelle P. Villegas Abe Almirol Contributors Patricia A.O. Bunye Fernando Penarroyo Manila Publishing Office Suite 6, 2nd Floor Corinthian Plaza Building 121 Paseo de Roxas Legaspi Village Makati City, Philippines 1226 Phone +632 8251 5599 Digital Online Edition www.Philippine-Resources.com ON THE COVER: Cebu Cordova Bridge Photo courtesy MPIC

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Philippine Department of Mines and Energy?

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very time there is a change in administration, the mineral industry always anticipates with bated breath the identity of the Department of Environment and Natural Resources (“DENR”) secretary. The presidential appointee is scrutinized whether he or she is either sympathetic to the mining in-dustry or a staunch environmental advocate.

This can be attributed to the ambiguous nature and function of the DENR. Under the present setup of the DENR, it is mandated to promote investments in the minerals industry through the Mines and Geosciences Bureau and at the same time, enforce national environmental laws through the Envi-ronmental Management Bureau.

In many jurisdictions, the environment protection agency is totally independent of the administrative body regulating extractive industries. Perhaps it is now high time for Philippine legislators to remove the mining regulation function from the DENR and attach it to a super regulatory body called the Department of Mines and Energy.

A reinvigorated Department of Mines and Energy (“Department”) will serve as the foundation for regulating, promoting, and developing Philippine resource-based industries, which represent one main prospect for economic growth. However, this new Department will certainly face challenges, including multiple regulations, inter-institutional conflicts, the dearth in the capacity of regulators, and the threat of political interference.

The Department should be tasked to provide clear policy direction for the extractive sector and de-liver improved industry regulations through a strengthened institutional capacity. It should also introduce reforms in state-owned petroleum and mining companies.

More importantly, the Department should create a National Geological Survey Agency to collect a comprehensive geological information system and manage a National Mineral and Energy Database. The Department must implement a transparent and accountable governance framework, and improve effective interactions with other regulatory bodies, private companies, development agen-cies, and stakeholders.

Strengthening Institutional Capacity Institutional capacity requires highly skilled specialists to provide effective regulatory functions to identify, design, implement, and manage a comprehensive regulatory system. Because the mineral and energy industries are so highly specialized with many technical dimensions, the skills available to the Department should ideally

By Fernando Penarroyo match with those of the private companies it regulates.

The Department must conduct an organizational and capacity needs assessment to pursue this. It must craft a plan to deliver the human resources necessary to develop and retain the staff required and implement organizational reforms so that the Department is properly structured to fully deliver its mandate in the areas of policy, regulation, and investment promotion.

High standards of transparency and good governance are essential to tackle corruption and ensure the sector delivers benefits to the stakeholders. These include accountable mechanisms for the al-location of mineral and petroleum rights through improved processes in licensing and contract management. It also involves transparent management of non-tax revenue collection like funds for social development and environmental rehabilitation.

Complementing contract management is improved oversight and compliance.

Regulations must provide the structure for the enforcement of laws and the terms and conditions of the contracts and licenses.

Inconsistent regulatory decisions brought about by ‘regulator uncertainty’ that occurs in the after-math of political transition create uncertainty for investors.

This justifies the creation of an ‘inde-pendent’ regulator composed of tenured civil servants based on professional merits and technical expertise working in an organizational structure shielded from political patronage.

Improving the Role of State-Owned Resource Companies Organizational reforms also require consolidating and strengthening ownership in resource compa-nies owned by the state and providing a degree of effective

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COMMENTARY

< Page 6 government control and involvement in decision-making.

Especially for strategic projects, state-owned resource companies can benefit from preferential financing, low hurdle rate expectations, sovereign guarantees, grants, direct government subsidies, tax concessions, preferential treatment in public procurement, and other forms of public support.

With this support system, stateowned resource companies should be encouraged to conduct initial exploration work in frontier areas to mitigate geologic risks.

Take the case of the Philippine National Oil Company-Exploration Corporation (“PNOC-EC”). The low capacity of technical personnel and lack of modern equipment are among some of the issues identified by the company. PNOC-EC could have acquired the interests of the divesting companies in the Malampaya natural gas project if it utilized its ability as a national oil company to access capi-tal, human resources, and technical services directly from oil field service companies (“OFSC”).

OFSCs have been offering national oil companies services, specialized operations, and outsourcing needs with their high technical experience. Their services cover virtually all areas of exploration and production including facilities and reservoir-related services.

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With the Malampaya acquisition, PNOC-EC can aggressively track new opportunities for growth through access to capital markets, increased profits, and greater participation in technology ad-vancements. Further, it is better able to mitigate political risks through government-to-government relationships and negotiation strategies using the political muscle of the Philippine government.

PNOC-EC can take greater risks, with strategic and geopolitical goals factored into investment de-cisions rather than being purely based on commercial considerations. A strong PNOC-EC could also have better leveraged in explorating in the disputed West Philippine Sea. In the case of the Philippine Mining and Development Corporation (“PMDC”), direct mining opera-tions may be out of reach for the company at present. PMDC was designated as the implementing arm of the DENR in undertaking the mining and mineral processing operations in the 8,100-hectare Diwalwal Mineral Reservation. However, PMDC can gradually develop capability through knowledge transfer by working in partnership with private companies thereby increasing in-house technical capability.

Managing the state’s equity in mineral projects is technically easier than operating mines, but it also requires dedicated professional skills to ensure that the state’s

shares yield an appropriate return.

In particular, board membership should be filled by skilled professionals who can dedicate substantial time to these tasks.

Commercial efficiency is the best way of achieving PMDC’s goals over the long term. Detailed laws and rules on how PMDC is structured and how it interacts with state institutions and private investments are necessary. The PMDC should also be able to manage itself with sufficient auton-omy to make relevant and timely decisions. However, public accounts should be maintained in ac-cordance with international standards and subject to independent audits.

Establishing a National Geological Survey Agency Too often, regulators are bogged down by the sheer volume of monitoring, inspections, and exten-sion work required. Also, the workload spent by technical personnel in contract monitoring results in insufficient time to assess the resource potential of the country, which is primarily the mandate of a department handling the mineral and energy industries.

Under the present set-up, technical personnel must also engage in the inspection of small-scale op-erations and geo-hazards aside from contract compliance duties.

The mineral and energy industries are capital and technology-inten-

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RESOURCES COMMENTARY

< Page 8 sive, which means that the coun-try will need to attract significant private sector investment. One method to attract investment is by providing investors with modern geological information, which can be adequately fulfilled by a Na-tional Geological Survey Agency (“NGSA”).

The Department shall be solely responsible for the establishment and control of an NGSA whose task is to conduct a comprehensive geologic survey and provide reliable scientific information on how to manage energy and mineral resources. The survey will contribute important data to the De-partment and other agencies and compile assessments of minerals, energy, and other resource potentials.

The NGSA shall also provide services on geological mapping, geotechnical investigation, hydrogeological mapping, geophysical and geochemical mapping as well as basin analysis. It shall also en-gage in mineral and petroleum resources exploration and evaluation. By building technical capacity in the NGSA, the Department will improve the understanding of the country’s resource endowment and provide geoscientific information to investors.

National Mineral and Energy Database Ease of access to a mineral and energy database facilitates invest-

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ment into the extractive indus-tries of a country. As such, having the digital infrastructure to host this data administered by the NGSA, is important for attracting new investments. The database will serve as a central depository for resource data and will be made available to the public on a centralized web and cloud platform for easy information access.

The availability of additional information reduces uncertainty and increases investor confidence. Information and knowledge increase resource certainty and reduce risk, which allows better access to risk capital for further exploration as well as a more accessible and manageable base from which to develop a portfolio of resource projects.

The digital platform to be used for access to the data bank can also be utilized in the submission of information to regulators for monitoring and compliance purposes.

The Department should also continue to adapt to a standard global classification system that ad-dresses the probability of risk based on a set of resource criteria and attributes. This classification system would provide developers and potential investors with more information, and as a tool for resource valuation, allowing for the development of risk-balanced portfolios.

Such standardization is critical to making informed decisions on development opportunities. The

implementation of the resource classification system would provide the industry with a clearly de-fined framework to evaluate prospects and establish a common industry language for resource and risk assessments.

The Department and private industry should aim for the recognition by financial institutions and stock exchanges of the resource classification system to facilitate access to capital.

Enhancing Government Collaboration and Economic Linkages While the Department shall have the primary responsibility for developing extractive industries, it also recognizes that many of its activities will require collaboration and linkages with other institutions. Inter-institution coordination among other resource-regulating agencies not directly under the supervision of the Department like local government units, the National Commission on Indigenous Peoples, the Energy Regulation Commission, and other agencies will lower the transaction costs of developers.

Regulation of the extractive industries requires all responsible government agencies to work togeth-er and collaborate to strengthen regulation. As the main government agency for the extractive in-dustries, the Department will take a leadership role in insti-

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RESOURCES COMMENTARY

< Page 10 tutional collaboration to improve infor-mation flow and regulation and streamline economic development.

The Department should manage the effective coordination and collaboration of regulatory activities across the wide range of agencies that ideally should be involved in different aspects of extractives regulations.

Many downstream activities like the processing of minerals require access to low-cost power to be competitive. This is where coordination within the Department of Mines and Energy can easily facil-itate this major hurdle in developing a viable mineral processing industry. International markets for processed minerals are highly competitive and it is difficult to compete without relying on a facility where a major cost of production is electricity.

Another instance where the mining and energy function can be coordinated by the Department is the setting up of the regulatory frameworks for hybrid micro-grids.

A key advantage of off-grid power plants is that they can power the energy needs of mining operations in remote areas, where the cost of building the infrastructure required to hook the mine up to the grid network or building a conventional power station will be significant.

By having a dedicated off-grid power source, a mining operation can meet all its energy requirements and make significant cost savings in the price it pays for electricity. Microgrids involve a combination of power sources, usually

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diesel or natural gas generators combined with some re-newable energy resources.

In addition, given the significant involvement of the donor community in the extractive sector, the Department shall also establish a donor coordination forum for extractive sector activities. The economic linkages spearheaded by the Department will maximize the economic impact of extractive industries. Such linkages will also improve the efficiency and effectiveness of donor funding.

Inclusion in Conflict Resolution Petroleum and minerals development has often been cited as a key factor in triggering and escalat-ing violent civil conflicts. It is most likely to occur when local communities have been systematically excluded from decision-making processes, when the economic benefits are concentrated in the hands of a few, and when extractive industries clash with the social and environmental concerns of local communities.

Unwillingness to address these issues in peace agreements becomes a potential source of conflict in the future. The Department through active involvement in the peace negotiations can articulate the natural resource issue in the process.

Another instance where the involvement of the Department and the national oil company can be put to good use is in the assertion of the country’s sovereignty over petroleum resources in the West

Philippine Sea. Conclusion Combining the Mines and Geosciences Bureau with the Department of Energy to form a strengthened Department of Mines and Energy will ensure economic growth and sustainable development in the mining and energy sectors. The strengthened Department will provide a stable regulatory framework able to manage the country’s resources and better respond to the strategic objectives espoused in the country’s development objective.

Additional Readings Addison, Tony, and Roe, Alan, Extractive Industries - the Management of Resources as a Driver of Sustainable Development, UNUWider Studies in Development Economics, 2018, https://www.wider. unu.edu/publication/extractive-industries Al-Fattah, Saud L., National Oil Companies: Business Models, Challenges, and Emerging Trends, March 2014, https://www.researchgate. net/publication/261696989_National_Oil_Companies_Business_ Models_Challenges_and_Emerging_Trends Copper Giants: Lessons from State-Owned Mining Companies in the DRC and Zambia, Natural Resource Governance Institute, 2014, https://www.resourcedata.org/ dataset/rgi-copper-giants-lessonsfrom-state-owned-mining-companies-in-the-drc-and-zambia

Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance, and Business Development. He is also currently the Chair of the Professional Regulatory Board of Ge-ology. He may be contacted at fspenarroyo@ penpalaw.com for any matters or inquiries in relation to the Philippine resources industry and suggested topics for commentaries.

Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www. penarroyo.com

ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

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RESOURCES COMMENTARY

A

llow me to take this opportunity to pay my respects to our 12th President, Fidel Valdez Ramos, who passed away on 31 July 2022. PFVR is credited with many things, including ushering in a period of stability, and creating an environment conducive for investments, but the mining industry is understandably most grateful to him for the passage during his term of Republic Act No. 7942 or the Philippine Mining Act. The Mining Act was but one of the pieces of legislation that were part of “Steady Eddie’s” road to the Philippines 2000, which included breaking Marcos Sr.-era monopolies. Surely no one misses the days when there was only one airline and one phone company, or when there were daily power outages.

While I never had the honor and privilege of working for him, I was always in awe of his leadership style. PFVR is well known for having institutionalized complete staff work or “CSW” in Malacanang which, simply put, admonishes all government agencies and their subordinates to “do their homework” before any document reaches his desk. Later administrations would follow his lead and further flesh out and provide details and timelines for more effective CSW. If I am not mistaken, it was also PFVR’s administration that began using barcodes to track incoming documents.

Before the internet age, PFVR was already fond of clipping news articles and writing marginal notes on them in his legendary red pen which we would send to government officials very early in the morning by fax. These notes would either be reminders, action items, or a simple pat on the back. An aide de camp who spoke at his wake ruefully recounted that his days were filled with collating news clippings for his workaholic boss from dawn until late evening.

At the end of the day, “The Boss” would still ask, “Wala na bang papel diyan?”, meaning he was still willing to work when others much younger than he was already exhausted.

Listening to other eulogists who shared their memories of PFVR, I was struck by several recurring themes of their years working with him. These were men who were not politicians, but who knew him as a military officer in the field, and who saw him face the challenges of both military and civilian life.

From their comments, I gleaned the following leadership lessons PFVR-style:

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Leadership Lessons from President FVR

By Patricia A. O. Bunye 1. Take care of your people. As a military commander, he would not leave checking on the troops to lower-ranking officers.

A subordinate of his recounts being surprised that a younger FVR would go to the field with a bag of medals both as a reward for the hard work of his men and as a way of comforting them through their difficulties. According to Brig. Gen. Anthony Alcantara, one important lesson he learned from PFVR is: “(I) f you care enough for the nation you serve, act decisively on what needs to be done. There is no place

far enough or isolated enough that cannot be reached if you wanted to. Honor every effort as soon as possible of those who sacrificed enough to fulfill their duties.”

2. If you need something done well, put in the time and resources to make it happen.

PFVR’s battlecry was “Let’s show them how to work” and work hard he did, spending long days which would often begin with running with the troops at 4 am, which would allow him to hit several birds with one stone: meeting and discussing work concerns while bonding with his team.

3. After the siege of the Manila Hotel on 05 July 1986, when those responsible were only meted pushups when they returned to their barracks, then-AFP Chief of Staff Ramos was severely criticized for the light treatment given to the putschists, of whom belonged to the Constabulary, which he formerly headed. His aides say that lesson to be learned from that experience is: to know your true intentions (in taking a course of action). PFVR then recognized the fragility of the new-post EDSA democracy. He knew then that his true objective was to unify the AFP which was severely politicized, and that any punishment would further divide it. Keeping the organization intact, professional, and strong was worth any criticism hurled at him.

Patricia A. O. Bunye is a Senior Partner at Cruz Marcelo & Tenefrancia where she heads its Mining & Natural Resources Department and Energy practice group. She is also the Founding President of Diwata-Women in Resource Development, Inc., a non-government organization advocating the responsible development of the Philippines’ wealth in resources, principally through industries such as mining, oil and gas, quarrying, and other mineral resources from the earth for processing.

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MINING NEWS

Mining group bucks tax bill, says sector may lose gains

T

he Chamber of Mines of the Philippines (CoMP) has expressed concern over a proposed tax measure that may push back recent gains for the mining sector and deter prospective investments in the sector.

The bill passed by the House committee on ways and means proposes the imposition of a royalty tax of 5 percent on the gross output of large-scale mining operations while increasing the share of the government to 60 percent of net revenues.

The proposed legislation will also place a 10-percent export tax on mineral ore exports, to encourage domestic processing of mineral products.

CoMP said that while the proposed measure runs contrary to pronouncements of the new administration, there were no consultations that would enable industry stakeholders to oppose provisions of the bill they found onerous.

“We also maintain that figures shown during the committee hearing that purported to show the industry’s effective tax rate at 38 percent was woefully out of date as such report was done in the year 2000, prior to the doubling of the excise tax on mineral products under TRAIN 1,” CoMP said in a statement.

Once passed into law, the bill will render the Philippine mining industry as one of the highest taxed mining countries in the world, the chamber said.

“It will also jeopardize the sector’s contribution to economic development in host communities

< Page 14 4. Make your organization function well.

5. Be prepared. Anticipate all contingencies.

6. Take every opportunity to improve yourself and serve others well 7. Ask “are you part of the problem or part of the solution”?

8. Strive for a win-win solution. One former aide recounted a PFVR trick of getting warring

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which may result in a substantial reduction of exports and tax revenues and a considerable amount of social expenses.”

“In addition, several large-scale operations run the risk of closure, resulting in massive unemployment in their areas of operations.”

CoMP noted that the bill will once again put into question the stability of mining policies, which is most detrimental to attracting foreign investments in such a capital-intensive industry.

“Foreign investors will simply look elsewhere; we are not the only country blessed with mineral resources. If further tax increases are unavoidable, the tax structure should not be onerous as to stop investments from coming in,” the

group said.

“We thus call on Congress to revisit the bill recently approved by the committee on ways and means and allow for full and meaningful consultations with stakeholders,” CoMP said.

cabinet members to come to an agreement by asking them to meet in a small conference room and to revert to him only after they had a workable solution.

9. Anything important needs to be written. Despite his famous photographic memory, he was a stickler for writing notes even on the golf course.

10. Practice attentive listening. An aide recounts a gaffe when he only caught PFVR saying the word “barber” and, in his haste, called former Sen. Robert Barbers when all PFVR wanted was a hair-

cut. Lesson learned: don’t assume, but always seek clarification when in doubt.

11. Throughout his six years as President, PFVR was always on-point and on message with the direction he wanted to take (“Kaya Natin Ito!”).

Whether or not you agreed with him, there was no equivocation about his position. He also effectively used wit and humor to defuse tense situations, including with the press.

Two thumbs up, Mr. President.

Mabuhay!

ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

M

Miners expect golden opportunities this year

ining companies turned bullish on industry prospects as the administration of President Ferdinand Marcos Jr. seeks to reinvigorate the sector as part of the strategy to grow the domestic economy.

The mining industry, which has stagnated since 2012 following the imposition of a moratorium on new mining contracts, is enjoying the benefits of prevailing high metal prices.

“We are very happy that the new administration is pro-mining,” DMCI Holdings president and chief executive Isidro Consunji said in a recent investors’ forum.

DMCI’s mining unit has operations in Zambales and Palawan provinces, but at least 90 percent of its assets have yet to receive government permits.

The Philippines is considered the fifth most mineralized country in the world, with the third largest deposits of gold, fourth for copper, fifth for nickel, and sixth for chromite. However, most of the country’s mineral resources remain untapped because of strong opposition from various sectors.

A moratorium on new projects was imposed during the Aquino administration following a series of mining incidents.

A

Philex’s Eulalio Austin

Former President Rodrigo Duterte also had an anti-mining stance at the onset of his administration and threatened to impose a total ban on open pit mining. He ordered mining companies to rehabilitate mined-out areas.

Towards the end of 2021, President Duterte lifted the ban on new mining projects to boost the economy which was badly affected by the pandemic.

Philex Mining Corp. president Austin Eulalio Jr. said the industry holds the greatest potential to drive

economic recovery and growth.

“We believe that mining, being an export industry, will play an important role in the economic recovery of the country, particularly in increasing our dollar reserves,” Eulalio said.

“The Philippines is one of the highly mineralized countries in the region, and it must take advantage of the opportunity considering the stable metal prices, global direction to move into green energy, in which copper and nickel are very important,” he said.

HOUSE COMMITTEE APPROVES NEW TAX REGIME FOR MINING

House of Representatives panel has approved a new fiscal regime for the mining sector, which is expected to generate PHP37.5 billion in its first full year of implementation.

The House ways and means committee approved a bill proposing a rationalized and single fiscal regime applicable to all existing and prospective large-scale metallic mines, regardless of location.

The committee adopted the version of the Department of Finance, which would “bring the country’s effective tax rate on mining (considering all taxes) to 51 percent, up from 38 percent under the current system.

Albay Rep. Joey Salceda, committee chair, said this would

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DMCI’s Isidro Consunji

bring the Philippines “closer to the middle of the pack” among major mining countries, instead of near the bottom of the list.

“51 percent is a good number, because it brings us closer to Australia’s effective tax rate, at around 51 percent as well, counting royalties. Among major countries, only Chile and South Africa have lower effective tax rates than us.

This proposal brings us closer to Australia and Indonesia, which are our regional comparatives.

China is at a very high 71 percent effective tax rate for gold mines,” Salceda said.

He said the proposal would fulfill the panel’s commitment to President Ferdinand “Bongbong” Marcos Jr. and the Department

of Finance to raise revenues to fund the administration’s priority programs.

“With this measure, we are fulfilling our commitment to the President and to the DOF to raise revenues to fund PBBM’s priority programs,” Salceda said.

Salceda explained that under Marcos’s Medium Term Fiscal Framework, the revenue program assumes a tax-to-gross domestic product (GDP) growth of 0.3 percent annually.

“The mining tax reform takes care of half of that assumption already. So, if enacted, it will be very good for President BBM’s bigger ambitions for infrastructure, agricultural revolution, and a solid Filipino middle class,” he said.

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MINING NEWS

ASEAN-AU NZ Free Trade Agreement: An Open Economy for Economic Growth

By Marcelle P. Villegas

H

ow can the ASEAN-AU NZ Free Trade Agreement help the Philippines? Will their initiative and strategies for an open economy help various Philippine industries like mining, construction, agriculture, transportation, telecommunications, and others?

Last 18 July 2022, the Philippines Australia Business Council (PABC) in partnership with the Australia Philippines Business Council (APBC) and the Australia New Zealand Chamber of Commerce (ANZCHAM) hosted a webinar about the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA) and the Regional Comprehensive Economic Partnership (RCEP). Their guest speaker was Assistant Secretary Allan Gepty of Department of Trade and Industry (DTI), International Trade Policy and Trade Negotiation.

Atty Dennis A. Quintero was the moderator. He is the Chairman and Trustee of the Philippines-Australia Business Council (PABC). The opening remarks were given by Her Excellency Hellen B. De La Vega, Philippine Ambassador to Australia. Bradley Norman, ANZCHAM Vice President, and Rafael Toda, APBC Vice President, delivered remarks on behalf of their respective organizations.

Asec. Gepty gave a presentation titled “ASEAN-Australia New Zealand Free Trade Agreement (AANZFTA) and Regional Comprehensive Economic Partnership (RCEP): The Philippine Perspective.” His presentation promotes the concept of “Open Economy as the Key to Economic Growth and Development.”

How can an Open Economy

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solve poverty?

According to the World Bank, “Trade is central to ending global poverty. Countries that are open to international trade tend to grow faster, innovate, improve productivity and provide higher income and more opportunities to their people.”

Here are some important key points from Asec. Gepty’s presentation: Open Economy in an interdependent world In a highly globalized and interdependent world having an open economy is critical.

• Cooperation between and among States or economies ensures the stability of the global economy.

• Trade Agreements enable States or economies to effectively form stable relations through establishing rules and disciplines.

He mentioned that the Philippine Law also supports trade and an open economy. The Supreme Court clarified that “while the Constitution indeed mandates a bias in favor of Filipino goods, services, labor, and enterprises, at the same time, it recognizes the need for business exchange with the rest of the world on the bases of equality and reciprocity and limits protection of Filipino enterprises only against foreign competition and trade practices that are unfair.”

Additionally, the Supreme Court noted, “fundamental law encourages industries that are competitive in both domestic and foreign markets, thereby demonstrating a clear policy against a sheltered domestic trade environment, but one in favor of the gradual development of robust industries that can compete with the best in the foreign markets. Indeed, Filipino man-

Assistant Secretary Allan Gepty of Department of Trade and Industry (DTI), International Trade Policy and Trade Negotiation.)

[Photo from Asec Gepty’s LinkedIn]

agers and Filipino enterprises have shown capability and tenacity to compete internationally.” (Tañada vs. Angara, G.R. No. 118295. May 2, 1997) Asec. Gepty defines ASEAN Australia New Zealand Free Trade Agreement (AANZFTA) as a comprehensive FTA covering, among others, trade in goods, services, investment, and economic cooperation. It aims to progressively liberalize and facilitate trade among the Parties through: • progressive elimination of tariffs and non-tariff barriers; • progressive liberalization of trade in services with substantial sectoral coverage; • facilitation promotion and enhancement of investment opportunities through a favorable investment environment; and, • establishment of a cooperative framework for strengthening, diversifying, and enhancing trade, investment, and economic links among the Parties.

“As a single undertaking initiative, the Agreement contains 18 chapters and several annexes.”

Exploring some of these chapters, some of the Key Commitments in AANZFTA have chapters on

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MINING NEWS

< Page 20 Goods, Rules of Origin, Customs Procedures, Services, etc.

Under Goods, the key commitment is to reduce or eliminate customs duties in accordance with its schedule of tariff commitments. Rules of Origin provide the rules that will determine the originating status of goods produced within the AANZFTA Parties. Under Customs Procedures, the key commitments are to improve predictability, consistency, and transparency in the application of customs laws and administrative procedures to ensure the more efficient administration and faster clearance of goods.

The chapter on Investment contains a framework to cover the treatment of investment and investment protection. Under E-Commerce, the key commitments are to adopt or maintain measures based on international norms to provide for electronic authentication, and to provide protection for consumers using e-commerce. The key commitments involved in competition recognize the importance of cooperation in the promotion of competition, economic efficiency, consumer welfare, and curtailment of anti-competitive practices.

How can the Philippines benefit from AANZFTA? Here are important key points.

• With the aim of providing market access for all Parties, the AANZFTA has served as a mechanism for ASEAN, Australia, and New Zealand to liberalize Trade in Goods.

• Roughly 94.42% of Philippine imports from AANZFTA Parties enjoy 0% tariff rates, while all Philippine exports to Australia and New Zealand enjoy a 0% preferential tariff rate.

• The AANZFTA also incorporates the principles of liberalizing Trade in Services, especially for market access, which could also encourage investors to enter the region, especially the Philippines.

• Of the 57 services sectors offered by the Philippines based on the W/120 Services Sectoral Classification List of 1991, 13 sectors under Mode 1 (Cross-Border Supply of Services) have been opened to Australia and New Zealand. Meanwhile, 33 sectors under Mode 3 (Commercial Presence of Service Supplier) are allowed to have more

22

than 51% Foreign Equity.

How is the Philippine mining industry connected with the open economy strategies of AANZFTA? Primarily, Australia recognizes the countries in South and East Asia as instrumental in mutual success and prosperity for the mining sector.

The Australian government published “Australian Mining: New Frontiers, South and East Asia.”

This is a guide for Australian trade negotiators and mining and METS* businesses to leverage trade and investment opportunities in emerging markets across Asia. (METS refers to Mining equipment, technology, and services.) This guide is a Trade Agenda from the Minerals Council of Australia (MCA).

“New frontiers: South and East Asia” is a research study by Mike Adams, Nicolas Brown, and Ron Wickes, the partners of Trading Nation Consulting, for the Minerals Council of Australia. The New Frontiers study will produce a series of reports identifying opportunities and setting out an agenda for Australian trade negotiators

and mining and METS businesses to expand trade and investment links with emerging Asian economies.[2] In the Foreword of this document, David Byers, Interim Chief Executive of Minerals Council of Australia, recognizes the importance of Southeast Asian countries in the Australian mining industry.

He wrote, “Emerging markets across South and East Asia are the new frontiers for Australia’s mining and METS sectors.” [2] “Australia’s mining industry has contributed enormously to the nation’s prosperity through its export success and international engagement. Asia has been a large part of this story, from the opening up of trade with Japan in the postwar period, which built Australia’s export coal industry, to the China resources boom, which kept Australia growing through the Global Financial Crisis. Resources now account for over half of Australia’s total exports – and the vast bulk of these are to the countries of Asia.”

[2] “This story still has a long way

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MINING NEWS

< Page 22 to play out. As Asia’s economies continue to develop, there will be significant new opportunities for Australian mining. The opportunities lie not only in exporting minerals commodities to new markets but in leveraging the skills, technology, and expertise of Australia’s world-leading mining industry.

There will be scope for Australian mining companies to invest and work with local partners in developing these economies’ own resources. And there will be export opportunities for Australia’s mining equipment, technology, and services (METS) sector.” [2] David Byers points out that realizing these benefits will require cooperation and engagement by the business and government in Australia in the region. “While the region’s economies are committed to open markets, there remains an array of impediments to mining and mining services trade.” [2] Acknowledgment: Thank you to Assistant Secretary Allan Gepty of DTI and Atty Dennis A. Quintero of PABC.

Reference: [1] Gepty, Allan B. (18 July 2022).

Webinar Presentation. “ASEANAustralia New Zealand Free Trade Agreement (AANZFTA) and Regional Comprehensive Economic Partnership (RCEP): The Philippine Perspective” [2] Adams, Mike; Brown, Nicolas; Wickes, Ron. “New frontiers: South and East Asia” https://www.dfat. gov.au/sites/default/files/aanzfta-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 3 2022

general-review-mca-submission.pd f?fbclid=IwAR1qc3gjhOejDh9ewq 3iGMA6Zo5g4T29op2Ok7dD3to8d gJFvT8a3qvyEk4 Infographics and Charts: Credits to - Gepty, Allan B. (18 July 2022). Webinar Presentation.

“ASEAN-Australia New Zealand Free Trade Agreement (AANZFTA) and Regional Comprehensive Economic Partnership (RCEP): The Philippine Perspective”

23

MINING NEWS

PH and AU’s Mateship and Bayanihan through ASEAN

By Marcelle P. Villegas

I

n relation to a webinar hosted by the Philippines-Australia Business Council (PABC) last 18 July 2022, regarding the ASEAN Australia New Zealand Free Trade Agreement and the Regional Comprehensive Economic Partnership, the Australian Embassy in the Philippines expressed their further support for the Philippines’ economic sector through ASEAN last August.

The diplomatic relations between Australia and the Philippines have a significant effect on some of the business sectors of the Philippines, like infrastructure, construction, mining, food, and agriculture, among others.

From their Twitter post last August 3, the Embassy stated, “As Australia and the Philippines move towards upgrading our bilateral relationship, the work we do together through ASEAN will continue to help build a peaceful, stable, prosperous, and resilient region for us all. Happy #ASEANDay55 from the Australian Embassy in Manila.”

Hon. Richard Sisson, Australian Chargé d’Affaires to the Philippines, said, “On this 55th Anniversary of ASEAN, I wish all our ASEAN friends and especially those in the Philippines, warmest congratulations! Support for ASEAN centrality and ASEAN-wide initiatives is a priority for Australia, including through our Comprehensive Strategic Partnership with ASEAN. The Philippines, I,s of course, a very important partner for Australia in ASEAN,” [1] “Last year, we celebrated 75 years of diplomatic relations between our two countries. In addition to our strong bilateral en-

24

gagement, we work closely with the Philippines on a whole range of ASEAN-related issues and in ASEAN-led fora.”

“As far back as 1977, Australia funded the establishment of the ASEAN Postharvest Training and Research Center at the University of the Philippines, Los Banos under the ASEAN-Australian Economic Cooperation Program. Over the years, the cooperation between Australia, the Philippines, and ASEAN has just grown.”

“Today, we work with the Philippines in implementing AustraliaASEAN programs in areas such as transnational crime and counterterrorism, as well as on development cooperation in areas such as youth, education, gender equality, and disaster preparedness.”

“The ASEAN-Australia-New Zealand Free Trade Area has been a key framework supporting the growth of Australia-Philippine commercial ties, and we continue to work with our partners in the Philippines on upgrading and modernising that agreement. Australia works closely with the Philippines to support ASEAN centers which are hosted here, such as the ASEAN Center for Biodiversity.”

“As Australia and the Philippines move towards upgrading our bilateral relationship, the work we do together through ASEAN will continue to feature prominently and help build a peaceful, stable, prosperous and resilient region for us all.” [1] H.E. Steven J. Robinson AO completed his diplomatic posting as Australian Ambassador to the Philippines last July 2022. In his column in The Philippine Star, he shared his fond memories of working in the Philippines during his three-and-ahalf years as ambassador, visiting 53 provinces. He also expressed his

gratitude to the former President, Rodrigo Roa Duterte, for acknowledging his hard work by awarding him the Order of Sikatuna.

“We arrived in January 2019 and within a few days, I was at Malacañang Palace presenting my credentials to then President Rodrigo Roa Duterte. Much happened in between, but on 30 May 2022, my wife and I again were in the same room at Malacañang Palace. This time, President Duterte conferred on me the Order of Sikatuna with the Grand Cross Rank of Datu.” [2] “The honor I was given is a recognition of our deep bonds – what I call our ‘mateship and bayanihan’ – that have grown and flourished despite the pandemic. So, allow me to reflect on how we got here, what we have achieved together, and the future of our relationship,” wrote H.E. Robinson.

The former Ambassador mentioned some of the achievements in this partnership between Australia and the Philippines during the COVID-19 pandemic.

“I recall that it was at a lunch at the Australian Residence with Secretaries Carlito Galvez, Francisco Duque and Vince Dizon that we first discussed how Australia’s development cooperation could support the Philippines’ COVID-19 response in a practical and meaningful way. Together, we identified the urgent needs of the country, and how Australia’s expertise, particularly in logistical support (given our vast continent), could help roll out vaccines to remote communities. We listened to our friends and tailored our responses so that our support could be flexible and responsive to the real needs of the Philippines.” [2] “So, we increased our commitment to COVID-19 vaccine access

(Above Left) Former PH President, Rodrigo Roa Duterte awards H.E. Steven J. Robinson AO the Order of Sikatuna with the Grand Cross Rank of Datu. (Right) Hon. Richard Sisson, Australian Chargé d’Affaires to the Philippines, giving a speech for the 55th Anniversary of ASEAN

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MINING NEWS

< Page 24 and delivery in the Philippines to a total of P1.8 billion over two years.

This support has been directed towards vaccine procurement, vaccine delivery support and the provision of expert health advice, in line with the priorities of the Philippine Government.”

“Despite the challenges of the pandemic, I am also very pleased about our continuing cooperation in areas of defense and security.

I am proud that during my time as Ambassador we have established a permanent Joint Australia-Philippines military training team with an ongoing program, continued military exchanges and ship visits, and expanded our cooperation across counter-terrorism into new areas such as civil maritime security and cyber.”

He also emphasized how economic-led recovery from the pandemic, through Austrade teams at the Australian Embassy, “I recognize the importance of an economic-led recovery from the pandemic and with our economic and Austrade teams at the embassy, we have laid the groundwork to enhance our current commercial engagement. There are already over 300 Australian companies in the Philippines employing more than 44,000 Filipinos, despite the pandemic. Our trade and investment continue to increase, create jobs, and enhance livelihoods in both our countries.” [2] In closing, H.E. Robinson talked about the future of Australia-Philippine diplomatic relations. “Australians know that we are stronger

when we work together with those we trust – we can’t realize our goals for a more peaceful, saf,e, and prosperous region without our friends.”

“At the end of this year, Australia and the Philippines will sign up for a Strategic Partnership. What this means is that we will work even more closely on all areas of mutual interest and respond together to the challenges of our current times.”

“I’ll be excited to witness my successor, Ambassador-designate H.K. Yu PSM, progress the outcomes of the strategic partnership and continue our tradition of mateship and bayanihan.” [2] Looking back a few months ago, President Ferdinand “Bongbong” R. Marcos, Jr. had many foreign dignitary visitors during his inauguration last 30 June 2022. One of them is Australia’s Governor General, H.E. David Hurley AC DSC (Retd). The Governor-General is the highest-level foreign dignitary who attended the inauguration.

“I am delighted to be in the Philippines, one of Australia’s closest neighbors, to see the work our countries are doing to elevate our bilateral partnership towards a Strategic Partnership. Our enduring friendship is anchored by our values of mateship and bayanihan,” said the Governor-General.

His visit emphasized the strong, decade-long bond between Australia and the Philippines. They discussed the growing cooperation in terms of defense, development, trade, and people-to-people link, according to an article by the Philippine News Agency. “The leaders also reiterated the two countries’ commitment to peace, security, and pros-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 3 2022

perity in the Indo-Pacific region.”

From PNA’s report, the Australian government is set to pledge an estimated AUD78.5 million (or Php2.98 billion) as development assistance to the Philippines from 2022 until 2023. [4] Reference: [1] Hon. Richard Sisson’s speech, a video posted on Twitter – Retrieved from - https:// t w i t te r.co m /Au s A m b P H /s ta tus/1554761723256590336 [2] Robinson, Steven J. (21 July 2022). “Now, we get to the exciting part - Aussie Diplomacy Matters”. The Philippine Star - Opinion section. Retrieved from - https://www.philstar.com/ opinion/2022/07/21/2196820/ now-we-get-excitingpart?fbclid=IwAR0ZXCXl_nXQT6gPW1Rth7xLoHJ2FLSXFkdFpNMvqOrYmz2mtVAC3jERhMg [3] “Australia’s Governor-General meets with President Marcos at Malacañang Palace”. Australian Embassy in the Philippines website (30 June 2022). Retrieved from https://mateshipandbayanihan. com/media-statements/australiasgovernor-general-meets-withpresident-marcos-at-malacananpalace/ [4] Kabagani, Lade Jean (30 June 2022). “Aussie gov’t to renew diplomatic ties with PH under Marcos admin”. Philippine News Agency. Retrieved from - https://www. pna.gov.ph/articles/1177894

Australia’s Governor-General, H.E. David Hurley AC DSC (Retd) meets with President Ferdinand Marcos Jr. at Malacañang Palace [Photo credit: Australian Embassy in the Philippines]

Photo credits: Social Media posts of the Australian Embassy in the Philippines (https://philippines.embassy.gov.au/)

25

MINING NEWS

X

Use of Powder Diffraction in Mining – Q&A

-ray diffraction (XRD) is the only laboratory technique that reveals structural information, such as chemical composition, crystal structure, crystallite size, strain, preferred orientation, and layer thickness.

Materials researchers, therefore, use XRD to analyze a wide range of materials, from powder X-ray diffraction (XRPD) to solids, thin films, and nanomaterials.

Mining by using XRD has been critical for ores exploration, path-finding minerals, process optimization, and final product.

One of the applications is that geometallurgy became more and more important during the separation of ore and waste material to cope with changes in raw material composition and to run the process under optimal conditions. Therefore,

mineralogical analysis and the direct monitoring of process parameters (such as acid consumption) became an essential method to monitor process conditions.

Ultimately, the goal is to obtain a good XRD pattern result with clear, sharp peaks with low background noise. Good data collection is so critical toward the next phase, which is data analysis and interpretation. These impact how you draw implications and determine your next steps in terms of your materials research and process monitoring, whether in pharmaceuticals, mining geology, catalysts, or specialty chemicals.

Earlier, Malvern Panalytical’s senior application specialist, Dr. Uwe Konig, Mining and Metals Business Development Manager, discussed the basics

of powder X-ray diffraction and its application in mining topics.

During the webinar, he covered the basics: Interview with Uwe Konig, Business Development in Mining and Metals.

Introduction to Powder XRD Q: Could you please summarize the meaning of the peak intensity and peak position in the XRD pattern?

Uwe: Peak position refers to the maxima of intensity around the theoretical Bragg angle and value of this maxima is referred to as peak intensity.

XRD patterns: How do they vary from crystal structures?

Uwe: Difference in crystal structure affects the position of diffraction peaks. Hence two

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BSP, MGB BACK CHANGES TO SMALL MINERS’ LAW

A

renewed demand for changes to the 31-year-old law legalizing the country’s artisanal and small-scale miners got much-needed support from officials of the Bangko Sentral ng Pilipinas (BSP) and the Mines and Geosciences Bureau (MGB) in July, the Philippine Daily Inquirer reported.

The National Coalition of SmallScale Miners of the Philippines, in an assembly in Baguio City on July 28 and July 29, laid out a set of amendments and proposed new provisions for the People’s SmallScale Mining Act of 1991 (Republic Act No. 7076) to uplift the lives of an estimated 500,000 pocket miners all over the country.

Noel Malimban, BSP north Luzon cluster director, said updating and improving RA 7076 would “open up more access to finances for miners.” Small-scale miners generate gold that is sold directly

26

to the BSP, he said.

Efren Carido, MGB director for Soccsksargen region (formerly Central Mindanao), and Alfredo Genetiano, MGB mining department chief for the Cordillera, also expressed support for the amendment of RA 7076, during a July 29 news conference organized by the coalition.

In the last 30 years, many pocket miners still toil underground without licenses because the government required them to put up a Minahang Bayan and the associated licensing contracts have been laborious and expensive, said Rogelio Data Jr, a mine leader from Camarines Norte.

“They always risk being arrested and jailed or forced to pay the authorities in order to get a pass,” Data said.

“There are too many requirements which are impossible for us to comply with because it would need so much money,” said Panfilo Luis, a mine

leader from Agusan del Sur. “Government should understand that [small-scale mining] is not a commercial enterprise, but a family’s livelihood,” he added.

Mindanao mine leaders said that some of their organizations spent up to P10 million to secure a Minahang Bayan.

In the Cordillera, where indigenous Filipinos have been panning for gold as far back as the 19th century, only 13 Minahang Bayan have been approved in the course of 30 years, but many of them are yet to operate because the necessary pocket mine contracts have not yet been perfected.

Part of the problem, the coalition leaders said, was that government regulators treat small-scale miners as distinct from large-scale mines, but have applied requirements that are barely indistinguishable from those given to large-scale mining operations.

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MINING NEWS

< Page 26 substances having different crystal structures will produce different sets of XRD scans.

XRD Software Q: How can I quantify the different phases or different composition? Please shed some more light on this.

Uwe: A position of the peak comes from the dimension of a unit cell, an intensity coming from how many electrons are present and where they are.

So, everything can be easily calculated in software. So, once we found out what phases are present in the sample (mixture) because we already know the positions of the peaks, we just need to minimize the difference between observed intensities and calculated intensities by cycling fitting procedures until we get reliable results.

Q: What if we cannot find the crystal structure in ICDD? Uwe: It means that nobody has published that material yet. So, you need to solve the structure by yourselves. And publish it!

Q: Is there any software to adjust the peak?

Uwe: HighScore and HighScore Plus is the software by Malvern Panalytical. It can be used to analyze XRD patterns from other brands of X-ray diffractometers.

XRD Technique Q: In the diffractogram of amorphous materials, such as SiO2, it is common to see an amorphous halo between 20º and 30º. Will this also be observed for example in a nanostructured SiO2 matrix coating?

Uwe: Yes, it does. But, as you said the thickness of SiO2 is in nanoscale, this would not be seen when you use normal Bragg Brentano geometry. I recommend you use parallel geometry which keeps the incident angle at 1~2 degrees and scan only 2 theta(detector).

So, you can effectively observe the diffractogram from the surface(skin) of the film.

Q: Does destructive interference caused by element position reduce only the intensity or cause peak shift?

Uwe: Only reduces the intensity. A peak shift can be caused by the size of unit cell.

Q: How to remove the substrate peaks while measuring?

Uwe: If you used a single crystalline material as substrate, you could tilt your sample a little

bit (around 1 ~ 2 deg) during the sample prep. Then you will not see any peaks from the single crystal substrate.

Q: If we use composite materials like brake pad applications, do we need to use the spinning method for better accuracy results? Your view please?

Uwe: It depends on how small your particle is. But I would say that spinning is always beneficial on polycrystalline material!

Q: How does soller slit affect Inorganic crystalline nanomaterials?

Uwe: When smaller soller slits are used, we achieve better resolution at the cost of intensity.

Sample Preparation Q: Regarding sample preparation for powder samples.

You mentioned smearing a sample, how do you do that?

Uwe: You can prepare some plate having a rough surface like sandpaper. Then you can put the plate onto the sample and slide a little bit to smear the pressed powder.

Q: Talking about materials such as soil cuttings, what could be the impact of chemicals that would have encapsulated/absorbed onto the structure?

Uwe: I am not sure what is the detailed situation, but in any case, materials can be encapsulated or absorbed onto the surface of the matter under high temperature or pressure. Probably, some triggers were there to make secondary phases on the surface.

Q: What’s the optimum particle size of the sample for getting accurate results?

Uwe: Theoretically 1-micron meter is the best. But I could say below 20 um is good enough if you spin the sample! (See below review for Aeris XRD:) Q: How XRD improved mineral

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 3 2022

analysis for lithium ores?

Uwe: This Lithium ores are easy to quantify by XRD. All types of Sample such as petalite, lepidolite etc mostly XRD can do.

Interested to improve in your XRD data analysis and applications? Join our free series of webinars: 1. Introduction to powder X-ray diffraction. View on-demand 2. Studying battery cathode materials using X-ray diffraction View on demand 3. Expand your powder XRD applications for materials characterization research View on-demand 4. Knowing the difference between good and bad data: XRD data analysis – View on-demand 5. Improving your phase search mapping by defining your elemental range: introduction to elemental analysis using X-ray fluorescence. View on-demand 6. Range of XRD instruments to aid materials characterization research. View on-demand To Know More: https://bit. ly/3KdEBzh

27

MINING NEWS

Bayanihan amid pandemic battle CTPCMC allocates P7.7M for COVID-19 initiatives

By Roniel R. Arguillas

T

o protect and improve the lives of the people within the host and neighboring communities pursuant to Republic Act (RA) No. 11469 or the “Bayanihan to Heal as One Act,” CTP Construction and Mining Corporation or CTPCMC allocated Php7.7 million intended for the implementation of projects, programs, and activities (PPAs) on COVID-19 prevention.

Through its Social Development and Management Program (SDMP) under Adlay Mining Project (AMP) and Dahican Nickel Project (DNP), the company implemented essential PPAs in the year 2021. The beneficiaries of PPAs were from the Host and Neighboring communities specifically Barangay Adlay, Barangay Dahican, and the Municipality of Carrascal.

With an allocated budget of Php2,060,803.78, a COVID-19

Assistance Center was put up to be the second line of support to the host communities if their existing Isolation Rooms have been fully occupied. The company’s employees and their dependents are to be prioritized in the center.

The center is offering services that include a free isolation room for those who are identified and confirmed as COVID-19 patients, free vitamins, and over-the-counter drugs, 24/7 monitoring by health personnel, and stand-by oxygen concentrators.

Another PPA was the provision of 59 medical equipment and kits to Barangay Adlay. The provision included a pulse oximeter, thermal scanner, LCD full digital ultrasound machine, hospital bed, and refrigerator as vaccine storage.

The turnover was done on December 14, 2021, held at Barangay Hall of Adlay, attended by Engr. Charlo R. Basadre CTPCMC Resident Mine Manager, Charid O. Cuadrillero ComRel Manager, Hon. Norberto O. Rubi Jr. Baran-

gay Captain, and Raquel Bungcaras assigned nurse.

“These are very essential and a huge help to the key front liners and to the people within the community.” Hon. Rubi said during the turnover.

The company also provided two SDMP Emergency Response Vehicles for health-related emergencies.

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conveyor system is the right solution.

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ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

H

HMC spends over P4M for Siargao Adopt-a-Municipality Program

inatuan Mining Corp.

(HMC) has adopted the Municipalities of Dapa and San Benito in Siargao as an answer to the call of the Adopta-Municipality Program of the Provincial Government of Surigao del Norte to provide construction materials, food, and potable water for six months.

The aim of the program is to provide aid and relief to the nine municipalities in Siargao affected by Super Typhoon Odette.

HMC has been chosen as one of the mining companies tapped by the Provincial Government of Surigao del Norte.

The aid provided by HMC in the Adopt-a-Municipality Program is the provision of construction materials to the Municipalities of Dapa and San Benito. HMC turned over Php2,007,050.00 worth of various construction materials to the Municipality of Dapa, and Php2,100,408 to the Municipal-

ity of San Benito.

Apart from spending on construction materials, HMC also covered transportation expenses for the delivery of the items to the recipient municipalities.

HMC received a Certificate of Appreciation from the Municipality of San Benito for its generosity and benevolence in donating construction materials.

“The Municipal Government of San Benito, through its Municipal Officials, are very much grateful and deeply honored to receive the Php 2 million worth of construction materials to benefit the affected 50 families of San Benito, Siargao Island, Surigao del Norte whose dwelling units were greatly devastated by the onslaught of Super Typhoon Odette last December 16, 2021.

“The people of San Benito, with hearts full of thanksgiving

Page 30 >

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MINING NEWS

I

TMC wins 2022 Regional Gawad Kalasag award

n recognition of its commitment to promoting disaster preparedness and response, Taganito Mining Corporation was hailed as the winner of the 2022 Regional Gawad KALASAG Search for Excellence in Disaster Risk Reduction and Management and Humanitarian Assistance under Best Private Organization Category.

TMC also received the 1st Gawad KALASAG Seal 2022 award under the Special Recognition Category.

The award was conferred during the National Disaster Resilience Month Culmination Program of the Regional Disaster Risk Reduction and Management Council at the Office of Civil Defense Caraga in Butuan City.

Gawad KALASAG stands for “Kalamidad at Sakuna Labanan, Sariling Galing ang Kaligtasan,” a fully institutionalized program of the National Disaster Risk Reduction and Management Council.

The annual recognition serves as avenue to promote awareness on best practices in the field of DRRM and humanitarian response and action.

The audits acknowledged TMC’s contributions during the COVID-19 pandemic and after the onslaught of super typhoon Odette.

TMC’s notable interventions during the pandemic include the procurement of Php 15.6 million worth of vaccines for the municipality of Claver, along with other medical equipment and supplies.

TMC also conducted relief and recovery operations within and beyond its host community after the typhoon last December.

On behalf of TMC, the award was received by Engr. Cherry May C. Gabunada, Safety Manager along with Engr. Rommel R. Urbiztondo, Safety Section Head, and Engr. Iren Mae P. Ercillo, Safety Engineer.

“TMC has a corporate social responsibility not just to the communities where we operate, but even beyond, where we extend our resources to those in need,” shared Engr. Gabunada.

“This is the third time we are receiving this award and it is a testament of TMC’s commitment to extend assistance beyond our borders. More than ever, these critical times call for the bayanihan spirit of all stakeholders; and our manpower, through our Emergency Response Team, is always at your service,” said Engr.

Artemio E. Valeroso, TMC Resident Mine Manager.

< Page 29 and jubilation, are likewise extending their profound appreciation and gratitude for your gesture of generosity provided to the Municipality of San Benito,” said the letter signed by Hon. Ma. Gina SumandoMenil, LCB, Municipal Mayor.

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ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

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MINING NEWS

Rotork: Intelligent Valve Actuators for Efficient Mining Operations

By Mark Adrian D. Lenon

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ctuators play a vital role in the operations of the mining industry. As an industry that operates in harsh and unpredictable environments, mining companies need reliable valve actuators to ensure operational safety and efficiency. Likewise, selecting the right flow control partner can make the difference between time spent replacing equipment and time spent focusing on long-term goals.

Rotork is the world’s largest independent manufacturer of heavyduty valve actuators. With over 50 years of experience serving the mining industry, Rotork has been able to supply thousands of actuators that are found in mining operations around the world.[1] In the case of intelligent actuators, Rotork is known for its non-intrusive innovations which prove to be particularly significant for the mining industry.

Designed to withstand the environmental challenges of the operating location, Rotork actuators are built with robust construction.

Such actuators are rated IP68, which is the best protection against exposure to grit, dust, moisture, pollutants, corrosive materials, and prolonged periods of total submersion. This is made possible by the use of O ring seals on spigot joints, double sealing to keep the internal parts protected independently

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from the electrical terminal, and local control buttons and switches that do not penetrate the enclosure wall.[2] Rotork ensures that the internal components of its actuators are protected before they leave the manufacturer.

To ensure security and efficiency during operation, Rotork actuators utilize a two-way, non-intrusive, wireless communication between the actuator and control center. This is made possible by the following features: a torque-sensing system that maintains absolute accuracy and repeatability throughout the actuator lifespan and a position-sensing system that ensures accurate position measurement for both electronic and manual movements. Furthermore, a handheld setting tool with a secured Bluetooth connection is used for nonintrusive calibration and commissioning. [2] Together, these features enable careful and detailed monitoring away from the actuator.

Through Rotork intelligent actuators, management can benefit from precisely timed maintenance, optimized¬ process efficiency, and reduced overall cost of ownership. [2] Overall, these benefits help establish effective equipment management which can lead to higher output.

Rotork provides worldwide support through its international partners. In the Philippines, customers may communicate with Integral Industrial Management Corporation regarding enquiries about procurement, installation, testing

and commissioning, and after-sales services.

Integral has been a distributor and service provider for Rotork actuators since the company was founded in 2003. To this day, Integral maintains its strong partnership with Rotork through continuous manpower training for the distribution and service of Rotork products. As a designated frontliner for customer support, Integral possesses the knowledge and experience to provide sound actuation solutions to the mining industry.

For more information about Rotork and available local support services, customers may contact Integral through the following: PLDT Landline (+632) 8696-3634, (+632) 7576-3716, and (+632) 73738453; GLOBE Mobile (+63) 917-8517716; and SMART Mobile (+63) 939907-0967 and (+63) 943-708-5400.

Website access is available through https://www.integralindustrial.com.ph/.

Reference: 1. Helping the Mining Industry (Rotork Brochure) - https://www. rotork.com/uploads/documentsversions/11565/1/ pub000-05200_0412.pdf 2. Intelligent Valve Actuators in the Mining Industry (Rotork White Paper) - https://www. rotork.com/en/media/white-papers/ intelligent-valveactuators-in-themining-industry Photo credits: https://www. rotork.com/uploads/documentsversions/44265/1/ pub002-038-001118.pdf

ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

MPIC weighs construction of P90-b Cebu-Bohol bridge after Cebu-Cordova link

CONSTRUCTION

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etro Pacific Investments Corp. (MPIC) is studying the possibility of building a P90-billion bridge that will connect Cordova, Cebu to Bohol, according to a BusinessMirror report.

Manuel V. Pangilinan, the company’s chairman, said Cebu Governor Gwendolyn Garcia has “asked us to look at building a bridge from Cordoba to Bohol,” but hinted that the project might be too expensive.

“That a P90-billion project. The key there is really financing of it because it’s a very big project for us,” Pangilinan said. “I think we have to find out first how we’re going to finance it. There is some chance that financing could be raised for the feasibility study.”

Metro Pacific Tollways Corp.

(MPTC) President Rodrigo E. Franco noted his office will be looking at how to make it commercially viable for the group.

“Viability is the issue because the project cost is high.

We’re looking for ways to make that viable. If there are ways in the financing side to make it viable, we will look at it,” he said.

Both Pangilinan and Franco could not provide more details.

MPTC built Cebu’s third bridge called the Cebu-Cordova Link Expressway (CCLEX), its first bridge expressway in the Visayas region.

MPIC reported that its core net income rose 24 percent to P7.5 billion in the first half from last year’s P6 billion.

The company said its constituent companies delivered a 15-percent increase in contribution from operations, mainly driven by a strong recovery in road traffic and growth in power consumption as more industries ramped up operating capacity.

Power accounted for P5.9 bil-

lion or 60 percent of net operating income, toll roads contributed P2.5 billion or 26 percent, water contributed P1.4 billion or 15 percent, and the other businesses, mainly real estate, hospitals, fuel storage, and light rail, incurred a net loss of P35 million.

Revenues rose 25 percent to P243.3 billion from last year’s P194.7 billion. This, however, excludes Manila Electric Co.’s pass-through revenues.

Light Rail Manila Corp., which operates the 20-station LRT Line 1, reported a core net loss of P329 million due to the start of the amortization of concession assets and borrowing costs.

The reported net income attributable to the parent reached P9.5 billion, lower by 9 percent from the previous year when the company reported a gain from the sale of Global Business Power and Don Muang Tollways.

CONSTRUCTION NEWS

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PHILCONSTRUCT gears up for another hybrid show in Mindanao this September

he largest and the most anticipated construction trade show series is set to return to Mindanao, but this time in a hybrid format. PHILCONSTRUCT Mindanao 2022 will be mounted from September 8 to 10 at the SMX Convention Center Davao in SM Lanang Premier in Davao City, with the online component to be hosted real-time via the VX Events platform.

PHILCONSTRUCT Mindanao 2022 will come after the successful PHILCONSTRUCT trade shows in Luzon (June) and the Visayas (July). Just like in the two preceding construction expos, the Mindanao leg this year will be the first time it will take place simultaneously onground and online to reach more stakeholders across and even beyond the region.

“We are set to facilitate a truly unique and comprehensive trade show experience for all participants in PHILCONSTRUCT’s Mindanao leg,” said Engr. Wilfredo Decena, President of the Philconstruct Events, Exhibitions, and Conferences Corp. (PEECC), the marketing unit of the Philippine Constructors Association (PCA),

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the organizer of the trade event.

With over 200 booths and representing over 500 brands at the premier venue for business and networking in Mindanao, PHILCONSTRUCT remains committed to gathering the construction industry’s leading local and international players in a conducive venue, such as Boysen, Equiprime Optimum Solutions, Inframachineries, Topspot, Smarthouse, Zoomlion, and many more! This prestigious event is sponsored by Pacific Paints Boysen and Holcim Philippines.

“The event will showcase indoor and outdoor displays from a wide range of exhibitors and brands— from small to the country’s biggest suppliers and manufacturers.

PHILCONSTRUCT Mindanao on its first hybrid edition will surely reach the greatest number of participants as it will go to customers and builders if they are not able to go to the trade show site,” added Engr. Junn Elepano, Philconstruct

Overall Chairman “The goal is maintained—to connect people in the building and construction industry in the island region for this yearly gathering offering new discoveries, learnings, and networking and marketing opportunities,” Elepano said In the PHILCONSTRUCT tradition, the Mindanao trade show will also hold seminars that will be facilitated by some of its partner organizations and that participants should watch out for.

For instance, the Association of Carriers and Equipment Les-

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CONSTRUCTION NEWS

P2.5 billion allocated to DoTr for provincial airports upgrade

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o boost air travel, the Department of Transportation is investing P2.5 billion to upgrade three airports to accommodate more flights and passengers, Makati City Rep. Luis Campos Jr. said in August.

This developed as the Baguio City government aims to resume commercial operations of the Loakan Airport for the Christmas season, following discussions with top officials in the aviation industry.

Under the DOTr’s aviation infrastructure program in the 2023 national budget, Tacloban City’s Daniel Romualdez Airport would receive the bulk of the new funding at P1.42 billion, said Campos, the House appropriations committee vice chairperson.

Antique’s Evelio Javier Airport would receive P500 million, while the Laoag International Airport would get P445 million, he added.

The Civil Aviation Authority of the Philippines designates Tacloban City Airport as a principal class 1 domestic airport, Laoag International as a secondary/alternate international airport, and Antique Airport as a principal class 2 domestic airport.

Meanwhile, Baguio Mayor Benjamin Magalong said the CAAP is set to spend some P68 million for the rehabilitation of the aviation facility.

“They’re allotting P68 million for the rehabilitation of the terminal, so they are rushing to finish it by November, because (Transportation)

Secretary Jaime Bautista asked me what’s my recommendation when to open it,” he said.

“I said if we can avail of the Christmas season, that would be in the fourth quarter of this year, then (Bautista) said, ‘Okay, let’s go for November’,” Magalong added.

The rehabilitation of Loakan Airport will include the improvement of the instrument landing system (ILS), along with the extension of the runway by 100 meters.

Magalong said the rehab work will also address the drainage issues, and remove the obstructions from the airport, with structures along the vicinity set to be demolished.

The mayor said some of the resi-

dents have already received two notices to vacate the area, as the Loakan Airport has a 150-meter buffer zone.

Prior to the pandemic, diversified conglomerate San Miguel Corp. said it would submit an unsolicited proposal to rehabilitate and reopen the Loakan Airport to commercial flights.

Meanwhile, Campos said the Bukidnon Airport, which is projected to commence commercial operations in 2023, shall have P80 million, while the Ninoy Aquino International Airport would receive P43 million. “We are all for increased spending to build up our aviation infrastructure across all regions,” he said.

and the Print & Label, Packaging & Plastics Mindanao 2022, a comprehensive expo for the packaging, printing, and plastics industries.

Admission to PHILCONSTRUCT Mindanao 2022 is FREE! The three-

day trade show will run from 10 a.m. to 6 p.m. Register for free through event.philconstructevents. com. For inquiries and other concerns, send an email to info@philconstructevents.com.

Makati Rep. Luis Campos (left) and Baguio City Mayor Benjamin Magalong.

< Page 36 sors, Inc. (ACEL) will hold separate learning sessions about the Fundamentals of Rigging, Essentials of Supervisory Leadership, and Basic Framework Designs &amp; Basic Calculations while The Philippine Overseas Construction Board (POCB) will also facilitate information sessions.

PHILCONSTRUCT Mindanao 2022 will also be held simultaneously with two other much-anticipated industry events, all in the same venue—the Hotel Suppliers Show Mindanao 2022, the leading hotels, resorts, restaurants, and leisure trade show in the region,

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 3 2022

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COMPANY NEWS

Let’s make every journey Smoother and Better, Together with Caltex

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usiness needs are everchanging in the country.

Aware of these uncertainties, Chevron Philippines Inc.’s (CPI’s) enhanced business to business (B2B) service, Caltex Business Solutions, addresses customers’ critical operational and business issues by building business solutions to help them achieve their goals. Committed to long-term technology development, Caltex Business Solutions is intuitive and keeps consumers’ needs in mind.

CPI’s extensive experience in the downstream oil industry coupled with its diverse portfolio of base oils, specialty chemicals, and lubricants positions Caltex Business Solutions as a reliable partner in its customers’ success.

Beyond CPI’s renowned highquality fuel and lubricant products, Caltex Business Solutions is here to help clients overcome operational efficiency challenges by providing training, expert advisories, onsite maintenance services, bestin-class assessments, equipment health monitoring programs, oil cleanliness and contamination control, to name a few.

By working together to deliver efficient business performance for our customers, CPI and Caltex

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ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

COMPANY NEWS

< Page 38 As our trustworthy Advisors organize ongoing and regular consultations to track and document results, enjoy continuous progress as a business with customized training MasterClasses that are designed to equip your team for world-class efficiency and business performance.

Caltex Business Solutions and CPI recognize that each company’s needs are different and getting to that destination is a journey that we will be undertaking with you as our partners.

Caltex Business offers businesses potential savings by identifying integrated processes, presenting premium product solutions, and further adding value toward a better business for its customers.

You can expect more as CPI continues to invest in this area and partner with key selected customers and distributors to help enable these solutions and improve your company’s journey and get returns that you value.

Give us a call today. +63 88677710 w w w. c a l t e x . c o m /p h / business-solutions/contact-us Chevron Philippines Inc. 6/F 6750 Ayala Avenue, 1226 Makati City, Philippines

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ADVISORY PANEL FORMED TO IRON OUT POLICIES IN ENERGY SECTOR

epartment of Energy (DOE) Secretary Raphael Lotilla has announced that the agency has formed a law and energy advisory panel that will address the challenges and bottlenecks in the regulatory framework in the energy sector.

In a virtual press conference, Lotilla said DOE has pooled senior legal advisers, which include retired Chief Justices Artemio Panganiban and Reynato Puno who will serve as private citizens and will not assume any public office.

Legal advisors from the private sector are also joining the advisory group, he added.

“The functions of the law and energy advisory panel include advising the department on various energy-related reform initiatives and legal matters, including

promotion of indigenous as well as low-carbon sources,” the DOE chief said.

Lotilla said for the initial discussions of the panel, the legal advisors will tackle legal matters in the upstream oil and gas sector in general and the Malampaya-Camago project.

Earlier, Lotilla said President Ferdinand “Bongbong” Marcos Jr. directed the agency to ensure a certain, stable, and clear regulatory framework to address uncertainties in the legal environment for investments in the upstream industry and also to create a better investment climate.

“In order to attract sufficient investment for that, we need to be able to clearly indicate what are the policies of the government…

These are the things that have mo-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 3 2022

tivated the department, particularly myself, to benefit from the wisdom and experience of our senior legal advisers.”

“Because whatever we are going to propose to the President and Congress will have fundamental effects on the lives of our people not only (in) the present but also in future generations,” he said.

Energy Secretary Raphael Lotilla

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CONSTRUCTION NEWS

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Korea Eximbank offers to fund new projects in DPWH pipeline

he Korea Eximbank (KEXIM) Manila Representative Office is keen on levelling up funding support to infrastructure development priorities of the Department of Public Works and Highways (DPWH).

KEXIM is the implementing agency of the Korean Government’s Economic Development Cooperation Fund (EDCF) Official Development Assistance (ODA) program in the Philippines.

In a meeting with DPWH Secretary Manuel M. Bonoan and Senior Undersecretary Emil K. Sadain, KEXIM-EDCF Country Director and Chief Representative Jaejeong Moon expressed interest to support DPWH pipeline new projects to ‘Build Better More’.

The leaders of the two agencies discussed ways of further strengthening the cooperation between Philippines and South Korea.

The Korean Government intends to further increase the EDCF concessional loan assistance to the Philippines to fund development projects under the President Ferdinand Marcos Jr. administration.

The EDCF assists DPWH-implemented flood control, roads and bridges and flood control projects managed by the Unified Project Management Office (UPMO).

According to Sadain, who is in-charge of ODA-funded projects, three EDCF projects are ongoing, namely the Samar Pacific Coastal Road Project in Northern

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IM for funding of the detailed engineering design and civil works for its construction.

Other Korea-funded ODA feasibility studies discussed during the meeting include the Philippines-Korea Project Preparation Facility for Lubao-Guagua-Sasmuan-MinalinSanto Tomas Bypass Road (30 km), Mount Kitanglad Range Belt Road (108 km); The Capas-Botolan Road (38.4km), and Lubao-Guagua-Sasmuan-Minalin-Santo Tomas Bypass Rd., Section 4: Minalin (Bulac)-Sasmuan Viaduct (7 km); Maasin City Coastal Bypass Road; The Iconic Bohol-Leyte Bridge Project; and Integrated Flood Management Master Plan of Lower Pampanga River Basin covering Pampanga Delta Development Project Phase II and Central LuzonPampanga River Floodway Flood Control Project.

The meeting held August 12 at the DPWH Central Office was also participated

by UPMO Project Directors Ramon A. Arriola III, Sharif Madsmo H. Hasim, and Benjamin A. Bautista; UPMO Project Manager Teresita V. Bauzon; KEXIM Deputy Director Yunhak Lee; and Program Officer Ana Labella.

DBM: P453-B FOR CLIMATE-RELATED EXPENDITURE FOR 2023

he proposed National Expenditure Program (NEP) for 2023 will include PHP453 billion for climate change adaptation and mitigation programs and projects.

In a press statement, the Department of Budget and Management (DBM) said the climaterelated expenditure for next year is 56.4 percent higher than the PHP289.73 billion this year.

Budget Secretary Amenah Pangandaman said her office documented an average of 21.3 percent increase in climate-related expenditures from 2015 to 2023.

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Samar, Panguil Bay Bridge Project in Northern Mindanao, and Integrated Disaster Risk Reduction and Climate Change Adaptation Measures in the Low-Lying Areas of Pampanga in Central Luzon.

Earlier this year, the Philippine government also secured a loan from South Korea to cover funds for the engineering services of the Panay-Guimaras-Negros Island Bridges Project.

It is an interisland bridges project that will entails the construction of two sea-crossing, four-lane bridges totaling 32.47 kilometers — including connecting roads and interchanges — to connect the islands of Panay, Guimaras and Negros in Western Visayas, added Sadain.

The EDCF also provided a grant for the recently completed feasibility study of the Samar Pacific Coastal Road Project Phase II that aims to construct two bridges – the Laoang 2 Bridge (360-meter) and Calomotan Bridge (630-meter).

This includes the upgrading of 12.5 kilometers of existing road from Laoang-Palapag Road Junction to Catarman-Laoang Road Junction that will connect the island of Laoang to mainland Northern Samar.

DPWH is looking forward to the approval of submitted final feasibility study report to National Economic and Development Authority (NEDA) Board and the subsequent endorsement of the project to KEX-

“With the continuous help of implementing agencies and of every Filipino, we can work towards climate resiliency to safeguard a sustainable future for our country,” Pangandaman stated.

The DBM, along with the Climate Change Commission, institutionalized the Climate Change Expenditure Tagging (CCET) process through Joint Memorandum Circular 2015-01.

Citing CCET results, the DBM said P264.89 billion will be earmarked for Water Sufficiency projects which will be given priority by the current administration;

PHP131.51 billion for Sustainable Energy; and PHP40.78 billion for Food Security.

The Department of Public Works and Highways will also receive a budget allocation of PHP168.9 billion for its Flood Management Program.

The National Greening Program of the Department of Environment and Natural Resources will get PHP2.49 billion for the planting of 6.18 million seedlings in 11,631 hectares of land resources, Protected Areas Development and Management Program, and Management of Coastal and Marine Areas.

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CONSTRUCTION NEWS

DBM: 2023 national budget ‘springboard’ for full-speed recovery

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he proposed PHP5.268 trillion national budget for 2023 will serve as a “springboard for the economy’s full-speed recovery,” the Department of Budget and Management (DBM) said in August.

Budget Secretary Amenah Pangandaman said the 2023 budget spending plan was crafted based on and in support of the Marcos administration’s eight-point socioeconomic agenda.

“The administration’s first fullyear budget shall serve as a springboard for the economy’s fullspeed recovery and meaningful structural reform,” Pangandaman said, as the House of Representatives began its deliberations on the proposed 2023 budget.

The proposed budget is anchored on the theme, “Agenda for Prosperity: Economic Transformation Towards Inclusivity and Sustainability.”

The 2023 budget plan, Pangandaman said, would address the immediate and pressing concerns of Filipinos in the near- and mediumterm.

The House of Representatives is targeting to finish committee and plenary deliberations on the budget proposal before Oct. 1, when Congress is scheduled to go on its first recess that will last until Nov. 6.

Filipinos’ purchasing power The proposed budget’s first pillar intends to strengthen the Filipinos’ purchasing power by covering the first three items in the eight-point socioeconomic agenda, which include food security, improved transportation, and affordable and clean energy, the DBM said.

The DBM noted that the Department of Agriculture (DA)’s banner programs, including the PHP30.55billion National Rice Program, would receive a larger share in 2023 to ensure food security in the country.

Around PHP1.20 trillion will also be earmarked for the “Build Better More Program” to sustain the administration’s continued push for infrastructure development, the DBM added, noting that it is equivalent to 5 percent of the gross domestic product (GDP) for road, rail, transport, and flood control infrastructures.

The DBM said bulk of the infrastructure budget would go to the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr).

Around PHP272.87 billion will be used to finance the DPWH’s “efficient” transport and logistics system for goods and services, while some PHP167.12 billion will be allo-

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cated for the DOTr’s establishment of an “efficient and reliable” mass public transportation system.

The DBM also noted that the Department of Energy would receive PHP476 million to realize the government’s bid for “affordable and clean” energy.

Of the PHP476 million, around PHP145.21 million will be earmarked for the DOE’s Renewable Energy Development Program, PHP252.35 million for the Energy Efficiency and Conservation Program, and PHP78.86 million for the Alternative Fuels and Technologies Program.

The budget for the DOE’s programs will complement the continuation of the National Electrification Administration’s (NEA) PHP1.63billion Sitio Electrification Project, the DBM added.

“Finally, amid the expected continuing elevated cost of fuel, the budget for the DA’s Fuel Assistance for Farmers and Fisherfolk will be doubled at PHP1 billion. Of this amount, PHP510.45 million will be for corn farmers, while the remaining PHP489.55 million will be for the fisherfolk,” the agency said.

Around PHP2.5 billion will also be allocated for the DOTr’s Fuel Subsidy Program for the transport sector affected by the rising fuel prices.

Budget Secretary Amenah Pangadaman (inset, left) submits to House Speaker Martin G. Romualdez the proposed P5.268trillion national budget for 2023.

Romualdez then presides over a meeting of the members of the Development Budget Coordination Committee (DBCC) on the state of the economy and the macro-economic parameters the Executive branch used in putting together next year’s spending program.

HOR Photos

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COMPANY NEWS

New Monster: LiuGong Ballasted Boom with Ripper Excavator

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rom loading to hauling, LiuGong has the machines and the know-how you want on your mining site. Our solutions take into account payload, distance, and other data to maximize efficiency and reduce operating costs for your site.

Tested in the most extreme of environments and weather, our complete line of machines is guaranteed to maintain high productivity wherever you are.

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CLG970E - Operating Weight 85.3T CLG990F - Operating Weight 105T Installed with a Cummins engine and Kawasaki Hydraulic System, the machine is not only stable but offers a large breaking force. Together with help of heavy operation weight, easily break the mining material whose hardness is under 45Mpa. Average productivity with our machines is 4-6 times higher compared with the standard breaker. A simple and stable structure brings a lower usage cost of around 5-15 Peso/m3 depending on the physical material hardness, construction plan, and operator skills.

For inquiries, please contact: Ron Tang Mobile: +63 929 702 5100 Email: tangbb@liugong.com

ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

CONSTRUCTION NEWS

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Salceda: PBBM’s 2023 NEP gives PH railways biggest ever budget at P114 billion

ouse Ways and Means chairman Albay Rep. Joey Salceda said President Ferdinand Marcos Jr.’s proposed P5.268 trillion budget for next year packs the “largest ever railway budget of any Philippine president” — P113.99 billion or almost five times that of the 2022 outlay of P23.12 billion.

The proposed National Expenditures Program (NEP) for next year was submitted to the Lower House in August.

“President Marcos has virtually declared that the era of big rail is back and that he has fired the opening shot to roll out Build, Better, More,” Salceda said.

As principal author of a House resolution that formally institutionalized Marcos’ infrastructure spending targets and gave it the name Build Better More or BBM, Salceda said the President “is moving toward national backbone projects.” in reference to PRRD’s main infrastructure He said while the strategy of former President Rodrigo Duterte was to bring the resources of the national government down to the countryside, PBBM is going to maximize the benefits of that strategy by bringing these thousands of smaller infrastructure projects together through big connecting projects, foremost of them the railways.

“President Marcos is increasingly looking like the Big-Ticket Project President, especially Big Rail. PBBM multiplied the Railway Program project almost five times that of the 2022 amount, or from 23.12 billion to 113.99 billion. Rail got the biggest increment percentagewise, among major line items in the 2023 NEP,” he pointed out.

Salceda added the bulk of the P380 billion unprogrammed appropriations for foreign-assisted projects will come from loan proceeds for railway projects, and some P108 billion in peso counterpart for rail projects have already been anticipated in the budget.

He said the government seems bullish about receiving loan proceeds from the Bicol Railway project, most especially, which is now being renegotiated with China.

“President Marcos proposes a

large window of unprogrammed appropriations from loan proceeds so that, once the Bicol Railway loans actually materialize, we can immediately get the ball rolling with construction,” he added.

“This would be the largest ever railway budget of any Philippine president, making PBBM decisively the ‘Railways President…If all of these developments keep going well, PBBM will be the President of the Golden Age of Trains in the country,” he said.

Rail is decisively better at lowering logistics costs than any other land transport option. It is the cheapest per-kilogram option for freight.

“Railway is also necessarily of longer distance than road infrastructure. So, PBBM is clearly trying to build a national backbone through rail. Inter-regional trade is bound to expand dramatically once this program is completed,” he said, adding he has also thanked Transport Secretary Jaime Bautista for “keeping Bicol Rail in the agenda” and appealed to Finance Secretary Benjamin Diokno to “move forward with the Bicol Rail loans.”

“I have asked Secretary Diokno to give the green light to the loans for Bicol Railway and the rest of the PNR South Long Haul project. If anything, the massive unprogrammed appropriations for

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loan proceeds is a sign that the national government is optimistic we will have negotiations completed by this year, and loan proceeds received by next year,” he said.

Salceda added he is working with the DOTr for the establishment of the Legazpi-Daraga Tramway, which will make use of the defunct PNR lines passing through the Municipality of Daraga and the City of Legazpi to create a metrowide tramway system.

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MINING NEWS

PH-EITI Roundtable Discussion on Energy Transition

By Marcelle P. Villegas

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round the world, most industries are dependent on the consumption of fossil fuels. Can everyone cope with the demand for the energy transition?

Last, 29 July 2021, PH-EITI National Conference’s theme was “Resiliency in Transparency”. This year’s conference was a roundtable discussion (RTD) with the topic of “Preparing the Extractives for Energy Transition”. It was a hybrid event last 4 May 2022 in F1 Hotel Manila and via online access via Zoom.

Philippine Extractive Industries Transparency Initiative or PH-EITI is a government-led, multi-stakeholder initiative implementing EITI, the global standard that promotes the open, accountable management, and good governance of oil, gas, and mineral resources. The initiative was founded on 26 November 2013 through Executive Order No. 147 series of 2013. This was first announced as a government commitment through Executive Order No. 79, series of 2012.

This year, they had a total of 508 participants in the roundtable discussion through different platforms, where 91 people were present at the venue, while 305 were online via Zoom and 203 via Facebook Live. Many of the Zoom attendees were from the government, while the rest were from the industry sector, civil society, academe, and media.

In the RTD, the different presenters and speakers discussed

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how the various sectors of our country plan to address the issue of climate change in order to prevent future environmental problems.

“The Earth’s rising surface temperature is now a critical global concern, considering its impacts on biodiversity, climate, food security, and human health, among others.

To mitigate impacts, governments around the world are identifying strategies to tackle the main contributors to temperature rise, foremost of which is the burning of fossil fuels like coal, oil, and gas.”

On a global scale, what makes climate change difficult to control is because it is connected to everyone’s dependence on fossil fuels.

Therefore, the concept of energy transition is seen as a possible solution. However, the transition is not easy. In some countries and industries, it might not even be 100% possible.

According to the International Renewable Energy Agency (IRENA), energy transition is “a pathway toward the transformation of the global energy sector from fossil-based to zero-carbon by the second half of this century.”

From the overview of the PHEITI report, “Countries moving towards this direction are expected to gradually, if not rapidly, modify their energy mix, and address any economic and social implications of the transition.”

The Philippines is one of the signatories of the Paris Agreement and the United Nations Framework Convention on Climate Change.

This is an international treaty that requires governments to incorpo-

“The transition to a sustainable low carbon economy will definitely reshape the extractive industries.” rate climate change mitigation and adaptation commitments across all sectors of society.

In relation to signing the treaty, the Philippines formulated the Philippine Energy Plan 2020-2040 to bring in more clean energy fuels and technologies that will dominate the country’s portfolio of plans and programs for the energy sector in the next two decades. The plan includes the government’s vision for transition, which is aimed toward the sustainability of all available energy sources, as well as the diversification of the country’s energy mix.

Which industries are forecasted to struggle in this transition?

“The mining, oil, gas, and coal industries are among industries directly affected by the global shift to net-zero emissions. As the energy transition progresses, fossil fuel-producing or dependent communities and countries will face challenges sustaining revenues and the national economy in general. Communities that rely on revenues and jobs generated by fossil fuel production are among the most vulnerable to the transition.”

Therefore, to cope with the difficulties that the transition will bring,

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ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 44 producing communities and countries will have to find alternative revenue sources to replace the lost income.

“On the other hand, increased deployment of modern renewable energy and energy-efficient technologies also means an increased demand for rare earth elements and other mined inputs. This will require a substantial ramp-up of existing production capacity. This means a transition to a sustainable low carbon economy will definitely reshape the extractive industries.”

To tackle the issues behind energy transition, PH-EITI and the Department of Energy- Energy Policy and Planning Bureau (DOE-EPPB) organized this RTD to provide energy stakeholders with information on existing policies and future government programs that will lead to the shift to a sustainable and low carbon economy. “Using the PHEITI platform, the RTD intended to elicit stakeholder perspectives on energy transition and thresh out issues on the implications and effects of the transition on various sectors.”

Moreover, the goal of the RTD this year is to inform the participants and involved industries about the Philippines’ progress in implementing transition plans, policies, and commitments, as well as the rollout of government programs to sectors that will be affected by the shift.

The roundtable discussion on energy transition was moderated

by Ms. Mary Jane Baldago, the managing specialist for stakeholder engagement of PH-EITI. Atty. Felix William B. Fuentebella gave the Welcome Remarks.

He is the Senior Undersecretary of DOE. He stated the questions that may arise in the energy shift such as the consequences of the energy transition, issues and concerns that should be addressed, the boundaries to be pushed, and what are the negotiables.

Dir. Michael O. Sinocruz, OICDirector, Energy Policy and Planning Bureau, DOE, said that the Philippine Energy Plan 2020-2040 is connected with the goals of Ambisyon Natin 2040 which represents the collective long-term vision and aspirations of the Philippines in the coming years. In support of these aspirations, he shared that the DOE formulated the 9-point energy agenda, among which are providing access to electricity for all Filipinos, promoting energy efficiency, and establishing a pro-consumer framework.

Engr. Romualdo Aguilos, Engineer IV, Mines and Geosciences Bureau, identified the risks of the energy transition for the mines group, as well as the opportunities for the environment, the economy, and the people.

Dir. Dona Minimo, Director, International Finance Group, Department of Finance, reported that the Philippines’ greenhouse gas emissions are currently a minor contributor to global warming at approximately 0.33% of the world’s share of greenhouse gas (GHD) emissions. “However, due to its economic development and rapidly growing population, the Philippines is projected to have sharp increases in CO2 emissions over the incoming decades. GDP growth is expected to strengthen seven to 8% in the medium term.”

The mining sector’s perspective on energy transition was dis-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 3 2022

cussed by Atty. Christer James Ray A. Gaudiano, Director of CEMEX Holdings Philippines-Enterprise Risk Management, Corporate Communications, and Public Affairs. He reported the following: a. Informed everyone that the cement companies have been transitioning to green cement including: (i) launch of green cement which uses a lower clinker factor in production, (ii) decarbonization of operations in using by-products of raw materials of other industries as part of the manufacturing process, and (iii) use of plastic waste or inorganic waste as alternative fuels for clinker production. b. Shared investments in waste heat recovery (WHR) facilities to be able to produce electricity in the plant. SOLID Cement in Antipolo has a WHR that produces 12% of the energy needs of the plant and APO Cement in Cebu has a WHR

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MINING NEWS

Approaches to Make Strategic Mine Planning Successful

By Engr. Mae Ann R. Cabasag

S

trategic Mine Planning (SMP) encompasses technical feasibility, economic viability, social and environmental aspects. It is essential in ensuring optimal resource extraction and sets the mining project’s technical and economic direction. Yet a plethora of mines do not fully engage in this kind of mine planning. The reason for this? Perhaps they have yet to figure out the approaches to make use of its technology in maximizing the value of their increasingly scarce resources.

In this article, we will focus on the four approaches in producing a strategic mine plan that is robust enough to provide mine planners or decision-makers the confidence in their plans amid market uncertainties. This kind of confidence is made possible through the existing technology from Dassault Systèmes.

But first, we need the basics of distinguishing the following from the other: mine plan and mine schedule, and strategic mine planning and tactical mine planning. These are often used interchangeably in the mining industry despite pertaining to different things.

According to Mark Bowater, author of Crimes Against Mine Planning, “A mine plan is the set of things to be done to allow something to be achieved and includes mine designs, plus a schedule, plus the communication of it all.” Mine schedule, on the other hand, is “the sequence of activities carried out at the mine site to achieve target outcomes. [It] includes a database of the quantities of the task to be scheduled, along with equipment productivities, a calendar and then some form of sequence path for equipment to carry out those tasks.”

Meanwhile, SMP and tactical mine planning are defined by Dassault Systèmes GEOVIA Mining Industry Process Consultant Joaquin Romero as “SMP concen-

< Page 45 that produces 8% of the energy needs of the plant. c. Recommended passing the Extended Producers Responsibility bill which requires plastic users and manufacturers to recycle or divert plastic waste d. Encouraged and maximized the use of cement kilns in cement plants as waste eaters instead of landfills.

Cement Plants will be able to use waste as an alternative fuel to coal. e. Encouraged the use of green cement (cement with low clinker factor) in the use of public construction projects.

Finally, Mr. Mark Burnett enumerated the role of EITI in the energy transition. He is the Europe and Policy Manager for EITI Inter-

46

trates on long-range production planning aimed at maximizing the value derived from exploiting an ore deposit. Tactical mine planning focuses on short-range plans to maintain operational viability.”

Hence, the long-term strategic mine plan is susceptible to various forces, both internal and external (e.g. geological knowledge, economic and market volatilities, technological advancements, and legislative changes).

Defining Reserves and Assessing Strategies Traditionally, in a surface mine, planners use the Lerchs-Grossmann (L&G) algorithm in defining reserves. This generates pit shells that maximizes total undiscounted cash flows. When planners identify the final pit, they create sequences called, “nested pit shells” as pushbacks to reach the final pit. However, most of these nested pit shells are not feasible in the mine operations.

What should be the solution in this traditional approach’s geometry-related issue? A flexible approach that modifies L&G algorithm. How? “By incorporating a starting point and direction for the extraction, and

national. He stated that the EITI board has set the direction for engagement on the energy transition, namely: 1. EITI should advance economic implications of energy transition and use of the EITI data, 2. EITI should build capacity for stakeholder groups to engage and inform debate risks and opportunities associated with the energy transition, 3. EITI should consider mainstreaming transparency on the energy transition through the EITI standards and guidance, and 4. EITI should engage industry and institutional investors in discussions about industry trends and how energy transition may affect extractives transparency.

Editor’s Note: The Philippines

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formally withdrew from the EITI in June 2022, after the Department of Finance, which chairs the Philippine EITI, took issue with how the country was assessed by the organization in coming up with its February 2022 implementation score.

“We find that the manner by which the EITI Board undertakes its Validation is unduly subjective, biased, and unfair. The Philippines has no confidence in the ability of the EITI to undertake an impartial, transparent, and evidence-based Validation process,” said Finance Secretary Carlos Dominguez III in a letter to EITI chair Helen Clark last June 20.

Reference: PHEITI Website at https://pheiti.dof.gov.ph/resources/ ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

COMPANY NEWS

Automatic Product Sampler (APS) for Coal Analysis Automatic Product Sampler (APS) for Coal Analysis XRF Technologyfor for Operational Efficiency XRF Technology Operational Efficiency 1. SAMPLE COLLECTION Samples are collected from the belt automatically using a cross-belt sampler • Automatic operation using the plant’s distributed control system (DCS) • No stopping or slowing the belt • One sample every 15 minutes The system can be designed to sampling and preparation standards, including: • ISO-12743: Copper, lead, zinc, nickel • ISO-13909: Coke • ASTM-E877: Chemical analysis • ASTM-D7430: Coal

2. SAMPLE PREPARATION Collected samples are crushed to the required size • From 15 kg to a 500 g puck • From 50 mm to 4.5 mm (Crusher 1) • From 4.5 mm to 200 µm (Crusher 2) Coal/ore moisture content is recorded Entire preparation process is automatically controlled and monitored

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ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

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CONSTRUCTION NEWS

< Page 52 trial-anchored Estates complemented by Commercial, Residential and Institutional components.”

LIMA Estate is in Lipa, Malvar, Batangas is 794 hectares. This is a PEZA-registered economic zone.

The LIMA Central Business District is Batangas’s first fully integrated CBD (Central Business District) development. LIMA Tower One is the first of 6 towers to be built in the LIMA Office Park Campus in 2022.

On the sustainability at LIMA Estate, “Aboitiz InfraCapital is gearing up for the transformation of the LIMA Estate into a smart, next-generation economic center in the thriving investment hub of Batangas.” More on its infrastructure features, “fully complemented by a reliable infrastructure system, LIMA is supported by affiliates of the Aboitiz Group to ensure ease of doing business for our locators.”

Another feature is having a “PEZA and BOC (Bureau of Customs) One-stop Shop.” There is the convenience of PEZA and BOC offices located inside the park that provides 24/7 service to LIMA Technology Center locators. This feature will enhance ecozone linkages with the local government, communities, businesses, and other stakeholders.

Aside from LIMA Estate, AIC’s other Economic Estates include the West Cebu Estate in Balamban, Cebu, and the MEZ2 Estate in Lapu-Lapu City, Cebu. West Cebu Estate covers 540 hectares, while MEZ2 Estate has a span of 63 hectares.

In summary, Aboitiz InfraCapital Economic Estates today has 1,100 hectares of industrial business parks currently being operated; 60,000 sqm GLA (gross leasable area) for office buildings in Cebu, Makati, and Ortigas; with a total of 90,000 jobs generated across Central Visayas and Southern Luzon; 200,000 sqm PEZA-accredited office spaces under planning; and 100,000 sqm GLA of

< Page 46 then building a sequence schedule that may align better with the mine project’s strategic requirements,” Romero elaborated.

With the combination of the DS GEOVIA Whittle and SIMULIA

50

(Left) Atty Patricia A.O. Bunye is Senior Partner and the Deputy Managing Partner for Administration of Cruz Marcelo & Tenefrancia. She was the emcee of the event. (Right) Mr. Jolan Formalejo, Vice President for Inventory Generation Group of Aboitiz InfraCapital [Photos by PICC]

commercial retail spaces in Cebu and Batangas.

“We continue to deliver innovative concepts translated to thriving fully-integrated industrial estates and commercial communities for 30 years, known for its deliberately planned, and purposely designed developments.”

On the second part of the PICC Luncheon, Mr. Antonio Peñalver, Executive Director of Aboitiz Construction, Inc. gave a presentation about “ACI’s Best Practices in the Construction Industry.”

Aside from Aboitiz InfraCapital’s best practices in the construction industry, he discussed “how ACI is proactively transforming towards becoming a well-known and most trusted contractor in the country.”

“We strongly affirm that as we drive towards expanding our operations and setting a national footprint, we have started to implement innovative programs that will continue this momentum throughout the rest of 2022.”

It is noteworthy to mention that last May 2022, Aboitiz Construction successfully finished the construction of another 69kV

overhead transmission line project that consists of 37 electric poles of Lima Enerzone (LEZ) in Lipa City, Batangas.

This project is part of a bigger move to strengthen the power delivery in Lima Estate. This is possible through a partnership between Aboitiz Construction and Lima Enerzone. Another objective of the project is to improve power reliability in the area.

Another milestone for Aboitiz Construction took place in March 2021. The company completed the design and construction of Berth for one of the most modern container ports in the country, the Davao International Container Terminal (DICT) in Panabo City, Davao del Norte.

“The construction of Berth has increased the turnaround time of loading of vessels. This means more vessels can now dock at the terminal to bring more produce and agricultural products in and out of the region, potentially creating demand. A total of 121 employees were hired for the said project and out of this number, around 72% were hired locally.”

process-automation tools, Dassault Systèmes tested this flexible approach by generating 1,600 to 2,400 scenarios and produced a value map where one can easily determine the “best starting region and corresponding directions.”

In Part 2 of this article, we discuss mine production-scale plan,

uncertainties and risks associated in your SMP, how to optimize your production schedule, and how GEOVIA’s SMP solutions will pave your Strategic Mine Plan’s approaches to success.

REFERENCE: Dassault Systemes. (2022). Strategic Mine Planning Articles 1-4.

ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM

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CONSTRUCTION NEWS

Aboitiz on Industrialization, Investments, and Best Practices

By Marcelle P. Villegas

T

he Philippine Infrastructure and Construction Club hosted its first face-to-face luncheon of the year last 24 June 2022 at Seda Hotel BGC, with executives from Aboitiz InfraCapital and Aboitiz Construction, Inc. as their main speakers.

Mr. Jolan Formalejo, Vice President for Inventory Generation Group of Aboitiz InfraCapital (AIC), and Mr. Antonio Peñalver, Executive Director of Aboitiz Construction, Inc. graced the event with their presentations and talks on their company’s achievements, ongoing and upcoming infrastructure projects, and best practices in the industry.

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Mr. Antonio Peñalver (Executive Director, Aboitiz Construction, Inc.) at the Philippine Infrastructure and Construction Club, Seda Hotel BGC [Photo by Marcelle P. Villegas]

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Mr. Jolan Formalejo’s presentation was titled “Aboitiz InfraCapital: Industrialization and Investments in South Luzon.”

He began his presentation by reporting that 2021 was a banner year for AIC Economic Estates. AIC received a total of 9 honors, including the International Finance Real Estate Awards and Property Guru Property Awards for Best Industrial Developer in Asia. LIMA Estate was recognized as the Country Winner for Best Industrial Development.

Mr. Formalejo enumerated the significant numbers concerning Region IV-A – CALABARZON in terms of economic growth and the number of investors, namely: • 7.6% annual economic growth rate in 2021—the fastest growing region of the country • 2.51% economic growth from CALABARZON-based industries • P4.87 billion in foreign investment pledges for projects in CALABARZON for Q1 2022 • 1,700 estimated foreign companies currently operating in the region • 6.8 million estimated labor force in CALABARZON as of Dec 2021 • 1,314 new infrastructure projects completed in 2021 alone with a total cost of P7.17 billion From his report, the CALABARZON Industrial Belt is host to several industries such as manufacturing (automotive, electronics, garments, agricultural products,

etc.), logistics, healthcare, construction, energy, and tourism.

Focusing on Batangas, the province is boosting its infrastructure projects with the help of the PPP (Public Private Partnership) Center. “This partnership will help decentralize Metro Manila by opening up more employment opportunities through the construction of additional infrastructure and development facilities in the region.”

These projects include the Batangas International Airport, Batangas Port Development Phase IV, Batangas City Access Zone, Calamba-Batangas Railway Spur Line, and Batangas Regional Food Terminal.

The Batangas Industrial Belt has a total land area of 316,581 hectares or 3,165.81 km². This is considered CALABARZON’s industrial powerhouse. Batangas is the second richest province in the Philippines in 2020 in terms of net assets. “PEZA (Philippine Economic Zone Authority) bats for the creation of more ecozones, particularly in land-rich Batangas.”

The most prevalent industries in the area are the oil refinery, natural gas, processed food, gifts, housewares, and wearables, he added.

Mr. Formalejo also talked about the Aboitiz InfraCapital Economic Estates, namely the MEZ2 Estate, LIMA Estate, and West Cebu Estate. These are “Indus-

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ISSUE 3 2022 • WWW.PHILIPPINE-RESOURCES.COM