Philippine Resources Journal - Issue 4, 2021 by Brimble Publishing

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PHILIPPINE RESOURCES PENARROYO & BUNYE:

INVESTING IN ESG

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CONTENTS MINING 16

BAMBOO INDUSTRY ROADMAP CROSS MINING SITES

20 PH MINING CLUB’S BAMBOO SUMMIT & REINVENTING MINING 22 PH NICKEL INDUSTRY ASSOC. LAUNCHES SDG REPORT 26 SMARTER, MORE EFFICIENT FUTURE WITH IN-PIT SIZING

COMMENTARY

32 ENSURING LONG-TERM MINING VIABILITY IN CHANGING TIMES

By Fernando Penarroyo / page 6

INVESTING IN ESG GOOD BIZ FOR MINING

COMMENTARY

THPAL COMMENCES CHROMITE PRODUCTION

WHAT DOES ESG MEAN FOR THE MINING INDUSTRY?

38 SCHAEFFLER BEARING SOLUTIONS FOR MINING SECTOR

By Patricia A.O. Bunye / page 14

39 TVIRD BRINGS MINING OPERATIONS ON-STREAM IN BAYOG 40 TVIRD ACQUISITION OF SIANA GOLD FROM RED 5 LIMITED 44 CBMM/KEEPMINING JOURNEY: 15 YEARS OF CUSTOMER SUCCESS 47 QES SOLUTIONS TO SUSTAIN MINING INDUSTRY 50 AUTOMINE: BLAZING THE TRAILS AHEAD

MINING

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Large-scale metallic mining benefits / page 28

MDC, Precise exemplify gains via tech / page 52

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ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

PHILIPPINE RESOURCES THE MAGAZINE FOR MINING AND CONSTRUCTION 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: Photo courtesy FLSmidth

Investing in ESG is good business for mining

ew mining projects faces relative difficulty in attracting investments because of opposition by host communities and local governments brought about by potential mine accidents, transparency is-sues, and operations infringing on ancestral and agricultural lands. Regulators often impose huge taxes and environmental users’ fees on new projects, in addition to stiff penalties on erring mining companies involved in violation of safety and environmental laws and regulations. The industry is currently benefitting from the global objective of lowering carbon emissions to keep the rise in mean temperatures to below 2°C above pre-industrial levels in accordance with the 2015 Paris Agreement and 17 Sustainable Development Goals, which requires the deployment of re-newable energy and efficient battery storage. The unprecedented demand for green metals like copper, nickel, lithium, and cobalt needed for energy transition and digital transformation has also paved the way for sustainable investments in mineral projects. To address these developments, mining companies are now including environmental, social and governance (ESG) and sustainability issues as part of their strategy to improve the reputation of the industry, acquire the consent of stakeholders to operate, and at the same time realize profits from their operations. According to the Ernst and Young 2022 Report on the Top 10 Business Risks and Opportunities for Mining and Metals, ESG tops the list of risks/opportunities facing mining companies over the next 12 months. The study indicates that shareholder expectations are impacted by numerous challenges, including the mining industry’s contribution to communities, economies, protection of heritage sites, and engagement with indigenous communities. Shareholders are also concerned with the industry’s role in prioritizing ethical supply chains, with diversity and inclusion also in the spotlight. Lenders and investors are also focusing on mining pro-jects especially those that are vital to the energy transition but

these projects need to have a good ESG strategy to become bankable. The formalization of the requirement for ESG criteria to be incorporated into the financial evalua-tions of companies started in August 2005 By Fernando Penarroyo in a conference hosted by The United Nations Global Compact in Switzerland. The financial industry’s recommendations were compiled into a report en-titled “Who Cares Wins.” The report came out with a conclusion that the “endorsing institutions are convinced that a better consideration of environmental, social and governance factors will ultimately contribute to stronger and more resilient investment markets, as well as contribute to the sustainable development of societies.” In the report, the financial industry called on all sectors of society and business to integrate ESG into their core activities, and investors should “reward well-managed companies” that embrace ESG. In 2006, a group of large institutional investors under the auspices of the United Nations, collabo-rated on a process to develop what has become the Principles for Responsible Investment (PRI). Developed “by investors, for investors,” the six PRIs aim to contribute to a more sustainable global financial system and in the long term, the interests of the environment and society as a whole. Sig-natories to the PRI have grown to over 3,000 since its launching. The World Economic Forum (WEF) also published the Davos Manifesto, which set out a common code of ethics for business leaders. The manifesto was updated at the WEF’s Annual Meeting in 2020, which built on the concept of ‘stakeholder capitalism’ first inPage 8 > troduced in the initial manifesto. ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

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< Page 6 Stakeholder capitalism recognizes that long-term business value is only created when the interests of all stakeholders -- employees, shareholders, governments, the environment, and society as a whole, are served simultaneously. What is ESG? ESG is a set of standards or criteria for a company’s operations that investors now use to screen potential investments. While ESG is spoken about as a single concept, it is an amalgamation of three distinct but clearly overlapping disciplines -- environmental, social, and governance, each with their own knowledge base, areas of focus, and methodologies for approaching problems and solutions. Environmental criteria consider how a company performs as a steward of nature. The criteria can also be used in evaluating any environmental risks a company might face and how the company is managing those risks. They include a company’s energy use, waste, pollution, hazardous sub-stances, mine waste/tailings, mine closure, natural resource conservation, treatment of animals, biodiversity, ecosystem services, water management, climate change, carbon

footprint, and greenhouse gas emission. Social criteria, on the other hand, examine how a company manages business relationships with employees, suppliers, and customers. Social criteria also look at how the company deals with the communities where it operates and include human rights, land use, resettlement, vulnerable peo-ple, gender, diversity, labor practices, worker/community health and safety, security, artisanal miners, and mine closure/after use. Lastly, governance criteria deal with a company’s leadership, executive pay, audits, accounting systems, internal controls, and shareholder rights. It also includes legal compliance, ethics, anti-bribery and corruption, anti-money laundering, transparency, corporate governance, ethics, compliance, diversity, lobbying, and approach to taxation. Governance also covers how stockholders are allowed to vote on important issues. Investors want assurances that companies avoid conflicts of interest in their choice of board members and don’t use political contributions to obtain unduly favorable treatment. ESG investing is also referred to as sustainable (or responsible) investing, impact investing, or socially responsible investing. Sustainable investing incorporates

ESG criteria in the investment decisions of investors in companies, organizations, or funds. These decisions are based on the in-vestor’s real or perceived understanding of the environmental and/or social impacts that will result from their investments in parallel with the expected financial returns. The purpose of directing funds towards investments that are seen as sustainable is to generate measurable environmental and social impacts in addition to financial returns. Governments and regulators are obviously supportive of ESG criteria. It is for this reason that ESG investing was identified as an investment megatrend. The Covid-19 pandemic also proved to be a positive catalyst for many investment managers to place their money in the accelerating global trend in sustainable investment. This emerging, new normal investment strategy is gaining mo-mentum and the use of ESG criteria is set to be the standard in sustainable investments. Aside from proposing new standards and frameworks against which investments should be meas-ured using ESG criteria, institutional investors and fund managers have also created investment products that enable investors to put their money into products that meet their ESG performance re-

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< Page 8 quirements. ESG-based investments can offer quick returns. Investors, notably millennials who are the major beneficiaries of the largest intergenerational transfer of an estimated wealth of $30 trillion, have shown interests in putting their money in EGS. ESG in Mining Mining has never been regarded as a “green” or sustainable investment, and this stigma has been the main reason for the difficulty in financing large-scale operations. Investor appetite has gone be-yond balance sheets and now dwells in the realm of addressing the urgent need to preserve resources for future use of the coming generations. To responsible investors, mining may not be on the top of the list when considering an investment based on their ESG criteria. Recently, ESG has provided the opportunity for the industry to address the sustainability challeng-es by laying down a comprehensive framework that stakeholders can use as metrics when con-sidering their involvement in a mining project. Before risking capital in a project, investors are now looking to consider the ethics, competitive ad-vantage and culture of a mining organization to determine how the company can balance profits and the benefits to the environment. Mining finance transactions have evolved in recent years to integrate ESG and sustainability considerations. Now, investors, lenders and other stakeholders in the financial industry look into the ESG credentials of mining companies and very few transactions are done without conducting a due diligence of of ESG issues. Failure to address these issues will ultimately reduce access to funding while good ESG equates to more and cheaper funding. Mining investors, shareholders, as well as financiers across the spectrum —export credit agencies, development finance institutions and commercial lenders — are making sure that borrowers have the appropriate ESG strategy in place for full implementation. Investors are no longer passive in their sustainability due diligence of mining projects and exerting efforts to obtain more information from other available sources in addition to mandatory disclosures made under existing regulations

and codes. Aside from traditional environmental and social reporting covenants, enhanced ESG and sustainability reporting are becoming standard provisions in loan documentation. Some investors and lenders are requiring that borrowers comply with the lenders’ own internal ESG policy and sustainability reporting requirements. Some mining finance transactions may also require the appointment of a lender to take on an ESG or sustainability coordinator role for the pro-ject. One particular organization, the World Gold Council, is lobbying for insurance providers to become more involved in the ESG movement by requiring mining companies to uphold ESG principles in order to be eligible for insurance policies. In some large mining initial public offerings, investor roadshows have become venues for investors to grill companies of their ESG initiatives in relation to relevant laws and internal reporting. On the demand side, cautious buying of mineral commodities is now a reality, as socially-responsible customers want to be kept informed about ESG issues of the supplier. End-users not only look into to the ethical production of minerals but also to the supply chain as well. Stakeholders like government and financial regulators, ESG rating agencies, civil society and advocacy groups, employees, and host communities are increasingly demanding transparency and performance on ESG issues more than ever. ESG factors have also led to a rise in shareholder activism, where existing investors use their shareholding to influence the mining company’s ESG performance. Non-compliance with ESG regulations and best practices will result in activist shareholder protests and class action suits against the

parent companies of global mining groups particularly those operating in developing countries where environmental laws and governance rules are not properly implemented. ESG Strategy, Mineral Reporting Standards, and Sustainability Reporting Frameworks As pressure mounts from capital markets and the public, investments with a well-defined ESG strategy are outperforming their peers in the market and experiencing lower levels of volatility. According to a review of companies listed in the S&P 500 undertaken in 2019 by NASDAQ, companies that received high sustainability ratings “exhibited both higher returns and less risk.” On the other hand, companies with poor ESG ratings “showed the opposite results.” It is thus imperative if not good business practice for mining companies to engage in the preparation and implementation of a clear ESG strategy that will help address investor concerns and promote additional investments. The strategy containing the company’s corporate values and ESG priorities must fully explain how the company complies with both mandatory and voluntary obligations set out in the ESG company policy. The ESG strategy must also outline the company’s management plans and how it will assist in meeting its key performance indicators in relation to its sustainability goals. Lenders are also prescribing ESG principles to companies for them to receive green loans and sustainability-linked investment facilities, and incentivize the borrower to meet predetermined sustainability targets. Examples of predetermined sustainability targets for mining companies are

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ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

< Page 10 increased energy efficiency and improved working or social conditions. Foremost among the inevitable risks that come with poor ESG management record is the loss of the social license to operate. Dissatisfied government and host communities will post obstacles to mine start or expansion by imposing onerous taxation regimes and regulatory obstacles to erring companies. Examples of ESG management failure range from repeated environmental violations to outright mining disasters resulting from failed tailings disposal systems and environmental pollution. Viola-tion of land access agreements with local governments, landowners, indigenous peoples, and arti-sanal miners often lead to cancellation of consents and expose the mining companies to additional civil and criminal liability. Human rights violations, militarization, and poor workplace health and safety conditions will lead to disruption to operations brought about by labor unrest and even heightened insurgency in the mine area. Wasteful utilization of water and energy resources will not only diminish the company’s bot-tom line but will cause civil unrest in the communities because wastage will disrupt their livelihood. On the other hand, a well-managed and transparent ESG compliance system will bolster strong relationship with the stakeholders, easy access to financing, good customer relationship, and bet-ter management of scarce resources and raw materials, which will enhance the profitability of the mine operations. Good labor, health, and safety practices and human resources development also minimize employment turnover and enhance company loyalty. There are so many benefits and opportunities for companies with a strong ESG track record that in the long term will enable the company to operate in other mineralized sites because of good social and political risk management. Even in national mineral reporting codes that set the minimum public reporting standards of explo-ration results, mineral resources, and mineral reserves, the inclusion of ESG reporting has been gaining traction. Investors rely on these reporting codes before they proceed with their investment decisions. Prepared for the purpose of informing potential investors and their advisors on the mineral as-

sets of a reporting company, these reporting codes are now including ESG issues as important contributors to modifying factors which can influence the commercial declaration of mineral reserves. ESG criteria play an important role in determining whether the mineral resources can be capable of being extracted economically. The investors are looking for evidence of how companies integrate ESG considerations into their businesses and this evidence needs to impact all aspects of the business, including geological processes and mining activities. Sustainability reporting is largely undertaken voluntarily by companies, regardless of their listing status on a stock exchange. Investors obtain ESG information about companies directly through engagement with companies or via information generated by ESG ratings agencies. The increasing influence of these rating agencies has resulted in ESG becoming a key factor in raising funds from capital markets. Rating agencies base their ratings from aggregated information directly obtained from the mining companies and rely solely on their review of publicly available in-formation. However, there remain some questions on the ratings given by these agencies because of transparency issues on what they do with the information obtained and how they generate the ratings. In response to the growing desire to report on their ESG performance, companies have developed a number of reporting frameworks, the objective of which is to provide guidance and metrics to companies who wish to disclose their sustainability performance. Some of the more commonly used frameworks include the Global Reporting Initiative, Sustainability Accounting Standards Board, Carbon Disclosures Project, and Task Force on Climate-related Financial

Disclosures. Critics of sustainability reporting suggest that these reports have done little to improve the actual management of sustainability issues and instead are utilizing company resources that could be better spent managing sustainability issues on the ground. Gaps also remain between society’s expectations of mining companies and their performance in respect of ESG issues. Companies need to be realistic about what they can deliver and build an ESG strategy that can manage stakeholders’ expectation. There is also a call by industry and investors to standardize sustainability reporting metrics. Conclusion To achieve a sustainable future, the global economy will rely to a great extent on resources and raw materials to be provided by the mining industry. To achieve this, companies need to take into account ESG and sustainability practices to attract risk capital and make mining projects bankable. The industry needs to apply ESG criteria from project inception to mine decommissioning, and throughout the supply chain to make its operations efficient, cleaner, and socially responsible. To preserve their license to operate and achieve sustainability, mining companies must also ensure that they have an ESG strategy in place to adhere to relevant laws, comply with regulatory codes, and satisfy all stakeholders. References Environmental, Social, and Governance (ESG) Criteria, 05 March 2021, https://www.investopedia. com/terms/e/environmental-socialand-governance-esg-criteria.asp ESG Investing Will Speed-up the Energy Transition, 27 July 2021, https://foresightdk.com/esg-in-

Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. 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

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ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

What does ESG mean for the mining industry?

By Patricia A. O. Bunye n recent years, ESG - environmental, social and governance – has become a major concern in corporate boardrooms: criteria by which strategy is developed and risks are assessed. While the term may be relatively new [having been coined as late as 2005 in a study of the International Finance Corporation (IFC) entitled “Who Cares Wins”], it has always been top of mind in the mining industry even if it has not always used the same terminology. Responsible mining companies have always been concerned about sustainability, care of the environment and working with their host communities towards achieving these goals. ESG now brings together these in a comprehensive framework that can help a mining company navigate and balance the benefits to the planet, people and profit successfully.

ESG is now front and center in the discussion of many boards, even those whose businesses do not generally deal with the environment, as investors are increasingly paying attention to environmental, social and governance-related matters and data. As Forbes Magazine notes, “many investors recognize that ESG information about corporations is vital to understand corporate purpose, strategy and management quality of companies.” Increasingly, transactions are done with an eye on ESG issues. A company’s track record on ESG would certainly influence how it is able to raise funds and attract investments. In this regard, in their quest to improve diversity and broaden their representation, many boards are electing directors whose expertise and experience encompass ESG.

Of course, not all boards have embraced the importance of the ESG framework in their decision-making. In a study conducted by the Harvard Business Review, they classified board attitudes towards ESG into four: “The Deniers”, “The Hardheaded”, “The Superficial”, “The Complacent” and “The True Believers”. “The Deniers” are those who see sustainability as nothing more than a buzzword or a fad, i.e., sustainability is (at most) a page in the annual report. For “The Hardheaded”, sustainability is a factor affecting their business, but reduce it to strategic reasoning (e.g. how can costs be minimized? are there market opportunities?). “The Superficial” have a shallow understanding of the need for sustainability, including those who implicitly promote greenwashing. “The Com-

< Page 12

tor Expectations, Baker Mckenzie, Sankaran, Aparna, ESG with a Heightened Focus on Environment and Social Issues, Emerges as the Top Risk/Opportunity for the Mining Sector, https://www. ey.com/en_gl/news/2021/10/ esg-with-a-heightened-focus-onenvironment-and-social-issuesemerges-as-the-top-risk-opportunity-for-the-mining-sector Steele-Schober, Teresa, The Importance of ESG for Mineral Reporting, http://www.scielo.org.

za/scielo.php?script=sci_arttext& pid=S2225-62532021000600003 Taking ESG Seriously: The Crucial Role of Mining investors in the Energy Transition, White and Case, https://www.jdsupra.com/ legalnews/taking-esg-seriouslythe-crucial-role-2066231/ Walker, David, ESG Insights: What does ESG mean for the Mining industry? https://www.slrconsulting.com/news-and-insights/ insights/esg-insights-what-doesesg-mean-mining-industry

vesting-will-speed-up-the-energytransition/ Holman, Chris, ESG Investments in Mining, Azure Capital, 11 March 2021, https://apac.cib. natixis.com/m-a-pulse-in-apacarticles/focus-on/articles/esginvestments-in-mining Introduction to Environmental, Social and Governance (ESG) Considerations for the Mining Sector: Reporting Obligations and Inves-

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ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Bamboo industry roadmap cross mining sites By Abe Almirol

he strategic plan to develop Bamboo has been in the portfolio of the Department of Trade and Industry (DTI) many years back. As a chief raw material source for the flourishing Philippine handicraft industry, the demand for Bamboo increased further over the years because of its emerging uses in construction, agriculture, and fisheries. Bamboo development was mentioned in several Physical Framework Plans that the National Economic and Development Authority (NEDA) mandated Local Government Units (LGUs) to prepare. At the national level, the most comprehensive among these plans is the Philippine Bamboo Industry Development Roadmap (PBIDR) crafted by the Board of Investments in 2016. The PBIDR has called Bamboo as the ideal renewable resource that can thrive easily. If managed

< Page 14 placent” may be early adopters of initiatives like CSR reports, green product lines, or responsible supply chains, but have not kept upto-date with the latest developments in sustainability, or use past sustainability triumphs to shut down the conversation about sustainability. Hopefully, responsible mining companies fall into the category of “The True Believers”, for whom the long-term economic viability of their organization is closely linked to, and dependent on, social and environmental responsibility. True believers undertake careful analysis of business benefits and disadvantages with a long-term approach to governance. With this backdrop, a mining company’s ESG agenda would now include, among many others: • Environment: biodiversity, ecosystem services, water management, mine waste/tailings, air, noise, energy, climate change (carbon footprint, greenhouse gas), hazardous substances, mine closure

well, it could provide sustainable raw materials for myriad uses -- house and kitchen utensils, farm implements, furniture and handicrafts, house décor, raw material for construction, banana props, fish pens, banca outriggers, and fuel in the form of charcoal and charcoal briquettes. Bamboo also emerged as the source of pulp and paper, textiles and clothing, and renewable • Social: human rights, land use, resettlement, indigenous people, gender/diversity, labor practices, worker/community health & safety, security, smallscale miners • Governance: legal & regulatory compliance, ethics, anti-bribery and corruption, transparency. [Incidentally, at his presentation at the Philippine Mining Club on November 12, Mines & Geosciences Bureau Director Wilfredo G. Moncano announced a forthcoming Department Administrative Order on enhancing biodiversity.] Many mining companies are already taking steps to assess and improve their ESG performance. Certainly, for companies in the Philippines, there is a long list of laws and regulations to be complied with that would tick all the ESG boxes. However, experts says that the real benefits come when companies move beyond mere compliance and into maximizing the opportunities arising from ESG. Mining companies also are being encouraged to improve their ESG records by aligning with in-

energy resource in the form of chips and pellets. Lately, beer and energy drinks have also been manufactured from Bamboo. In an article published by the Philippine News Agency in 2018, DTI Secretary Ramon Lopez said he will work closely with DENR Secretary Roy Cimatu to “work out a sustainable mining development plan through planting Bamboos for rehabilitation.” ternationally recognized frameworks (and seeking certification from the relevant body, if applicable): • UN Guiding Principles on Business and Human Rights • UN Guiding Principles Reporting Framework • International Council on Mining and Metals’ 10 Sustainable Development Principles • Towards Sustainable Mining (championed by the Chamber of Mines of the Philippines) • Responsible Gold Mining Principles It is worth noting that in EY’s list of Top 10 Business Risks and Opportunities for mining and metals in 2022, ESG emerged as number one. More than 200 global mining executives were surveyed and named ESG, decarbonization and license to operate as the top three risks/opportunities facing their businesses over the next 12 months. With ESG at the top of the global business agenda and the intense scrutiny faced by the mining industry in particular, the challenges never cease for mining companies.

(Source: Export Marketing Bureau, DTI)

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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.

ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Matured bamboo propagules placed in black seedling bag, ready for planting.

< Page 16 Bamboo in Didipio mine’s FMRDP The PRJ interviewed the environment manager of OceanaGold’s Didipio mine operations, Engr. Jason Magdaong, to inquire how the company considered Bamboo in their Final Mine Rehabilitation and Decommissioning Plan (FMRDP). He confirmed the extensive use of Bamboo in their mine rehabilitation and reforestation efforts. The FMRDP is the blueprint of how the mine would become after decommissioning. It is a requirement for operating mines mandated by Republic Act 7942, otherwise known as the 1995 Mining Act. “We’ve considered Bamboo as a rehabilitation and plantation species because it fits well our mine. It is fast growing. Also, it has a very good performance in soil erosion control, and works best in rehabilitating disturbed slopes and riverbanks,” Magdaong explained. Bamboo also has strong carbon absorption capacity and good properties in absorbing heavy metals in normal conditions, that is why generally recommended for most mines, although Didipio does not have pressing concerns on these aspects. Magdaong said that their Didipio nursery has started producing Bamboo propagules two years ago in response to DENR’s call to support the development roadmap. Bamboo has been planted in Didipio’s waste rock dumps which are already topped with soil. “The performance of Bamboo as a rehabilitation species is generally good,” Magdaong affirmed. Initially, OceanaGold used the kawayang tinik (Bambusa blomeana) and bayog (Bambusa merrilliana) which are locally abundant around the Didipio mine site. “When we heard of the giant Bamboo, we thought of using it because of the promising livelihood opportunities it can offer,” Magdaong added. The giant Bamboo

(Dendrocalamus asper) has thicker flesh and grows taller than local species like the kawayang tinik, bulo (Gigantochloa levis), buho (Schizostachyum lumampao), and bayog (Bambusa merrilliana). The giant Bamboo is preferred by manufacturers of engineered Bamboo (such as floor tiles, boards, and blocks) because of its superior properties. Magdaong believes that leaving behind a Bamboo Forest along rehabilitated areas and targeted reforestation sites elsewhere could create a flourishing industry for Didipio folks. “The power lines that would be left behind after the mine closes are already three-phase configured, just the kind of electrical power connection needed in establishing industries,” Magdaong explained. Bamboo offers a two-pronged solution according to Magdaong: it mitigates environmental impacts, and at the same time, it offers a supply of resources for a budding industry that would address the social and economic displacement of workers and local folks affected by the eventual mine closure. “Our strong adherence to regulatory requirements and consistent advance towards achieving our goals … allow us the opportunity to nurture the value of our skills, our safety, and our responsibility for the environment, and for the communities to which we belong,” OceanaGold (Philippines) President, Atty. Joan D. Adaci-Cattiling said. As the Didipio FTAA contractor, OceanaGold (Philippines) has committed beyond adherence to responsible mining principles in achieving its goals, do more for Didipio for it is the community that they belong to. Bamboo and Environmental Remediation There is an established claim that Bamboo can produce more oxygen and absorb more carbon dioxide than trees. This makes it perfect for restoring disturbed ecosystems and for remediation of greenhouse gas

emission. Because of this, Bamboo is also widely used in urban forestry and landscaping. The Wildlife and Countryside Act 1981 did not identify Bamboo as an invasive species. There are currently no restrictions on planting it. In fact, the Ecosystems Research and Development Bureau of the DENR has been producing Bamboo planting materials for the National Greening Program several years back. Thick Bamboo clumps provide excellent shelter for wildlife. Monitor lizards, locally known as bayawak, are frequently seen along dense clusters of Bamboo by folks gathering young shoots or labong, a local delicacy. The deep roots of Bamboo usually form spacious crevices that are ideal shelter of many species of reptiles and amphibians. Small birds are also found to nest in the thorny branches of Bamboo culms. “We are also planting other species alongside Bamboo to create a condition for a restored biodiversity. Bamboo is compatible with other species, and one thing good is it blends well with all other species we are planting,” Magdaong explained. Economic Potentials of Bamboo The PBIDR cited that Bamboo products exported increased significantly from 2010 to 2014, growing from US$2,053,838 to US$10,791,526 annually. The roadmap also estimated the demand for Bamboo culms by current industries and sub-sectors would amount to 21,250,874 culms annually. If pulp and paper production and Bamboo chips for fuel would attract more investments, the total demand could climb up to 107,058,770 culms per year. The PIBR also recognized Bamboo as a US$11.21 billion industry worldwide as of 2009. In 2015, China has been the top exporter of Bamboo products valued at US$1.398 billion and

A worker placing bamboo propagules in a modern nursery bed at the Tucod Clonal Facility near Didipio.

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MINING NEWS

The PH Mining Club’s Bamboo Summit and reinventing mining By Marcelle P. Villegas

n celebration of World Bamboo Day last September 18, The Philippine Mining Club presented a webinar/ summit titled “Bamboo Economics and Initiatives to Re-Imagine Mining into Social Enterprises -- A Summit on ReImagining, Developing, and Sustaining Mining Communities in the Philippines with Bamboo.” The summit was a 5-hour online event that was made possible in partnership with the Department of Trade and Industry Philippines, Philippine Nickel Industry Association, Mines and Geosciences Bureau, Chamber of Mines of the Philippines, Kilusang 5K, and more. This event emphasized the role of bamboo in land rehabilitation of minedout areas, in providing livelihood for the host communities of mine sites, and

< Page 18 the Philippines was ranked 5th worldwide with exports valued at US$54 million, according to the International Bamboo and Rattan Organization. Stakeholders in the Bamboo industry involve Bamboo clump/ plantation owners, gatherers, traders, sawali and basket weavers, and furniture and handicraft producers. They own or work in small, unregistered shops, thus, considered as part of the informal sectors. Sources from the furniture industry estimated around 190,000 or 10% of the total workers in the furniture and handicraft sectors work in Bamboo-related handicraft. Pangasinan, particularly in the towns of San Carlos, Binmaley and Urbiztondo, is the country’s Bamboocraft centre. But since Bamboo is found all throughout the country, bamboocraft-making are also be found in all the provinces. As Bamboo gained the spotlight in the rehabilitation of the Cagayan River, the inter-agency Task Force Build Back Better has laid up a complete plan beyond using the species for riverbank stabilization. They mobilized the Technical Education Skills and Development Authority (TESDA) to train laborers from local communities on seedling propagation and Bamboocraft. Paid by the Department of Labour

in general, how mining companies fulfill their role in environmental protection as mandated by the government. For the past years, the reputation of the mining industry in the Philippines has been tainted with accusations of being a “destroyer of nature”. In the same way, the role of mining in providing economic growth and financial benefits for the country is often trivialized or unheard of by some people, which are often due to misinformation and fear-mongering promoted by anti-mining groups. The purpose of this summit, just like all other events organized by The Philippine Mining Club, is to provide a platform for an informative, balanced and scientific discussion about the industry and its contributions to nation-building. The summit featured several speakers from the government sector, the academe, researchers, private sector, NGOs and more. Page 21 > “Let us plant bamboo with

and Employment (DOLE) under the Tupad Program, locals were mobilized to plant Bamboo in the riverbanks The move has set in motion a strategic Bamboo supply development in the region. Opportunities and Challenges The popularity of Bamboo could be seen in online markets, where varied products such as blinds, steamers, sticks, fence, sala sets, tumblers, mugs, pens, etc. are offered for sale. Giant Bamboo cuttings are also sold online by Bamboo nurseries at P58.50 a piece, excluding delivery cost. The PBIDR has identified key production areas in Batangas (Euro Integrated Farms & Supply, Inc.), Pangasinan (CS First Green Agri-Industrial Development, Inc), Negros Oriental (Philippine Bamboo Foundation, Inc.), and Antipolo City (Carolina Bamboo Farm). These serve as primary sources of planting materials needed to produce enough supply of Bamboo culms in the country. The production of toothpicks and barbeque sticks alone has gone a long way in the Bamboo industry. A small enterprise in Iloilo has grown over the years and now producing large volume of quality toothpicks and barbeque sticks using mechanized equipment. However, as revealed in the PBIDR document, Chinese exports

are much cheaper than locally produced Bamboo products. Processing machines are imported because there are no local fabricators yet. There is also a need to set the specifications for Bamboo construction materials so that it will be used in high-level construction sites. These are the ways forward for the Bamboo industry stakeholders to work on.

Workers planting bamboo in a slope needing rehabilitation at the Didipio mine.

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MINING NEWS

< Page 20 the end in mind,” said Atty. Leo G. Dominguez, the flamboyant Masters of Ceremonies in the Philippine Mining Club events. “Secretary Cimatu has mandated the mining industry to reinvent invent itself. The answer is by planting bamboo in their minedout areas and even in the areas within their tenement but outside of their actual mine sites. What would this achieve? First it will help the DENR meet its commitment to plant 1 million hectares of bamboo for climate change mitigation... It will also create truly sustainable livelihoods for the mining communities even beyond the mine life. Why? Because bamboo is a fast-growing supergrass that you could keep growing and keep cutting, and for some species for up to 100 years. How will bamboo reinvent mining? Bamboo will provide the mining communities with an almost endless supply of material to create high-value products.” Atty. Dominguez is the CEO of OLLI Consulting Group, Inc. Even as early as June 2018, he and his colleagues have been actively promoting the Bamboo Initiative, an advocacy which he started with the support of other mining companies and groups. “With funding from the Social Development and Management Program (SDMP) of the mining companies, which is currently 1.5% of their CapEx (capital expenditure) per annum, and with the support of the DTI (Dept. of Trade and Industry), the DENR (Dept. of Environment and Natural Resources), the DA (Dept. of Agriculture), the DOST (Department of Science and Technology), the mining community can receive the skills training to work with bamboo, obtain marketing information from the DTI for the high-value products that both the domestic and international markets are willing to buy, and obtain reliable planting materials, hopefully from the DA and DOST, plus the skills needed to propagate the bamboo

optimally.” Atty. Dominguez stated, “How will all these elements come together to making the mining industry an effective partner in growing the bamboo industry? It will do this by identifying what each party in the collaboration, that is the DTI, DENR, DA, DOST, plus the mining industry, what they need to specifically contribute to empowering the mining communities to become active and productive partners in drawing the bamboo industry. This is how bamboo can reinvent mining.” Dr. Florentino O. Tesoro, Chairman of Bamboo Professionals Inc. and Rene Madarang, Executive Director, Philippine Bamboo Industry Development Council (PBIDC) discussed the role of PBIDC in the Bamboo Initiative. “The Philippine Bamboo Industry Development Council aims to converge different government agencies and the private sector for the development of the bamboo industry. Currently, it operates through Executive Order 879 series of 2010.” The PBIDC aims to contributes to climate change mitigation and sustainable development, encourage value-added production, and to assist the LGUs promote environment protection and develop livelihood in the countryside. The Philippine Bamboo Industry Development Roadmap’s vision is to have “a progressive,

dynamic, productive, and globally competitive bamboo industry with a sustainable resource base.” The Key Strategies implemented for the Bamboo Industry include establishment of a reliable institution to shepherd the industry, enactment of supportive policies, establishment of a national bamboo electronic database, development of a sustainable supply of quality raw materials, development of high-capacity machines and equipment, training of highly skilled manpower, establishment of rural based enterprises, and development of reliable local and international markets. Other speakers in the summit include, Atty. Wilfredo G. Moncano, DENR/MGB Director; Dr. Henry A. Adornado, DENR-ERDB; Director, Dr. Rico J. Cabangon, DOST-FPRDI, OIC-Deputy Director; Dr. Orlex B. Yllano, Adventist University of the Philippines, Dept. of Biology, Chair and DOST-NRCP Member; Rica Janet Villanueva-Gadi and Architect Jed De Guzman of Bamboo Bootcamp; Atty. Dante Bravo and Isidro Alcantara, Jr. of the Philippine Nickel Industry Association, and Gerard H. Brimo of the Chamber of Mines of the Philippines. For more information about the event and about Philippine Mining Club, please visit their website at https://www.philippineminingclub. com/.

HMC TURNS OVER 3 COMPUTERS TO CANTUGAS HS

inatuan Mining Corp. (HMC), a subsidiary of Nickel Asia Corp. (NAC), has turned over 3 computer desktops and printers to Cantugas Cultural National High School during the Graduation and Distribution of Starter Toolkits at

Cantugas Gym, Mainit, Surigao¬¬ del Norte. The graduation ceremony was for the students of Technical Education and Skills Development Authority (TESDA), who completed the Animal Production (Poultry Chicken) NC II course.

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2021

The activity was attended by TESDA Caraga Regional Director Tarhata S. Mapandi, Provincial Director Catalina O. Tacubao, Supervising TESD Specialist Buenafe G. Enaya, and Surigao del Norte College of Agriculture and Technology (SNCAT) College

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MINING NEWS

PH Nickel Industry Association launches SDG Report

By Marcelle P. Villegas

ctober is United Nations Month with its main celebration last 24 October 2021. In response to the United Nations Sustainable Development Goals (UNSDG), the Philippine Nickel Industry Association (PNIA) launched their first sustainability report to highlight the industry’s contribution and impact to local communities for 2020. They presented their report via a Zoom media launch last 20 October 2021. This online event is the 4th episode of the Nickel Initiative Webinar Series. The sustainability report is titled “Global Goals, Local Action – Sustainability as our way of life in nickel mining.” From PNIA’s press release, the report “underscores the industry’s social and economic contributions in the country consistent with the UN SDG global policy goals which are policy framework aimed at achieving sustainable living for current and future generations.” PNIA is a non-stock, non-profit association that was established in 2012. PNIA was organized “to be the single voice of the industry in championing and positioning the nickel development sector as a globally-competitive and responsible driver of inclusive and sustainable economic growth in the Philippines”. PNIA is registered with the Securities and Exchange Commission. The web-launch was moderated by Charmaine OleaCapili (Executive Director of PNIA). Other speakers for the online even included Ferdinand M. Pallera (PNIA Chairman), Atty. Dante R. Bravo (PNIA President), DENR Secretary Roy A. Cimatu, Undersecretary Jim O. Sampulna and MGB Director Wilfredo G. Moncano. Later in the day, an open forum was moderated by Dr Robin Garcia of the University of Asia and the Pacific. The discussion featured two distinguished speakers, DENR Asec. Nonita S. Caguioa and Professor of University of Asia and the Pacific, Dr. Bernardo Villegas. Atty. Bravo stated: “We are

glad to share this report because it is the heart and soul of all the PNIA members’ efforts and contributions in the past year. We aspire to share to the people that the industry takes our jobs very seriously - we value our communities; we rehabilitate the environment to the fullest extent, and we are committed to make the industry sustainable for future generations. We go beyond our business goals.” According to the SDG report for 2020, PNIA members were able to contribute to 15 out of the 17 UN SDGs, particularly on the direct and indirect economic impacts. The report also highlights the Environmental Protection and Enhancement Program (EPEP) where PNIA devoted PHP531.7 million for environmental restoration of mined areas, as well as for other environmental riskmitigation projects. They also reported that PHP166.8 million was spent for the Social Development Management Program (SDMP), which are evident through the generation of jobs, livelihood trainings, food security programs and construction of schools, churches, multi-purpose halls and handwashing facilities in their host communities. PNIA stated: “This highlights the member companies’ commitment to mitigate environmental risks while largely supporting life in the communities particularly during the pandemic.” According to Pallera, “What makes this report even more meaningful is that we have known and seen by our very eyes the direct impact of all these programs

that adhered to the SDG, to our local communities--- families having jobs, children going to schools, our scholars in college, food security during the pandemic. Seeing all that, we know we’ve went over and beyond our business goals and have made real impact in people’s lives. It also inspires us to improve and do more.” Furthermore, PNIA stated that “the association’s performance goes beyond numbers, continuously prioritizing their host communities by ensuring implemented projects are geared towards the improvement of the quality of life of their local communities, through infrastructure investments, improvement of education, supporting health and safety and other initiatives with indirect economic impact such as installation of water and sanitation systems.” Based on the report/SDG document, most of the PNIA member programs and projects for 2020 are focused on SDG 9 -- Industry, Innovation and Infrastructure with a total of 61 projects related with the assistance to infrastructure development like construction of roads. Other programs are: • SDG 3 - “Good Health and Well-Being” – includes 27 projects in their host communities mostly dedicated to pandemic response, relief and support of essential services • SDG 4 - “Quality Education” – includes 31 projects marked by the provision of new learning environment tools during the

Crew members of Filminera Resources Corp. and PhilGold Processing and Refining Corp. unload relief goods for thousands of residents in Baracay, Albay.

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MINING NEWS

Independent lenders engineer guide – Engineers’ view By DMT Consulting Limited, UK

lobalisation of economies and technological advancements as well as the increased level of communication between the investors and project owners around the world has intensified the race to bring many existing and mining projects into the marketplace. Prior to the 2008 financial crisis, the financing of the mining projects was less formal than today.

< Page 22 pandemic. “The members of PNIA further commit to continuing their sustainability journey by maintaining programs and projects that will contribute to various SDGs, mentioning that this is just a kickstart of a long-term vision. The association commits to learning more and to continue being a partner of the government in upholding initiatives that that will lead to the achievement of a sustainable future and actual inclusive growth for their communities.” More on the views of the United Nations Development Programme, they published an article titled “How can mining contribute to the Sustainable Development Goals?”. According to UNDP, the heads of 193 UN member states have created the 17 SDG. These 17 goals will be the shared global development framework for the future generation. They saw that mining companies have the potential to become the leading

However, the financial crisis has made Lenders and Financial institutions more alert to the perceived risks especially for complex mining projects. Since the Lenders are not technical experts in mineral extraction, they leave the technical aspects and technical evaluation of the projects to reputable consulting engineers in the field. However, anyone who may be interested in investing in a mining project should be aware of three fundamental questions (Arden & Lewis, 2014): • Is the quantity and quality/grade of the raw commodity there in the ground?

partners in achieving the SDGs. [1] “Through their direct operations, mining companies can generate profits, employment, and economic growth in low-income countries. And through partnerships with government and civil society, they can ensure that benefits of mining extend beyond the life of the mine itself, so that the mining industry has a positive impact on the natural environment, climate change, and social capital.” United Nations Development Programme also believes that mining companies may be called on to extract with responsibility, produce with less waste, use safer processes, incorporate new sustainable technologies, promote the improved wellbeing of local communities, curb emissions, and improve environmental stewardship. “Mining companies committed to the SDGs will benefit from

improved relationships with governments and communities and better access to financial resources; those that fail to engage meaningfully with the SDGs will put their operations at risk in the short and long term.” UNDP have been working with the World Economic Forum, UN Sustainable Development Solutions Network (SDSN), and the Columbia Center on Sustainable Investment (CCSI) to create a shared understanding of how the mining industry can most effectively contribute to the SDGs.

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Reference: [1] Source: https:// www.un.org/ africarenewal/ news/how-canmining-contributesustainabledevelopment-goals For more information about PNIA, please visit www.philippinenickel. org or https://www. facebook.com/ philippine.nickel.

ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

A Smarter, More Efficient Future with In-Pit Sizing and Conveying

ining is an industry that requires investing wisely and looking at all available options when considering the setup of a new plant or attempting to reduce costs in a brownfield operation. Many considerations focus around the lifecycle of a mine; how much product is in the ground? How long will it take to extract? If it’s a short lifespan, is it a worthwhile investment? These issues all arise before equipment selection comes into play, but when answering these questions, it is vital to get right mine plan from the outset. Selecting the best mining methods and equipment in the first instance ensures a more efficient and profitable long-term future for the site. Traditionally a large proportion of mines used long haul truck and shovel systems, feeding fixed crushing plants. But in many cases, more cost-effective options are available. MMD’s Semi-Mobile Sizer Stations have the same functionality as fixed plants, but with additional advantages and lower setup costs. Semi-Mobile Sizer Stations for IPSC Semi-Mobile Sizer Stations leverage the flexibility of truck haulage together with the efficiency of conveyor haulage. This provides an ideal solution for many mining scenarios where flexibility is vital, such as selective mining (blending), heavily faulted seams or irregular shaped ore bodies. Constructed in easy-toassemble modules, Semi-Mobile Stations are relocated as the mine develops to minimise truck haulage distances and take advantage of conveyor efficiencies. Semi-Mobile units can be relocated large distances in a matter of days using the MMD Atlas Transporter. By reducing truck haulage distances, operating costs decrease whilst also reducing carbon emissions. There are also some less obvious environmental advantages to Semi-Mobile Sizers Stations. Due to the Sizer’s unique features of compact dimensions and high throughput rates, a Semi-Mobile

Semi-Mobile Sizer Stations leverage the flexibility of truck haulage with the efficiency of conveyor haulage.

Sizer Station is significantly smaller than fixed systems, leaving less of a carbon footprint. This applies to the amount of material used as well as the time and energy used during construction. Peripheral structures such as a concrete bunker, or RE wall and heavy duty foundations required for fixed plants are commonly not required for Semi-Mobile Sizer Stations. Semi-Mobile Stations are supported on simple pontoon-type bases. The likes of a concrete wall and foundations comes with associated labour, materials, plant and fuel costs in both the initial construction and eventual deconstruction once the mine closes. State laws often require mine owners to return the site to its original condition (or as close as possible). These often-overlooked costs can run into tens of millions of dollars. Therefore, using SemiMobile or mobile equipment offers a huge benefit over the life-ofmine, as there is no requirement for walls, roads and services to be removed and earth landscaped. This extra work not only costs more money, but also places an extra, unnecessary burden on the environment. Over the last few years, we’ve seen increased interest in In-Pit Sizing and Conveying (IPSC) systems, as mines seek ways to streamline operations and achieve

emissions targets. Our history of delivering SemiMobile Sizing Stations into Southeast Asia dates to 1993. And more recently, in 2015 we were commissioned to supply nine primary Sizing Stations to Hongsa Power based in Laos. The year 2018 saw the completion of three stations at EGAT’s Mae Moh mine in Northern Thailand, alongside a 400 tonne Atlas Transporter to facilitate quick and efficient relocation of the Sizer modules. With all three SemiMobiles operating to the satisfaction of the customer, this project is just part of the continuation of MMD’s involvement with the Mae Moh mine. We recently upgraded the mine’s Sizer Stations, previously installed in 2001, as well as provid-

Skid-mounted Semi-Mobile Sizer Station.

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MINING NEWS The MMD Atlas Transporter relocates Sizer Stations closer to the mine face in a few days.

Bulk Ore Sorting operation.

< Page 26 ing a further Semi-Mobile Station and Transporter for the next phase of the mine’s expansion. This brings the total to eight MMD Semi-Mobiles currently operating at Mae Moh mine. In both cases, high throughputs and short relocation times make these Sizing Stations a key part of the mine’s future. MMD’s solution has lowered the operating cost of moving overburden. With MMD Sizers becoming more and more proficient in hard rock applications, there is an everincreasing number of materials in which Sizers have proven to be successful. To date, we process over 80 different minerals including the likes of copper, cobalt, nickel, iron ore and gold. But with ore grades declining, it is becoming increasingly important to maximise ore recovery in the most cost-effective manner possible. What’s next for IPSC Efficient transportation and processing of ore plays a pivotal role in a mine’s economic and

environmental strategy. Bulk Ore Sorting is the process of separating valuable ore from waste, and is an area in which gains can be made. By separating ore from waste earlier in the mining process, only valuable material is hauled from pit to plant. Besides the obvious savings in haulage costs, efficiencies are made through less energy and water usage in downstream equipment. Ore sensor technology is already widely used in processing plants, however, MMD’s Bulk Ore Sorting systems have revolutionised the separating of ore from waste by enabling the deployment of sensor-based sorting in the pit and close to the mine face. By utilising the latest material scanners, with near real-time ore sampling, mines can expect an ore grade uplift of up to 20%. This results in a potential for lower grade cut-offs and increased ore recovery. Utilising an MMD Sizer over other forms of crusher delivers some clear advantages when it comes to ore sorting. Sizers can process any combination of wet, dry, sticky or hard material

< Page 24 • Can it be extractable? • Is it worth extracting? These questions seem to be very simple, but the underlying proof for the answers that will be sought in a bankable feasibility study by a large technical team made up of a number of engineers and technical experts in different disciplines, is painstakingly complex, expensive, long, and tedious and requires a level of expertise and accreditation that is not always available from the local market. Once all these questions are answered positively in principle, then the fundamentals of the project can be said to be in place. When the project is proven to be technically and financially viable i.e. due diligence has been performed, it comes to the stage of financing/syndication. It is possible that a number of lenders may decide to finance the project to reduce the risk exposure. It is up to these lenders and the borrower to negotiate the best deal for the project amongst themselves. Although a bankable feasibility study may WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2021

through the same machine, which is ideal for processing raw material directly from the mine face. The product size is controlled in all three dimensions, whilst keeping fines to a minimum. By creating a cubical product with very little dust, the reliability and accuracy of the ore sensing equipment improves dramatically. Furthermore, by being compact and lightweight, Sizers require very little supporting structure and offer unrivalled installation flexibility – making them the ideal choice for Semi-Mobile equipment dispatched close to the mine face. MMD have three Bulk Ore Sorting systems currently in operation, working with a variety of materials from soft and sticky nickel ore to copper ore and hard platinum ore. MMD’s ore sorting technology is scalable can be applied using a wide range of IPSC systems. Whether it be a Fully Mobile or Semi-Mobile installation, our systems are tailored to match the throughput, material, sensors, grades and relocation methods required by each individual application. See www.mmdsizers.com for more information.

determine the project details to an acceptable accuracy level and establish the fundamentals and foundations of the project, the uncertainties and risks associated in winning the raw commodity as well as any deviation from the expected results defined at feasibility stage can still be influential in determining the final outcome. It is also a well-known fact that the selection of contractors and suppliers for the project construction phase will have a huge impact on the project’s fate. For these reasons alone, the Lenders will seek the assistance of the technical experts to ensure that the finance provided for the project will be utilised according to the protocol agreed with the Borrower. This is to assure that the project will reach the production stage from the beginning to the end as agreed between the interested parties. Therefore, it is commonplace for Lenders (Commercial as well as Development banks and other funding agencies) to require Independent Lenders Engineers (ILE) to oversee the execution of Technical, Environmental and Social aspects of a project in order to provide security of the loans to reduce the risk exposure.

MINING NEWS

Managing Wealth and Beating COVID-19

By Marcelle P. Villegas

ince the global health crisis started last year, most industries, including mining, has been affected with economic downturn. Despite the risk of going out, plus the challenges of travel restrictions and lockdown rules, mining companies bravely and diligently reached out to local communities. So how is the Philippine mining industry faring so far? From a webinar presentation organised by Philippine Graphic and Business Mirror, Ronald S. Recidoro, Executive Director of the Chamber of Mines of the Philippines presented a handful of insights and information about how the large-scale metallic mining industry has been thriving and serving the nation during this pandemic. His presentation is titled “Managing Wealth: Examining the Benefits of Large Scale Metallic Mining”. He started his discussion with Metallic Mining Industry facts and figures. Recidoro notes that currently, the Philippines has 27 operating large-scale metallic mining projects, where 17 are nickel mines, 6 are gold mines, 3 are copper mines and 1 mines chromite. In terms of land area, only about 600,000 hectares are covered by mining contracts/permits. The 44 operating large-scale metallic mines cover less than 10,000 hectares of the country’s 30-millionhectare land area. Taxes are worth Php25.5 billion which is 1.17% of total taxes.

These mines contribute Php124.5 billion to the country’s GDP or 0.6% of total GDP. The industry also provides 184,000 jobs to the country. His report mentions that “For such a highly mineralized country, the large-scale metallic mining sector does not substantially contribute to the national economy. The industry has been stymied by policy problems, resulting in no new investments and therefore no growth.” But the contribution of mining does not end there. Mining companies also pay other forms of taxes and other fees to local government, royalty payments, environmental protection and enhancement programs, and social development and projects for their host and neighboring communities. Here are the numbers from Mines and Geosciences Bureau: Stifled Growth: Policy problems Recidoro enumerated the three problematic policies that have stifled the growth of the mining industry, and these are currently being reviewed by the DOF and DENR. First is the 8-year-old moratorium on new mineral agreements imposed under E.O. No. 79 (2012), until a new mining fiscal regime is passed (Note: The Excise Tax on mineral products had increased to 4% of gross revenues under

legislation passed in 2017). Second problematic policy is the ban on open pit mining method for new projects issued by former DENR Secretary Gina Lopez. Lastly, he mentioned the suspension orders issued by former DERN Secretary and pending in the Office of the President after compliance with any corrective measures recommended by the Mineral Industry Coordinating Council (MICC). More on the large-scale metallic mining’s ban on open pit mining, Recidoro pointed out that the openpit mining method is practiced all

Metallic Mining Industry: Benefit streams

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Cert. No. 67125-27 EAC Code: 02/35

HINATUAN MINING CORPORATION Mine Site: Hinatuan Island, Brgy.Talavera, Tagana-an, Surigao Norte Surigao Liason Office: NAC Bldg. Km3, Brgy. Luna, Surigao City Tel. Nos, (086) 826-6113 Head Office: 29F, NAC Tower, 32nd Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines, 1634, Tel. Nos. (623) 7987-626

MINING NEWS

< Page 28 over the mining world. The practice is globally recognized as safe. For most types of near-surface mineral deposits, there is no alternative. “There are three pending large-scale metallic projects namely Tampakan, King-King and Silangan, all located in Mindanao, caught by the ban and can alone increase the industry’s contribution to exports to 9% and total contribution to GDP to 1.5%.” “Can open pit mines be rehabilitated? Of course!” SDMP: A unique tool for community development What makes the mining industry different from other industries is their unique Social Development and Management Program (SDMP) which is provided to their host communities. SDMP entails a 5-year social development plan prepared and funded by the company in consultation with the community. “This is a mandatory expenditure of the equivalent of at least 1.5% of mine operating cost. The community has a direct say in what projects, plans, or programs will be funded by the company; designed to ensure ownership and sustainability.” SDMP includes community infrastructure support, education and training support, livelihood support, entrepreneurship training, and health/medical support. Environmental Protection & Enhancement Due to the limitations brought

< Page 21 Administrator Abegail B. Eupeña. Municipal Mayor Crisanta O. Mondano and Mainit Sangguniang Bayan Members, Brigadier General George L. Banzon of the 901st Infantry Brigade, Lt. Col. Ryan Callanta of the 30th Infantry Brigade, Dr. Ma. Teresa M. Real Superintendent of DepEd Surigao del Norte, and the Indigenous People (IPs) of Cantugas with their Brgy. Captain Hon. Perfecto G. Galvez also attended. On behalf of Engr. Francisco J.

about by the pandemic, data for 2020 and 2021 are to follow. However, the numbers from 2019 are somehow accurate representations on how large-scale metallic mining companies are seriously carrying out their commitment to protect the environment. COVID-19: How largescale mines responded While these companies have been busy running their operations, protecting the environment and providing assistance to their host communities, the global pandemic gave them a new set of tasks to accomplish. How did large scale mines respond to the COVID-19 crisis? Although mining companies have always been helping their host communities through their SDMP funds, the opportunity to serve further started on the 27th of March 2020. On that day, the Mines and Geosciences Bureau of the Department of Environment and Natural Resources (DENR) issued a Memorandum that authorises large-scale mining companies to realign their mandated social development funds (1.5% of operating costs) to support affected communities quarantined due to the COVID-19 pandemic. By August 2020, large-scale mining companies spent over Php380 million on Personal Protective Equipment (PPEs), disinfectants and medical supplies. They Arañes, Jr., Resident Mine Manager; Michelle V. Baliña, Surigao Liaison Office (SLO) Manager, represented HMC during the graduation and turnover ceremony. The activity was conducted in line with the mantra “TESDA, Abot Lahat” of Secretary Isidro S. Lapeña, Caraga Cares of RD Mapandi, President Rodrigo Duterte’s Legacy on Barangyanihan Caravan, and implementation of Executive Order (EO) 70 programs carried out through Poverty Reduction, Livelihood and Employment Cluster (PRLEC) chaired by TESDA.

also spent on food assistance and supplies for social amelioration measures benefitting 297,491 frontliners and 1,099,090 households/families living in host communities and beyond.

Photos and charts credit to Atty. Ronald Recidoro, Philippine Graphics and Business Mirror (25 March 2021)

Looking forward: Mining policies for post-COVID-19 economic recovery Recidoro reported that, “The Department of Environment and Natural Resources and Department of Finance (DOF) have come out with media statements in support of large-scale mining to spur economic growth amidst the ongoing pandemic and post-COVID.” “Rehabilitation and privatization of government-owned mineral assets foreclosed/abandoned in the 1970s and now held by the Privatization Management Office (PMO) under consideration. The pending issue is fixing mining policies and a possible new mining tax regime.” He mentioned that mines are positive that these changes will somehow benefit the industry and their benefactors in due time. EO 70 or the “Institutionalizing the Whole of Nation Approach in Attaining Inclusive and Sustainable Peace and Creating the National Task Force to End Local Communist Armed Conflict (NTFELCAC)” was signed last November 2018 to institutionalize 12 Lines of Effort to address the different aspects of the local communist armed conflict. One of the 12 Lines under the NTF-ELCAC is the Poverty Reduction, Livelihood and Employment Cluster (PRLEC) being led by TESDA. ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

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MINING NEWS

How can we ensure long-term mining viability in changing times? By Engr. Jeffrey Q. Geronimo

ining remains an essential industry in the COVID-19 pandemic even though it has experienced devastating impacts. According to S&P Global Market Intelligence, this pandemic disrupted 275 mining operations across 36 countries. Not only that, over $8.8 billion in total revenue is continually at risk. Therefore, the strategic importance of proper planning to ensure long-term mining viability cannot be underemphasized. In response to this urgency, a flexible strategic mining solution was tested by a global leader in mining technologies. They evaluated 23 mining pits from various mining companies. In a span of just 15 hours, it produced a staggering 1,600 directional alternatives in their nested pits. These alternatives were then narrowed down to three of the best pushback directions based on the company’s KPIs. The best option was then selected to be the most optimal and feasible design implementation to yield the maximum performance for the final mine pit over a long duration of time. The result? An astonishing increase of 5% net present value (NPV) delivered to these mines even at the onset of the COVID-19 pandemic. This is all made possible by Dassault Systèmes GEOVIA’s new Strategic Mine Planning (SMP) solution. It allows mining operations to update their planning and modelling quickly by assessing all options available to ensure long-term viability. “Planning plays a fundamental role in the evaluation of any mining operation, from the initial resource estimate to the project feasibility stage. Such planning also has to be inherently flexible, taking into account the viability of a resource, whether or not it is economically feasible to extract, how long this will take and the best sequencing of such extraction. What’s more, all of this has to be analyzed over the entire life of mine, which could be anything from 30 to 40 years or longer,” commented Andy Mulholland, the Business Consulting Direc-

tor of GEOVIA who conducted the SMP solution. Guiding Investment Decisions Making assumptions in mining costs are greatly dependent on the mining method selected. Caving, for instance, is a very effective massmining method. However, choosing this is an upfront decision that locks you into this approach. Alternatively, other underground and surface mining methods give the operator more control through the life of the mine. The mining direction can also be altered over the life of mine to track the ore body more accurately. The new SMP solution is critical in guiding investment decisions during the exploration or feasibility stage. It can be used to update precious resource and reserve models. It makes it easier to understand what is viable to extract, in addition to the grade and value in the light of fluctuating commodity prices. This enables us to realize an updated life-of-mine estimate. From here, procurement decisions in terms of capital equipment can then be optimized. “Hence, it is essential for mining companies to be able to run as many different scenarios as possible to generate multiple options for dealing with a range of contingencies. This underscores the true value of a mine in relation to its costs in real-time, to drive investment decisions in as smart and as proactive a manner as possible given the current volatile market conditions. The advantage of the SMP solution

is that it does not merely generate a myriad of potential outcomes,” elaborates Mulholland. Increasing Robustness and Improved Decision Making Dassault Systèmes has the necessary up-to-date tools to be able to isolate options that are least sensitive to the variables under consideration for added robustness and improved decision-making. Say for instance, a plan with a slightly lower net present value for a mining operation may be far more robust and less susceptible to uncertainty. When blended with pit design, a robust production plan must consider several strategic questions, such as the estimated life of mine, the mining rate and subsequent processing rate, the location of the dump piles, and the critical infrastructure required. In this instance, Dassault Systèmes ran 9,680 sequences with different cut-off grades, prices and production capabilities and capex, generating a so-called ‘hill of value’ in under 24 hours. “Hence, production becomes

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ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

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MINING NEWS

Phil. Gold partners with LGU for tourism, CDA in Masbate

hil. Gold Processing & Refining Corp. and the Provincial Government of Masbate through its Masbate Tourism Office, the Department of Agriculture (DA) and the Cooperative Development Authority (CDA) have forged a partnership to prime up two key development projects: organizing 10 cooperatives in the Municipality of Batuan and the full research and documentation of tourism sites of the whole Masbate province. These projects are part of the Provincial Government’s people-driven approach to development. The establishment of the ten cooperatives in Batuan came from a collective of the Agriculture Department’s farmers’ organizations. The farm-based microindustries started creating basic goods and services through

the enabling mechanisms of the CDA, and increased livelihood and employment opportunities for the people in Masbate. Phil. Gold provided the cooperatives with office equipment such as laptops, projector with screen, steel cabinets and office desk. A series of training programs, development inputs and broader partnerships will be held among the key stakeholders in the province to help the cooperatives become selfsustainable. The initiatives to create a tourist-appealing Masbate will include visual and auditory snippets of unique cultural narratives to make the province well-appreciated by vacationers. Phil. Gold donated photography and videography equipment such as cameras with accessories, computers and

a drone to fully document the tourism sites of Masbate. “I am very much thankful, and we really appreciate the efforts of Phil. Gold to assist its host province to improve its services to the rest of the Masbatenos, not just their host communities,” says Provincial Administrator Rino Revalo, representing the Provincial Governor. This private-public partnership between Phil. Gold and the Provincial Government of

Masbate aims to spur development in the countryside and is expected to enhance locals’ livelihood and increase business activity in the region. Phil. Gold has created campaigns and educational programs that engage stakeholders by giving them a peek into Phil. Gold’s operations, showing them how the company has provided jobs to the people in Aroroy, and has served as a catalyst for increased economic activities in Masbate.

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MINING NEWS

Taganito Mining DOLE-Caraga’s first ‘safety seal’ recipient in Surigao Norte

LAVER, Surigao del Norte --Taganito Mining Corp. (TMC), subsidiary of Nickel Asia Corp. (NAC), has been awarded the government’s safety seal certification, the first company to be bestowed the recognition in the province. The certification came after a validation and technical inspection by the team from the Department of Labor and Employment (DOLE) regional and provincial offices on September 2-3, 2021. Led by DOLE-Caraga Director Atty. Joffrey Suyao, the team determined that TMC has complied with the minimum public health standards related to the coronavirus (COVID-19) pandemic. “I want to emphasize the importance of observing our safety and health protocols among our companies, because as long as we operate, the health of our employees depends on it,” Atty. Suyao said in the dialect. “If the workers are not healthy, the productivity would surely be affected.” According to Suyao, the safety seal certification is a tripartite effort on the part of the workers, the management, and the government “that must all work together for us to achieve a safe and healthy working environment.”

Suyao said he was impressed upon entering TMC’s premises, which involved a series of stringent health protocols for visitors. “We had to go through the safety protocols here, observe proper hand washing, temperature checking, checklist, etcetera. I was really impressed because these are the very things that our government requires,” the DOLE-Caraga chief said. Meanwhile, TMC Resident Mine Manager Artemio Valeroso said the certification was “a testament of what we are doing in this establishment. There is a secret why TMC has been operating for a long time: TMC is always taking care of the people, of the community, and of course our employees.” “Maintaining a good harmonious relationship with our stakeholders is important to us. Thank you to all of you for supporting TMC, sa ating mga contractors, managers, mining service providers, labor union, and all employees. Kung wala kayo, hindi din magiging ganito si Taganito Mining. We are all partners and we will do it as a team,” Engr. Valeroso added. Valeroso vowed that with TMC being granted with the safety seal, “we have to sustain this and continue improving our programs

and measures to ensure the safety and well-being of our employees and we all stay safe, healthy and always bida.” The Safety Seal Certification is a voluntary certification scheme that affirms that an establishment is compliant with the minimum public health standards set by the government and uses or integrates its contact tracing with StaySafe.ph (or the SDN contact tracing app). The DOLE issues the Safety Seal for the manufacturing, construction sites, utilities (electric, water, gas, air conditioning supply, sewerage, waste management) information and communication companies (private publication, news, movie production, TV and radio companies), and warehouses. TMC applied for the safety certification as part of the company’s commitment to comply beyond the regulatory standards mandated by the government. Among the measures employed by the company include mandatory wearing of face mask and shield, routine temperature checking, installation of foot baths, setup of handwashing facilities and alcohol stations, observance of social distancing and other minimum health protocols.

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technical constraints and operational risk • Couple the geotechnical domain with mine extraction to model interactions (e.g. cave back propagation to material flow to cave draw points) • Run thousands of scenarios in a design of experiments to ensure the most robust plan is selected • Project lifecycle governance with approval traceability and version management

more manageable, stable and sustainable. An efficient mine with an optimal production plan guarantees surety of a mining project in the long term, whilst minimizing risk,” concludes Mulholland. Through Paramina Earth Technologies, Inc., the premier mining software solutions provider in the Philippines, mining companies can now gain access to SMP in order to generate as many scenarios as needed. Comprehensive training on how to fully utilize and maximize the potential of SMP may also be

STRATEGIC MINE PLANNING (SMP) FOR OPEN PIT, UNDERGROUND & CAVING SOLUTION CAPABILITIES: • Aggregate input data, assumptions and constraints into a central location • Leverage historical data to correctly define mining parameters • Determine trends and correlations between historical data • Incorporate mine status, geo-

REFERENCE: Dassault Systèmes. (2021). Strategic Mine Planning is Essential to Ensure Longterm Viability in Changing Times. ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

THPAL commences chromite production

aganito HPAL Nickel Corporation (THPAL), a mineral processing plant and a subsidiary of Sumitomo Metal Mining Co., Ltd (SMM), officially started its commercial operation of chromite last March to produce chromite concentrate. The company decided to commercially extract chromite to be used primarily as a raw material for stainless steel. With the Chromite Recovery Plant of the company, THPAL can now recover chromite simultaneously during the production process of nickel and cobalt mixed sulfides, the first intermediate product of the company. Chromite has brownish to black-colored mineral and is refined and processed into the intermediate product ferrochrome, widely used as a raw material for stainless steel and other special steels. This can also be used as paint pigment to produce Chrome Yellow for the textile industry, where large amounts of chromium compound as chemical to fix a dye are commonly used. According to Engr. Rey Prado, head of THPAL Chromite Recovery Plant, “It has been shown that there is an increase of

the worldwide demand for chromite from November 2018 and the market is still growing. With this, the company’s target is to produce high quality chromite for quarterly shipment on demand of the customer.” By efficiently recovering not only nickel and cobalt but also its by-products such as scandium and chromite in THPAL, it will increase the cost competitiveness of its HPAL technology. This will likewise provide new materials for the stainless-steel industry, which is the backbone of the nickel business. By doing so, SMM’s presence in the global nickel industry through its subsidiary companies will push the realization of its vision of “Becoming the World Leader in the Non-Ferrous Metals Industry” by 2030. This will likewise add value to the low grade ores and increase the contribution of the company to employment generation and to the coffers of the government. Taganito HPAL Nickel Corporation (THPAL) is a mineral processing plant located at Taganito Special Economic Zone, Barangay Taganito, Claver in the province of Surigao del Norte, which employs the

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2021

highly efficient High Pressure Acid Leaching (HPAL) technology to turn low-grade nickel ore into a manufactured intermediate product of high commercial value. With its estimated cost of 1.6 billion US Dollars, it became one of the largest foreign direct investment projects in the Philippines. THPAL’s plant is designed to have an annual production of 30,000 metric tons of Nickel and 2,640 metric tons of Cobalt in the form of Ni-Co Mixed Sulfide. This Ni-Co Mixed Sulfide will be exported to Nihama Nickel Refinery in Ehime Prefecture, Japan. THPAL is likewise the country’s sole producer of scandium – the rarest mineral on earth -- and on April 2021 THPAL started the commercial operation of its Chromite Recovery Plant to produce chromite concentrate.

MINING NEWS

Schaeffler: Comprehensive bearing solutions for mining sector

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ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Mining community ecstatic as TVIRD brings operations on-stream in Bayog

ayog, Zamboanga del Sur – Mining stakeholders of this town are jubilant that TVI Resource Development Philippines Inc. (TVIRD) finally commenced its commercial mining operations in Sitio Balabag. Subanen tribal leaders as well as local government officials are likewise optimistic that with this development, people in the region will surely benefit from the increased economic activity in downstream industries. The news also brought a smile to the 78-year old tribal leader, Timuay Casiano Edal – a member of the Subanen tribal council called Pigsalabukan Gokum de Bayog (PGB) and one of the signatories of the Memorandum of Agreement (MOA) signed by the tribe and TVIRD. The MOA enumerates the duties and responsibilities of the two parties as the company utilizes the Subanen ancestral lands and harnesses its resources. “After many years of waiting, finally TVIRD is operational. I never thought I would still witness its mining operations,” the chieftain told TVIRD Community Relations Officer Lope Dizon. Edal was among the many Subanens who warmly welcomed the company’s geologists assigned to explore Balabag some 20 years ago. “He has a heart for his tribesmen. Because of this, Edal believes that tribal leaders can now implement the development plans embodied in their Ancestral Domain Sustainable Development and Protection Plan (ADSDPP), which was approved by the National Commission on Indigenous

People (NCIP),” added Dizon. The government’s partner Bayog Mayor Celso A. Matias is also confident that his constituents will enjoy more benefits now that the company is operational. In a recent TV interview, the mayor discussed the economic impact of mining on his town and commended the company for providing employment to his constituents. In that interview, the mayor also applauded TVIRD for supporting local businesses and its implementation of development projects through its Social Development Management Plan or SDMP. “Namalit sila sa mga lokal nga produkto dinhi sa Bayog. Sa karne lang, daku nga volume ang ilang ginapalit nga usahay ma-‘short’ na gani ang mga supplier (They are buying their essentials here. They are ordering a large volume of local meat that may sometimes result to shortage of the product from its supplier),” he said. The mayor who once visited TVIRD’s first project in Sitio Canatuan, Siocon, Zamboanga del Norte is hopeful that Bayog can also be elevated from being a third-class municipality to firstclass status due to the company’s local taxes remittances – this, in addition to its tax contribution into the national government. Mayor Matias is referring to the excise taxes paid by mining companies to the national government in which the host province, municipality and barangay will have a predetermined share of the tax as mandated by the Mining Act of 1995. During its gold-silver and

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2021

copper-zinc projects in Canatuan, TVIRD paid a total of Php395.2 million in excise tax to the national government. Records from TVIRD’s Finance Department also show that the company paid a total of Php38.9 million to Siocon town for its business permit from 2004 to 2018 while another Php18.7 million was paid for its real property tax. Meantime, TVIRD invested some Php173.4 million in its SDMP and Php264-million in royalties to the Subanen tribe during its 10year run in Canatuan. To spark hope Seeing him at work, one can say that Antonio Malco, Jr. is happy and content in working for TVIRD. Malco, Jr. 38, is a resident of Bayog and father of a teenage son who is already in high school. He is a crane operator and has been with the company for two years now. “During this pandemic, when many are hungry and hopeless because of joblessness, I can say that I am blessed to have this job. My family is assured of food on our table and other basic needs,” he said. Welder Ariel Arado, 36, likewise shared that he is happy to be back in TVIRD. He said he likes working for the company since it looks after the welfare of its employees. “Happy ako sa trabaho ko (I am happy with my job).” Arado was a member of the Special Civilian Active Auxiliary (SCAA) that helped secure the company’s assets in 2005 and was also part of the exploration team in 2007 until 2008. Malco and

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MINING NEWS

TVIRD concludes acquisition of Siana Gold Project from Red 5 Limited

VI Resource Development Philippines Inc. (TVIRD), local affiliate company of Canada’s TVI Pacific Inc. and majority shareholder Prime Asset Ventures Inc., earlier signed a binding agreement with Australia-based listed gold company Red 5 Limited. The agreement pertains to TVIRD’s acquisition of 100 percent of Red 5’s outstanding equity in its Philippine affiliated company, Greenstone Resources Corporation (GRC), which is the owner and operator of the Siana Gold and Mapawa Projects in Tubod, Surigao del Norte Province. The agreement was signed by TVIRD President Engr. Yulo E. Perez and Red 5 Managing Director Mark Williams in July this year. The inked agreement is a landmark deal that underscores the restored investor confidence in the Philippine mining and extractives sector. As of September 20, the company has completed the acquisition of 100 percent of the outstanding equity of GRC. “The acquisition of Greenstone, particularly the Siana Gold Project, dovetails with our group’s long-term growth strategy that is hinged on building a robust mining portfolio staggered across multiple commodities,” according to Perez. Investment agreement “We are likewise encouraged by the current market performance of precious metals as well as the overall positive investment climate for mineral and resource development in the country,” he said. TVIRD invested US$19 million in cash to Red 5 to obtain 100 percent of GRC shares. The company also confirmed that the cash portion of the purchase price was funded from internal resources. Parallel to this, Red 5 is entitled to a 3.25

< Page 39 Arado are two of over 750 people working in TVIRD Balabag. Hiring locals TVIRD’s 4,779-hectare Mineral Production Sharing Agreement (MPSA) area spans the three provinces of the Zamboanga Peninsula. Nearly half of its workers are residents of Bayog, an agricultural town. Meantime, eligible candidates from neighboring Sibugay,

percent net smelter royalty (NSR) to be paid from the sale of up to 619,000 oz. of gold produced from Siana. The recognized NSR value is US$35 million based on a gold price of US$1,750/oz. Project status While the Siana project is currently on voluntary care and maintenance, it holds all the necessary government permits to restart operations, including an Environmental Compliance Certificate and an approved Declaration of Mining Project Feasibility. “The company is currently developing plans to bring Siana back on-stream,” said Perez, citing TVIRD’s plan is to restart operations at Siana as soon as possible. The project site is located in a 3,289-hectare Mineral Production Sharing Agreement area and includes a modern 1.1 million tonne per annum Outotec mill, gravity and Carbon-in-Leach (CIL) mill facility commissioned in 2012 at a capital cost of US$54 million that includes a single stage SAG mill and six CIL tanks. Prior to signing the agreement, Red 5 confirmed that GRC spent over US$200 million in the development of Siana, which has the only modern gold plant in the region Resources and expansion plans In its 2020 annual report, Red 5 cited a combined historical Indicated JORC12 mineral resource estimate for the Siana open pit and underground mine of 4.3 million tonnes @ 4.6 grams per tonne of gold and 6.8 grams per tonne of silver. It also cited a combined Inferred JORC12 mineral resource estimate of 0.5 million tonnes @ 8.9 grams per tonne of gold and 10.6 grams per ton of silver. In addition to Siana, the agreement also covers the 1,482-hectare

Mapawa MPSA and the 595-hectare Ferrer APSA claim. All assets and properties have obtained government approvals and relationships with key stakeholders. The plant receives Grid power with a back-up 8MW diesel fired power station while the project has the necessary infrastructures in place: an administration building, warehouse, mess hall, camp facilities and accommodation, an engineering building and maintenance facilities. With the necessary technology, equipment and facilities, there also lies the potential to establish Siana as a processing center for other nearby prospects and gold deposits. TVIRD key officers believe that the Siana and Mapawa tenements hold the potential for exploration. Meantime, Mapawa and Ferrer are in the early stages of exploration. “This represents a strategic acquisition for TVIRD”, said TVI Pacific Inc. Chairman and CEO Clifford M. James. “Management and the directors of TVIRD are excited about the acquisition, which coincides with the start-up at Balabag and positive changes in the Philippines Government and financial community attitudes towards mining projects.”

Zamboanga del Norte and other provinces are appointed to technical positions. The company likewise honors its agreement to provide employment for eligible Subanens. Some 13% of its workforce are Subanens – a development lauded by Timuay Lucenio Manda of the PGB and who leads the collective Subanen tribe along with Edal. TVIRD Balabag Project Manager Jun Gingo said that the company is currently operating at a

capacity of 1,000 tons per day and has completed its first shipment of gold doré in the amount of 855 kg containing 932 ounces of gold and 25,959 ounces of silver. With the Balabag plant and mining activities operating twentyfour hours per day, Gingo draws confidence from the collective experience of its workers and the capability of the newly-installed mill plant – which will enable TVIRD to ramp-up operations to double the current capacity. ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

An environmental program that is both transformative and ‘Instagrammable’

ubay, Agusan del Norte — Agata continues to implement effective and sustainable rehabilitation programs that highlights its “Mining and Ecotourism” concept through the successful conversion of its mined-out areas into eco-tourism sites. Agata may not be the biggest nickel project in the country. But whatever it lacks in size is compensated through innovations, environmental programs and socio-cultural projects replicated by other companies. Reforestation and rehabilitation Agata designed its rehabilitation programs to give equal importance to replanting minedout areas and protecting existing forests in order to conserve its natural environment. The balance between production and protection is essential in sustaining the community’s livelihood and protecting local resources. Since 2020, Agata has planted about 423,807 seedlings of forest and fruit-bearing trees as well as endemic plant species. And since the time it commenced exploration, Agata’s reforestation activities have covered a total area of over 440 hectares. The careful selection of trees and plants was curated by the company as a means to ensure the community’s livelihood at the end of Agata’s mine life.

Nurseries were constructed to house and propagate endemic and bird-feeding tree species as part of the company’s Land Resource Management Program to increase the productivity of mined-out areas. Its Ligaya Central Nursery has a capacity of 600,000 seedlings while its satellite nursery has a capacity of 25,000 seedlings and is maintained by its partner community – the Lawigan Farmers and Fisher-folks Association (LAFFA). Agata also planted some 2,948 Giant Bamboo trees (Kawayan Kiling species) across seven hectares as part of its final rehabilitation and reforestation. Agata Forester Jesnar Villareal said that bamboo absorbs more carbon dioxide than trees, generates a vast amount of oxygen and can strongly root itself in the ground – which makes the soil more stable. Thematic landscapes Achieving a sustainable environment after mining is the focus of Agata’s vision for the future. It was the first mining company to adapt thematic landscaping, which is a method of land use management where rehabilitation or revegetation is designed to beautify the area. These “Instagrammable” landscapes also showcase the company’s best practices on solid waste management as the ornaments used are made from recycled ma-

terials. One such photo hotspots is the Bae Lawanen Garden found within the admin camp, which has been frequented by visitors prior to the pandemic. Green innovations Agata produces its own organic soil fertilizers by using livestock wastes from the company’s own Mabakas Techno Demo Farm. These organic fertilizers – mixed with kitchen food waste from the company’s mess hall – are recognized as a “soil builder” because of its property to improve soil quality. Agata also trained local farmers on the production of the organic fertilizers for their own use. In addition, the company implements a strong solid waste recycling program that has reprocessed 60% of all collected solid wastes in this year alone. It also created its own rain-fed irrigation system using plastic water bottles as rain catchment and storage to keep a steady supply of water for its growing plants and trees. These environmental projects not only reduce the company’s carbon footprint but also helps in its reduction of ecological waste. With the collective support across its ranks and host barangays, Agata cultivates a better and healthier environment for its communities; an enduring testament that – beyond a doubt – there is life after mining. ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

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MINING NEWS

The CBMM/Keepmining journey: Over 15 years of resounding customer success stories

he journey of CBMM/Keepmining® started in the mining and quarry domain as a trader, and transitioned to a distributor with over 15 years of resounding customer success stories. Our success lies in identifying specific customer irritants and pain points, and solving them through disruptive design and engineering with our crack team of accomplished industry veterans and technical experts. CBMM/Keepmining® is a global MNC based out of Singapore and provides mining solutions for OTR tyres, mining equipment(s), crushers, washing solutions, tailings management, conveying solutions, customised drilling solutions and customised IOT & automation solutions. Crushing, Screening and Washing In the Philippines, we are wellpositioned to help our customers through our wide range of solutions in the mining and quarrying domains through our partnership with Superior Industries USA. We provide crushing and screening plants, washing systems and conveying systems that are made in America. Superior is a renowned brand for their expertise in crushing, screening and washing equipment like Liberty® jaw crushers, Patriot® cone crushers, Spirit® washing equipment. Their expertise attained through rigours research in the field of conveying, crushing, screening and washing helps us to be a technology leader in mining & quarry domains. Superiors Alliance® washing system is unique in its design as it allows for the customer to feed dry sand into the washing system and get quality manufactured sand.

This is done by using a scrubbing system followed by dewatering screen coupled with an optional cyclone to get the best quality sand output while using half the water consumption of traditional washing systems. Superior offers industry leading warranty on their equipment and have proven many times that their customer excellence approach leads to success for all stakeholders. Conveyors and Conveyor Accessories Superior Industries is a leader in the conveying systems space with solutions like Telestacker®, Trailblazer®, Zipline Modular conveyors and Razertail®. Their expertise in conveying solutions is long and tested over the decades since 1950. Their use of in-house engineering and selfmanufactured components make them uniquely positioned to offer the best solutions for the mines and quarries of Philippines. Superior solutions for Telestacker® telescopic conveyors are well known to be the best, and able to handle large capacities for stacking products as well as in heap leach stacking applications in relatively small conveyor footprint. The same telescopic conveyors can be used by mines who are working with global clientele to load ships directly from conveyors or from trucks by pairing with a Razertail® truck unloader. Many of these conveying and truck unloading systems are portable and can be transported with quick turnaround times. The quality and longevity of their conveyor components are well regarded globally and there are multiple clients who swear by

their products for conveyors accessories. They have a wide range of rollers, conveyor pulleys, idlers, belt scrapers, impact beds etc. which are known to provide great value to the exacting mining user of Philippines who need the best value and reliability of their conveying components. Tailings Management A mineral processing plant in the modern mining scenario is usually incomplete without a tailings management and water treatment solution. This is keeping in mind the various environmental effects of the traditional tailings dams and the probable failure of the dams leading to catastrophe. Keepmining® brings to Philippines Matec Italia, a global technology leader in the water management space for mines and quarries. Matec provides complete dry tailings management solutions for any mine or quarry in order to help save time and operating costs for the end user. Matec thickeners and filter presses are available for any size of quarry or mine. Matec “Cube” modular solution is ideal for small or mid-size mines.

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MINING NEWS

< Page 44 The modularity of the Cube allows Matec to deliver quality results with a reliable delivery period in capacities to suit the customer requirements. The Cube is a modular solution containing a set of mini-thickeners, filter presses, flocculant dosing. The fresh water and dry tailings are collected in standard containers. Apart from water management offering, Matec is the company behind the brand “Alfa Pompe” pumps made in Italy for mines and quarries. A New Beginning In 2021, Keepmining® started another leg of the journey towards becoming a single point solutions provider for mines and quarries around the world. Keepmining® has invested in ADET as a wholly owned subsidiary based in India with a view to provide solutions to reduce unplanned downtime and inconsistent output. ADET operates with the theme ONTIME – Always. ADETs disruptive products and plant designs with unique ‘know-why’ approach, application specific Engineering, and Intelli-service, backed with

SURFACE EXPLORATION GEOTECHNICAL

industry leading warranties, help to achieve the promise of “On-Time Always’, enabling higher stakeholder profits and ease of business. Our motto is to provide simple solutions to complex user problems by using our cutting edge to get to the core of the issue. ADET products and solutions cater to specific requirements in mining and aggregates industry. ADET has built solutions for coal crushing, sand washing and reliable crushing and screening solutions for customers looking for the best value and reliability. ADETs in-house team has looked at the “know-why” of existing paradigms of equipment or solutions and worked to add modern techniques and understanding of manufacturing and design to bring in disruptive solutions to the market. ADET believes in providing value through simplicity in design and ease of use. ADET implements the honeycomb structure in their designs to provide great strength to weight ratio. In addition, the focus on safety and maintenance provides improved cost of ownership to the user. Our team of industry veterans, field service technicians, consultants and specialists ensure that our

BLAST HOLE SPECIAL PURPOSE

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end users improve their productivity by providing the right solution that addresses the core of their problems. Our understanding of the Philippines systems, people, culture and procedures complement our working methods and ensure that our customers in Philippines needs are addressed comprehensively, leaving no stone unturned and in turn leading to a long-lasting and mutually rewarding relationship.

Plot No. M8, SIPCOT SEZ For Engineering Products, Perundurai, Erode – 638 052, Tamil Nadu, India.

DEWATERING WATER WELL

www.prdrigs.com

+91 97877 03666

suresh@prdrigs.com

MINING NEWS

Coal: How to get the grades right on key parameters like calorific value, ash, and total moisture

oal trading is a very competitive landscape. While end customers buy the quality of coal based on what is compatible with their boilers and furnaces, the traders need to be vigilant in sourcing and supplying right grades. Buyers impose price discounts if the coal’s calorific value and other key parameters fall short of expected values. To secure the contracted revenue and avoid any discounts, exporters typically tend to supply higher grades than necessary. This in turn eats into their profit and erodes margins. Price penalties are also put in place if exports exceed the specific amount of moisture in the coal, since the moisture adds to transportation costs. Not to mention that since exports are typically global and long distance, breach of moisture limits can pose stability issues to the ships. In the worst-case scenario, such shipments at the port could even be rejected. In this article we share the idea about how coal mining companies, traders, and end-customers can achieve a “happy buyer-happy seller” agreement. Benefits - Coal Mining • Ash, ash composition, Sulphur, total moisture, and calorific value are critical information to decide value of the coal • Avoid penalties by meeting the contractual specifications of the coal • Bring down the production cost and improve yield • Grade-wise stockpiling of the coal • Perfect blending in accordance with end customer specifications Coal Plant • Incoming check of grades to verify specifications • Verification of consistency or intrinsic

deviation of the whole lot of material • Optimization of coal yard management • Blending of coal to target quality • Optimize waste by safe use of low cost / low quality coal • Bunker feed control in power plants • Optimization of combustion parameters for boilers • Assurance of optimal running conditions of boilers • Minimize slagging and clinkerisation of ash in the boilers • Reduced maintenance costs through minimal derating and boiler outages About CNA Coal CNA Coal has been designed for tough environments of mines, featuring the cutting-edge Sodern neutron technology with unmatched lifetime and stable neutron output (D-T PFTNA). Coal is an important industrial mineral both as a fuel and feedstock. Coal quality can vary greatly depending on the source. Hence the usage and price are highly dependent on the composition. Whether located directly at a mine, a coal processing plant, a metallurgical plant, power plant or other usage point, the CNA can provide reliable real-time information on the coal composition, calorific value, ash content,

volatile matter, and total moisture. The CNA with unique neutron generator technology enables measurement of a wide range of elements, including C and O. Features/Benefits • Get Real-time Analysis • Proven On-Off electric neutron source • Achieve High Intensity and performance on results • Analyze all the elements of your interest, including C and O • Enjoy Up-time and Savings with Long Term Availability of Neutron Source • No need for frequent re-calibrations • Automatic radiation protection system (ARPS) for unrivaled safety during operation and maintenance • Fits wide ranging belt dimensions starting 600mm to 2200mm and beyond Conclusion CNA Coal provides a powerful online monitoring tool using the D-T Pulsed Fast Thermal Neutron Activation (PFTNA). This makes it the only tool to provide ultimate and proximate analysis of coal in real time. The CNA helps provide coal of specific ash, calorific value, mois¬¬ture; not more, not less…. exact! CNA real time analyzers with unique D-T PFTNA technique are also available for elemental analysis of other ores and minerals viz. nickel, iron, bauxite, copper and lime.

ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

QES: Complete solutions to successfully sustain mining industry

he year 2021 has been the transition from the pandemicstricken year 2020 towards economic recovery and full adaptation on the ‘new normal’, as the mining industry successfully sustained and continues to move forward with the country’s mineral riches. [1] In line with this, QES Technology Philippines Inc. offered its technical support to private mining sectors and government bodies, for assistance on X-ray Fluorescence (XRF) analyzers. QES catered both sales and services of handheld and benchtop ED-XRF. On August 2021, QES completed their newly renovated Demo Room which houses demo units for benchtop ED XRF (SPECTRO CUBE), Arc Spark OES (SPECTRO MaxX), handheld XRF (SciAps X300 and X200), handheld LIBS (SciAps Z200C+) and other equipment/ instrumentations. These are available for demo from Monday-Friday office hours at their head office in Page 1 Bldg., Acacia Ave., Madrigal Business Park, Muntinlupa City, still in compliance with standard health protocols. In partnership with Southgreen, QES assisted Mines and Geosciences Bureau (MGB) in pioneering the first regional installations of handheld XRF analyzer for Region VI and Region IX. A 3-day SciAps XRF X-200 virtual product training was conducted for the first time and ended successfully in coordination with MGB Central Office. The SciAps handheld LIBS Z-200 C+ was also purchased by a private sector used for Research and Development also catering the C requirement in alloy and geological samples. This is also the equipment used by NASA for the Mars exploration project. The use of “XRF guns” as termed by geologists, have dramatically improved the method of exploration so this is now a musthave tool for site projects exploration and face sample evaluation. This year’s milestone, also a solid indication that the Philippine Mining Sector is thriving, is QES’s record breaking sales of fifteen (15) and still counting units of benchtop ED-XRF analyzer Spectro XEPOS. QES has established and continuously dominates the sales, service, and calibration of ED-XRF analyzers in the Mining Industry from Isabela to Tawi-Tawi, through the Spectro XEPOS which has always benchmarked the ED-XRF analyzers in the mining industry known for

its simple, accurate, and efficient analysis. One of the major strengths of QTP is the availability of regional technical support. Two engineers are based in Cebu, one in Clark, three in Manila and one in Surigao to fulfill the response time promised to customers. Along with that is the digitalization of equipment maintenance and repair tracking, QR code sticker is now a standard to new equipment installations and being rolled out to existing ones. The endusers can now conveniently scan the QR code using their phone or tablet and it will present the maintenance history of the equipment. The end user can also take photo of the QR code send it to their purchasing department so they can verify the parts are already installed to close the related transaction with ease. To assure continuous growth and learning, QES joins the 2021 ANMSEC and organizes webinars on Nickel Ore Mining particularly on exploration, sample preparation, calibration (for end users), and complete mining solution. You may scan below to visit/join their official Facebook group to keep update on

their incoming webinars. Or for inquiries and consultations, you may directly message: qtpmarketing@qesnet.com. [1] Conoza, Adrian (Jul. 9, 2021). “Sustaining the Philippine mining

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SciAps XRF X-200 for mining site exploration (Philippines) and SciAps LIBS used by NASA for Mars exploration

QES Technology Philippines, Inc. Demo Room at Page 1 Bldg., Acacia Ave., Madrigal Business Park, Muntinlupa City

QES digitalization of equipment maintenance and tracking through QR code sticker wherein one will simply scan and see updated maintenance history industry under balanced interests”, Retrieved from https://www. bworldonline.com/sustaining-thephilippine-mining-industry-underbalanced-interests/

MINING NEWS

Froth Recovery Upgrade package (left) and Adjustable Radial Froth Crowders (ARFC)

Optimum froth recovery floats into view

he flotation process can be divided into two stages: formation of the bubble-particle aggregates in the slurry and recovery of these aggregates in the froth. Historically, most attention – both from the theoretical and practical point of view – has been given to the first part of this process. But due to a newly developed instrumentation package, optimising froth recovery rates is now set to deliver real dividends. “It is probably no exaggeration to say that the potential from augmenting froth recovery rates – in terms of what more efficient control of the level, residence time in froth and pulling rates could deliver – was only recognized a few years ago by the industry,” commented Dr. Dariusz Lelinski, Global Product Manager for Flotation, FLSmidth. “This is because it was assumed that there are no losses during transport from slurry to the launder. It was only a few years ago it was measured that the loses are typically 50% and can reach as high as 90% for coarse particles. What it means is that 50% (averaging over all sizes) of particles must be captured again after detachment in froth phase.” “Our goal was to increase the probability of recovery of particles in the froth phase, especially coarse ones. There is no simple way to achieve it, because of it we came up with combination of instruments and devices flexible enough to achieve our goal in majority of flotation applications,” explains Lelinski. Equally applicable to sites operating with either self-aerating WEMCO® flotation cells or externally aerated nextSTEP™ machine, the newly developed froth-recovery instrumentation package could be a game-changer in flotation recovery. The solution comes from the recognition that the combination of exact slurry level measurement, accurate control of flow using rede-

signed dart valves and new Festo actuators (designed specifically for FLSmidth) allows for superior control of the froth phase. This in turn results in quicker reactions to flow and slurry density changes, which will dramatically improve performance of flotation machines. Froth Recovery Upgrade package The conventional way to influence froth recovery is a combination of changes to froth height (improved by new actuators and dart valves), froth crowding (in the middle of the cell without the possibility of adjustment after installation and not influencing the most active part of the froth surface), and number of radial launders. “All these changes are still possible while using FLSmidth froth recovery package,” says Lelinski. “The most difficult part is froth recovery at the end of the row; there is not enough of hydrophobic particles to form stable, deep froth and a large percentage of these particles is left unrecovered.” “Our package allows not only to recover these particles, but to control required balance between recovery and grade in this part of flotation circuit. So overall, you get better results, but it also gives you another degree of process control, not only during difficulties of froth formation, but during normal operation allowing to more flexibility in selecting grade-recovery relationship.” Central to the froth recovery package are Adjustable Radial Froth Crowders (ARFC) that were recently developed in-house by FLSmidth. The ARFCs are mechanical devices enabling increase of either recovery or grade regardless of amount of froth formed at the top of the machine. They allow for much higher pulling rates (recovery) or much deeper froth (grade) which is currently hindered by top of the flotation machine geometry.

Froth Camera Froth cameras are a flotation instrument of central importance, as they allow precise monitoring of the froth phase. Our froth camera systems utilize a combination of Model Predictive Control (MPC), fuzzy logic, and the newest technology in froth vision systems to provide optimised set point selection in real-time. This system combines Deep Neural Networks (DNN) technology and object detection with traditional froth measurements such as velocity and stability to create a cutting-edge system which will optimize each individual flotation cell with the most comprehensive information available. Alongside these elements are improved and redesigned actuators, developed in cooperation with Festo, and a new and improved level sensor, which monitors both the slurry and froth positions with the MultiSense probe, provided in cooperation with HyControl. The final piece of the package are redesigned dart valves (typically in a hinged dart valve configuration), which are the result of an in-house, value engineering project. “We are excited to deliver this complete package to our customers. All the elements working together in combination with radial froth crowders, means this package will deliver better recovery at the same grade or increased grade at the same recovery, making this package better that the sum of all parts.”

From top: Froth camera, Multisense level sensor, and Festo actuator

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INDUSTRY NEWS

Eventual closure of coal-fired plants in PH for RE alternatives pledged By Marcelle P. Villegas

he Asian Development Bank (ADB) stated last 3 Nov. 2021 that they plan to buy coal power plants in Indonesia, the Philippines and Vietnam with an objective to shut them early and to replace them with clean and renewable energy options. This will be made possible through Energy Transition Mechanism (ETM), a privatesector-led initiative that will be financed through sources like governments, philanthropy, and private investors. ADB will start the pilot fund of USD2.5 billion to USD3.5 billion for the purchasing of the plants from the three Asian countries. They plan to retire the coal plants early for the next 10 to 15 years, which is ahead of its average lifespan. [1] They said that removing half of the coal power plants in the Philippines, Indonesia and Vietnam will eliminate 200 million tons of carbon dioxide emissions a year. [2] Ahmed M. Saeed, Vice President of ADB stated that ADB chose Indonesia, the Philippines and Vietnam as their initial participants due to their dependence on coal energy. He said, “In Indonesia, the Philippines, and Vietnam, coal-fired power is an enormous problem. In Indonesia it’s 60% of the energy mix, in the Philippines and in Vietnam it’s over half.” This statement is from an episode of “ADB Insight” which is posted on the bank’s website. [2] Saeed also said that the ETM program will help coal-dependent countries achieve their goals under the Paris Agreement. He said that the objective of the ETM is to reduce coal-fired

power in its three pilot countries by 50%. ADB said in a statement that retiring 50% of the coal plants in the three pilot countries alone could reduce 200 million tons of CO2 per year. This is equivalent to removing 61,000,000 cars out of the road.[2] During the ETM Southeast Asia Partnership launch at the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow, Scotland, Masatsugu Asakawa, President of ADB said, “The ETM can usher in a transformation in the battle against climate change in Asia and the Pacific.” “Indonesia and the Philippines have the potential to be pioneers in the process of removing coal from our region’s energy mix, making a substantial contribution to the reduction of global greenhouse gas emissions, and shifting their economies to a low-carbon growth path.” From a report by Eco-Business News, more than half of the total of the Philippines’ power generation and some 67% of Indonesia’s electricity come from coal. This is more than 1/3 of the energy consumed worldwide and is the single biggest contributor to climate change. David Elzinga, ADB’s Senior Energy Specialist for Climate Change said that, “The ETM provides a way to accelerate their retirement by providing low-cost financing to coal plant owners. We will acquire or incentivize the plants to retire early, but they will operate for a period of time before they close.” He also said that coal plants cannot be closed right away to give enough time for renewable energy alternatives to be fully operational. He said that it is first important that the workers and

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communities who are dependent on coal to have their livelihood secured first. [1] COP26 is a summit which addresses climate change issues. This is a global environmental event where delegates from around the world discuss and share their plans and strategies on how to control climate change. Last year’s summit was canceled due to the COVID-19 pandemic. This year, UK hosts the event in Glasgow, Scotland between 31 October until 12 November 2021. [3] Philippine Secretary of Finance, Carlos Dominguez III, is the head of the Philippine delegation to COP26. He said that the Philippines will be piloting the ETM project in Mindanao which is the most coal-dependent region in the country. [1] “We have a unique opportunity in Mindanao to demonstrate our carbon-reduction commitment and pilot the ETM project. In Mindanao, the hydropower source has a huge potential. The government is in the process of rehabilitating the Agus-Pulangi hydropower plant to improve its generating capacity,” Dominguez said. “Mindanao will showcase an Earth-friendly future that can be replicated in other areas in the Philippines and even countries around the world.” The Department of Finance announced last June that the Philippine government planned to remove coal plants in Mindanao to replace them with renewable energy options. This coincides with their project to improve the old Agus-Pulangi hydropower complex in the region which has deteriorated through the years. The Philippines also declared a coal moratorium last year to reduce greenhouse gases emissions by 75% by 2030.

Department of Finance Secretary, Carlos “Sonny” Dominguez III at the 26th United Nations Climate Change Conference in Glasgow, Scotland. Dominguez is the head of the Philippine delegation at COP26. [Photo credit: Screenshot from COP26 video] Reference: [1] Fernandez, Hannah A. (5 Nov. 2021). “Asian Development Bank announces plans at COP26 to partner with investors to buy and retire coal power plants”. Eco-Business. https://www. eco-business. com/news/asiandevelopment-bankannounces-plans-atcop26-to-partnerwith-investors-tobuy-and-retire-coalpower-plants/?swsignup=true [2] Yang, Angelica (28 Oct. 2021). “ADB sees coal-fired plant retirement scheme saving 200M tons of CO2”. Business World. Retrieved from - https://www. bworldonline.com/ adb-sees-coal-firedplant-retirementscheme-saving-200mtons-of-co2/ [3] https://www. bbc.co.uk/newsround/51372486

MINING NEWS

AutoMine: Blazing the trails ahead

ombining advanced sensing capabilities, sustainable battery-electric technology and artificial intelligence, the AutoMine Concept vehicle is Sandvik’s future vision for autonomous mining equipment. And it’s already operating in Sandvik’s test mine in Tampere, Finland. Jussi Puura, digitalization lead at Sandvik Mining and Rock Solutions, is excited about the AutoMine Concept vehicle, and no wonder. “This is essentially the way to the future and Sandvik’s roadmap to get there,” he says. “This shows what a typical piece of mining equipment could look like in 10 or 20 years. And more than that, it’s not just a vision in a slide deck presentation. It’s an existing, physical vehicle actually working down in our test mine.” His enthusiasm is understandable. In addition to being a cuttingedge battery-electric loader, the AutoMine Concept ve-hicle packs advanced surroundings perception in 3D, mapping technology and artificial intelligence to enable it to adapt and plan its own routes to find the most suitable paths, even in continuously changing environments. Ultimately, it repre-sents a big step towards comprehensively autonomous mining operations. The AutoMine Concept vehicle is also a major milestone in Sandvik’s development of the AutoMine and OptiMine so-lutions. Since 2004, these digital systems have supported automated mining operations. The marketplace initially was hesitant to adopt such revolutionary solutions, but the last several years have seen a marked increase in demand. The cur-rent growth rate is strong, including in developing markets such as Africa, India, China and Latin America. The capabilities of the AutoMine systems have also seen a marked improvement over the years. However, more recently it has become increasingly clear that the next generation of mine automation is coming, and upgrades to the existing plat-form help

unlock new, even greater capabilities. This developmental leap could be compared with recent developments in autonomous road vehicles, including innovations such as the Google car, Tesla and others. Also, developing markets and challenging mining conditions in particular require maximum reliability and robustness. Riku Pulli, president of the Rock Drills and Technologies division at Sandvik Mining and Rock Solutions, reveals more about the breakthrough technologies in the AutoMine Concept vehicle. “First of all, this vehicle is designed and engineered for automation from the outset,” he says. “The design philosophy of existing fleets is based on a conventional loader, which always includes a cabin, joysticks, pedals and so on.” The AutoMine Concept vehicle is designed exclusively for automated and remote operation. There is no cabin at all, which means cost savings and the elimination of unnecessary limitations, enabling more efficient and reliable overall design because there is no need for duplicated steering systems and controls, one for the human operator and one for the computer control system. Another major innovation is the tremendous expansion of sensing capabilities. Existing mining equipment is limited in this respect. It can essentially sense where the sidewalls of the tunnel are, for example, but not much more. The AutoMine Concept vehicle creates a true 3D view of its entire surroundings, including the vertical direction. “This opens up really significant possibilities compared with existing mine automation systems, which are restricted to gated areas separated from people and other equipment, much like security gates around robots used in manufacturing,” Pulli explains. The existing AutoMine safety system is based on isolation barriers that enable automated equipment to operate in des-ignated, barricaded areas, and stops

equipment immediately if a safety barrier is tripped. The all-around sensing capability of the AutoMine Concept vehicle is designed to make isolation of automated operations unnecessary. The vehicle can stop or move around any obstacle on its route. “This is a huge improvement because it eliminates a host of limitations linked to mine automation,” Pulli says. “It has until now been necessary to separate automated mining operations from conventional manual operations. The new platform will increase operational flexibility tremendously because the isolation of automated operations becomes unnecessary. Work can go on around and among the automated vehicles simultaneously.” Why is it, then, that the concept vehicle is specifically a batteryelectric loader? According to Pulli, Sandvik wanted to demonstrate that future mining equipment will be not only autonomous but also emission-free. Another reason is linked with the AutoMine platform. Most of the equipment controlled with this system consists of loaders, and what sets loaders apart from other mining equipment is their relatively high speeds, demanding performance requirements and round-the-clock operation at a high utilization rate in extremely cramped conditions. Sandvik wanted to set a benchmark: if the company was able to pull this off, it could be confident of its capability to transfer the technology to other types of mining equipment, such as drill rigs, where the requirements are typically less stringent. What will the next steps be? The capability to further scale the technology to other types of mining equipment is an early goal that should be met soon. Another focus area will be the technology mix, which now includes several types of scanner technologies and, for the first time in mining equipment, artificial intelligence. Some of these components will be imported to the existing AutoMine system in 2021.

Automine concept vehicle • Highperformance battery-electric loader • Surroundings perception thanks to 3D online mapping capabilities • Adaptive capability to find the optimal route even in continuously changing mine environments • Instant obstacle detection and realtime reactions for collision avoidance Advantages • Safety: reliable collision detection and emergency stops • Flexibility: possibility to operate both conventional and autonomous vehicles in the same area • Productivity: unlimited potential for automated mining operations • Sustainability: battery-electric, emission-free vehicle

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CONSTRUCTION NEWS

Two companies in ASEAN forge ahead in digital transformation

he construction industry is today the second least digitised industry in the world. This lack of digitisation costs the industry as much as US$500 billion a year, in rework alone. Companies in the ASEAN region are starting to realise the benefits of going digital and those who are succeeding understand how imperative it is. In an increasingly competitive and challenging industry, leveraging technology and the data it gleans makes the difference between those who win and those who lose. Two companies that have embarked on such a digital transformation are Makati Development Corporation (MDC) in the Philippines and Precise Development Pte Ltd in Singapore.

did not allow management to have better insights, leading to agile decision making – data was residing in separate silos. Procore’s integrated platform changed all that. The results for MDC were clear. “By implementing Procore in our construction projects, we saved over 2,500 man-hours from faster turnaround times. We significantly reduced some costs, and more importantly, improved visibility of information on the status of our projects for all stakeholders,” said Oris. “Last year we were able to successfully shift our budgeting process using digital collaboration – and we saved over 26,500 manhours. I can’t imagine our project teams going back to our manual way of doing things.”

Makati Development Corporation sees improved productivity and huge savings Ms Ginaflor C. Oris, Chief Financial Officer of MDC, defined the company’s digitisation goals as to “build a data-driven culture to ensure that digitisation becomes an important component of our bigger strategy of industrialising construction. And we wanted to reap significant and quantifiable improvements in our safety, quality, timely delivery, cost efficiency and sustainability operating metrics.” Before adopting Procore, MDC already had some digital platforms and was using various software. But the company faced difficulties in gathering data directly from the field and in generating reports real time or close to real time. This

Precise Development drives better cost control and collaboration with technology In Singapore, Precise Development turned to automated construction technology to streamline their workflow and quality assurance outcomes. This was a goal made more urgent by the global health crisis. Ongoing site lockdowns meant Precise had to counter increasing costs in materials and labour with significant workforce and administration time savings. Precise Development was an early adopter of Procore Project Management and Quality and Safety. The goal was to improve the flow within design and build projects initially. However, Procore’s ability to generate time and resource savings for Precise

Development paid off as the company faced the challenges and disruptions brought upon by COVID-19. The transparent collaboration and multiple-party communication process significantly improved project management tasks for all stakeholders. “As we specialise in design and build projects, we are often still finalising a lot of design while building. Tracking and managing these elements, plus material and labour costs – and Singapore is very expensive in both – in this environment via Procore is key,” said Mr. Kelvin Lim, Architectural Manager of Precise Development. “Everyone can rely on the data to help us replace site visits and face-to-face discussions with a safe way to communicate. With Procore, we have a transparent quality process. This places more emphasis on building right the first time and creating an accountability roadmap. It helps us track defects if we need to and remediate those with the right parties.” In addition, as Singapore’s Building and Construction Authority (BCA) is pushing for an industry-wide digital transformation, Precise Development is able to position itself as a construction technology innovator and compliance leader. Lim said: “The BCA’s implementation of the ISO19650 standard is a crucial part of planning, designing and managing building projects more efficiently. Our smart Procore construction technology ensures we meet the requirement to have a digital platform in place to streamline our workflow.”

Procore improves collaboration throughout the construction lifecycle More companies within ASEAN are selecting Procore as their construction management platform of choice. “ASEAN is a high-growth market, and we are looking forward to partnering with the industry to uplift its digital capability and provide value to all stakeholders in construction. We are here to enable the construction leaders to better manage the construction lifecycle with a construction management platform” said Tom Karemacher, Vice President, APAC of Procore. Learn how MDC has successfully kickstarted their digital transformation journey in an ondemand webinar on www.procore. com.

ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

CONSTRUCTION NEWS

Seismic Velocity (P-S) Suspension Logging in PH

n-situ measures of seismic data is one of the key inputs in many infrastructure projects across Philippines. Understanding a project site’s seismic response is key to designing and engineering above ground structures, without it, you are guessing and often overengineering. There are many ways to gather seismic data, such as Vp and Vs (compressional and shear wave velocities). Surface techniques are commonly deployed as they require no drillholes. However, surface wave data can produce poor results if a site is “noisy” and are highly variable through different collection techniques and processing. A more direct measure of Vs and Vp is from in-ground, with drill holes. The most utilized method is downhole seismic, which generates a seismic source at surface and receivers are placed in the drill hole to record. This method should have grouted and PVC boreholes, and the holes need to be vertical. Extra drilling time means extra costs. A PS suspension logger allows for in-ground measures of Vs and Vp conducted from an open drillhole. This allows for rapid data collection immediately after a drillhole is completed. There is no requirement for grouted PVC holes. A PS logger can also work in marine environments allowing data from nearshore and offshore projects like wharfs and reclaimed land developments. A PS Logger is a robust, reliable, and repeatable seismic tool, which allows data from drillholes, without grouted PVC holes and has a high degree of accuracy producing better results for client’s engineering projects. Precision Data on Soil and Rock Physical Properties The PS Logger probe measures P (compression) and S (shear) wave velocities in a single borehole without the need for external energy sources, making it simple and quick to deploy and therefore cost effective, especially when compared to alternative methods. When combined with bulk density values (from a density log or from core sample tests) small strain moduli (Young’s, Shear and Bulk) can be calculated using simple formulae. How the PS Logger Works The PS Logger is a full waveform acoustic probe, designed to measure compressional and shear wave velocities in soils and rock formations. It operates using indirect excitation rather than mode conversion as in a conventional sonic. It can acquire high-resolution P and S wave data in borehole depths of up to 600m. It contains a unique design of powerful hammer source and two receivers, separated by acoustic damping tubes. To acquire data, the probe is stopped at the required depth and the source is fired under surface command. Firing causes a solenoidoperated shuttle aligned across the borehole axis to strike plates on opposite sides of the probe in turn, setting up a pressure doublet in the surrounding fluid. The resultant fluid motion produces a tube wave at the borehole wall with velocity close to the shear velocity of the forma-

tion together with a compressional wave. As the waves propagate parallel to the borehole axis, they set up corresponding fluid movements that are detected by the two-receiver combination (neutral-buoyancy 3D hydrophone for P waves and horizontally aligned geophone for S waves), allowing the wave velocities to be directly measured. The facility to stack multiple shots and filter the data as in normal seismic data acquisition is included in the operating software. Key Benefits The PS Logger works in a single fluid filled borehole, in contrast to cross-hole methods that usually require two or more specially prepared boreholes. The method works in open or grouted plastic cased boreholes and borehole muds generally do not need to be flushed prior to logging, without compromising borehole stability. The PS Logger is largely unaffected by path affects, which can be problematic for cross-hole methods. With an integral powerful source, energy delivery is constant throughout the extent of the borehole, independent of borehole depth, giving reliable velocity measurement in hard rock and the slowest of formations. The high vertical resolution (0.5m typical) allows for measurement of thin layers and is not affected by high velocity layers above low velocity layers. As no external source is required, this makes the system ideal for working offshore on barges, jack-up platforms, and drill ships. As the probe is suspended in the borehole, no clamping to the borehole wall is required, allowing faster acquisition. The PS logging can be conducted at the end of the drilling alongside any of the full range of conventional logging probes that Robertson Geo offers. The propagated waves are measured in the vertical plane providing the most useful information in anisotropic formations. When combined with bulk density values, the PS Logger provides a continuous strength profile, especially important when hard layers are encountered and CPT methods “refuse.” The relatively high frequency of the source, when compared to other methods, means that good data can usually be obtained in very noisy environments. On drill ships where engines, DP thrusters, generators and ancillary equipment contribute to the ambient noise, this is very important. The reversed polarity shear wave measurements provide unambiguous identification of shear wave arrivals. Drilling Matters Borehole conditions play a big part in data quality and that is where the drilling personnel should be involved. Rotary drilled boreholes always provide the best data (low rugosity). The PS Logger can produce good data in boreholes from 65mm to 400mm with the optimum range being from 75mm to 200mm. Inclined boreholes can also be logged providing the tilt is no more than 30⁰ from vertical. Where borehole stability is an issue, the logging is often split into separate runs whereby the drill string is retrieved

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in stages. To minimize possible loss of data, close liaison with the drillers, geologists and geotechnical personnel is required to confirm where the potentially unstable layers are (e.g. gravel beds). A shooting plan can then be made whereby the drill string can be withdrawn in stages to provide some open borehole while providing protection for the problematic zones. Due to the PS Logger’s tolerance to borehole muds, there is little or no preparation required on the borehole. Polymer or Bentonite-based muds can be extremely viscous with the limiting factor being the buoyancy of the probe. Where the use of thick mud fails to provide sufficient borehole stability the borehole can be plastic lined and grouted. Processing Full waveforms are recorded digitally at acquisition time across 6 channels (P wave, S wave left & S wave right at the near and far receivers) at a predetermined sample rate as low as 2.5μsec. The sample rate is carefully selected to be as small as possible to provide the best resolution but high enough to capture the arrivals within the listening window. Low pass filters can be applied at acquisition time and digital filters can be applied during or post acquisition. Using the acquisition software, the waveforms can be displayed, scaled, and filtered to allow for the picking of the first arrivals at each receiver. Automated picking is available but in most cases the arrivals are picked manually by experienced engineers. While the P wave arrivals are generally simple to pick, the S waves with their typically slow onset and possible superposition over the decaying P waves benefit from an experienced eye to avoid “cycle skipping.” From the receiver separation (1 meter) and the arrival times the velocities are automatically calculated. Once the arrival times and velocities have been determined, the data is opened in a second program (also supplied with all PS logger systems) that creates and manipulates logs of the data. If a bulk density profile by depth is available, it can be combined with velocities to give the small strain moduli, Young’s, Shear and Bulk and Poisson’s ratio. Finally, all data can be outputted in industry standard LAS format. From unconsolidated soils to the hardest of rocks, the PS logger gives proven results Simplicity of deployment combined with a minimum of borehole preparation and the ability to obtain high quality velocity data in unconsolidated formations and hard rocks make the PS Logger a sound economic choice for Geotechnical and Civil Engineers investigating rock strength.

INDUSTRY NEWS

Maximize the value of your fleet Partner with Ritchie Bros. to sell your assets

hen it’s time to upgrade your fleet, it’s not always easy to maximize the value of your redundant assets. Most equipment owners lack the resources or knowledge of how to properly remarket assets and market them to national, regional, and global markets. The key to remarketing your equipment is understanding current local and global market trends, identifying key attributes that create value for your assets, and reaching motivated buyers through targeted marketing campaigns. To accomplish these goals and ensure you get the most return for your machines, you need to partner with a company that has the experience, market knowledge, and marketing reach to ensure a successful sale. Ritchie Bros. has multiple sales channels to match the right channel with the customers’ needs and requirements. • Ritchie Bros. Unreserved Online Auctions • Ritchie Bros. IronPlanet Online Reserved Auctions • Marketplace E – 24/7 Global Marketplace • Ritchie Bros. Private Treaty

< Page 57 ing operation in more ways than one, but one that paves the way for delivery of supersized Geotube® units capable of dewatering extremely large volumes of mine and industrial slurries going forward. PERFORMANCE This project has the distinction of being the longest Geotube® dewatering project ever undertaken in Asia. The project has resulted in a wealth of knowledge on the economics of extreme large scale Geotube® dewatering that can be applied to other high volume mine and industrial slurry dewatering challenges. Despite the extreme demands and challenges, the supersized Geotube® dewatering tubes were successfully supplied and installed, and the project was completed

– negotiation and sale of your equipment for cash. Chris Edwards, Philippines Sales Manager, is based in Manila and can assist sellers through the entire process, from evaluation, assessment of assets, providing recommendations, and ensuring global marketing campaigns are reaching the most motivated buyers.

Combining your assets with Ritchie Bros. expertise and experience is a solution for success. For more information about how to partner with Ritchie Bros. in the Philippines, visit www.ritchiebros. com or contact Chris Edwards, Philippines Sales Manager, at +64 917 149 8545 or cedwards@ritchiebros.com

within a short period of time. The design of the Geotube® dewatering tubes enabled land space to be well optimized while harnessing the performance of Geotube® technology. With its ability of achieving high rates of solids retention and effluent discharge, the water discharge quality improved substantially by reducing the total suspended solids (TSS) being discharged back into the ponds. The Geotube® dewatering technology has proven to be a highly effective and efficient solution with significant benefits in cost savings and environmental sustainability, reducing carbon footprint while returning a revenue contribution to the mine operations. Further information on this and

other large scale Geotube® dewatering projects can be obtained by contacting Tencate Geosynthetics Asia. ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

Custom reports can be created to help data mine your company's archive. Users can create custom indices by document type. Reports generated can be exported to Excel and PDF for submission.

MINING NEWS

Portable XRF for Gold (Au) and Au Pathfinders for Mineral Exploration and Ore Body Vectoring

lympus’ X-ray fluorescence (XRF) analyzers provide high-performance, real-time geochemical data for rapid multielement characterization of soil, rocks, and ores. Recent advances in XRF technology have increased the number of elements measured, improved the limits of detection, and reduced analysis test times. Vanta™ XRF analyzers provide convenient and rapid measurement of many types of samples associated with Au exploration, within Au mines, Au mine labs, and refined Au products. Benefits • Rapid indication of potential Au mineralization through XRF analysis of pathfinder elements in soil, drill cuttings, and drill cores • Priority sample selection, maximization of analytical budgets, and improved drill target generation by prescreening samples with XRF • Improved ore deposit understanding, modelling, and vectoring with less dilution and better Au recovery via XRF mapping of structural features and identification of mineralized and altered zones • Inexpensive and rapid rock typing by using XRF for lithogeochemistry

(Above) Images taken from: Arne et al. (2014) – The use of property-scale pXRF data in gold exploration – advantages and limitations, Geochemistry: Exploration, Environment, Analysis. (Top photo) Contor plots of As, Cu, and Pb in surface soil using field XRF compared with ICP analysis from Au exploration project in Canada.

Pathfinder and Alteration Geochemistry Most Au deposits have an associated geochemical signature (as shown in the table above). The XRF analyzer can detect these geochemical signatures, enabling geologists to better understand the geological system in which they are working. Typical Au pathfinder elements include As, Cu, Pb, Zn, Sb, Bi, Ag, and W. XRF Analyzer for the Detection of Gold It is common knowledge that handheld XRF analyzers do not support direct low level measurement of Au in geological samples (e.g., low ppm and ppb). The labbased fire assay technique is commonly recognized as the method of choice for Au analysis. Au L-level X-ray lines are located in a very crowded area of the X-ray fluorescence energy spectrum. In this part

of the spectrum, interference from other elements (e.g., As, Zn, W, and Se) can yield a false-positive Au determination. Direct measurement of Au by XRF can be achieved in specific cases such as high-grade (> 5 ppm) quartz vein environments (relatively interference free) or within refined Au products (where Au is present in very high concentrations). An increasing number of Au

onsite mining laboratories are using XRF in place of, and as a supplement to, fire assays methods. Please refer to the Olympus Application Note “Use of Handheld XRF in Au Mine Laboratories.” Mines are also using Olympus handheld XRF analyzers for measuring Au in activated carbon. Please refer to the Olympus application note, “Measuring Gold in Activated Carbon.” ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Mine Slurry Dewatering Using Supersize Geotube Dewatering Units ASIA’S LONGEST DEWATERING GEOTUBE® he rising demand for supersized Geotube® dewatering units capable of handling extreme volumes of mine waste sediments and slurries is the driving force for TenCate Geosynthetics strive in innovation and engineering excellence. Mine owners and plant operators are constantly demanding for more efficient and productive outputs. No two mine sites or operative problem is the same and nearly every project requires a bespoke solution. It is a challenge TenCate has embraced with vigor and enthusiasm that has resulted in the capability to deliver bigger and better Geotube® options designed to meet or exceed asset owner expectations. In a remote territory of Kalimantan where logistics was seemingly impossible, lies Asia’s longest dewatering Geotube®. Measuring 101m in length and a diameter of 36.6m, the dewatering tubes were designed for a mine site which required high volumes of slurry to be dewatered. With limited space and time running short, the extreme demands involved with these supersized dewatering tubes was a behemoth

challenge in every aspect. THE CHALLENGE The mine site in question required solutions to dewater high volumes of slurry from sediment ponds that were at the limits of their capacity. Lack of land space prevented construction of additional pond capacity and operational water demand required sediment free water be circulated back into the process. Solutions proposed had to be capable of dewatering exceptionally high volumes of slurry within a constrained time period and be shown to be cost feasible and operationally functional in a remote site location. THE SOLUTION With extensive experience working in remote mine sites across the world, TenCate dewatering engineers quickly realized the demands of the project and eliminated the option of using standard sized Geotube® units. The only option was to manufacture Geotube® units of at least 100m or longer in length in order to meet both the dewatered solids targets but also fit within a constrained laydown pad size. The design of the units had to be such

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that the Project: Cleanout of Coal Fines Settling Ponds system Year of Construction: 2017 would Project Location: South Kalimantan, Indonesia accept the Material: TenCate Geotube® GT 500D Geotube® Circumference: 36.6m volumes Outstanding Length: 101m per tube required to be pumped in an efficient way and that water discharged from the tubes could be immediately circulated back into the process. Calculations showed that installation of such large tubes would significantly reduce operational costs compared to costs associated with a larger number of smaller Geotube® units. The Geotube® unit with a circumference of 36.6 m and length of 101 m was chosen for this project with a total of 6 units required to process the 160,000 m3 of slurry pumped at a rate of 550 m3/hour for 24 hours per day generating 20,000 m3 of dry cake. Manufacturing such large Geotube® units was another challenge met by innovative fabric production and tube assembly techniques no other company can match. The Geotube® units were also required to be packaged and transported to site in a way that facilitated easy handling and deployment on site usPage 54 > ing unskilled labor. A record-break-

CONSTRUCTION NEWS

Metso Outotec, Donum to provide aggregate solutions in PH

etso Outotec and Donum Industrial Corporation have signed a distribution contract concerning aggregate crushing and screening solutions in the Philippines. The contract covers Metso Outotec’s track-mounted Lokotrack® and Nordtrack™ equipment, the Nordberg® NW Series wheelmounted equipment, Metso Outotec crusher wear and spare parts and Trellex® screening media. Donum will also provide related commissioning and aftermarket services including technical support and service contracts, as the contract came into effect in July 2021. “The contract with Donum improves the availability of our equipment, crusher wears and spare parts via local inventory and experts,” says Shaun Fanning, VP, Distribution Asia Pacific at Metso Outotec. He continues: “Donum is locally recognized as one of the reputable and reliable suppliers and service providers. Their presence will help

us to attain new quarrying and construction clients, and to support the customers throughout the solution lifecycle with dedicated local resources.” “We are very proud to be the exclusive distributor of Metso Outotec’s mobile crushing and screening solutions for the aggregates industry in the Philippines,” comments Arlene Abata, President, Donum Industrial Corporation. “Customers value our expertise, the ability to transact locally and to have local support on day-today business. We believe that the partnership enables us to grow

< Page 60 over Php400 billion. His proposed solution is to adopt a zero-based budgeting system to give government agencies some flexibility when it comes to spending taxpayers’ money. Lacson clarified though that this method of financial planning still requires the justification of expenses for each new fiscal period. He pointed out that the same process is applied by the leaders of most successful private corporations. [2] The People’s Champ and aspiring president Senator Pacquiao talked about building a “mega prison” for government officials who would be jailed for corruption. He mentioned this when he visited Mayor Edwin Olivarez of Parañanque City last November 5. [3] “I will build an ‘MP’ or mega prison since there are a lot of corrupt officials and they might not all fit inside an ordinary jail.” Pacquiao also wanted to have “special courts” that would directly handle graft and corruption cases. Pacquaio’s popular sports insignia based on his name’s initials, “MP”, will take on a different meaning and purpose if his mega prison idea takes flight. Although a mega prison only covers one aspect of infrastructure plans, Pacquiao’s statement for this particular day covers the topic of solving the issue of graft and corruption in the country. Perhaps he will give more infrastructure plans in his future public statements. Pacquiao has been known for being enterprising and innovative when it comes to project development in his hometown. Vice President Leni Robredo said that if she wins in the 2022 presidential election, she will continue what Duterte’s administration started with regards to the Build, Build, Build infrastructure programs, but she will put more emphasis in improving the lives of the poor. During a press briefing in Sorsogon last Oct. 29, she

the business further through an expanded product offering.” Donum Industrial Corporation serves a versatile clientele including aggregate industry through its head office in Taytay, Rizal, and three fabrication sites with 62 employees currently. Read more at: https://donumcorp.com.ph.

mentioned that her priority programs will mostly focus on the alleviation of poverty in the Philippines. “We will continue with the Build, Build, Build, but we will make sure that the fund for infrastructure will have a direct impact in the improvement of the quality of life of those who are on the fringes of society.” Her strategy includes specific infrastructure plans for rural development like farm-to-market roads, cold storage facilities and solar dryers for farmers. She believes in simple but effective plans. She also added the further improvement of the mass transport system in the country. [4] If he becomes the next president, Bongbong Marcos plans to modernise infrastructure in the Philippines to become Asia’s next logistic hub. He pointed out that the country needs to upgrade its aging seaports, airports and railways. Marcos also mentioned the importance and need for port automation, computerisation and Artificial Intelligence for a more efficient port system, which will lead to lower shipping costs. “Our strategic location in the Pacific is an advantage that no other country has. It’s time for us to leverage this and aspire to become a major logistics hub in the region. To achieve this, we will need to modernize our existing seaports, airports, and railways or build new ones where necessary.” [5] Marcos also emphasised the need to develop smart ports that use shared data platforms, machine learning, and AI to plan and manage critical port operations, container stacking, management of vessel and truck, and other logistic aspects in ports. In future months, we shall hear more from the presidential candidates as they share more of their plans for Philippine infrastructure, economic recovery, addressing climate change, health concerns, defence, and others.

Vic Bueno, Distribution Manager, APAC North at Metso Outotec (left), and Arlene D. Abata, President at Donum.

Reference: [1] Francisco “Isko” Moreno Domagoso LinkedIn page Visayas Region plans - https://newsinfo. inquirer.net/1511028/ isko-moreno-promisesto-build-mega-infrastructures-in-visayas-ifelected Infrastructure list of Moreno - https:// www.rappler.com/ nation/elections/ isko-moreno-proposeslgus-use-bigger-taxshare-mandanas-rulinghelp-small-businesses [2] Lacson - https:// mb.com.ph/2021/10/11/ lacson-pledges-devt-ofsmaller-neglected-localities-under-presidency/ [3] Pacquiao - https:// www.rappler.com/ nation/elections/ pacquiao-wants-megaprison-corrupt-government-officials [4] Robredo - https:// mb.com.ph/2021/10/29/ robredo-says-buildbuild-build-to-carry-onif-she-succeeds-dutertebut-it-must-also-help-inpoverty-reduction/ [5] Marcos - https:// newsinfo.inquirer. net/1506774/ marcos-jr-vows-tobuild-modernize-infrastructure-to-make-phasias-next-logistics-hub

ISSUE 4 2021 • WWW.PHILIPPINE-RESOURCES.COM

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COMMUNITY NEWS

Energy, Infrastructure Plans and more from our Presidential Candidates By Marcelle P. Villegas

ast 28 October 2021, the Commission on Elections (Comelec) released a list of candidates for the National and Local Elections on 9 May 2022. A total of 97 individuals formally notified the commission and filed for candidacy to run for president. The list includes Senator Panfilo Lacson, Former senator Ferdinand “Bongbong” Romualdez Marcos Jr., Manila Mayor Francisco “Isko” Moreno Domagoso, Senator Emmanuel “Manny” Pacquiao, Vice President Maria Leonor “Leni” Gerona Robredo, Senator Ronald “Bato” dela Rosa, Former secretary of National Defense Norberto Gonzales, and more. Although the election will take place next year in 9 May 2022, some presidential candidates have already expressed their plans for infrastructure and other strategies for nation-building. Some candidates have specific plans, while others gave their general thoughts and ideas on the subject matter. At this point, here are some of the initial statements of candidates. Regarding infrastructure, Manila Mayor, Isko Moreno initiated various housing projects like Basecommunity, Tondominium, Binondominium, Pedro Gil Residences, and San Sebastian Residences. A few days before Manila celebrated its 450th year anniversary last June, Moreno announced the completion of the Manila COVID-19 Field Hospital. A new hospital, “Bagong Ospital ng Maynila” is scheduled to be operational by December. Still under construction are President Corazon Aquino General Hospital, new buildings for Manila Science High School, Rosauro Almario Elementary School, and Dr. Carlos Albert High School. Recently, Moreno shared his plans to address climate change. “Should I be elected President next year, it will be my goal to develop and implement a comprehensive clean energy infrastructure program and to begin that transition during my term. As businesses and industries recover from the pandemic, we will need to move towards more sustainable longterm energy sources that can better serve our people for generations: solar, hydro, geothermal and more.” “I would like for us to produce more energy from clean sources than from coal or oil, for example. That is why my proposed

tax cuts on those products are shortterm, designed to give immediate relief to consumers and businesses facing financial pressures resulting from the pandemic. Eventually we will want to develop incentives to drive a national clean energy push forward.” “While my focus now and immediately upon taking office will be to bring our country out of the worst public health and economic crisis of our lifetimes, I am keenly aware we must think long term, holistically and strategically. If we do that well, we will lay the foundation for a more environmentally sustainable Philippines.” Recently, the City of Manila has also been named as one of the 50 finalist Champion Cities for the Bloomberg Philanthropies 2021 Global Mayors Challenge. During Moreno’s recent visit to Cebu City, he promised to have mega infrastructures for the Visayas if he will be the next president in 2022. During his tour of the province, he saw the necessity to put up bridges that will connect the main islands in the Visayas, including Cebu, Bohol, Negros, Panay, Leyte and Samar. He explained that 35% of the international tourists are in Cebu, thus the island province should be given more infrastructures and bridges which would connect to other areas in the Visayas. [1] Meanwhile, Senator Lacson talked about his pledge to develop smaller, neglected localities under his presidency. From a Manila Bulletin article last October, he assured Filipinos that public funds will be spent to the development of remote villages and municipalities of the Philippines should he win in the 2022 election. He said this would be part of his advocacy of reforming the national budget process. Lacson noted that the budget ceilings on how taxes are spent are being imposed by the Development Budget Coordinating Committee (DBCC) and often the smaller communities are neglected when they submit the National Expenditure Program (NEP) to Congress. He said that this results in the wastage of public funds due to underspending which he said could reach

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