Philippine Resources Journal - Issue 2, 2022 by Brimble Publishing

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PHILIPPINE RESOURCES THE MAGAZINE FOR MINING AND CONSTRUCTION

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ISSUE 2 2022

PENARROYO:

My Tampakan Experience

BUNYE: Diwata plans award for

Best SDMP Programs

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CONTENTS MINING 18

DUTERTE APPOINTS PRJ COLUMNIST AS GEOLOGY CHAIR

PMEA MONTHLY MEMBERSHIP MEETING, UPDATES

DIGITALIZING MINING FOR SUSTAINABILITY AND RESILIENCE

OPERATION ODETTE FOR THE PEOPLE OF SIARGAO ISLANDS

COMMENTARY

TAGANITO MINING PARTNERS WITH CLAVER FOR VAX

By Fernando Penarroyo / page 6

PNP SURIGAO NORTE THANKS TAGANITO FOR 2 VEHICLES

THPAL MILESTONES IN PHILIPPINES

HMC DONATES SCHOOL MARKERS TO TWO SCHOOLS

MY TAMPAKAN EXPERIENCE

COMMENTARY DIWATA PLANS AWARD FOR BEST SDMP PROGRAMS By Patricia A.O. Bunye / page 16

CONSTRUCTION 45

ADB SUPPORTS SOUTH COMMUTER RAILWAY WITH $4.3B LOAN

NIA INAUGURATES, TURNS OVER 2 FLAGSHIP PROJECTS

ANG: MRT-7 KEY TO ACCELERATING ECONOMIC RECOVERY

TRANSFORMATIVE WAY TO REDUCE RISK IN RESOURCE ESTIMATION

MINING

NEWS

Atty. Dennis Quintero gives legal view / page 22

BBM eyes VAT from partiallyprocessed ores / page 60

UPDATES ON MINING REGULATIONS

NEW PRESIDENT MARCOS SWORN IN

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

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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 Chief Asia

My Tampakan experience

resident Rodrigo R. Duterte issued an order last year that lifted the ban on open-pit mining im-posed in 2017. The lifting of the ban would have allowed the $5.9 billion Tampakan copper-gold mine project to proceed, the largest untapped copper-gold deposit in Southeast Asia and one of the world’s biggest. Sagittarius Mines, Inc. holds the Financial and Technical Assistance Agreement (“FTAA”) to operate at the site, which reportedly has a potential of 15 million tons of copper and 17.6 million ounces of gold. The Tampakan copper-gold project was again recently placed in the limelight when Governor Tamayo of South Cotabato vetoed a provincial board resolution lifting the ban on open-pit mining in the province. The governor said he vetoed the lifting of the ban on open-pit mining for being prejudicial to the public welfare and inimical to the overall interest of the province. To add to the confusion, the governor stressed that this, however, did not affect the operation of the stalled Tampakan copper-gold project stating that the ordinance was limited to the scope of the local government’s authority and covered small-scale mining. The ordinance, according to the governor, has nothing to do with whatever the national government decides on large-scale mining. However, Tamayo appealed to the provincial board not to override the veto and allow the incoming Sanggunian to conduct its review of the province’s Ordinance No. 4 Series of 2010 otherwise known as the “South Cotabato Environment Code”. Tamayo’s move was met with jubilation by environmental, religious, and other groups opposed to the Tampakan project. These developments brought back memories of my time as a lawyer for the project operated by the original FTAA holder. Entry of Western Mining Corporation Western Mining Corporation (“WMC”) arrived in 1987 and during the next ten years evaluated many exploration sites. In 1990, Gerry Palermo, a Davao-based businessman who headed a group of mining claims held by members of the Visayan community in South Cotabato, introduced the prospect to WMC. In a contract denominated as the “Tampakan Option Agreement” dated 25 April 1991, WMC Resources International Pty. Ltd. (WMC), a wholly-owned subsidiary of Western Mining Corporation Holdings Limited, a publicly listed major Australian mining and exploration company, through its local subsidiary Western Mining Corporation (Philippines), Inc. (“WMCP”) acquired the mining claims of Southcot Mining Corporation, Tampakan Mining Corporation, and Sagittarius Mines, Inc.

By Fernando Penarroyo Geophysical and geochemical surveys were completed in 1992 and the results identified a target for exploration drilling in 1993. The Philippine government awarded WMCP an FTAA on 30 March 1995, a month before the Mining Act of 1995 went into effect on April 30 and before the Indigenous Peoples Rights Act (“IPRA”) was passed into law in 1997. The original FTAA covered 99,3876 hectares in the quad-boundary of South Cotabato, Sultan Kudarat, Davao del Sur and North Cotabato. In early 1998, WMCP announced a large-tonnage, lowgrade mineral resource of 900 million tons at 0.75 percent copper and 0.30 gram per ton gold using a copper cut-off grade of .50 percent. In 1997, the La Bugal-B’laan Tribal Association of Columbio, Sultan Kudarat challenged the constitutionality of the Mining Act, asserting that its provisions regarding 100% foreign ownership of companies engaged in mining as well as other provisions of the said law went against the 1987 Philippine Constitution. On 27 January 2004, the Supreme Court (“SC”) declared the Mining Act unconstitutional, thereby voiding the FTAA issued to WMCP. However, the SC overturned its own decision in December of the same year. Principal Agreements with Stakeholders In accordance with the terms of its FTAA, WMCP sought agreements with the three provinces - South Cotabato, Sultan Kudarat, and Davao del Sur - and their respective municipalities - Tampakan, Columbio, and Kiblawan, as well as five Barangay Councils - Pula Bato, Danlag and Tablu in Tampakan, Datal Blao in Columbio, and Kimlawis in Kiblawan. The five barangays are also home to B’laan communities which occupy the more remote upland

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< Page 6 areas where actual mining was to take place. These are Bong Mal, Folu Bato, Danlag, Salna’ong and S’banken. The B’laans are one of 18 indigenous groups living in Mindanao, who are largely concentrated in the provinces of South Cotabato, Davao del Sur, and Sultan Kudarat. Most of them are still engaged in subsistence farming, with corn and rice being the main produce. Originally, the B’laans lived on the fertile plains but were forced to move to the mountains when the government started bringing in the majority of Cebuanos and Ilonggos from the Visayas during the early 1900s. Before the arrival of WMCP, traditional ownership of land at the site of the proposed mine site was not recognized by the government. B’laans occupied public or forest lands, which were nonalienable and under the jurisdiction of the Department of Environment and Natural Resources (“DENR”). In 1993, DENR Administrative Order No. 2 established procedures for the issuance of Certificates of Ancestral Domain Claims (“CADC”) which recognized indigenous peoples’ claims based on traditional association to land, and recognition of their right of occupation and land-use management. In November 1997, IPRA was passed, and the National Commission on

Indigenous Peoples (“NCIP”) was created. WMCP supported a non-government organization and hired anthropologists and sociologists to convince the B’laans to apply for CADCs and establish formal tribal councils. These were done so that the company could have legal entities to negotiate agreements with, concerning legally delineated land areas over which these IPs had legally recognized claims. WMCP collected the necessary data and sponsored the five B’laan communities in their applications for CADCs with the DENR. The research presented in the CADCs focused on three tasks - identification of stakeholders, delimitation of their occupancy, and estimation of the time they and their ancestors have been resident there. Initially, WMCP obtained Heads of Agreement with B’laan leaders and sought stronger and more representative organizations for Principal Agreements. WMCP stated that the Heads of Agreement and successive Principal Agreements were drawn up following the traditional Kasfala negotiation and more binding Diandi blood compact as per B’laan traditions. The agreements were negotiated, signed, and implemented under an Execution Protocol, with guidelines based on Australian resource companies’ experiences in dealing with native aboriginal communities. Professor Michael Crommelin,

who was a former Dean of the University of Melbourne Law School, assisted in the preparation of the Execution Protocol. He teaches several courses on Constitutional Law, Mineral and Petroleum Law, and Resources Joint Ventures. Managing Conflicts Between Indigenous B’laans and Visayan Settlers WMCP like any other foreign company was subjected to the local socio-political dynamics of conflict and accommodation in the area where it operated. This was particularly true in how the company cautiously threaded the ethnic division between the indigenous B’laans and the Visayan settler communities. While they were ethnically different, they were of a generally uniform economic profile - that is tenant farmers. Local animosity between B’laans and Visayans was found to have historical and ethnic roots. Visayan prejudice stemmed from their settlement of this frontier region in the 1930s, and they generally viewed B’laans as primitive and pagan. On the other hand, B’laans regarded Visayans with fear as land grabbers and felt discriminated against when it came to economic opportunities. With the entry of WMCP to the area, increased in-migration to traditional B’laan land by Visayan settlers, as a result of anticipated

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RESOURCES COMMENTARY

< Page 8 employment opportunities and real estate speculation, was exacerbating challenges facing the company and host communities. Although ancestral land which has not yet been titled was non-alienable, “rights” were being purchased by Visayans from B’laans. The presence of the company led to a renewed interest in land within the proposed mining area for the speculators to benefit from the mining company’s compensation packages and economic opportunities. The question of land ownership and the problem of land disputes became an issue of importance and concern for the company. Moreover, the award of communal title to indigenous people clashed with the aspirations of other groups who were invariably present within the ancestral lands. Those of Visayan origin felt discriminated against because they were not getting as much attention from the company as the indigenous B’laan communities. Portions of the ancestral land were shared with Visayan settlers who bitterly opposed the issuance of CADCs. The communal claims to ancestral land conflicted with the interests of Visayan settlers, who had acquired titles in some areas and had also legitimate legal claims. In December 1996, Visayan residents of Tampakan barricaded roads leading to the proposed mine site in opposition to the scheduled signing of

the B’laan Principal Agreements, compelling the company to expedite the negotiation of land access agreements with the Visayan settlers and local governments. My Personal Insights What was my role in all of these? I was a new lawyer then and had the opportunity to watch all these events unfold during my early legal career. I joined WMCP in 1996, almost straight out of law school and after my stint as a petroleum geologist working at the Department of Energy (“DOE”). I was headhunted by the company who was then looking for an understudy for its Australian legal manager. As a working student balancing my time as a geologist and studying law at night at the University of the Philippines, I didn’t have much experience in mining or mining laws. At that time, the Mining Act had just become law and the Marcopper accident in Marinduque was a hot news item. I believe that in my final WMCP interview, what convinced the panel was my experience and knowledge in negotiating petroleum service contracts which were part of my job at the DOE. WMCP’s FTAA and service contracts have a lot in common since both have the same constitutional basis allowing 100% foreign ownership of companies engaged in the exploration, development, and utilization of natural resources.

Upon my acceptance to the company, I have to hit the ground running. There were ongoing public consultations on the Mining Act’s implementing rules and regulations following public clamor and anger from the Marcopper accident. I also needed to study the nuances not only of mining law but also laws relating to forestry, indigenous people’s rights, the environment, and local government. As part of my preparation to eventually handle the responsibility of heading the local legal department, the company seconded me to work in its various business units in Australia in 1997. I worked at the corporate offices in Perth, Brisbane, and Melbourne on Australian mining projects with both WMC and its construction contractors. I also had a stint in an Australian law firm, which had a very advanced practice group in resources, construction, and native title law. For my mine exposure trips, I drove alone on outback roads and visited WMC mine sites at far-flung locations. I even visited some aboriginal communities to witness the company’s corporate social responsibility activities. My life as a Filipino expat lawyer in Australia was both rewarding and enriching. Returning from my Australian secondment, the first order of the day was to work on securing all the land access agreements in preparation for the mine development area. This entailed spending my

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RESOURCES COMMENTARY

< Page 10 time, not in the comforts of our spacious Makati office but in the highlands of Tampakan for immersion with the communities, both Visayan and B’laan. I was living and breaking bread with farmers, politicians, and traditional strongmen in the communities. The areas which I visited were especially notorious for kidnappings by armed bandit groups where Islamic and communist insurgents also operated. It was wild, wild west in that part of Mindanao during that time but was certainly an eyeopener as I was exposed to extreme poverty in the uplands, especially that of the IPs. I visited all the local government units which have jurisdictions in the proposed mine development area. I conferred with Visayan settler, indigenous, and Muslim communities. One couldn’t imagine the volume of native and instant coffee I have taken in my numerous consultations. It would be the height of disrespect to decline whatever the households and offices could humbly offer to me especially someone from a place they derisively called “Imperial Manila”. The more consultations I conducted in a day, the more cups of “sweetened” coffee I was expected to partake in. WMCP offered an option to develop the communities, but the project has to gain social acceptability. It was also the company’s responsibility to prepare the marginalized communities and local governments for the anticipated surge in economic activity with the proposed mine development. Our objective was to put the agreements into place. However, the company had to act pragmatically in managing its corporate strategy and balance it with the interests of the Visayan local government, the requirements of the national government, and B’laan traditions. We started with the agreements with the B’laans because they will be the first to be affected since the mine site is within their ancestral domain. This is the reason why in our discussions with the communities, we had to follow a strict and tenacious Execution Protocol. There would be no shortcuts to obtaining the consent of the IP communities who were at a relative disadvantage compared to the company. The Execution Protocol met with some hesitance even within the company. It was my responsibility that the community relations and corporate affairs departments strictly adhered to the protocol and WMC’s Code of Conduct. Their job was to get the principal agreements signed but my

job goes beyond the signing of the agreements - the process should strictly adhere to the guidelines of getting the free and informed prior consent of the communities. WMC, the mother company, then was a relatively large, listed resources company in Australia with global operations. All eyes were on the company because of the sensitive issue of working in a remote developing country with native title, environmental, and social acceptability issues. In fact, WMCP’s Execution Protocol had a heavy influence on the NCIP’s administrative orders in obtaining free and prior informed consent from IPs. The company did its best to get its message across to the host communities. For the Visayan settlers, there was relative ease in our consultations because of their level of education. It was a different story with the B’laan IP communities. We had to bring in local B’laan interpreters and translate the main points of the agreement into the local vernacular. Although the final signed agreement was written in English, all the consultations were done in the communities and in the presence of NCIP officials. The company was accused of “wining and dining” the leaders of the IP communities and bribery through its community development and scholarship initiatives, coming especially from the Social Action Center of the Diocese of Marbel. As far as I am concerned, I have not witnessed those occurrences. The company even played host to numerous international human rights and legislative fact-finding missions. Everyone was invited to visit and see for themselves the numerous activities being done by the company. What I do know was that local B’laans in the area have not been comfortable with civil society groups as well. The La Bugal B’laan group which was the petitioner in the FTAA constitutional challenge

was not based within the mine development area. It was based in the Poblacion of Columbio Sultan Kudarat, which was the least affected area if the mine operated. WMCP was also accused of employing goons. All evil schemes, shenanigans, and machinations were by default, attributed by civil society groups to WMCP. There was one instance where I have to personally appear on behalf of the company for an NBI investigation conducted in Cotabato City about the assassination of a town mayor in Sultan Kudarat. The case against the company did not prosper but one has to imagine the immense hostility and black propaganda against the company by certain sectors. We were free to roam in the FTAA area even traveling to areas called “no man’s land” where lose and unlicensed firearms proliferated in the hinterlands. Despite the banditry and insurgency, we did so without any armed bodyguards. When I traveled to the communities, I was only accompanied by a company driver or fellow employee. I didn’t experience any form of harassment, but the company was fully aware of my destination and schedule. Except for the occasional barricades brought about by personal grievances against the company, there were no instances of the burning of company properties or killing of employees and contractors during my time working with WMCP. Most of the barricades were related to unsettled crop damages, labor issues, or petty misunderstandings with company employees and contractors. The company had to balance the employment opportunities among the locals, so it has to implement a rotational labor hiring among the locals. With the signing of four out of five Principal Agreements with the IP communities, the next task was to create the B’laan foundations to manage the funds intended for the

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 about the Philippine resources industry and suggested topics for commentaries. Atty. Penarroyo’s commentaries are also archived at his professional blog site at www. penarroyo.com

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RESOURCES COMMENTARY

< Page 12 communities. Because of the veto power of the company and the government representatives from NCIP and Mines and Geosciences Bureau, the tribal council representatives in the B’laan foundations were understandably weak. Even some of the B’laans were ambivalent about the tribal council system. At that time, the tribal councils had little influence, and the local government units tended to ignore them. This was perhaps the reason why there was intense criticism of the government-sponsored tribal council system insofar as it was susceptible to manipulation. In 1999, there was already uneasiness among WMCP’s employees and stakeholders because operations were being scaled down. In anticipation of the company’s eventual withdrawal from the Philippines, retrenchments of employees and budget cuts were becoming common. Some permanent employees including myself were given the pink slip and made contractual employees. This was when I decided to accept a scholarship to pursue graduate law studies in Australia. I initially had misgivings in accepting the offer because, at that time in 2000, I had a young family and had taken a loan to finance our first home. Going to graduate school would cause a dent in our financial situation since I would be out of work for eighteen months and my family had to rely on my wife’s income. My boss in WMCP talked me into accepting the offer because he explained that it would benefit my career in the long term. WMC also supported me in a small way in my law graduate studies at the University of Melbourne. Our head office in Melbourne would give me occasional part-time work

to augment my meager scholarship allowance. In 2001, WMCP which had invested $39 million for exploration and support activities in its Tampakan project decided to pull out of the country. Following an evaluation of the mineral resources of its mining site in Tampakan, the company decided that it would not be able to meet a rate of return on investment acceptable to WMC. WMCP said it also considered the continuing drop in the price of copper in the world market at that time. WMC sold its rights and interests to Sagittarius Mines, Inc. The sale and transfer of its mining rights paved the way for WMC’s complete pull-out from the Philippines. When I came back from my law studies, the task waiting for me was winding up the company’s business and financial accounts. The companies’ properties -- lock, stock, and barrel -- were turned over to the FTAA assignee. As a gesture of courtesy, WMCP personally delivered letters to the LGUs, tribal councils, and stakeholders informing them of the company’s withdrawal from the project. It was also an opportunity to introduce the new company taking over the project to the communities. After everything was set into place, I was the last employee of WMCP - the person who turned off the office lights. My Tampakan experience provided me with fond memories of times with co-workers who eventually became good friends, sharing fresh bounties from the Mindanao seas and sweet produce from the volcanic enriched soil of Mt. Matutum. I recall road stops for breakfast of durian, marang, mangosteens, and pomelos in North Cotabato; and lunch of native chicken inasal in Tupi, ubiquitous tuna and blue marlin kinilaw,

premium cuts of locally-fattened Australian cattle, mudfish inihaw from Liguasan Marsh, and fat mud crabs from Cotabato City. Our friendship continues to the present especially with social media as the nexus and facilitator. Colleagues became executives of mining companies both locally and internationally, and some were retained by the present project management. Some B’laan groups continue to consult me on several occasions, and I tend to believe that they do so because they were convinced of WMCP’s sincere relationship with them when the company operated in the area. After many years since the FTAA was signed in 1995 and with the South Cotabato governor’s pronouncements over his veto, there remains a big question mark on the outcome of the Tampakan project. Time is certainly running out for this flagship mining project. As someone who was a part of the Tampakan experience, I can only hope that with the huge number of financial resources and human capital poured into this project, we will eventually see a favorable outcome to this much-anticipated mining project. ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

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RESOURCES COMMENTARY

Diwata plans award for best SDMP programs

s Diwata-Women in Resource Development, Inc. (“Diwata”) marks its tenthyear anniversary on July 18 this year (incidentally, also Nelson Mandela Day), it takes pride in announcing the launch of an award to recognize the best Social Development and Management Program that specifically benefits indigenous peoples, specifically women and girls. When Diwata was founded ten years ago, it sought, among others, to serve as a positive platform for dialogue on contentious issues on mining and natural resources and to promote understanding by bringing together and promoting meaningful connections among stakeholders. It also sought to protect and safeguard the rights of indigenous people, women, and communities. Its flagship project, Tanging Tanglaw: Turning Grandmothers into Solar Engineers -- more popularly known as the “Solar Lolas” Project in cooperation with our partners, the Land Rover Club of the Philippines and the Philippine Mine Safety and Environment Association (PMSEA) -- has enabled the training of Aeta Women from two communities in Bamban, Tarlac and Gala, Zambales at the Barefoot College in Tilonia, India to assemble, repair and maintain solar panels. The Solar Lolas have since returned to their communities, where these panels have been installed and are now working. The second phase of the project was a financial literacy program, which Diwata ran in collaboration with FWD Insurance, to reinforce the idea that the principle behind the project is that the community will put the money they used to spend on kerosene and other sources of energy into a fund which will now be spent on the solar panels and other communityadministered livelihood projects. FWD Insurance will remain Diwata’s partner for the third phase of the program, a longer-term livelihood program with the locators at the Clark Development Freeport Zone. Diwata has an MOU with Clark Development Corporation and the Bases Conversion & Development Authority for the use of

By Patricia A. O. Bunye two classrooms at the Clark Skills and Training Center, Clark Green City, which is charged to these agencies’ respective Gender & Development Funds. The Solar Lolas Project was originally conceived and pitched to mining companies as a possible model for community development, which we hoped was something that could be successfully replicated in different areas of the Philippines. However, despite the generally positive response to the project, some mining companies were lukewarm to the idea. Among the disappointing responses were: “It does not tick the boxes to comply with the Social Development and Management Program (SDMP) under the Mining Act”; “The current project is beyond our project area – it will require us to go beyond what the law requires”; and “The communities have gotten used to company dole outs.” Under the law and its implementing rules, the SDMP refers to the comprehensive five-year plan of the mining companies to conduct their actual mining and milling operations towards the sustained improvement in the living standards of the host and neighboring communities. Specifically, it covers: 1. Promotion of general welfare of those living in host and neighboring barangay communities. 2. Advancement of mining tech-

nology and geosciences. 3. Institutionalizing Information, Education, and Communication (IEC) programs for greater public awareness and understanding of responsible mining and geosciences. Companies are required to allocate an annual budget of one and a half percent (1.5%) of their annual operating costs for their respective SDMPs, allocated as follows: (see table on next page — Editor) The companies are also required to prepare their SDMPs in consultation and in partnership with the host and neighboring communities to ensure that the programs are responsive to the communities’ needs, demands, and concerns. The program should also be reviewed every five to accommodate the changing needs of the recipient communities. The Mines and Geosciences Bureau (MGB) periodically allows realignments of the SDMP. In the past, mining companies were allowed to realign the unutilized/unspent SDMP funds to assist typhoon victims within the host and neighboring communities, as well as the non-impact barangays in their respective localities. In 2020, pursuant to MGB Memorandum dated 27 March 2020, mining companies were again allowed to realign unutilized SDMP funds to assist the host and neighboring communities and the non-impact barangays in their respective localities, during the implementation of the enhanced community quarantine due to COVID-19. In this regard, many mining companies could be considered “frontliners” in responding to the needs of host and neighboring communities, as well as the nonimpact barangays in their respective localities during the pandemic, as could be shown in the final report issued by the MGB Central Office on the utilization of the total of PhP 407.6 million budgeted by the companies, with PhP 380.1 million expended. The companies’ community relations offices regularly submit reports to the Mines and Geosciences Bureau detailing their compliance with the SDMP. Considering the significant resources that are required

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 nongovernment organization advocating the responsible development of the Philippines’ wealth in resources, principally through industries such as mining, oil and gas, quarrying, and other mineral resources from the earth for processing.

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MINING NEWS

President Duterte appoints PRJ columnist Penarroyo as new PRB chairperson for Geology By Marcelle P. Villegas

hilippine Resources Journal congratulates our very own columnist, Atty Fernando “Ronnie” S. Penar-royo, for his recent appointment as the new Chairperson for the Professional Regulatory Board for Geology (PRB Geology). For several years now, Atty Penarroyo has been one of the main contributors to our publication. He specializes in Energy and Resources Law, Project Finance, and Business Development. Through his informative and well-researched editorials in Philippine Resources Journal, he brought light and clarity to many complex issues surrounding the mining industry. As a notable alumnus of BS Geology and Bachelor of Laws at the University of the Philippines and former President of the Geolog-ical Society of the Philippines, Atty Penarroyo guided and mentored many young students in the field of Geology. He also studied at the University of Melbourne from 2001-2002 for his Master of Laws.

< Page 16 to be allocated to the SDMP and the real opportunity for companies to create self-reliant communities through the programs they implement, it is important for them to choose programs that are truly transformative, and which have a lasting impact on the lives of the members of the community.

From 1988-1989, he earned a Graduate Diploma in Petroleum Exploration, Geological/ Geophysical Engineering at the Norwegian University of Science and Technology (NTNU). Atty Penarroyo studied Management, Petroleum Accounting, and Financial Management at the University of Texas at Dallas in 1992. Then, in 2018, he studied International Nuclear Law Essentials at the National

Since the primary objective of SDMP is to help create sustainable communities, Diwata would like to support this effort by launching our award to recognize and encourage companies that not only comply with the requirements of the law but also go above and beyond by offering fresh and innovative approaches, particularly in promoting the

University of Singapore. He is a licensed Geologist by the Philippine Professional Regulatory Commission since December of 1985. As Chairperson of the PRB Geology, Atty. Penarroyo will recommend measures necessary for the advancement of the geology profession. It was on the 4th of March 2022 when President Rodrigo Duterte appointed Atty Penarroyo as the new Chairperson for the Professional Regulatory Board

Atty Fernando “Ronnie” S. Penarroyo (right) during the Oathtaking of Newly Appointed Professional Regulatory Board Members, PRC at PICC, Pasay City.

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rights and welfare of IP women. As this column is being written, Diwata is finalizing the criteria for the award to be announced on the date of our tenth anniversary on July 18, with the award to be given at the PMSEA’s Annual National Mine Safety and Environment Conference in Baguio in November 2022. Watch out for the details! ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

PMEA monthly membership meeting and industry updates By Marcelle P. Villegas

ining events are slowly transitioning back to faceto-face gatherings, and this is something that Philippine Mining and Exploration Association (PMEA) has been initiating since April with their hybrid meeting. Last 6 June 2022, PMEA’s Monthly Membership Meeting resumes with several attendees who were present at Manila Elks Club that evening. Mr. Joey Nelson Ayson, PMEA President, reported some PMEA matters and industry updates/news from MGB. Here are some of the topics he discussed:

< Page 18 for Geology, replacing the late geologist, Mr. Rolan-do “Rolly” Peña, who passed away on the 30th of November 2018 due to a road accident. Mr. Peña is considered one of the most important geologists in the Philippines. He wrote the “Lexicon of Philip-pine Stratigraphy” (published in 2008) and edited “The Geology of the Philippines” (volumes 1 and 2, Second Edition, published in 2004) These two books are considered the “Bible of geologists” and im-portant in the study of geological history and

~ 9th Annual PMEA Invitational Golf tournament - Proposed venues and dates are not yet set. (Perhaps it will be scheduled early in August of this year.) The Golf Committee Chair is Mr. George Yap III. ~ 4 May 2022 – Atty. Ernesto D. Adobo Jr. was designated as Supervising Undersecretary for Mining Affairs. ~ 1 June 2022 – Glenn Noble was reassigned back as MGB MIMAROPA Regional Director. ~ MGB’s current new projects (Phase 1) include 7 new nickel mines, 2 gold mines, 4 iron/chromite mines, 2 offshore marine sand projects, 3 limestone projects supporting cement plants, and 18 non-metallic

mines (aggregates, industrial sand, and gravel). For upcoming mining projects (Phase 2), there will be 8 new nickel mining projects, 7 new gold mining projects, 4 new copper mining projects, 2 new iron/chromite mining projects, 12 new non-metallic mining projects (feldspar, basalt), 7 new limestone mining projects, and 5 new magnetite sand mining projects. ~ As for the top producers for the first quarter of 2022, we have the following: GOLD 1. MGP / PGPRC (1,859 kgs) 2. OGPI (917 kgs) 3. Philsaga Co-o (706 kgs)

geo-hazard predictions. [1] Atty Penarroyo’s new role as PRB Chairperson offers the opportunity to continue his good friend and former work colleague, Rolly Peña’s legacy of academic excellence in the field of Geology. On his social media posts last March, Atty Penarroyo stated, “Thank you to the following industry or-ganizations for endorsing my appointment - the National Geothermal Association of the Philippines, Petroleum Association of the Philippines, and Philippine Mining and Exploration Association.” His position as Chairperson in the PRB will take effect for the

next three years.

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Reference: Naredo Dacanay, Barbara Mae (10 Dec. 2018). “Rolando Peña: Portrait of a rock scientist as a rare gem”. ABS.CBN News. Retrieved from https://news.abs-cbn.com/ ancx/culture/spotlight/12/10/18/ rolando-pea-portrait-of-a-rockscientist-as-a-rare-gem Additional reading: “Rolly Peña: The Revolutionary as a Geologist” (20 Feb. 2020) by Atty Ronnie Penarroyo - https:// www.philippine-resources.com/ articles/2020/2/rolly-pena-therevolutionary-as-a-geologist

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Atty. Quintero on legal framework, updates on regulations in mining By Marcelle P. Villegas

hat does it take to own and operate a mining company in the Philippines? Mining is one of the industries that heavily revolves around a number of laws and regulations. On Day 2 of the Philippine Mining Virtual Summit (17 March 2022), Atty Dennis A. Quintero of the Quisumbing Torres Law Office was one of the presenters. Atty Quintero gave a comprehensive report titled “Philippine Mining Legal Framework / Updates on Regulations”. Known as one of the top lawyers in the Philippines, Atty Quintero is also a Chairman and Trustee of the Philippines-Australia Business Council (PABC). He is a member and active advocate of the Philippine Mineral Reporting Code Committee. In his presentation, he stressed the importance of the adoption of international best practices and world-class standards in mining. He stated that the Philippines has taken steps to achieve the same by having the following: - World-class mining law - Requirement for free and prior informed consent for indigenous peoples/indigenous cultural communities - Local community approvals prior to commercial operations - Adoption of Philippine Mineral Reporting Code (PMRC) and

Atty. Dennis A. Quintero at the Philippine Mining Virtual Summit last 17 March 2022

Towards Sustainable Mining (TSM) Extractive Industry Transparency Initiative (EITI) New regulations on environmental safety and biodiversity. He mentioned that PMRC, TSM, and EITI are being promoted and supported by the Chamber of Mines of the Philippines. To open and operate a mine site requires different types of tenurial permits/agreements, namely: Exploration Permit, Mineral Production and Sharing Agreement (MPSA) or Financial or Technical Assistance Agreement (FTAA) (for extraction), and the Mineral Processing Permit (for processing activities). The current legal framework in the Philippine mining industry can be described as: - The state having ownership of natural resources which is the

foundation of the Philippine mining legal framework; - The state can undertake the exploration, development, and utilisation of these natural resources or it can enter into agreement with private parties or contractors under revenuesharing or production-sharing arrangements; - This is found in Article XII, Section 2 of the 1987 Constitution; - Private contractors can enter into an MPSA for the exploration, development, and utilisation of natural resources. In an MPSA, Filipino citizens or corporations must own at least 60% of the company that entered into an MPSA; and - The foreign equity limitation is removed for large-scale exploration, development, and utilisation of minerals and petroleum, and other mineral oils.

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ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 20 SILVER 1. TVIRD Phils Balabag (5,155 kgs) 2. AMCI Maco (2,966 kgs) 3. MGP / PGPRC (1,436 kgs) NICKEL 1. RTNMC (1,028,119 DMT) 2. TMC (451,265 DMT) COPPER 1. CCC (35,423 DMT) 2. OGPI (15,452 DMT) 3. Philex Padcal (13,966 DMT) CHROMITE 1. Techiron Resources 2. THPAL (by-product) IRON 1. Ore Asia Mining Bulacan (41,124 DMT) 2. Strongbuilt Mining Leyte (3,009 DMT) More industry updates: ~ 16 March 2022 - Marinduque RTC Branch 38, finds Marcopper Mining Corporation accountable for the March 1996 mine spill and awards each of the plaintiffs the amount of P200,000 in temperate damages, P100,000 in moral damages, and another P1 million as

exemplary damages. ~ 2 May 2022 – DENR issued Administrative Order (AO) 1712022 which is a moratorium on the acceptance of all new applications for special exploration permit/ government seabed quarry permits. Company News: Oceana Gold Philippines Inc. - Probable + Proven Mineral Reserve of 42.2 Mmt of 0.91g/t Au (different cut-offs for OP & UG) - 2022 Q1 production of 29,446 oz Au and 3,500 tons Cu - Purchase Agreement with Bangko Sentral to sell 25% of Au signed last May 05, 2022, and the first The gold bar was delivered the other week. B2Gold / MGP - Production for 1Q 2022 is 59,764 oz. Sagittarius Mines Inc. - SP has issued a Resolution lifting the open-pit ban. - Gov. Tamayo of South Cotabato has VETOED the SP Resolution, though he clarifies that it does not cover projects approved by the national government. Mt. Labo Exploration and Development Corporation - They are currently resolving all issues, including restructuring

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 2 2022

brought about by the entry of TVIRD into the project. Celsius Resources Limited - Drilling is ongoing at their flagship MCB Project (Kalinga) with significant assays obtained in MCB037 - Initial scoping study was recently completed. Greenstone Resources (Siana Mine) - Ongoing rehabilitation of Tailings Storage Facility and other

Joey Nelson Ayson (PMEA President) and Mr. Sukalp Sharma (Asian Digital Leader, GHD Digital) Photo by Marcelle Villegas, Philippine Resources Journal

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MINING NEWS

< Page 22 The exception is implemented through (i) the Financial or Technical Assistance Agreement (FTAA) in the minerals sector (similar to the Service Contract in the oil and gas sector). Furthermore, an Exploration Permit (EP) and Mineral Processing Permit (MPP) in the minerals sector can be held by a corporation that is up to 100% foreign-owned. What are the major requirements to operate a mine? Some programs are required, such as: a work development and utilisation program, an environment protection and enhancement program, safety and health program, social development and management program (SDMP), final mine rehabilitation and commissioning plan, environmental compliance certificate, and declaration of mining project feasibility. Additionally, a Mechanical / Electrical permit is also required. Other permits needed are the Wastewater Discharge Permit, Ore Transport Permit, and Mineral Ore Export Permit. Notable Regulatory Update There are currently some notable regulatory updates that directly affect the mining industry. First is the Amendment of Section 4 of Executive Order No. 79. E.O. No. 79, series of 2012 prohibited the grant of mineral agreements until a new legislation rationalising existing revenue sharing schemes and mechanisms shall have taken effect. Executive Order No. 130 which was issued on 14 April 2021 lifted the moratorium on mineral agreements. The government may enter into new mineral agreements. Second is the Lifting of the Ban on the Open Pit Mining, DENR Administrative Order no. 2021-40. The order lifted the ban on open pit method of mining for the extraction of copper, gold, silver and complex ores. While open pit mining is a topic of debate for some environmental groups, it is subjected to the following conditions and strict requirements: a) use of surface mining method shall not pose possible hazard to public health and safety resulting from ground failure or physical deterioration. b) it shall not release hazardous chemicals into the environment, or the proponent has presented proven and acceptable techniques to control the same c) proponent has adequate information to conduct a

comprehensive stakeholders’ involvement process to ensure that all interests and concerns are considered, and has social acceptability of its project since the commencement of exploration activities. Moreover, as a means to further protect the environment, there are orders concerning the Biodiversity Conservation and Protection in Mining Operations. DENR Administrative Order No. 2022-04 provides guiding principles to be promoted in the enhancement of biodiversity in mining operations. This order entails a precautionary principle and a sustainable use of natural resources. The operation should not lead to the decline of biological diversity. Tax Reform for Acceleration and Inclusion Act Republic Act No. 10963 (signed in 2017) doubled the rate of excise tax on minerals, mineral production, and quarry resources from 2% to 4%. Under the new law, there shall be a tax of 4% on all nonmetallic minerals and quarry resources, based on the actual market value of the gross output thereof at the time of removal in the case of those locally extracted or produced. Corporate Recovery and Tax Incentives for Enterprise Act (CREATE Act) Under the CREATE Act (R.A. No. 11534).it may be possible for mining operations, in particular those with downstream processing activities, to qualify for incentives under the CREATE Act, subject to details in the new Board of Investments Strategic Investment Priorities Plan (SIPP). Under CREATE, the Fiscal Incentives Review Board or the investment promotion agencies

(e.g. PEZA and BOI) may grant the following incentives to registered business enterprises (RBEs): - Income Tax Holiday of 4-7 years, depending on tier, location and industry priorities - Followed by a Special Corporate Income Tax (SCIT) rate of 5% based on gross income earned or Enhanced Deductions for 10 years - Enhanced Deductions are in addition to the allowable deductions under the Tax Code - Duty exemption and VAT exemption on importations and VAT zero rating on local purchases Recommendations for Investors in the Mining Sector At the end of Atty Quintero’s presentation, he enumerated some recommendations for investors in the mining sector. - Conduct appropriate due diligence on exploration / mining projects - Consider pending bills in Congress (e.g. downstream ore processing) - Consider the foreign equity limitations applicable to certain mining projects (i.e. if under an MPSA) Strengthen stakeholder acceptance and involvement. Build a strong CSR in-house team. Local community acceptance is of paramount importance. - Consider possible investment incentives under the CREATE Act and 2022 SIPP. For our next article, we shall discuss the briefing of the Board of Investment’s initiatives on copper, iron and steel industries, their economic contributions, industry roadmaps and more. This was a Philippines Australia Business Council webinar last year that was organized by Atty. Quintero with the Board of Investments. ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 23 mining infrastructures, access, and in-pit roads - Target resumption of mining operations including gold-silver production: 2nd quarter 2023 TVIRD Balabag - Ongoing ramp-up of mining and milling operations to reach target capacity of 2,000 tons per day - Continuous production of goldsilver dore sold to direct markets in Asia, Australia, and Switzerland The PMEA Monthly Membership Meeting last June 6 was sponsored by GHD, while the keynote speaker was Mr. Sukalp Sharma. He is GHD’s Asia Digital Leader and Southern Hemisphere Practice Director for Digital Experience in Singapore (see related story on page XX — Editor) A week after the PMEA Meeting, Mr. Sharma posted on LinkedIn, “Last week, I had the pleasure of being the keynote speaker at a Philippine Mining and Exploration Association Event in Manila, Philippines. The topic of my address was ‘Contemporary digital innovation and automation case studies in Mining’.” “I had a great time discussing with a very receptive audience,

some recent #GHDDigital case studies focusing on five key themes pertinent to the sector. The key themes included: (i) Increasing ESG and sustainability focus among miners globally is driving a push towards the adoption of digital-led innovation (ii) IoT devices are increasingly being adopted in the Mining sector for operational, safety, and compliance purposes. Sensors generated big-data finds useful applications through Automation / Integration (iii) High-impact automation in Mining does not have to be complex; there are many low complexity, high benefit, high impact use cases with rapid ROIs that can fuel the digital

transformation program of a mining organization (iv) The pandemic accelerated the need for being nimble, flexible, and agile to be resilient to disruption. Digital emerged as the clear enabler (v) Increase in the sophistication of Industrial Control Systems (ICS) enabled by the Industrial Internet of Things (IIoT) and convergence of OT and IT systems has made critical infrastructure more vulnerable than ever before.” “Thank you, PMEA, for being a very gracious host. I look forward to our ongoing association.” #innovation #sustainability #GHDDigital #digitaltransformation #automation #miningindustry #PMEA

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MINING NEWS

Digitalizing mining for sustainability and resilience By Sukalp Sharma

he pandemic has accelerated the need for being nimble, flexible and agile to be resilient to disruption. Digital has emerged as the clear enabler across sectors including Mining. Contrary to popular perception, high impact digitalisation in Mining does not have to be complex; there are many low complexity, high benefit, high impact use cases with rapid ROI’s that can fuel the digital transformation programme of a mining organisation. Earlier this month, I delivered a keynote address at a Philippine Mining and Exploration Association Event in Manila, Philippines. The topic of my address was “Contemporary digital innovation and automation case studies in Mining”. Among other things, I discussed simple digital automation and innovation case studies that, in isolation, have made quite an impact within their respective contexts. When combined as part of a portfolio of digital improvement initiatives, these case studies can fuel the digital transformation program of a mining organization. An associated objective of the discussion was to establish how transformative digital programs in Mining can be simple, drive rapid returns on investment whilst enhancing safety and resilience in operations. IoT devises, for example, are increasingly being adopted in the Mining sector for operational, safety and compliance purposes. Case in point, is GHD’s automated Tailings dam monitoring and reporting system that automates the processing and analysis of data generated by IoT monitoring devices like Piezometers or Inclinometers, to produce relevant reporting. A Piezometer for

< Page 27 pany donated cash assistance for the renovation of Our Lady of Mt. Carmel Parish at Del Carmen and Sta. Monica Parish of Siargao Islands. On March 8, 2022, Mines and Geosciences Bureau (MGB) Region XIII awarded a plaque of recognition to CTPCMC for its assistance

example helps with water pressure detection and ground water level monitoring. Such data, when combined with ground movement and rainfall reports, is processed by automated “Bots” or “Digital Workers” that can work around the clock to produce meaningful reports for assessment by the relevant mining engineers. These digital workers, developed using the now ubiquitous Robotic Process Automation (RPA) or Intelligent Automation (IA) technologies, help free up valuable time of the highly skilled engineers for other value add tasks, whist improving speed, accuracy, consistency, frequency, scalability and reliability of the process. A traditional working environment without automation relies heavily on human ingenuity and collaboration, whilst an automated environment is more resilient to disruptions. Automation is equally, if not more, effective in back-office mining operations. By leveraging business process optimization techniques and implementing simple automations across the value chains, key process bottlenecks can be removed, favourable business outcomes expedited, and costs optimised. In addition to resilience and cost outcomes, RPA or IA “Bots” enable mining performance assessments through fit-forpurpose dashboards and analytics, enhance safety in the operations and help boost productivity. It is hence not surprising why Mining organisations globally are looking to increase their Automation investments. One unwarranted outcome of the increasing digitalisation within the Mining sector is the increased cyber-attacks. Cyber-attack incidents are on the rise across all asset-intensive industries and Mining is no exception. Increase

in sophistication of Industrial Control Systems (ICS) enabled by the Industrial Internet of Things (IIoT) and convergence of OT and IT systems has made critical infrastructure more vulnerable than ever before. The increased connectivity of the Mining equipment and devices renders the physical security inadequate as these become exposed to cyber threats. A robust and digitally enabled critical infrastructure cyber security risk assessment and management approach is required to mitigate and thwart such potential threats or attacks.

About the author: Sukalp Sharma is the Asia Digital Leader for GHD.

extended to the victims of Typhoon Odette, which was received by Engr. Charlo R. Basadre, CTPCMC Resident Mine Manager. CTPCMC operates the Dahican Nickel Project in Carrascal, Surigao del Sur. Typhoon Odette (international name Rai) was the 15th storm to hit the country and was the strongest storm of 2021. ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Operation Odette for the people of Siargao Islands CTPCMC donates P3.6M for Typhoon Odette victims By Roniel R. Arguillas, CTPCMC ICE Officer

iargao Islands was ravaged by Typhoon Odette on December 16, 2021, leaving massive damage to its vegetation and infrastructures. Due to the typhoon’s impact, Siargaonons’ access to health services, electricity, food, and water was curtailed. In response to their need, CTP Construtction and Mining Corporation (CTPCMC) conducted “Operation Odette: To the People of Del Carmen Parish Siargao and Non-Roman Catholic Communities” on January 20, 2022. CTPCMC Personnel and Staff and CTPCMC Emergency Re-

sponse Team (ERT) spearheaded by Engr. Charlo R. Basadre with LCT Charles Jason went to Siargao, bringing 3,500 bags of relief goods, 3,300 nipa shingles, galvanized-iron roofs, mineral water, and 10,000 seedlings of trees namely Maria Buhok, Mango-Tambis, and Magkono species. Likewise, former CEO/President Clarence J. Pimentel Jr. also donated 45 units of generator sets, and 20 sets of solar lamps, and PARAMINA also sent 25 sacks of rice. The relief assistance was turned over to Msgr. Prescilo P. Iral, Dcs for distribution to the 3,500 affected families. The turnover was attested by Fr. Rolmart L. Verano, Dcs. CTPCMC further extended the

relief operation to the neighboring islands including Sitio Campinganon, Pitogo, and Alvarez of Barangay Maribojoc, San Benito, and Surigao del Norte. On April 01, 2022, the com-

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MINING NEWS

Taganito Mining partners with Claver to boost vaccination drive

accines are one of our most important tools for preventing outbreaks and keep the world safe” - Dr. Tedros Adhanom Ghebreyesus, WHO Director-General Since the start of the COVID-19 pandemic, different industries were forced to shut down operations and people are still struggling to make ends meet. Hence, laboratories and manufacturers all over the world continuously searched for ways to solve this global pandemic. And in 2021, vaccines were developed and started rolling out all-over the world to resolve and eliminate the deadly malady. When the vaccine roll-out started in the Philippines, the Claver LGU proactively looked for means to secure vaccines for its people. The LGU took the following measures to prepare its health care system for the vaccination

drive, to wit: (1) dutifully conducted IEC campaign on the importance of the vaccination; (2) procured ultra-low temperature freezer for Pfizer-BioNTech vaccines; and (3) partnered with mining companies and processing plant for the procurement of additional vaccines. Taganito Mining Corporation, a subsidiary of Nickel Asia Corporation, shared PhP15.6 million from its 2021 Social Development and Management Program for the procurement of 20,724 doses of Moderna vaccines. The vaccines are on top of the regular vaccines distributed by the national government. Because of the collective efforts of the LGU and the mining industry, on January 7, 2022, Claver successfully achieved the herd immunity with 25,550 individuals inoculated. This is equivalent to 100.5% of the target population and more than 70% of the total population,

making Claver the first municipality in the province of Surigao del Norte to achieve herd immunity. Further, with the signal from DOH, Claver started inoculating the young population – aged 5-17 years old. With a heart ready to extend assistance, the vaccination drive of the LGU did not stop in the municipality but was extended to other municipalities in the province. Last March 15-17, 2022, a total of 709 individuals were inoculated from the municipalities of General Luna, Pilar, and San Isidro in Siargao Islands during the Mobile Vaccination Outreach Program. This was spearheaded by Claver’s Rural Health Unit and Municipal Social Welfare and Development Office, and, in partnership with NAC-TMC and other companies. Food packs courtesy from Claver LGU, and TMC calendars were distributed to those who were vaccinated.

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

COVER STORY

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WWW.PHILIPPINE-RESOURCES.COM • ISSUE 2 2022

MINING NEWS

PNP Surigao del Norte thanks Taganito Mining for 2 vehicles

s support to the peacekeeping and law enforcement efforts of the province, Taganito Mining Corporation turned over two (2) vehicle units, one Kia Bongo and one Hyundai Porter, to the Surigao del Norte Police Provincial Office (SDNPPPO) and the Criminal Investigation and Detection Group (CIDG). The turnover was led by TMC Resident Mine Manager Engr. Artemio Valeroso at the Provincial Police Office, which was represented by Provincial Director PCol. Renato Mercado and PMaj. Felix Dennis Alicando of the CIDG Surigao del Norte PFU. “Surigao del Norte Police Provincial Office is known for its initiative in reaching out to the downtrodden members of the community, especially during the pandemic brought about by COVID-19 and when Typhoon Odette unleashed havoc, causing many Surigaonons to go homeless and even hungry,” said Mercado. Mercado added that the vehicles “will be very useful during different community engagements especially in far-flung barangays, as activities to reach out to the people is a continuous and sustainable effort geared to uplift the lives of those in need. Thank you very much po.” Engr. Valeroso remarked that like the PNP, TMC has the same end goal of contributing to a brighter future for its people, communities, and other stakeholders; one way of which is by partnering and supporting different offices and agencies.

CELSIUS: COPPER NEAR SURFACE AT SAGAY PROJECT

elsius Resources is pleased to announce it has received results from 3 drill holes confirming shallow extensions to the large-scale copper mineralization previously discovered at its Sagay Project held under its Philippine subsidiary Tambuli Mining Company, Inc. “The copper mineralization covers a huge area at Sagay at depth, and we are now proving this up at shallower levels. This round of drilling has confirmed that the mineralization now extends up close to the surface, extending up from

the earlier discoveries which has intersected copper mineralization from around 100 meters to over 1,000 metres depth,” said Celsius Executive Chairman, Martin Buckingham. The results identified extensive geological alteration and other features which are interpreted to be linked to the porphyry copper mineralization at Sagay. Broad zones of low-grade copper mineralization were also intersected in all three drill holes, including 44.3m @ 0.27% copper from 139.2m in SGY-036, 112.2m

@ 0.16% copper from 197m in hole SGY-038A and 247m @ 0.14% copper from 113m (to the end of the drill hole). “The discovery of key geological features and copper mineralization near the surface is an important stepping stone, with further follow-up now required to define the higher grade core to this system also at shallow levels. This is extremely encouraging as it also allows us to consider lower-cost bulk mining methods as part of our next phase of studies at the Nabagia-a Hill Project area.” ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Supporting high through-put demands of mining industry with Innovative XRF Elemental Analysis An interview with one of Zetium’s creators, Simon Milner

ining companies deal with as many as a few hundred to thousand samples a day, hence the need for quick, yet reliable analytical methods to assess purity and grade of ores. X-ray fluorescence (XRF) technology is the right method for quick analysis with good accuracy and precision for elemental analysis especially in mining. Building on years of experience and success with our extensive analytical X-ray portfolio, Zetium represents a revolutionary step in materials analysis by Malvern Panalytical. Malvern Panalytical is the world’s leading analytical instrumentation company for elemental, structural and particle size characterization. We are the only Xray analytical manufacturer with our own X-ray tube factory. This gives our users ready access to our tubes and flexibility to our R & D team in designing more compact and robust instruments. The platform embodies SumXcore technology – an integration of WDXRF and EDXRF. This unique combination of possibilities puts Zetium in a class of its own with respect to analytical power, speed and task flexibility in multiple environments. We continuously strive to help you get the most out of our instruments, and we’ve connected the Zetium to our Smart Manager platform. This is a cloud-based ‘control room’ which provides you with a clear picture of the utilization and health of your instruments, wherever they are in the world. By connecting your Zetium to the Smart Manager, we have turned it into a Smart Zetium. The Zetium is equipped with the latest version of our SuperQ software, including our Virtual Analyst that enables even non-expert users to easily set up applications. A wide range of additional software modules is available for specific analysis, such as standardless analysis, trace elements

in geology, matrix corrections in oils and analysis of thin films. Malvern Panalytical’s Zetium X-ray fluorescence (XRF) spectrometer. Launched in 2015, high-quality design and innovative features for analysis of Be to Am. We asked one of Zetium’s creators, Simon Milner – Director of Elemental and Structural Analysis Portfolio, about this system and how it contributes to excellence. Simon, what has driven the development of this XRF system? The main driver for developing this system is our philosophy of providing our customers with technology and solutions that give them the edge in their endeavors, whether process optimization, quality control or research. Malvern Panalytical’s Zetium XRF is a unique combination of possibilities that puts it in a class of its own with respect to analytical speed and task flexibility. Value added software for optimizing the performance

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MINING NEWS

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WWW.PHILIPPINE-RESOURCES.COM • ISSUE 2 2022

Compressor Capacity: 1200 - 1500 cfm / 330 - 120 psi

MINING NEWS Application Examples - Copper Analysis by Zetium WDXRF

< Page 32 and utilization of your XRF Unleash the potential of your data. Until now, instrument data has too often been stuck in manual records, spreadsheets, or site-specific servers. By connecting the Zetium to our Smart Manager and continually analyzing instrument data in the cloud, you can unleash its full potential. Health of Zetium is easily monitored by user and service engineers. This is just one of our digital solutions that are part of Malvern Panalytical’s Connected World. Addressing the unique challenges of mining Efficiency could also be gained at the concentrator with the Minerals edition of the Zetium XRF spectrometer, providing accurate measurement of major, minor and trace elements in concentrates. Go to www.malvernpanalytical.com/Zetium for more information.

Scan & Explore

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MINING NEWS

Epiroc’s new Boomer S10 S gives major leap in cost efficiency, productivity of mine development

Quality and extreme accuracy equal serious cost savings. Being the world’s first automated one-boom jumbo for the small segment, Epiroc’s new Boomer S10 S pushes the boundaries of what to expect from a face drilling rig. The great value of automation

he Boomer S10 S provides near surgical precision in drilling and major cost savings throughout the cycle – all thanks to being the world’s first one-boom jumbo featuring Epiroc’s Rig Control System. The consistent, repeatable, and quality-assured results are made possible by advanced automation, operatorassisting features, and digital drill plans. “With Boomer S10 S as our latest addition, we are proud to offer a sustainable automated operation for the small segment, with a complete range of automated rigs for face drilling, production drilling and rock reinforcement underground”, said Sarah Hoffman, VP Sales & Marketing at Epiroc’s Underground division. Quality means major cost savings New Boomer S10 S doesn’t compromise on quality – ever. And in this case, great quality means cost savings in terms of wear and tear of rock drilling tools, spare parts, and other consumables. Compared to traditional, non-automated one-boom jumbos, Boomer S10 S decreases the consumption of consumable parts with 30 %1 while lowering maintenance costs by 12 %2. WWW.PHILIPPINE-RESOURCES.COM • ISSUE 2 2022

Thanks to the digital drill plans and Epiroc’s Rig Control System the drill rig is perfectly aligned in the drift to optimize accuracy, providing less overbreak and underbreak, and longer pull rounds. “The Rig Control System provides drilling accuracy way beyond what human eye measure could ever accomplish. It is high-quality production from start to finish, and a great milestone reached for mine development,” said Niklas Berggren, Global product manager face drilling equipment at Epiroc. When applying the High-Performance Development method – a way of working during the entire drill cycle – Boomer S10 S offers up to 25 % more development meters3 compared to traditional one-boom jumbos. The total cycle time is reduced thanks to better pull-length, fragmentation, and less need for scaling. “It’s a snowball effect on productivity: accurate drilling holes means less explosives, less scaling and better tunnel profiles. In turn, a better tunnel profile means less rock reinforcement and less tear on all the machines in the drift. All this leads to significant cost reductions while increasing productivity and safety for everyone involved,” Niklas Berggren explains.

Visit the Boomer S10 S website to learn more: https://www. epiroc.com/en-ph/ products/drill-rigs/ face-drill-rigs/ boomer-s10-s

Taking operator ergonomics to new heights Designed for great ergonomics with lower vibration and sound levels (<75 dbA), the Boomer S10 S is a pure joy to use for the operator. Apart from offering better visibility and a multi-functional joystick, Boomer S10 S grants higher comfort and a significant reduction of live work. Epiroc’s Rig Control System Epiroc’s Rig Control System, RCS, was first implemented in 1998. The system is used for controlling several vital functions in Epiroc’s machines. It is also an enabler for several productivity-increasing, efficiency-boosting, and cost-saving automation features.

MINING NEWS

THPAL milestones in the Philippines

he Taganito HPAL Nickel Corporation (THPAL), a mineral processing plant, was incorporated in the Philippines on August 22, 2008, to engage mainly in the manufacture and export of Nickel and Cobalt Mixed Sulfide. THPAL’s Plant is designed to have an annual output of 30,000 MT of Nickel and 2,640 Metric of Cobalt in the form of Ni-Co Mixed Sulfide with a project life span of 30 years. This Ni-Co Mixed Sulfide will be exported to the Nihama Nickel Refinery in Ehime Prefecture, Japan. However, with continuous research and development, THPAL pioneered the production of Scandium in the country in 2019 and further, successfully conducted its Chromite commercial production in April 2021. The Taganito HPAL Nickel Corporation is a subsidiary of Sumitomo Metal Mining Co., Ltd Japan, and the sister company of Coral Bay Nickel Corporation (CBNC), the first company in the world to successfully employ the highly efficient HighPressure Acid Leaching (HPAL) technology that

turns low-grade Nickel ore into a manufactured intermediate product of high commercial value. Over the last 8 years since its commercial operation in the country, particularly in the Province of Surigao del Norte, THPAL has been contributing in 5 major ways: Adding Value to the Low-Grade Ores Using the HPAL technology, THPAL optimizes the utilization of minerals by producing several rare mineral products from low-grade ores, which is not of value before. Through its advanced technology, THPAL produces Nickel and Cobalt in the form of MS Sulfide, Scandium, and Chromite. Adding Value to the Environment The company advocates responsible environmental management to protect the environment beyond compliance and adheres to stringent safety measures while operating its stateof-the-art plant facility equipped with a Hydrogen Sulfide plant, Power Plant, Wastewater Treatment

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MINING NEWS

< Page 36 Facility, Sewage Treatment Plant, air pollution control facility, and other pollution control mechanisms put in place to safeguard the people and the environment. The plant achieved its ISO 14001:2015 certification in 2017. Adding Value to the Communities THPAL started the implementation of the Social Development and Management Program before its commercial operation to address the clamor of the communities for an improved quality of life. To date, the company is supporting 536 college scholars, 699 senior citizens, 233 Persons with Disability, 12 people’s organizations with 306 members, 165 Barangay Health Works and other medical workers in the communities, and other 255 recipients. We have been responsible for the construction of multi-million infrastructure projects like schools, roads, health centers, and churches, to name a few. Adding Value to the Filipino Skills The company cultivates a diverse workforce where upon joining THPAL, were exposed to a wide array of skills that puts a premium on their professions. They are not only trained to become experts in their field but to become responsible citizens of the communities. Adding Value to the Economy The entry of THPAL into the industry brought forth employment opportunities for thousands of locals. This is also considered the region’s major economic driver with the infusion of 1.6B US dollars for the establishment of the project in Barangay Taganito, Claver, Surigao del Norte. THPAL produces a mixed nickel-cobalt sulfide called mixed sulfide (MS). The Niihama Nickel Refinery and Harima Refinery in Japan refine this

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MS, producing electrolytic nickel, electrolytic cobalt, nickel sulfate, etc. This HPAL process enables the recovery of nickel and cobalt from low-grade nickel oxide ore, which couldn’t be smelted and refined with traditional technology. It is garnering attention as a way of effectively using previously untapped resources. The company does not only aspire to become the leading HPAL plant in the world but it believes that business success is, when a society grows with it by providing lasting benefits to the Filipino people and the world. The Taganito HPAL Nickel Corporation is Surigao del Norte’s pride in the Caraga Region.

MINING NEWS

HMC turns over stainless-steel school markers to adopted schools

inatuan Mining Corporation, a subsidiary of Nickel Asia Corp. (NAC), has donated stainlesssteel school marker to Talavera National High School (TNHS) and Talavera Elementary School (TES) during the ceremonial turnover of the items to the two adopted schools. TNHS and TES are two of the seven adopted schools of HMC in its host communities. In attendance during the ceremonial turn-over were TNHS faculty and parents headed by Renato L. Suacillo, Head Teacher II; Talavera Elementary School faculty and parents led by Judith P. Monadi, Principal I; and Hon. Reden G. Plaza, Talavera Barangay Captain. Antonio B. Resuera, Jr., ComRel Manager, represented NAC-HMC during the program. “We are indeed very grateful to NAC-HMC for continuously and untiringly supporting our school endeavors. Thank you for constantly hearing our voices and concerns. It is with great honor and happiness to accept this project. Rest assured that we at TNHS would take of this beautiful gift given to us which serves as a symbol of the good connection and relationship between responsible mining and the education sector,” said Mr. Suacillo. “Thank you so much for adopting TNHS. The untiring support and effort of HMC to all our school endeavors have greatly contributed to our school’s success,” he added.

Principal Monadi was also as grateful. “My heart is overwhelmed with so much joy seeing all of our stakeholders. With a grateful heart, we at TES, heartily accept this oneof-a-kind donation. We are happy every time we see an employee from HMC since they are our number one partners in terms of educational endeavors, followed by our barangay local government.” “This project was chosen among all others because we want to put a spark on our hearts. When we pass by this project, we readily notice it and it reminds us that we have partners and we’re not alone in this endeavor, we always have the support of HMC. This project represents how strong our partnership is,”

she added. Hon. Plaza is thankful not only to the support provided by HMC to the education sector but to his barangay as well. “I am thankful for the support provided by HMC to TES and TNHS, I am also grateful to the assistance HMC has provided us during the pandemic and relief efforts after Typhoon Odette.” “I also commend the teachers of elementary and high school for providing quality education. Your efforts are not wasted in helping mold and educate our community’s children. I am very much thankful to you. I have two kids who are academic scholars in Surigao universities with your help. Both of them are graduates of both TES and TNHS. Their scholarship saves us money; their tuition is discounted, helping me provide for both of them at the same time. I’m very proud of them. May God bless and help you as you have helped my family. The barangay local government of Talavera is always willing to help,” added Hon. Plaza. Marichin R. Albino, General Parents Teachers Association (GPTA) president of TES, also expressed her gratitude to HMC, the local barangay and the teachers of TNHS and TES. “I am very much thankful to HMC for their unwavering

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INDUSTRY NEWS

< Page 38 support to our school and our community. As a parent and officer of the GPTA in TES, thank you very much. Our school is able to reach greater heights with your support. Thank you also to our barangay local government for helping our school and for always being supportive. Thank you also to the teachers for their efforts in teaching the students and helping them become better. Thank you very much.” Sally Helme, GPTA Vice President of TNHS, also had the same sentiment. “Thank you HMC for all the support you have provided to our school, I hope that you will never waver in your support.” TNHS and TES are the first schools in the entire District of Tagana-an to have stainless-steel school markers.

DOST EXEC: METALS, ENGINEERING INDUSTRY CRUCIAL IN PH RECOVERY

he metals and engineering industry has contributed much to the country’s recovery efforts, an official of the Department of Science and Technology (DOST) said Wednesday. “We can never disregard the contribution of the industry. We owe it to the metals industry to celebrate milestones and special accomplishments for without you, upstream industries will weaken,” said DOST Undersecretary Rowena Guevara during the 1st National Metals and Engineering Conference held in Bicutan, Taguig City. The metals industry has played a huge role in helping the country rise from the effects of the Covid-19 pandemic, she pointed out. Guevara cited as an example the mass production and distribution of face shields for front-liners at the onset of the pandemic. The Metals Industry Research and

Development Center (MIRDC) did this through the plastic injection molding technology. “The face shields, which were too costly because there was not enough supply at that time, were distributed all over the country through this MIRDC initiative,” she said. Another contribution was the use of the Hybrid Electric Road Train (HERT) to ferry front-liners to and from work in Cauayan, Isabela, for free. HERT is an alternative mass transportation designed and developed by the MIRDC. It was already turned over to the city of Cauayan. Currently, present, Cauayan and Ilagan cities have plans to fabricate new HERT units to be used as mass transportation alternatives. (Read: Ilagan City to fabricate hybrid road train) Last year, the DOST launched two facilities at the MIRDC: the Advanced Manufacturing Center

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(AMCen) and the Advanced Mechatronics, Robotics, and Industrial Automation Laboratory (AMERIAL). Both facilities feature industry 4.0 technologies. “Through the AMCen and the AMERIAL, we are already able to serve MSMEs (micro, small and medium enterprises) and the academe. We started to encourage the establishment of partnerships that advocate R&D (research and development),” Guevara said. The agency, according to her, has been providing an enabling environment to let researchers access modern technologies and unleash their innovative ideas. Guevara called on researchers to o continuously engage in R&D, scientific paper writing, and research presentations. “We can be like highly developed countries through R&D,” she said as she emphasized that R&D is a powerful driver behind a successful metals industry.

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-to-assemble 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 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 oftenoverlooked costs can run into tens of millions of dollars. Therefore, using Semi-Mobile or mobile equipment offers a huge benefit over the life-of-mine, 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

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MINING NEWS

< Page 40 operations and achieve emissions targets. Our history of delivering Semi-Mobile Sizing Stations into Southeast Asia dates back to 1993. And more recently, in 2015 we were commissioned to provide nine primary Sizing Stations to Hongsa Power based in Laos. 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 Semi-Mobiles 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 providing 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 costeffective 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.

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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 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. Go to www.mmdsizers.com for more information.

COMPANY NEWS

New Monster: LiuGong Ballasted Boom with Ripper Excavator

rom loading to hauling, LiuGong has the machines and the know-how you want on your mining site. Our solutions take into account payload, distance, and other data to maximize efficiency and reduce operating costs for your site. Tested in the most extreme of environments and weather, our complete line of machines is guaranteed to maintain high productivity wherever you are. We know time is money. Our dedicated team for maintenance and support is ready to work with you to minimize maintenance and stoppage time, maximizing the return for your investments. With TNT limitation used in Mining Job site, also the expensive cost. LiuGong brings the new monster Ballasted boom with a ripper Excavator: CLG952EHD - Operating Weight 60.1T

CLG970E - Operating Weight 85.3T CLG990F - Operating Weight 105T Installed with a Cummins engine and Kawasaki Hydraulic System, the machine is not only stable but offers a large breaking force. Together with help of heavy operation weight, easily break the mining material whose hardness is under 45Mpa. Average productivity with our machines is 4-6 times higher compared with the standard breaker. A simple and stable structure brings a lower usage cost of around 5-15 Peso/m3 depending on the physical material hardness, construction plan, and operator skills. For inquiries, please contact: Ron Tang Mobile: +63 929 702 5100 Email: tangbb@liugong.com

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

MPSA granted to Semirara, door opens for more projects after issuance of E.O. No. 130

he Mines and Geosciences Bureau (MGB) announced on 10 March 2022 that the DENR has granted MPSA 3522022-VI to DMCI Holdings, Inc., a subsidiary of Semirara Mining and Power Corp. (SMPC). The MPSA is for SMPC’s Hamalian Limestone Project, which is located at Semirara Island in Caluya, Antique. The project covers an area of 3,807.0571-hectares. This MPSA now gives SMPC the exclusive rights to begin mining operations within the contract for a period of 25 years. This is renewable for the like period. The MPSA granted to SMPC is the first issued by the Philippine government since 2012. When E.O. No. 130 was signed by President Rodrigo R. Duterte on 14 April 2021, this amended the provision of Section 4 of E.O. No. 79 which was issued by former President Benigno S. Aquino III in 2012. Aquino’s E.O. No. 79 prohibits the grant of mineral agreements “until a new legislation rationalizing existing revenue sharing schemes and mechanisms shall have taken effect.” Therefore, the implementation of E.O. No. 130 effectively ends the nine-year moratorium on new mining projects and allows the government to enter into new mineral agreements, still subject to compliance with the Philippine Mining Act of 1995, and other applicable laws, rules, and regulations. [2] A Mineral Production and Sharing Agreement (MPSA) is one of the different types of Tenurial Permits/Agreements. This agreement is executed by the DENR Secre-

tary and the contractor. The MPSA holder is then granted by the Philippine government the exclusive right to conduct mining operations within a contract area. The share of the Philippine government is in the form of excise tax equivalent to a percentage of the gross output. MGB director Wilfredo Moncano said the lifting of the ban on new mining projects gives the mining industry the opportunity to boost its economic contribution for the country and to help in the national recovery from the COVID-19 pandemic. According to MGB, the gross value added in mining contribu-

tions reached to P120.4 billion in 2021. This is higher than P102.3 billion from 2020. [2] From MGB’s social media post on economic contribution of mining, the office stated: “The Philippine government commits that a proposed mining project will only be allowed if technically feasible, environmentally compliant, socially acceptable, and financially viable. [If] any of these imperatives are absent, [then] it is not time to mine.” The infographic posted by MGB shows the significant economic contributions of mining in the Philippine economy for the past two years.

SOCOT GUV VETOES OPEN-PIT MINING ORDINANCE

outh Cotabato Governor Reynaldo Tamayo Jr. has vetoed the amended Environment Code Ordinance that sought to lift the open-pit mining ban in the province. In a press conference, Tamayo said he was quite surprised that the Sangguniang Panlalawigan (SP) “quickly” approved the

amendments to the ordinance during a session on May 16. He was out of the country when a majority of the SP members passed the amended ordinance. “I don’t know the reason behind the quick approval; I am returning the ordinance to the SP,” Tamayo said. Since the council is in recess,

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the governor said the matter would be discussed by the next set of provincial board members. In his veto, Tamayo invoked Section 55 of the Local Government Code (Republic Act 7160), describing the amendment as “prejudicial to the public welfare and inimical to the overall interest of South Cotabateños.”

MINING NEWS

Graymont Hydrated Lime and Quicklime - Essential for mining

raymont is a global leader in lime and limestone solutions. Professionally managed and family-owned, the company has been in operation for over 70 years. Graymont aims to be the preferred supplier, employer, and partner of choice wherever we operate. Our products are essential in addressing today’s most pressing environmental issues while supporting vital industrial processes and agricultural needs. Uses for our products include the purification of air and water, and the production of items essential to a modern economy such as steel, paper, and minerals. Graymont serves markets throughout Asia-Pacific including the Philippines, Malaysia, Australia, and New Zealand. Graymont is headquartered in Vancouver Canada and is also the strategic partner of Mexican-based Grupo Calidra, the largest lime producer in Latin America. Product Quality Graymont manufactures high-calcium quicklime and hydrated lime made from limestone deposits containing high avail-

able lime and low impurities. Graymont lime is suitable for most common mining applications including pH adjustment, coagulation and thickening, flotation and hydrometallurgical processes, gas desulphurization, pyrometallurgical processes, tailings discharge management, slurry paste manufacture, and soil drying.

Expertise in Mining Graymont has expertise in working with mining customers to solve problems and develop solutions. Our trained and experienced staff have technical skills in addressing challenges raised by customers. They are available to work with customers to help determine the proper products to best meet specific needs. Upon request, Gray-

Service and Attention to Detail Our customers are at the heart of what we do. Graymont has a dedicated sales and service team who can assist customers with service and supply. Our attention to detail is what sets us apart from other suppliers and we pride ourselves on being the supply partner of choice for our customers. Need a reliable Hydrated Lime and Quicklime supplier? For further information see our advertisement or contact our Manila office at +63 2 7587 1250, toll-free number 1800818881, or send us a message at customersupportSEA@graymont.com.

RITCHIE BROS’ IRON PLANET JAPAN NATIONAL AUCTION

onnecting buyers and sellers of used construction and industrial assets, Ritchie Bros. (NYSE and TSX: RBA) is the leading global asset management and disposition company, offering customers end-to-end solutions for buying and selling used heavy equipment, trucks, and other assets in numerous industries including construction, transportation, agriculture, energy, oil and gas, mining, and forestry. For Filipinos, “Japan Used” is a brand name. Thousands of units of quality used equipment are imported every year into the Philippines and are used by Philippine contractors, miners, transport companies, etc. to efficiently run their operations. With more than 25 years of experience conducting auctions in Japan, Ritchie Bros is the professional source for quality used equipment in Japan. Ritchie Bros utilizes its online-only auction platform, www. ironplanet.¬¬com, to allow the sale of equipment from all over Japan to be sold at one time. Ritchie Bros conducts four Iron Planet Japan National Online Auctions a year. By using Ritchie Bros’ Iron Planet online auction platform, Pinoy buyers can buy directly from the source, thus, saving costs. Additionally, Pinoy buyers can utilize Ritchie Bros’ Iron Planet inspection reports of each machine, prior to bidding. These are industry-leading reports that provide potential buyers with extensive detailed information, along with dozens of photos. We also can recommend logistics companies who can assist you with the load-

mont can assist customers to inspect materialhandling facilities to help customers to operate efficiently and economically.

out and delivery of the machines to the Philippines. Ritchie Bros makes everything easy, giving you the confidence to bid and purchase. For more information about how to participate in either a Ritchie Bros Live Unreserved Auction (www. rbauction.com) or a Ritchie Bros Online Only Auction (www.ironplanet.com), feel free to reach out to Ritchie Bros’ Philippine representative, Chris Edwards, who is based in Manila, Philippines at cedwards@ ritchiebros.com or +63 917 149 8545 ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

CONSTRUCTION

ADB supports South Commuter Railway Project with $4.3B loan By Marcelle P. Villegas

financial assistance package of up to $4.3-billion loan was recently approved by the Asian Development Bank to support the construction of a 55km suburban railway that will connect Metro Manila with the City of Calamba in Laguna province. This is currently ADB’s largest infrastructure financing project in Asia and the Pacific region. The South Commuter Railway Project is part of the North-South Commuter Railway (NSCR) network. The project aims to provide commuters a fast public transport and a reduction in traffic congestion. In the bigger picture, this project addresses the climate change problem since this transportation alternative will help reduce greenhouse gases emitted by motor vehicles. Therefore, the project conforms with the Philippine climate change agenda. From a report published by Philippine News Agency, “The project follows ADB’s financing of the Malolos-Clark Railway line north of the capital, for which construction is ongoing.” [1] ADB Vice-President for East Asia and Southeast Asia and the

Pacific, Ahmed Saeed stated: “The South Commuter Railway Project will provide affordable, safe, reliable, and fast public transport for commuters.” “This project represents ADB’s biggest infrastructure investment and reflects our commitment to helping the Philippines attain its goals of reducing poverty, improving the lives of Filipinos, and achieving green, resilient, and high economic growth.” The design of this railway project will be disaster-resilient and can hold out against natural disasters like earthquakes and strong typhoons, the ADB said. The railway’s elevated design will make it possible to avoid disruptions of floodings in the route in case of heavy rains. Eighteen (18) stations will be constructed to deliver convenience and safe accessibility for the elderly, people with disabilities, children, and others. There will also be connecting tunnels that will facilitate direct trains from Calamba to Metro Manila for future projects, the bank added. Will this railway project help commuters travel faster? Reports say the project is expected to cut the usual travel time of 2.5 hours between Manila and Calamba in half.

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The City of Calamba is a firstclass city in the province of Laguna. According to a 2020 census, it has a population of 539,671 people, making it the most densely populated local government unit in Laguna. Calamba is located 50 km (31 mi) south of Manila. Other than providing convenience and shorter travel time for commuters, the NSCR aims to further boost the country’s economic recovery from the pandemic. The project’s construction will bring job opportunities, both permanent and temporary work. ADB supports the Department of Transportation (DOTr) through the Infrastructure Preparation and Innovation Facility. ADB’s load will assist the development and projects of DOTr. Beginning this year, the South Commuter Railway Project will be financed with $1.75 billion, the first tranche of the multi-tranche financing facility (MFF). The second the third tranches are expected to be released in 2024 and 2026. The coverage of ADB’s financing support includes civil works for the railway viaduct, stations, bridges, tunnels, and depot buildings. Supporting this project, the Japan International Cooperation Agency (JICA) will fund the rolling stock and railway systems.

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MINING NEWS

PH withdraws from global initiative on extractives transparency

he Philippines has withdrawn from the Extractive Industries Transparency Initiative (EITI) on the back of questionable metrics and procedures for assessing the compliance of implementing-countries with the international organization’s transparency requirements. In a June 20, 2022 letter addressed to EITI chairman and former New Zealand prime minister Helen Clark, Finance Secretary Carlos Dominguez III called EITI’s Validation –a quality assurance assessment process– “subjective, biased and unfair.” “We find that the manner by which the EITI Board undertakes its validation is unduly subjective, biased and unfair. The Philippines has no confidence in the ability of the EITI to undertake an impartial, transparent, and evidence-based validation process,” Dominguez said. The Department of Finance (DOF) chairs the Philippine Extractive Industries Transparency Initiative (PH-EITI), a multi-stakeholder body that governs the implementation of the EITI in the Philippines. EITI prescribes a standard for transparency and accountability in the mining, oil and gas industries. Extractive companies in implementing-countries are engaged to publicly disclose data on taxes, royalties and other payments they make to the government and their host-communities. In his letter, Dominguez said the country has been treated unfairly by the EITI Board by using irrelevant metrics and relying on unvalidated reports in assessing

the status of civic space in the extractives sector. The DOF repeatedly sought the details of alleged issues on civic space to enable the government to address the same. The EITI, however, has not supplied the requested details. Dominguez called out EITI for its lack of due process and for imposing actions on the Philippines that violate the country’s sovereignty. “We refuse to be taken hostage by unverified allegations from foreigners and people who have no mandate from the electorate,” he said. The Philippines has been implementing the EITI since 2013. In 2016, the EITI recognized the country for its impactful implementation. EITI implementing-countries undergo validation every three years. In 2017, the Philippines was declared the first among more than 50 countries in the world to have achieved satisfactory progress in meeting the EITI requirements. Over the years, the country has demonstrated innovation and best practices in the areas of contract and beneficial ownership transparency, and social, environmental, employment, and gender data disclosures. The Philippines has also sustained and broadened stakeholder engagement amid extreme situations, such as the coronavirus disease 2019 pandemic.

< Page 45 The railway project is part of the Philippine government’s “Build, Build, Build” infrastructure development program. It is also one of the country’s infrastructure flagship projects. ADB also financed similar projects like the Metro Manila Bridges Project in 2021, the Angat Water Transmission Improvement Project in 2016, the Malolos Clark Railway Project in 2019, and more. Since 1966, the Asian Development Bank has been providing financial assistance for the development of countries in Asia and the Pacific region. ADB aims to reduce extreme poverty, which is rampant in these regions. There are around 1.7 billion people in Asia and the Pacific who are poor and have no access to basic needs and opportunities for a dignified living that every human being deserves to have. ADB supports its members and partners through the granting of loans, technical assistance, grants, and equity investments to promote social and economic development. “The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable

Asia and the Pacific while sustaining its efforts to eradicate extreme poverty in the region. Despite the region’s many successes, it remains home to a large share of the world’s poor: 263 million living on less than $1.90 a day and 1.1 billion on less than $3.20 a day.” [2] References: [1] Philippine News Agency (9 June 2022). “ADB approves financ-

ing for South Commuter Railway Project” Retrieved from - https://www. pna.gov.ph/articles/1176331 [2] Asian Development Bank website - https://www.adb.org/ who-we-are/about [3] Census of Population (2020). “Region IV-A (Calabarzon)”. Total Population by Province, City, Municipality, and Barangay. PSA. Retrieved July 8, 2021.

Infographics from ADB FB page

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NIA inaugurates and turns over 2 infrastructure flagship projects

nder the leadership of Administrator Ricardo R. Visaya, the National Irrigation Administration (NIA) conducted the Inauguration of the P4.497billion Chico River Pump Irrigation Project (CRPIP) on June 25, 2022 at Sitio Casiling, Barangay Katabbogan, Pinukpuk, Kalinga. Started in 2018, CRPIP is a flagship infrastructure project financed by the People’s Republic of China thru the China Export Import Bank under President Rodrigo Roa Duterte’s Administration “Build Build Build” Program. The project includes the construction of pump house, substation, transmission line, diversion main canal, lateral canals, appurtenant structures, service/ access road, and terminal facilities. It aims to provide substantial and timely water supply for irrigation in support to the agricultural development of the Government. With water source from the Chico River, the project is set to irrigate 8,700 hectares of agricultural land in the Province of Cagayan (7,539 hectares in Tuao and Piat) and part of Kalinga (1,170 hectares in Pinukpuk) benefitting 4,992 farmers and their families. With the partial operation of the project, CRPIP will irrigate 1,000 hectares of agricultural land covering the Municipality of Pinukpuk, Kalinga, as well as the barangays of San Luis, Malumin, Malalinta, Bikok, and Angang in Tuao, Cagayan. President Rodrigo Roa Duterte and Chinese Ambassador Huang Xilian delivered their pre-recorded video message to the attendees of the ceremony, commending NIA’s efforts on the project implementation. Chinese Minister Counselor Yang Guoliang, Department of Agriculture (DA) Secretary William D. Dar, Deputy Administrator for Engineering and Operations Sector C’zar M. Sulaik, Deputy

Administrator for Administrative and Finance Sector Ralph Lauren A. Du, DA Regional Executive Director Narciso A. Edillo, CRPIP Acting Project Manager Reyvelino B. Apongol, CRPIP Management Consultant Roland V. Apaga, NIA Cordillera Administrative Region (CAR) Manager Benito T. Espique, Jr., NIA Region II Manager Raymundo B. Apil, China CAMC Engineering Co., Ltd. Chairman Wang Bo, local government officials, and irrigators association (IA) officers and members were present during the event. NIA also conducted the partial turnover of irrigation facilities of P5.4-billion Malitubog-Maridagao Irrigation Project – Phase II (MMIP-II) to NIA Region XII on June 23, 2022 led by NIA Deputy Administrator for Engineering and Operations Sector C’zar M. Sulaik. The newly turned-over facilities will benefit more than 1,000 farmers in the Municipality of Pikit, North Cotabato irrigating 1,642 hectares of farmlands. With 85% overall physical accomplishment, MMIP-II is also included on the 119 infrastructure flagship projects under the Build, Build, Build Program of the National Government that supports agriculture and food security. Thus, Undersecretary Emil K. Sadain of the Department of Public Works and Highways who is also the Chief Implementer of the Build, Build, Build Program graced the event. Benefitting from the newly turned-over facilities in Pikit, North Cotabato are 110 farmers from GliGli Lat H and LatH2 IA Inc., 159 farmers from Bulao Bulo IA, Inc., 150 farmers from Tigpo IA, Inc., 201 farmers from Makauyag Lat H IA Inc., 250 farmers from Maglib IA Inc., and 229 farmers from Sitio Galigayan IA Inc. MMIP II’s major components include 59.09 kilometers main canal, 81.91 kilometers lateral earth canal, 823 units of appurtenant struc-

tures, and 361 units on farm level structures. Once fully completed, this will divert irrigation water from Maridagao River utilizing the facilities of MMIP I with the goal of providing efficient, reliable, and sustainable irrigation service to 9,528 hectares of agricultural land in the municipalities of Aleosan and Pikit in Cotabato and Pagalungan and Datu Montawal in Maguindanao. Also present in the event are NIA Region XII Regional Manager Diosdado A. Rosales, MMIP-II Acting Project Manager Reynaldo M. Sarigumba, Bangsamoro Transition Authority Member of Parliament Ali O. Salik representing Bangsamoro Autonomous Region in Muslim Mindanao Chief Minister Ahod Balawag Ebrahim, Political Affairs Assistant Nicanor T. Nanlabi from the Office of North Cotabato 1st District Representative Joselito Sacdalan, Ray Domingo of the Department of Agriculture (DA), Nasser Gayagay from the Office of Pikit Mayor Sumulong K. Sultan, Commission on Audit Auditor Romeo A. Casupang, and other NIA officials. NIA, as the lead government agency responsible in developing all possible sources of water for irrigation now serves as the country’s driving force to move forward to agricultural productivity, economic growth, and food sufficiency.

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

CONSTRUCTION NEWS

Ang: MRT-7 key to accelerating economy’s recovery post-pandemic

n interconnected and integrated system of peoplefocused mobility options that caters to all is what the country needs to drive a strong and sustainable economic recovery post-pandemic. This, according to SMC president and chief executive officer Ramon S. Ang, is the vision behind its current and future infrastructure projects, which he said are all aimed at alleviating traffic and pollution, boosting economic activity, creating jobs and opportunities in the provinces, and improving quality of life within the metropolis. Ang recently led the official unveiling of six brand-new trainsets, or a total of 18 train cars, for its much-anticipated MRT-7 mass transit system project. The rolling stock were presented to President Rodrigo Roa Duterte, who graced the occasion. The train sets comprise the first batch of 36 trainsets or total 108 cars acquired by SMC for the project. They were manufactured by South Korea’s Hyundai Rotem and started arriving in the country towards the end of this year. Ang thanked Duterte and his government, particularly the Department of Transportation under Sec. Arthur Tugade, local government officials, and all previous government officials and stakeholders of the project, for their support and cooperation to bring MRT-7 closer to completion. “MRT-7 is a vital cog in our longterm goal to develop an integrated and interconnected transportation system where people from all income levels can get around and beyond the metropolis, quickly and efficiently,” Ang said. “More than an affordable, reliable, and efficient means to move people, MRT-7 signifies a turning point, in our resolve to promote equity and inclusivity across our cities. It’s a vehicle for opportunities, equity, and better quality of life for Filipinos,” He added. The project, a 22-km rail and road development starting in North Avenue, Quezon City and ending in the City of San Jose del Monte, Bulacan, is currently at 56.03% completion, with test runs slated to begin in just a year’s time or starting December 2022. This, following delays in rights-ofway acquisition, relocation of utilities, and work limitations caused by

the ongoing COVID-19 pandemic. “Without the continued support of our partners in government and the cooperation of motorists and the public, we wouldn’t be where we are today. As with any major infrastructure project, there have been many challenges. But we are all still here, working together to deliver this project that will greatly improve the lives of Filipinos, and help usher a better future for our cities and provinces,” Ang said. Ang also shared his “bigger picture” context for the project, saying that MRT-7 is envisioned to be part what will be become the country’s future infrastructure network, which will include interconnected railways and expressways that will address social, environmental and economic issues experienced by Filipinos, due to inadequate infrastructure and urban planning. The MRT-7 is set to connect to the existing LRT-1 and MRT-3, improving accessibility throughout Metro Manila and the nearby growth corridor of Bulacan. San Miguel is also investing P740 billion to build the country’s largest, most modern international gateway in Bulacan, the New Manila International Airport, as well as a separate futuristic green city, designed by leading green architect and urban planner Felino Palafox Jr. and his firm, Palafox and Associates.

The new airport and airport city will be part of the massive infrastructure network, making it easily accessible from Metro Manila via rail and expressway, Ang said. “With better-designed, interconnected, environment-friendly infrastructure, we can address so many issues confronting Filipinos on a daily basis--primarily, traffic, which causes economic losses, brings down productivity, and steals time away from people,” Ang said. “There’s also pollution--the high concentration of vehicles stuck on narrow public roads for hours exposes all of us to harmful emissions. Pollution has also extended to our rivers. Because of limited space in our cities, more wastes are being dumped into rivers, which then exacerbates flooding and destroys marine resources. There’s also lack of opportunity because development tends to be concentrated in just a few areas,” he added. The MRT-7 project will have 14 stations, namely: Quezon North Avenue Joint Station; Quezon Memorial Circle; University Avenue; Tandang Sora; Don Antonio; Batasan; Manggahan; Dona Carmen; Regalado; Mindanao Avenue; Quirino; Sacred Heart; Tala; and San Jose del Monte. It can accommodate 300,000 passengers during its first year of operations and to 850,000 passengers daily on its 12th year. ISSUE 2 2022 • 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.

COMPANY NEWS

The Transformative Way to Reduce Risk in Resource Estimation By Grace Y. Tanchee

he importance of a mineral resource estimate for the longterm viability of a mine cannot be understated. Being a core basis of a mine’s feasibility study and evolving mine plans, a well-made and continuously updated resource model is essential to any mine looking to ensure profitability and sustainability. Strategizing based on an erroneous estimate can have disastrous results for a mine. As such, resource estimations must always be properly executed and well understood by the geologists, mine planners, and all other stakeholders. THE CHALLENGE Being crucial, resource geologists are expected to ensure that the resource estimates are accurate and compliant with standards. Geologists are also expected to update the model as new information becomes known. Time to complete and share is crucial here as updated models are used to refine the mine plan and avoid losses caused by outdated models. There are challenges to contend with that can be the source of errors through-out each step of the estimation process, which in turn can reduce the accuracy of a resource estimate. For example, the source data could be insufficient or contain errors. Garbage in is garbage out. Improper tools and lack of information can also hamper the validation of data and thorough investigation, leading to a poor understanding of the deposit. This can affect the domaining model build, selection of the estimation method and parameters. Decentralized data and a lack of recording also heightens the risk of using incorrect data, and makes it difficult to trace and audit during the review process. Difficulties in coordinating can also increase the time crunch. THE IMPROVEMENTS NEEDED There are ways by we can minimize the risk of committing errors and help ensure that the resource estimate is as accurate as possible. One is by having proper and centralized data management. Just being able to store the data in one

place is insufficient; data management should also include a means to record changes made to the data and why, and any important notes about the data. This will help provide context and auditability through-out the process, and help with future changes. Next, the resource geologist must be able to visualize the data and have the tools for analysis and estimation. 3D Software with geology modelling tools can greatly help the geologist make sense of the data and render the model in a faster more efficient way. Clear and traceable workflows can also be used to monitor and manage the process from start to finish, check that work is done based on best practices, and make sure that all stakeholders are fully informed and updated. Being structured, the flow of data and information between various stakeholders

at each stage of the process can be made efficient. All these can be enhanced via collaboration, facilitating knowledge sharing, feedback from fellow team members and consultants, and a collective understanding of the estimate. THE SOLUTION An effective way to conduct these improvements is through taking advantage of technological solutions to facilitate the changes needed. In line with this, Dassault Systemes (DS) has developed the Strategic Resource Modelling (SRM) solution. Through a combination of DS GEOVIA Surpac software and the 3DExperience platform, SRM is a comprehensive solution that links and manages processes, information, people, and tools under a single collaborative platform. Built to cover the many aspects affecting the resource estimation process, SRM is used to:

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COMPANY NEWS

Digital Revolution 4.0 in the raw materials and mining industry By Christoph Klötzer, Hakan Arden Kahraman, and Michalis Katapotis

he concept of “Industrial Revolution 4.0” was first introduced in Germany and has rapidly spread to other developed countries. It describes the ongoing automation of traditional production and industrial applications using modern digital technology. In this new era of Industrial Revolution 4.0, the mining industry has inevitably started to focus on technology and digitalization. As there are many challenges ahead in this transformation process, DMT’s approach to this new era is to offer innovative and holistic Industry 4.0 solutions developed through a fastidious strategy that is expected in assisting to shape the autonomous mining vision of the future. DMT’s approach to digital transformation is to go through initially a “Digital Due Diligence Process” to assess the existing business, identify digital

potentials and operating opportunities and define a digitalization roadmap. DMT recommends that this process is accompanied by independent engineering and technology advice coming from an experienced partner in process design who will establish a Digital Transformation Office. This approach includes three fundamental components: • “Operations” which cover the services used to provide companies with comprehensive guidance and support, systematic approaches to continually expand the offering of digital products and services covering the entire lifecycle of raw material extraction. These include Reconnaissance, Exploration, Planning, and Project Evaluation, Construction, Optimisation of Mining Operations, Environmental Aspects, Mine Closure, and Site Remediation; • “People” which covers a corresponding digital transformation program for all employees of mining companies; • “Processes” which covers process optimization for its Clients’ operations.

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< Page 52 • Organize and manage geoscience data, ensure a single source of truth • Build a unified view and understanding of the model • Easily collaborate within and between teams • View in 3D and share solid models via a browser, allowing for analysis anywhere anytime as long as connected • Validate input data and generate consistent and robust resource models • Enact based on project management principles and best practices • Improve process efficiency, consistency, and time savings through workflows • Utilize dashboarding and reporting capabilities to support strategic decision making Resource estimation is the basis of multi-million investment decisions and subsequent mine plans that can make or break a mining company. If you want to know more how the DS Strategic Resource Modelling Solution can help ensure that reliable resource estimates are made, contact DS Philippine partner Paramina Earth Technologies Inc via paramina_solutions@paramina.com or reach us through www.paramina. com.

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 2 2022

COMPANY NEWS

Essential Source of Integrated Solutions in Mining The bedrock of focused business platforms By Marcelle P. Villegas

ow important are instrumentation and process control solutions in industries like mining, water, oil and gas, energy, industrial, and process industries? Process control instrumentation is hardware equipment and software that are exceptionally developed over the years for precise measurement, control, and monitoring of process variables, pressure, flow, level, temperature, and analytical applications. Its role in any manufacturing or processing plant’s operation management is critical and essential to achieving production efficiency, reliability, safety, and sustainability. In the mining industry, mining companies need process instruments and control products that can help assure efficient tailings and wastewater management for environmental protection. With such massive applications of instrument and control products like process valves (such as ball, knife gate, and butterfly valves), pressure relief valves, and pneumatic and electric actuators, the demand for high-quality and technologically advanced instruments is essential in major industries like in mining. There is a local company that has been serving these industries

for almost two decades now and is known as a trusted distributor of high-quality and diverse process instrumentation and control products. Established in 2003, Integral Industrial Management Corporation (or INTEGRAL), has been a known distributor and service provider of market-leading valves and actuators. Currently, INTEGRAL is the local business partner of Emerson Automation Solutions and Rotork PLC.

Everything Under One Roof INTEGRAL has almost two decades of experience in the distribution of leading flow control instrument products and provision of related critical technical services. The company has earned a proven track record of working with the petrochemical, energy, oil and gas, water, mining, food and beverage, cement, industrial and process industries in the Philippines. “Quality service and products are at the core of our business, and we continue to expand our brand portfolio and grow our expertise to remain ahead of the competition.”[1] More to their business profile, “As a partner of global-leading valves and actuators, we work hand-in-hand with a worldwide network of experts who possess a thorough understanding of industrial applications. Going beyond distribution and service, we help our clients find solutions to a wide range of industrial problems. Client’s actual inspection and testing of 16” Emerson Vanessa 30000 Triple Offset Butterfly Valve and IQ Model Rotork Electric Actuator at IIMC’s service facility in Batangas City

Installation, testing, and commissioning of 600mm Emerson Keystone Butterfly Valve and IQ Model Rotork Electric Actuator in a water facility.

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COMPANY NEWS

Vulco R67 mill lining rubber compound: The liner that lasts longer

s a leader in materials development and advancement, the team of material scientists at Weir Minerals are always pushing for ways to improve the capabilities of our technology for our customers. The advanced laboratories at Weir Minerals develop a variety of materials, from natural to synthetic, to polyurethanes and composite materials. One of these materials is the Vulco® mill liner rubber. Vulco® rubber is renowned throughout the mining industry for its exceptional wear life and reliability in mill lining systems. These abrasion- and impact-resistant rubber compounds are continuously improved and refined by Weir Minerals’ team of engineers and material scientists to keep them at the forefront of mill lining systems technology. Having identified a need for higher-wearing rubbers for mill lining systems, the material science experts developed an industry-leading, premium-grade rubber compound with superior wear life and performance in mill lining applications. The result: Vulco® R67 rubber – an optimum material which is manufactured with proprietary new compounds and innovative methods of processing to deliver outstanding wear life and longer uptime. This new elastomer material was developed through extensive laboratory testing which was optimised and refined to further improve the material’s properties

< Page 54 Together, we are not only partners in commerce but also stewards in the development of local industries.”[1] With a company slogan, “Your essential source of integrated solutions”, INTEGRAL wishes to convey a direct and straightforward approach but still with a warm and welcoming impression to their clients and prospects. The slogan also refers to the company’s products and services as a complete package that

for aggressive mill system applications. The outcome of these improvements is a rubber compound which delivers an increased wear life of more than 20%, resulting in significant cost savings for our customers. The Vulco® R67 rubber compound offers a high hardness, elongation, tensile and tear strength, making it suitable for lifter bars, head/shell plates and grates. When used in conjunction with metal cap mill liners, the result is a versatile, economical, and efficient product that weighs up to 50% less than steel alone. The added benefit is a lighter product that’s faster, easier and safer to install, as well as a measurable reduction in mill downtime and reduced maintenance costs.

caters to just about everything their clients might need for their operations. Moreover, INTEGRAL products and services also serve as solutions to many of the common problems in the industries they serve – thus the phrase “integrated solutions”. Best foot forward About strong capabilities, INTEGRAL considers the balance of technical expertise and comprehensive experience critical to their active daily operations nationwide. “More

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“The Vulco R67 compound is a significant improvement to extend the wear life of mill linings. The longer life results in lowering customer’s production costs and also allows more uptime to potentially increase throughput of the plant due to the higher annual mill availability.” – Tony Millar, Weir Minerals Director of Product Management Produced locally in Australia, as well as North and South America and South Africa, our customers can feel assured that they have a market-leading product that is backed by decades of experience, expertise, and proven effectiveness. Connect with our mill lining experts today: https://info.global. weir/vulcor67

than technical knowledge, our collective experience in the industry helps us navigate through a multitude of industrial applications.”[1] Aside from being a supplier of diverse instrumentation and process control products, INTEGRAL also provides a wide range of services that accommo-

Page 57 > Installation, testing, and commissioning of 600mm Emerson Keystone Butterfly Valve and IQ Model Rotork Electric Actuator in a water facility.

COMPANY NEWS

Schaeffler’s fight vs. counterfeit bearings in the mining industry Some may think that counterfeiting is a problem that only affects luxury brands, electronics, and cosmetics. However, the truth today is, product piracy affects all industries including the engineering sector. The main reason for the demand of counterfeit bearings, is because it is needed in large amounts throughout the engineering sector, and the real thing does not come cheap. Today, other counterfeit products like apparel, engineering auto parts and accessories like fake bearings are freely available in Manila. THE REAL CONSEQUENCES OF COUNTERFEIT BEARINGS As many of us know, rolling bearings used in mining operations operate in some of the harshest conditions on and under earth, therefore, robust and reliable bearings are essential. Not only does the equipment face an operational issue, distributors and end-customers face their own set of consequences and risks too. Distributor consequences: • Liability for all damage resulting from the sale of counterfeit products • Lawsuits by the injured party • No damages can be claimed from the original manufacturer

• Loss of image and sales and financial damage Risks for the end customer: • Risks to personnel safety and lifespan of machinery • High subsequent maintenance costs • Production and operational halt • Loss of brand image, as counterfeits reduces the quality of the company’s products STEPS ON DETECTING COUNTERFEIT BEARINGS Most of time, end-customers may face a hard time identifying real from fake. But with the real

< Page 53 The Fourth Industrial Revolution (or Industrial Revolution 4.0) has already identified several structural transformations and paradigm shifts in the societies that are expected in the coming years (Schwab, 2016). These include: • The Internet of and for Things; • Automated vehicles; • Artificial Intelligence (AI) and Decision-Making; • Robotics and Services; • Cryptocurrencies and the Blockchain; • The Sharing Economy (the use of a physical good/asset, or share service or provide a service by sharing); • 3D Printing in Manufacturing, Human health, and Consumer Products; As more of the “things” start to communicate and interact with each other more smartly and artificially

deal, end-customers should be prepared to pay a higher price for premium quality bearings that comes together with technical support and after sales service. Here’s how your business can identify fake bearings: 1. Search for authorised sources By sourcing for authorised distributors, you can guarantee the acquisition of authentic bearings due to the necessary stringent control processes put in place. Authorised Schaeffler distributors also provide expert advice and a full range of accompanying services. View the full list here:

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in this Fourth Industrial Revolution, particularly in the developed countries, inevitably, the mining segment will also benefit from this latest transformation in these economies. Considering the competitive nature of the business, the large international mining companies have already started to adjust themselves by digitizing their mining operations across the value chain in line with the future generation of mines. This requires remodeling of the business for growth and sustainability while using digital technology and innovation as a catalytic enabler within an existing legacy environment that behave like individual isolated units along the route from mine to processing to transport. Based on its long-proven ability to capture new developments and integrate them into its core competencies, DMT is passionate about the digitization of existing products and services and the development of new digital business models. ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

COMPANY NEWS

< Page 56 h t t p s: //w w w. s c h a ef f l e r.d e / en/schaeffler-germany/sales/ authorized_distributors/salespartners-worldwide/index.jsp 2. Quality standards Counterfeit rolling bearings have rough finishes, abnormal roller appearance and sometime even wreck your equipment after installation. Schaeffler’s INA and FAG robust bearings have been able to increase operational reliability and service life through continuous research and development. To ensure longer equipment lifespan, reduce unplanned downtimes and put safety of mining personnel first, Schaeffler’s engineers consider the entire life cycle of a machine in their calculations. 3. After sales service and technical support Unauthorised distributors and counterfeit manufacturers usually do not provide any type of after sales service or technical support for obvious reasons. Buying from trusted sources such as an authorised Schaeffler distributor or Schaeffler themselves, opens the door to professional and knowledgeable experienced bearing experts. With over 100 years of experience in the rolling bearing business, Schaeffler provides a wide range of maintenance solutions for reducing maintenance costs, preventing

< Page 55 date its product specifications. “Our field technicians and engineers are experienced and factory-trained to inspect, install and dismantle, repair, overhaul, calibrate, maintain, commission, facilitate, and issue testing service certification of almost all types of process valves -- including pressure relief valves and actuators. Correspondingly, we have the full support of our foreign partners in the acquisition of after-sales parts.”[1] For added convenience to their clients, they have a nationwide presence at strategic locations in Luzon, the Visayas, and Mindanao, where INTEGRAL can provide sales and technical support across the local, regional, and factory scope. Aside from INTEGRAL’s existing Manila workshop that is dedi-

unplanned downtimes, and increasing machine availability. COMBATTING THE GLOBAL ISSUE In a mission to protect brand reputation, reduce legal consequences and eliminate fake products, manufacturers like Schaeffler are proactively doing their part to end the escalating issue affecting the mining sector in the Philippines. For several years, Schaeffler has been providing genuine rolling bearings to mining businesses in the Philippines. However, counterfeiting manufacturers have skilfully imitated the packaging of Schaeffler’s INA and FAG bearings. The organisation’s Brand Protection Team has been working to remove counterfeits in the market, raise awareness cated to attending to clients’ immediate technical concerns within the National Capital Region, they recently invested in a state-of-theart Mobile Service Container. This is intended to provide sophisticated on-site service solutions primarily for Pressure Relief Valves in the south. The 20-foot container test rig is currently stationed at INTEGRAL’s newly-built service facility in Batangas City. It is a large compound that was built in response to the growing technical service demand in the area. INTEGRAL established its service workshop in Ormoc, Leyte in 2012. This allowed the company to swiftly cater to the rapidly growing technical requirements in the Visayas region, particularly in geothermal power plants. Geothermal power plants would greatly benefit from INTEGRAL’s Triple Offset Valves, Pressure Relief Valves, and

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 2 2022

and support customers, certified retailers and assist authorities in curbing this issue. To further ensure that customers purchase original parts from safe sources, labels with a data matrix code is placed on all Schaeffler’s bearing product packaging. Thanks to this label, customers can check on its originality using the Schaeffler OriginCheck app. SCHAEFFLER PHILIPPINES, INC. Business Address: 5th Floor, Optima Building 221 Salcedo Street, Legaspi Village 1229 Makati City, Philippines Contact: +639178056589 Fax: +632 7798703 E-mail: marketing_ph@ schaeffler.com Contact Person: Peralta Charleson – Head of Sales Website: www.schaeffler.ph Actuators. INTEGRAL’s sales office in Cagayan de Oro aims to determine Mindanao’s potential need for service workshops in the future. “Our in-house frontline service personnel undergo numerous factory training abroad. Immersion is crucial so that every service personnel is ready for any problem that may arise.”[1] The company has two ISO certifications awarded by QAS International for their excellence in their management systems, standards, and guidelines, namely ISO 9001:2015 and ISO 45001:2018. For more information about INTEGRAL’s products and services, please visit their website at https:// www.integralindustrial.com.ph/. Reference: [1] Company website - https:// www.integralindustrial.com.ph/

COMPANY NEWS

The Fault with Cobalt: Overcoming the Challenges of Battery Metal Exploration

obalt is an important element used to manufacture rechargeable batteries. Cobalt has unique properties that help improve thermal stability, which is critical for the batteries to function properly. It also helps improve some batteries’ energy density, so they can last longer. The demand for cobalt is high, so geologists need fast, accurate tools to help them meet these requirements. Portable X-ray fluorescence (pXRF) analyzers are one of these tools, as they provide on-the-spot material chemistry results. Why Choose Portable XRF for Cobalt Exploration? Portable XRF provides rapid, in situ, multielement geochemistry for immediate results in the field. This is useful for greenfield and brownfield exploration, ore grade and process control, environmental monitoring and remediation, and researching/teaching within the geological/environmental sciences. For battery metal exploration, portable XRF provides decisionquality data faster than traditional, lab-based XRF, and also enables more discriminatory laboratory sampling, helping reduce costs and improve ROI. With sample preparation, pXRF produces high-quality quantitative data that is comparable to laboratory analysis. Challenges with Analyzing Cobalt XRF is prone to inter-element interferences. Iron (Fe) on cobalt (Co) and nickel (Ni) on cobalt (Co) are two common examples. This means that when a lot of iron is present, it becomes difficult for XRF to iden-

Result - Co

Result - Fe tify cobalt at low levels. Likewise, the presence of nickel also makes it difficult for XRF to ID cobalt. Unfortunately, cobalt is routinely explored for in the presence of significant amounts of iron and nickel. To solve this challenge, we developed a GeoChem method for Vanta™ pXRF analyzers that offers improved analysis for battery metals exploration by being able to detect cobalt in the presence of iron and nickel. This innovative method overcomes the interference that has historically made it very difficult for portable XRF analyzers to detect cobalt in the presence of these other elements. The method we developed for the Vanta analyzer is built on the current GeoChem method, but with a more sophisticated way of deconvoluting the iron/cobalt/nickel peaks. Before deploying this solution, we tested it on client samples to make sure that it produced good results. Test Results We analyzed 16 samples with high iron content—9% < Fe < 50%, 50 ≤ Co ≤ 6000 ppm, Ni < 500 ppm.

We also analyzed 50 samples with a moderate amount of iron—0.5% < Fe < 15%, 16 < Ni < 8000 ppm, 50 ppm < Co < 2.3%. The samples were pulps in XRF cups, and they were analyzed using 60 seconds per beam with no corrections. The graphs above show excellent agreement between the results obtained from a lab and results obtained using a Vanta portable XRF analyzer, indicating that the modified GeoChem method can accurately detect the presence of cobalt when it’s in the presence of both large and moderate amounts of the interfering elements iron and nickel. Geologists now have another important tool that they can rely on when exploring for new sources of this vital element. Learn more at https://www.evidentscientific.com/en/

Traders Industrial Supply Co., Inc. 24th Floor Trident Tower, 312 Sen. Gil Puyat Ave., Makati City, 1209 Philippines Email: trisco@ pldtdsl.net Contact No.: (02) 8817-9004 | 88178914 | 0917-5818704 (Globe) Website: https:// trisco.com.ph/

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

Advertise the front of your calling card here. Contact us to find out how! Text or Call: +63 955 7380266 Email: info@philippine-resources.com

CONGRATULATIONS, MR. PRESIDENT

Ferdinand Marcos Jr. takes the oath as president of the Philippines as his wife Louise looks on during the inauguration ceremony at the National Museum in Manila on June 30.

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Marcos eyes VAT from partially-processed ore exports

nstead of increasing taxes on mining, new President Ferdinand “Bongbong” Marcos Jr. recently said he is eyeing the collection of value-added taxes (VAT) from the export of partially-processed ore. “What we would like to do is encourage that the value added [taxes] to the raw ore stay in the Philippines as much as possible. Whether there should be fiscal measures in that regard is something we have not decided on and what the levels that will be. But I think what we are trying to achieve, the desired result for all of this, is instead of exporting raw ore, we export at least partially-processed ore so that may value added that’s left in the Philippines,” he said in a press briefing in Mandaluyong City. Marcos also emphasized the need to push for “clean mining” in the country, citing its negative environmental impact. “I cannot believe that here in the Philippines we cannot monitor and regulate the mining industry sufficiently so that we can have clean mining in the country,” he said.

He lamented that practices in the mining industry in the country remain problematic. “We have to view the natural resources as a national treasure which can help the Philippines a great deal. It is only up to us to ensure that the practices that we see in the mining operations in the country are such that they are environmentally neutral,” he added. Earlier, the economic team of outgoing President Rodrigo Duterte pushed for the revival of the mining industry to generate more jobs. Duterte has repeatedly urged the mining industry to observe stricter environmental rules or risk getting shut down. In April 2021, Duterte issued an executive order lifting the nine-year moratorium on mineral agreements to spur economic growth and support projects and programs of the government. The Department of Environment and Natural Resources, in December 2021, issued an administrative order lifting the four-year ban on the open-pit method of mining.

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

THE LINER THAT LASTS LONGER

The best mill liner has a green strip and lasts longer than ever. With more abrasion resistance and a better wear life, Vulco® R67 liner keeps your mill running at capacity longer. That means a measurable reduction in mill downtime, as well as a reduction in installation, maintenance costs and total cost of ownership. It’s all thanks to the unique patented material that forms our innovative premium rubber compound. The R67 mill liner is the most wear-resistant we’ve ever made. Which for Vulco is pretty impressive. So, if you don’t see that green strip, you know you’re not working with the best.

Get more from your mine with Vulco®. Visit https://info.global.weir/vulcor67 today. Copyright © 2018, Weir Minerals Australia Ltd. All rights reserved. The trademarks mentioned in this document are trademarks and/or registered trademarks in the name of The Weir Group PLC and/or its subsidiaries. Certain features of the technology in this publication may be protected by pending and granted patents and designs in the name of The Weir Group PLC and/or its subsidiaries.

Philippine Resources Journal - Issue 2, 2022

Articles inside

BBM eyes VAT from partially- processed ores

TRANSFORMATIVE WAY TO REDUCE RISK IN RESOURCE ESTIMATION

ANG: MRT-7 KEY TO ACCELERATING ECONOMIC RECOVERY

NIA INAUGURATES

HMC DONATES SCHOOL MARKERS TO TWO SCHOOLS

THPAL MILESTONES IN PHILIPPINES

PNP SURIGAO NORTE THANKS TAGANITO FOR 2 VEHICLES

ADB SUPPORTS SOUTH COMMUTER RAILWAY WITH $4.3B LOAN

By Patricia A.O. Bunye

Atty. Dennis Quintero gives legal view

DUTERTE APPOINTS PRJ COLUMNIST AS GEOLOGY CHAIR

OPERATION ODETTE FOR THE PEOPLE OF SIARGAO ISLANDS

By Fernando Penarroyo

DIGITALIZING MINING FOR SUSTAINABILITY AND RESILIENCE

TAGANITO MINING PARTNERS WITH CLAVER FOR VAX

PMEA MONTHLY MEMBERSHIP MEETING, UPDATES