Philippine Resources Journal - Issue 4, 2022

PENARROYO:

Marcos bets on Mining

CHAMBER OF MINES WARNS OF

‘KILLING THE GOOSE’

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CONTENTS MINING 16

CLAVER, TMC HOST JIGGING, SHORE CASTING COMPETITION

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HINATUAN MINING BRINGS ‘GREEN JOBS’ TO COMMUNITIES

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BREAKTHROUGH FOR MMD SIZERS IN HARD ROCK APPLICATIONS

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APPROACHES TO MAKE STRATEGIC MINE PLANNING SUCCESSFUL

COMMENTARY

FASTER SOIL SAMPLING FOR COPPER-SILVER PROJECTS USING PORTABLE XRF

By Fernando Penarroyo / page 6

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IMPORTANCE OF COAL QUALITY FROM MINES TO POWER STATIONS

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MARCOS BETS ON MINING

MINING CHAMBER WARNS OF ‘KILLING THE GOOSE’ WITH BILL

By Marcelle Villegas / page 26

CONSTRUCTION 56

MARCOS KEEN ON PURSUING ‘GRANDER, MORE AMBITIOUS’ INFRA PROJECTS

58

P855M ADDITIONAL FUNDING PROPOSED FOR SOUTHERN NEGROS AIRPORT

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ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

RESOURCES COMMENTARY

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

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

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Marcos Bets on Mining

hilippine President Ferdinand R. Marcos, Jr. is barely in his first year of his office and already is facing a myriad of challenges from soaring inflation and public debt to a devaluating peso against the dollar. While trying to sustain economic recovery following stagnation from the COVID-19 pandemic, Marcos is hard put to tame the increasing costs of consumer goods and services and manage public debt which places the economy in a tight fiscal position. Rising inflation will also result not only in the lost of jobs but also declining pay for workers driven by higher costs of living. Conditions will deteriorate further with a devaluing peso against the dollar making it more expensive to import fuel for transport and power, and raw materials needed for local manufacturing.

Amidst the rising public liability, more taxpayers’ money will be utilized for debt servicing that will leave little for the provision of government services and the upgrade of infrastructure. Government must focus on improving transport facilities, power transmission, and energy utilities to attract foreign investment. Among the major risks hampering recovery are external factors like the prolonged conflict between Ukraine and Russia and a weaker peso against the dollar brought about by US Federal Reserve moves to hike interest rates to tame inflation in their country.

These make it more expensive for businesses and consumers to borrow money and discourages demand for goods and services causing the surge in prices especially of fuel and food, which can stunt economic growth not only in the US but also globally.

Government Turns to Mining Heeding the call of business groups, the Marcos administration is turning to mining that could help ensure a sustainable recovery of the Philippine economy from the disruptions of the COVID-19 pandemic and the threat of a global economic slowdown.

The benefit of mobilizing investments for mine development has been underscored

by Department of Finance (DOF) Secretary Benjamin E. Diokno, who assured the Marcos administration’s commitment to continue creating an enabling environment for mining activities. However, Diokno also pointed out that the government expects the mining industry to strictly adhere to responsible and sustainable practices. He further said that the industry should strike a balance between protecting the environment, uplifting local communities, and supporting the government’s socioeconomic agenda.

Diokno reported that the Marcos economic team presented the medium-term fiscal framework and for targets to succeed under the two-part framework, the mining

By Fernando Penarroyo industry would have to perform well. During the Philippine Economic Briefing in New York where President Marcos delivered a keynote message to American investors, Diokno emphasized the administration’s commitment to help maximize the mining sector’s potential in attracting more foreign investments.

Playing Catch Up The mining industry considered the Duterte administration as another wasted era for realizing the full economic potential of the sector. The Marcos government inherited a mining industry reeling from the anti-mining stance of the previous administration with the appointment of the late Regina Paz Lopez, a staunch anti-mining advocate, to head the Department of Environment and Natural Resources (DENR).

The appointment was bitterly opposed by the industry resulting in Lopez’s rejection by the powerful bicameral Commission on Appointments.

During her term, Lopez ordered the closure of mining operations and initiated a national mine audit conducted on behalf of the Mining Industry Coordinating Council.

Mining stakeholders described the three years of closure of these companies as “arbitrary” and claim that at that time, the industry practically “gasped for breath.”

With COVID-19 bringing down the economy on its knees and a worsening economic fallout becoming inevitable, Duterte issued Executive Order No. 130 in April 2021, lifting the nine-year moratorium on the granting of new mining permits. Finally in December 2021, the Duterte administration succumbing to economic pressure, lifted the ban on open-pit mining.

It is well to note that at the height of the pandemic in 2021, the mining sector’s contribution to the gross domestic product

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COMMENTARY

< Page 6 (GDP) improved to 5.2% from 5.1% in 2020 driven mainly by nickel demand overseas and high gold prices. This was in stark contrast to other sectors which suffered a decline due to the lockdowns that were imposed because of COVID-19.

Early in the term of Duterte, then Senator Marcos lamented that the Duterte administration has failed to put up a vision for the mining industry. Worse, he said the government’s anti-mining stance has slowed down the development of the mining industry, citing among others, the “use-it-or-lose-it” policy the DENR implemented in 2010 in a bid to open to new investors mines that have not been operated on.

At that time, Marcos noted that the DENR has not issued any new mining agreements. He also criticized the then proposed expansion of the “no-go” zones for mining and the proposed increase in the government’s share of 10 percent of gross output or 55 percent of adjusted mining revenue. Marcos said that if the government’s reason is only to receive more taxes out of the mining industry, such move would only deter investments in that sector.

However, Marcos said the mining industry must also address other valid issues raised against it, apart from environmental concerns. He reminded the industry to

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ensure that affected local communities should derive more tangible benefits from mining and assure that necessary safeguards are in place for the protection of their environment and ecology.

Marcos Mining Policy Pronouncements Now that he is at the helm of the presidency, Marcos said that he would push for “clean mining” and want to see some value added to mineral exports by selling processed materials rather than ores.

Instead of increasing taxes on mining, Marcos is eyeing the collection of value-added taxes from the export of partially-processed ore.

The Marcos administration demonstrated its commitment to pursue transparency in natural resource governance by rejoining the Extractive Industry Transparency Initiative (EITI) following the Duterte administration’s withdrawal in June 2022 over concerns on metrics and procedures used for assessing the country’s compliance with transparency requirements.

In 23 August 2022, EITI invited the Philippines to re-state its commitment to the EITI and build on the progress that the country has achieved in the past nine years. By returning to the EITI fold, the Marcos administration cited the value of good governance and anticorruption measures in maximizing the extractive sector’s contribu-

tion to resource mobilization and sustainable economic growth. The government hopes that its return to EITI will complement the Marcos administration’s agenda on transparency and accountability.

The government implemented the PH-EITI, a multi-stakeholder group chaired by the DOF and composed of representatives from government, industry, and civil society in 2013 pursuant to Section 14 of Executive Order No. 79, s.

2012 and Executive Order No. 147, s. 2013. Annual disclosure of contracts, financial, economic, social and environmental data is mandatory for extractive industries pursuant to the DENR Administrative Order No. 2017-07.

Marcos in his first State of the Nation Address (SONA) declared that infrastructure development will remain “a very high priority” with emphasis placed on enabling private sector contracts and investment incentives in the energy sector. Several experts in their post-SONA analysis, however, agreed that Marcos failed to mention issues arising from mining.

There were plans to look for additional energy sources like natural gas reserves, build new nuclear power plants and invest in the renewable energy sector. This was unwelcome news for environmental and climate activists.

Civil society groups criticized Marcos for paying lip service to climate action in his SONA. They

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RESOURCES COMMENTARY

< Page 8 urged Marcos to revoke his predecessor’s mining policies that relaxed restrictions on mining. They also asked Marcos to convene an environmental summit that involves the Mines and Geosciences Bureau, the mining industry, and communities affected by mining operations to discuss current mining issues, stressing a need to prioritize environmental concerns. The purpose of the summit according to civil society groups is to craft the government’s environmental program, instruct lawmakers to prioritize the legislation of environmental bills, and launch a review on the categorization of mining as an “essential industry.”

Marcos assured that the country’s resiliency and adaptation to the challenges pose by climate change will be on top of his administration’s national agenda. Speaking at the 2022 DENR Multi-Stakeholder Forum on Oct. 5, Marcos vowed to ensure environmental initiatives to combat climate change will be undertaken under his watch.

Industry Expectations Industry groups continue to call for legislation to allow 100% ownership of certain businesses by foreigners. They emphasized that full foreign ownership would create massive incentives for foreign investment and entice a lot of successful foreign businesses to expand their operations in the Philippines.

Marcos is expected to be in favor of policies that will promote exports, and expand new and established businesses. He will focus on the most lucrative industries which include mining and mineral processing, which are poised to make the fastest and largest increases in revenues and productivity.

Despite the administration’s assurance of a conducive investment climate for the industry, the House of Representatives’ Committee on Ways and Means approved a bill proposing a new fiscal regime for the Philippine mining industry in August 2022. Representative Jose Ma. Clemente Salceda, Chair of the House Ways and Means Committee, filed House Bill 5022, which proposes an imposition of royalty on mining operations within and outside mineral reservations.

Under the committee-approved measure, a royalty tax of 5% will be imposed on the market value of the gross output of large-scale mining operations. The present law requires payment of 5% royalty based on gross output only in

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mining sites declared as mineral reservations. The bill also seeks to impose a windfall profit tax on a mining company if its total tax payments fail to meet the specified minimum government share from mining contracts. Under the bill, the minimum government share from all mining contracts would be 60% of net mining revenues. Mining companies operating under Mineral Production Sharing Agreements are not subject to windfall profit tax.

The bill seeks to impose a 10% export tax based on the market value of mineral ore exports. A mining company will be treated as a separate taxpayer with respect to each of its mining contracts, which seeks to increase the tax base by ensuring that losses from other mining projects will not be deducted from the more profitable ones. Likewise, to institutionalize transparency standards, the government will implement a mechanism for the public disclosure and scrutiny of all mining tax and revenue data in the extractives value chain.

While Salceda said the bill will raise additional P37.5 billion revenues in just the first full year of its implementation, the Chamber of Mines of the Philippines (COMP) said a law raising taxes on mining will once again set back the revitalization of the industry. COMP described the consolidated bill as onerous, raising the effective tax rate on mining to 51 percent from the current 38 percent. Initially withdrawn by the sponsor, the bill has been reportedly resubmitted to the Committee for further discussion including the possibility of being watered down.

Perhaps the greatest challenge for Marcos is how to balance diplomatic and economic relations between the United States and China. He acknowledged that the Philippines and the US have strong and enduring ties in trade and commerce with the US as the Philippines’ third largest trading partner and second major source of foreign direct investments in 2021. Marcos and US President Joe Biden during a meeting in September 2022 also underscored the freedom of navigation in the South China Sea. On the other hand, Marcos is keen in renewing talks with China on joint oil and gas exploration in the disputed West Philippine Sea to seek a compromise with China as long as any agreement do not violate Philippine laws. While pledging to foster closer ties with China, and describing Beijing as Manila’s “strongest partner” in the pandemic recovery, the Marcos administration has been stepping up diplomatic protests against China’s alleged “incursions” in the disputed territory.

The real test for Marcos, however, is his government’s willingness to assert the country’s economic rights over the Reed (Recto) Bank and lift the moratorium on exploration and drilling activities in the area. Petroleum exploration companies with service contracts awarded by the Philippine government have been unable to conduct seismic surveys in the area because of harassment by Chinese coast guards. There is an urgency on this matter as the Malampaya natural gas field is being rapidly depleted and imported liquefied natural gas may not be enough to fuel the pow-

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ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

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RESOURCES COMMENTARY

< Page 10 er plants in the short term, which may then have to resort to diesel fuel, a more expensive alternative.

Another issue that needs to be resolved by the Marcos administration is the controversial open-pit mine in Tampakan, South Cotabato. Taking the cue from the Duterte government’s lifting of the open pit mining ban, the previous members of the Sangguniang Panlalawigan of South Cotabato lifted its 12-year-old provincial ban last May 16, despite strong opposition from civil society, the church, and some traditional landowners. However, on June 3, Gov. Reynaldo Tamayo, Jr. vetoed the measure paving the way for the resumption of the ban on open-pit mining.

During the presidential campaign, Marcos said that he is open to allow “sustainable” mining while expressing wariness toward open-pit mining operations. He believed that even if such mines are closed, harmful chemicals could leak out of the former sites.

It remains to be seen how Marcos is going to handle the US$5.9 billion Tampakan Copper-Gold Project, touted as the largest undeveloped copper-gold mine in Southeast Asia and among the biggest of its kind in the world.

The good news is that if there are any indications of the Marcos administration’s seriousness in attracting foreign investments, then we can consider the reforms currently being implemented in renewable energy sector as an encouraging sign.

The Department of Energy (DOE) announced that a legal opinion provided by the Department of Justice (DOJ) paved the way for the opening of foreign investments in renewable energy. The DOJ said that exploration, development, and utilization of “inexhaustible” renewable energy source are not subject to the 60:40 foreign equity limitation as provided under Section 2, Article XII of the Constitution.

The DOJ further opined that in order to implement the full ownership of RE resources by foreigners, the implementing rules and regulations of Republic Act 9513 or the “Renewable Energy Act of 2008” particularly Rule 6, Section 19 must be amended to amend the 40-percent equity limit for foreign investors.

The DOE has also made all qualified and registered renewable energy generating plants as preferential dispatch in the wholesale electricity spot market (WESM), used for centralized trading of

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electricity. This will encourage investments for additional capacities in geothermal, biomass, and impounding hydroelectric power plants. The guaranteed dispatch in the grid at the power plant’s full available capacities under merchant pricing, will allow recovery of investments by renewable energy developers.

Finally, the DOE has also raised the percentage of the utilization of renewable energy for on-grid areas from one percent to 2.52 percent. The Renewable Portfolio Standard, a policy mechanism which aims to increase the use of renewable energy sources for electricity generation, requires electricity suppliers, particularly the distribution utilities, to source or produce a specified fraction of their power supply from eligible renewable energy resources.

If the Marcos government is indeed serious to walk the talk, then now is the right time to take advantage of the current upswing of global spending in support of post-pandemic reconstruction, creating a resurgence of demand for mineral and energy commodities.

Inviting investors to put their money in our mining industry only to welcome them with the imposition of new taxes is always a zero sum proposition. Hopefully this time, our regulators will not cause the mining industry to miss the boat again.

References Abarro, Mico, Marcos Jr. Open to ‘Sustainable’ Mining, Wary of Open-pit Mining” ABS-CBN News,

25 January 2022, https://news. abs-cbn.com/business/01/25/22/ marcos-jr-open-to-sustainablemining Marcos Admin Commits to Transparency and Good Governance in the Extractive Industries, 09 September 2022, https://www. dof.gov.ph/marcos-admin-commits-to-transparency-and-goodgovernance-in-the-extractive-industries/ Next Admin Must Have a Vision to Realize Potential of the Country’s Mining Industry - Sen. Marcos, 18 September 2015, https:// legacy.senate.gov.ph/press_release/2015/0918_marcos1.asp Parrocha, Azer, Marcos Eyes VAT from Partially-Processed Ore Exports, 20 June 2022, https:// www.pna.gov.ph/articles/1177137 Sayson, ByIan C., Calonzo, Andreo, and Ahn, Shery, Philippines’ Marcos Eyes China Compromise on South China Sea, Bloomberg, 24 September 2022, https:// www.bloomberg.com/news/articles/2022-09-24/philippinesmarcos-seeks-china-compromiseon-south-china-sea-oil Sewell, Jared M., What We Should Expect from the Marcos Administration? 29 May 2022, ,https://www.kea-mining-andquarrying-services.com/philippinemining-prospects-under-marcos/ Zablan, Clarist, Green Group Urges Marcos to Reverse Duterte’s Mining Policy, Seeks Dialogue, 21 July 2022, https://news.tv5.com. ph/breaking/read/mining-policygreen-group-urges-marcos-toreverse-dutertes-mining-policyseeks-dialogue

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

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

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

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Figure 1. Mineralogy of Nickel Laterites

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A Study: Mapping the Chemical Composition of Nickel Laterites with Reflectance Spectroscopy at Koniambo, New Caledonia

eflectance spectroscopy was applied as a sampling tool for deriving compositional data of nickel laterites in the Koniambo deposits of New Caledonia. The aim of the work was to test the feasibility of acquiring spectral reflectance data for retrieving quantitative compositional information on nickel laterites exposed in mine bench walls as a routine sampling method for oregrade control in a mining operation. The spectral reflectance data record complex variations in mineralogical and chemical compositions of nickel laterites.

A key method tested in this work is a calibration procedure for converting spectral reflectance to weight percentage of chemical components. A partial least squares (PLS) analysis method was used for this purpose. The abundances of Ni, Fe, MgO, and SiO2, the four most important chemical components collectively determining the economical value and the metallurgical behaviors of lateritic nickel ores, were modeled by the spectral reflectance data of a set of reference samples. The models were then validated by an independent set of samples with known chemical compositions. The validated models were applied to spectral reflectance data acquired on mine bench walls to derive the chemical compositions of lateritic ores. The results have confirmed

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Figure 2. Chemometrics for Nickel Laterite using XRF and ASD Terraspec Hi-Res.

that the chemical compositions of nickel laterites can be modeled and predicted with confidence by use of spectral reflectance data.

Parameters used for modeling were selected based on the considerations of (1) simplicity of data processing, and (2) relationships between chemistry (Figure 2) and mineralogy Figure (1). Smoothed and background-removed spectral reflectance data of the 400 to 2,500 nm wavelengths were used for modeling Ni, Fe, MgO, and SiO2.

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MINING NEWS

Claver LGU, TMC host 1st Jigging, Shore Casting Competition

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LAVER, Surigao del Norte— Adding more proof that mining and tourism can harmoniously coexist, Claver local government unit in partnership with Taganito Mining Corporation (TMC) hosted the first-ever jigging and shore casting competition in the municipality on September 2 to 4, 2022.

The competition, done in cooperation with the Marajaw Surigao Anglers, forms part of the Claver’s Panaghiusa Festival this year.

The activity aims to showcase the municipality’s abundant marine resources that exist alongside the presence of the mining industry.

The opening program kicked off with a tree planting activity at the TMC Biodiversity Area.

TMC Resident Mine Manager, Engr. Artemio E. Valeroso, welcomed the LGU Claver officials, headed by Mayor Georgia D. Gokiangkee, and the anglers allover Mindanao.

The anglers also visited TMC’s Lantaw Bay Garden which offers an overlooking view of TMC’s wharf and rehabilitated areas.

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opening program in Barangay Hayanggabon.

Indeed, Claver’s abundant marine resources is being complemented by the local mining sector’s value-adding projects, chief of which is the provision of training for fisherfolk, financial assistance, product development, and various types of assistance.

“An niagi, daghan mga issues ang Claver mahitungod na sa atong mga minahan. So karon, atong na prove, napamatud-an nato, nga ang atong kadagatan limpyo ug ang atong mga kaisdaan healthy gajud sila (In the past, Claver had many issues concerning its mining operations. But now we have proven that our waters are clean and our fishes are healthy),” said Mayor Gokiangkee, who led the ceremonial jigging during the

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Hinatuan Mining brings ‘green jobs’ to communities

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he weavers in Sitio Campandan, in the island of Hinatuan, have been contracted

by Hinatuan Mining Corp. (HMC), a subsidiary of Nickel Asia Corp.

(NAC), to produce 5000 seedling pots made of ‘pandan dagat’ (pandanus tectorius) which they call “jobo pots” in a per-contract arrangement worth P25,000.

HMC engages the weavers as part of the mining company’s ESG initiatives.

Rigena Perales is a 58-year old resident of Sitio Campandan and she understands the value add they contribute to HMC’s goal of getting rid of plastics used for seedling pots and helping augment the income of the people in the island.

“Nakakatulong sa amin ang ganitong pinagkakakitaan nakakatulong pa kami sa gusto ng HMC na hindi na sana gumamit ng plastic para sa mga seedling pots dahil mabuti sa kalikasan,” Perales confirms.

HMC is seriously adhering to the global clamor of employing ESG criteria in evaluating, measuring, and reporting about the company’s impacts to the aspects of Environment, Social, and Governance (ESG).

“With all the deliberations about climate change and business sustainability it has become critical that our business moves are intertwined with ESG concerns and engaging the communities is a necessary aspect” says Engr.

Francis J. Arañes, Resident Mine Manager.

Arañes explains that it’s the whole process of sustainability that HMC is aiming for.

Right now, 40% of their seedling pots are “jobo pots” the big goal is at least 80% before the end of next year.

Jomer D. Tiamson, HMC Environment Manager, says it entails cost because a plastic seedling bag is twenty-five centavos apiece (P0.25) while a ‘jobo pot’ which they buy from the weavers costs the company Five Pesos each (P5.00) “It is costly but whoever said that caring for the environment is cheap. Besides, we are covering all the letters of ESG in this proposition – protecting the en-

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Rigena Perales, 58, needs under 5 minutes to weave this seedling pot called “jobo”.

vironment in adherence to the ‘no single use of plastic’ campaign; aim to uplift the lives of the people in the communities where we operate; and adherence to the mandate of the government as a responsible mining company.”

Tiamson explains however that in the long run, the use of jobo as seedling pots is economically practical, other than the pots are biodegradable, because seedlings on jobo pots have a higher chance of survival.

Tiamson added that HMC is also looking at the matter of having enough materials for the hundreds of jobo pots they will need in the future and part of future plans is to augment the growing of pandan dagat, which is also another opportunity for “green jobs” for the people in Hinatuan island, in Tagana-an Surigao del Norte.

The ‘jobo pot’ may be a small detail in the operations of HMC as a company, but it is indicative that ESG and Sustainability propositions are not just buzzwords or simply data reporting across the NAC organization but suggestive of a mindset of a responsible mining company.

The weavers who work hand in hand with HMC producing jobo pots and other weaving products

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS The Sizer’s 3 stages of breaking

A breakthrough for MMD Sizers in Hard Rock Applications

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he company MMD have been manufacturing Sizers for over 40 years, processing over 80 different materials in more than 70 countries worldwide. Sizers offer a compact and efficient way of comminution in primary, secondary and tertiary stage crushing, in both underground and open pit operations.

Sizers have gained notoriety in wet and sticky applications where traditional crushers have struggled. However, MMD Sizers have been developed to thrive in applications not usually deemed appropriate for their deployment.

As Sizers originated in the coal industry, some believe that Sizers are only suitable for soft material processing. This is simply not the case for MMD Sizers. MMD are specialists in Sizer technology, and we have evolved Sizers to be successful in a wide range of operations, in particular hard rock applications. The additional benefits a Sizer brings, such as producing a good shaped product with minimal fines whilst also being compact, energy efficient, and maintenance friendly, make it an appealing option when it comes to selecting a machine for hard material handling. Our dedicated inhouse technical development team has provided consistent research and development since the Sizer’s inception in 1980, and enabled MMD’s machines to operate successfully in a variety of industries, processing some materials rated at over 250MPa. Hard rock inclusions could be mixed with wet and sticky material without any major alteration to Sizer design or detriment to performance. Where some conventional

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crushers struggle to cope with sticky material, the space between Sizer teeth and the constant agitation of material within the machine prevents material build-up, this can be further enhanced where necessary by adding side cleaning combs. Ultimately, MMD Sizers can handle any combination of wet, sticky, hard or abrasive material.

This is particularly useful in climates where extremes of rainfall occur throughout the seasons, effecting the characteristics of the material being processed or where material types vary across the mine site.

Specialist Hard Rock Designs From the Sizer teeth design through to the drive train, the progress of these specialist heavy duty Sizers has taken many years of careful development and feature a range of adaptations to allow them to handle harder rock.

Sizer teeth designed for hard rock and highly abrasive applications are engineered from upgraded material to resist wear, with additional hard facing in high impact areas. The tooth designs themselves are bulkier to ensure maximum longevity between wear component change-outs. MMD are constantly developing new tooth designs, using a combination of theoretical and physical stress testing to find ways to improve wear components. The extra forces required to break harder material also requires larger shaft diameters and heavy duty bearings.

Another key feature throughout MMD’s range of Sizers is the use of in-house designed gearboxes. Using only the highest quality manufacturing processes, materials and

components guarantees they are capable of dealing with the unique stresses inherent with sizing hard rock.

Each machine goes through stringent design procedures to ensure the highest quality. In some instances, physical trials are performed to test sample material.

MMD Sizer featuring side cleaning combs.

Robust Ancillary Structures MMD offer turnkey solutions in the form of semi-mobile and fully mobile sizer stations. Due to the lightweight nature and balanced breaking action of the Sizer, MMD Semi-Mobile Sizer Stations for hard rock applications generally only require simple pontoon bases rather than costly heavy duty foundations and civils. However, ancillary structures still require some adaptation to matchup with the impact forces generated in hard rock applications. For example, a

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ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Approaches to Make Strategic Mine Planning Successful Part 2: Production-scale Plan, Optimized Production Schedule, SMP’s Risk Assessment

E

nsuring optimal resource extraction, maximizing value of increasingly scarce resources, and having confidence in mine plans amid market uncertainties is possible through DS GEOVIA’s SMP solutions.

In Part 1, we elucidate differences between mine plan and schedule, and strategic and tactical mine planning. We covered the approach in defining reserves and directional strategies.

Establishing the Optimal Scale of Production After determining the best starting region and corresponding pushback directions, mine planners need to create a production-scale plan that can adapt to shifts in demand over life-of-mine and make three (3) major decisions: mine sequences, cut-off grade and production rate.

These decisions are correlated, thus, changing one will alter the other two decisions.

With the Hill of Value, we can visualize a value surface based on cut-off grade and production rate at the same time identify the point in the value surface that generates maximum value.

Using the GEOVIA Whittle and SIMULIA process-automation tools, mine planners can run 9,680 sequences with various production rates, cut-off grades, and economic and market prices in less than a day.

Optimizing Strategic Production Schedule In this approach, the mine planner can now identify which (blocks) to mine, when to mine and is left with a question: “How to optimize strategic production schedule that aligns with constraints, both technical and operational, and also maximize value (net present value)?”

The answer? The need to understand what can be optimized in the mine production schedule— the schedule itself, cut-off grade, stockpiling and blending.

Optimizing schedule can maximize net present value (NPV) by identifying what material to mine from generated pushback and when these will affect mine’s rev-

22

enue and cost orders. The use of Milawa algorithm in GEOVIA Whittle helps determine the “what and when.”

The widely used cut-off grade optimization is Lane’s theory. It states, “Low-value material is discarded even if it is above the marginal cut-off grade. It will increase the mine’s NPV because the mine will spend more time early on processing higher-grade ore that otherwise would have been mined and processed later.”

Extractive blending maximizes value. GEOVIA Whittle provides “blend bins”, allowing mine planner to utilize the existing model without needing to manually re-classify block model data to achieve the most suitable blending.

Assessing Risks of Your Strategic Mine Plan Mine planners assess risks in the plan using multiple scenarios.

GEOVIA Whittle alone produces tens of scenarios. Thousands scenarios can be produced using GEOVIA’s SMP Workflow, and a combination of GEOVIA Whittle and SIMULIA tools.

Moreover, GEOVIA’s SMP Workflow enables planners assess risks in each workflow’s steps by incorporating uncontrolled variables’ sets. It also allows mine planners to “use uncertainty analysis to determine the accuracy of the definition of the final pit and pushbacks as well as the production scale and schedule,” said Romero.

Further, Monkhouse and Yeates, in Beyond Naïve Optimi-

zation (2007), identified five (5) sources of these uncertainties: • Orebody • Processing • Market • Discount rate • Changing technologies Assessing the risks associated in processing, market and discount rate is easier compared to orebody uncertainty for it does not require the use of conditional simulations.

However, it was found that the use of Monte Carlo simulation enables to address orebody uncertainty easily by incorporating to pit optimization routine the “to-beassessed” input variables along with performing optimization routine for each scenario, resulting to pit shell sets.

From some studies, GEOVIA SMP enabled customers to improve NPV from 10% to 50% and reduce stripping ratio by 16-20%, resulting lower mining costs. It also improved grade forecasting accuracy by 30%, reduced development cost by 10%, revealed best possible performance scenarios, and saved time by converting manual one-month process to semi-automatic process of three days.

With Dassault Systèmes GEOVIA’s SMP, customers can focus on the importance of analyzing results and making decisions. To know more about SMP and other Dassault Systèmes Solutions and Services, contact DS Value Solutions partner Paramina Earth Technologies, Inc. through paramina_solutions@paramina.com or visit www.paramina.com.

REFERENCE: Dassault Systemes.

(2022). Strategic Mine Planning Articles 1-4.

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 20 fully fabricated one-piece hopper hood, with a wear resistant skin rather than wear liners reduces the risk of liners falling off due to high impacts. This skin is replicated on the hopper itself, along with a Tshaped lattice design in the impact area to combat high impacts from the truck dump. Adaptations such as these ensure MMD machines are designed to endure the harsh mining environment and are built to last.

MMD Sizer stations undergo rigorous FEA, DEM and Explicit Dynamics analysis at the design stage. This examination provides data on impact forces, load conditions, fatigue cycles, as well as material flow characteristics, which assist in optimising the design. This is particularly useful for wet and sticky applications where material hang-up and blockages could be problematic in features such as hoppers and chutework. At MMD, analysis and design work is undertaken by experienced, fully qualified engineers who combine their technical know-how with industry leading software to design the best

solution for customer specific challenges.

Case Study In 2014, MMD delivered two compact semi-mobile Sizer stations to an island in the Philippines.

These bespoke designs were installed to handle lateritic nickel ore.

The material within the mine is generally very sticky with hard rock inclusions, however during the wet season the material characteristics change to become extremely wet.

The turnkey Sizer stations featured 625 series Sizers with side cleaning

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2022

combs and D4 Apron Plate Feeders along with supporting steelwork and electrical package. Run of Mine material is directly fed by dump trucks in to the apron feeder which in turn draws material into the sizer controlled rate of up to 500TPH. Lumps of up to 800mm can enter the Sizer chamber, which is then efficiently reduced down to 150mm product. Both these machines remain active, providing trouble-free operation and minimal maintenance.

Watch the unit in action here: h t t p s : //w w w.y o u t u b e . c o m / watch?v=DSLdwNoAY80

One of the SemiMobile Sizer Stations processing Lateritic Nickel Ore.

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COMPANY NEWS

2GO: Best positioned for special handling, custom processing

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GO, the largest and most integrated logistics and transportation services provider in the Philippines and a subsidiary of SM Investments Corporation, is best positioned to provide special handling and custom processing to serve various industries such as mining, power, telecommunications and infrastructure.

With its own assets for endto-end solutions, 2GO’s Special Containers and Value-Added Services (SCVASI) is backed by 25 years of experience in moving all types of cargo.

Leveraging on the shipping business’s strength of schedule, reliability, and speed, 2GO SCVASI continues to expand its capabilities and offer borderless solutions.

Apart from pioneering Less than Container-Load (LCL) reefer and isotanks in the country, 2GO SCVASI has proven expertise in its Project Logistics service—loading and unloading deliveries of oversized and overweight cargos for power generation, transmission lines, mining operations, cement manufacturing, pipes for geothermal operations and government infrastructure to the most remote areas in the country.

2GO SCVASI is manned by professionals to survey efficient

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routes, presenting methodologies on safe conduct of lifting of transformers, generators, railways, cement manufacturing equipment, solar and other industrial goods, and other equipment that require special handling.

It currently has two customized 25-tonner Boom Trucks that will eliminate mobilization and demobilization of forklift on these

weight categories.

2GO SCVASI, the Philippines’ leading provider of reefers, flexibags, isotanks, and project logistics, continues to make significant investments to soon deliver long dimension wind-power propellers.

To know more about 2GO SCVASI, visit https://www.2go. com.ph/scvasi/

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2022

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MINING NEWS

COMP Director Calls Unnumbered Bill as ‘Killing the Goose’

By Marcelle P. Villegas

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tty Ronald Recidoro, Executive Director at Chamber of Mines of the Philippines, described the new Unnumbered Bill in mining as “Killing the goose to get to the golden eggs”.

He expressed his sentiments and professional insights regarding the new mining bill during the recent Philippine Mining & Exploration Association (PMEA) Monthly Membership Meeting last 5th of September. Atty Recidoro was one of the guest speakers for this meeting.

One of the speakers for the evening was Atty Dennis Quintero, who gave a presentation on the Legal Updates for the industry. Atty Quintero is the Head of Energy, Mining & Infrastructure at Quisumbing Torres. He was joined by his colleague, Mr Kristian Angelo Palmares in explaining the Mining Bills Update, particularly about the Unnumbered Bill. This was followed by the reactions and comments by Atty Recidoro.

“An Act Establishing the Fiscal Regime for Mining Industry” Atty Quintero explained that the Unnumbered Bill is a substitute to House Bills 373, 2014, 2246 and 3888. Its approval is currently pending with the Committee on Ways and Means.

Here are key points about the bill, as summarised by Atty Quintero: ~ At the beginning of the 19th Congress, House Bills 373, 2014, 2246, and 3888 were filed and subsequently referred to the Committee on Ways and Means. Having similar subject matters, these were consolidated into the Unnumbered Substitute Bill. ~ The bill seeks to impose margin-based royalties on income from large-scale metallic mining operations at a rate of 5% of the market value of the gross output whether inside or outside mineral reservations. It seeks to cover both Mineral Production Sharing Agreements and Financial or Technical Assistance Agreements. ~ Mining contractors are also required to pay minimum government share when the primary government share is less than 60% of the net mining revenue. The minimum government share shall be the dif-

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Atty Ronald Recidoro, Executive Director at Chamber of Mines of the Philippines at the PMEA Monthly Membership Meeting, Manila Elks Club, Makati City.

Photo by Marcelle P. Villegas

“We see very clearly that the provisions will be deadly for the mining industry. If 5% royalty across the board, and a 50%-5%0 government share, plus a 10% excise tax on raw exports will kill the industry, it will not be competitive and the revenues they are forecasting of something like P38 billion will not happen.”

– Atty Ronald Recidoro on the new Unnumbered Bill ference between 60% of net mining revenue and the primary government share during the calendar year. In this regard, “primary government share” shall consist of all direct taxes, royalties, fees, and related payments required by existing laws, rules, and regulations to be paid by the contractor. ~ The bill likewise imposes a 10% tax on the market value of raw ore exports. ~ Furthermore, it treats each mining operation covered by a mineral agreement or FTAA as a separate taxable entity. ~ The bill also provides that the National Government shall have a share of 60% of the gross collection derived by any government agency or instrumentality from excise taxes on mineral products, royalties, and such other taxes. ~ Note: Before they were consolidated to the Unnumbered Substitute Bill on 24 August 2022, HB 373, 2014, and 2246 were filed on the following dates: • HB 373 – 30 June 2022 • HB 2014 – 14 July 2022 • HB 2246 – 22 July 2022

• HB 3888 – 22 August 2022 Effects of the Proposed Bill on the Mining Industry Atty Recidoro said, “We see very clearly that the provisions will be deadly for the mining industry.

If 5% royalty across the board, and a 50%-50% government share, plus a 10% excise tax on raw exports will kill the industry, it will not be competitive and the revenues they are forecasting of something like 38 billion will not happen.”

He also emphasised the unusually rushed passage of the house bill. “If you were in attendance at the meeting last Aug. 24, you will see that the four versions of the bill contained very different provisions. Now they provided four very different tax rates and had differing fiscal regimes. So in cases like these, the usual procedure should have been for the Committee to refer the bill plus the DOF proposal.

The DOF proposal isn’t even actually a bill. It was just a written proposal from the DOF. It was not yet filed as a bill. Some undersecretary from the DOF just went to the Com-

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ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

< Page 26 mittee at that day and gave the Committee a copy of the proposal.”

“So given these four versions plus the DOF proposal, the usual process should have been for the Committee to create a technical working group, and then try to hash out the differences and come out with a common substitute bill. This did not happen clearly. This was not done. The Committee voted instead the DOF proposal in its entirety.”

He said that the Committee threw away House Bills 373, 2014, 2246, and 3888. “They just chose to adopt the DOF version which we have not yet seen. Nobody has seen it at that time. So it is very strange from a procedural and substantive due process perspective.”

Furthermore, he clarified that they find this unusual because of the circumstances surrounding the mining fiscal regime. “The Marcos Administration has come up very strongly for mining. They have identified mining as key driver for this administration and they are seriously wanting to push it forward.”

Killing the goose that lays the golden eggs Additionally, Atty Recidoro pointed out that the 5% royalty for all large-scale metallic mines, regardless of whether they are within mineral reservations or outside of mineral reservation, together with a 60%-40% sharing is exceptionally heavy. “If passed, that regime would make the Philippines mining fiscal regime uncompetitive versus other mineral-rich countries such as Peru, Chile, and South Africa.”

“In a recent study we did at the Chamber of Mines to model the average effective tax rate (AETR) of the DOF proposal, we found that the proposal would amount to something like 71% average effective tax rate, much higher than the AETR for the current FTAA which we beg at around 63.5%. AETR is essentially government’s tax take.”

“So the proposal with net government 71% AETR over life of mine… that is exceptionally heavy! It will be higher than the following countries: Peru at 51.9%, Queensland, Australia at 51%, Canada at 50.4%, and South Africa. More importantly, it would bring up the AETR for existing MPSAs from the current 45.3% to 71%. So we were alarmed. This is an exceptionally heavy imposition which will kill the industry.”

In response to this, Atty Recidoro said that the Chamber has been exerting efforts to communicate this fact to the Committee

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Chair, the House leadership, the Senate, and even the Executive Department. The goal is to make them all aware that the DOF proposal, if passed, will not accomplish the objectives of the bill which is to increase revenues from the extractive sector, to fund government programs in disaster risk management, environmental rehabilitation, and economic recovery.

“If they push this bill, there will be no increased revenues from mining. This is essentially [the] government killing the goose to get at the golden eggs. It’s just going to kill the goose. It would lead to the non-starting of three large-scale mining projects that they are already in the development stage which we envision will bring in an additional 1.2% to Philippine GDP once they start operating.”

He further noted that this would lead to closure of several large marginal mines, which would then lead to large-scale unemployment in the areas where these mines are operating.

“We have also issued a stronglyworded statement denouncing the substitute bill passed by the Committee essentially saying that this will not achieve the revenues it is targeting and will only underline the instability of the country’s mining policy, making the country more uncompetitive to foreign investment.”

“Fortunately, it seems that our efforts, led by my chair, Atty Mike Toledo, and Gerry Brimo have borne fruit. Just this morning, we received word that the house bill which has already been approved by the Committee has been recalled.”

He said that the Committee has recalled and has re-opened discussions on it which was scheduled last 7th of September, to allow stakeholders to voice their positions on the bill.

Atty Recidoro said that the Chamber intends to give a presentation that will emphasize the neg-

ative impact of the DOF proposal and ask that the Committee should consider the passage of House Bill 373 instead.

House Bill 373 – A More Equitable Bill “House Bill 373 is not a new bill.

It was previously passed in the 18th Congress as House Bill 6135 also

by Salceda. This House Bill 373 will seek to establish a new mining royalty scheme over and above the existing excise tax under the NIRC.” “However, it really imposed a tax not on gross output but rather it is conditioned on companies achieving a minimum margin. And as you achieve a larger margin, your tax rate will also increase but this tax will be imposed on income, and not on gross output, which means that you will only be taxed only when you’re making money.”

“If you have no margin then you have no additional tax which we have always insisted. This is the more equitable, more progressive way of doing it.”

Atty Recidoro said that the Philippines is probably the only mining country in the world that relies heavily on gross-based royalties and excise tax, which makes the tax rate heavy.

“The bill also proposes the establishment of a natural resource trust fund to be taken from government shares which will then be distributed to LGUs, to support educational programs, disaster risk management, and rehabilitation of abandoned mines. For as long as it is taken from government shares, I don’t think we have a problem. In fact, we will support that wholeheartedly. The Chamber of Mines has publicly given its support to the passage of House Bill 373 and we believe that if passed, it can serve as a competent financial baseline for re-negotiations, to guide DENR, MGB and DOF when we re-negotiate new mineral agreements.”

PMEA Monthly Membership Meeting guest speakers, Atty Ronald Recidoro (Chamber of Mines of the Philippines) and Atty Dennis Quintero (Quisumbing Torres), with PMEA President, Mr Joey Nelson Ayson. The event was held at the Manila Elks Club, Makati City. Photo by Marcelle P. Villegas

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

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MINING NEWS

Faster Soil Sampling for CopperSilver Projects Using Portable XRF An Explorer’s Story

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portable X-ray fluorescence (XRF) analyzer is a powerful tool to have in your mining and geochemistry field kit. One explorer uses three Vanta™ handheld XRF analyzers for copper-silver exploration in Peru.

Todd Houlahan, Olympus’ Director of International Mining, recently sat down with Lars Dahlenborg, President of Hannan Metals overcome challenges in exploration.

The San Martin Project: A Copper-Silver Target in a Dense Rainforest The top challenge Hannan Metals faces in its copper-silver exploration projects is the terrain.

Hannan Metals’ San Martin project—a strata bound sedimenthosted copper-silver target—is in the Amazon foreland basin, eastern Peru.

This region shows evidence of a basin-wide mineralization system active over hundreds of kilometers. This area is difficult to access due to dense rainforest and steep slopes. To get to the nearest field site, geologists must walk 1–3 hours from the closest 4x4 road.

Another challenge is the limited outcropping.

While prospecting creek and stream sediments are effective methods to reduce the search space in this terrain, the dense vegetation and lack of rock outcrops—less than 1%—make it difficult to prove the continuity of mineralization between outcrops. As a result, Hannan Metals needs The San Martin Project to perform systematic soil sampling and analysis to map mineralization under cover.

Faster Soil Sampling for Copper-Silver Mineralization Hannan Metals turned to Vanta handheld XRF for faster soil sampling. To test its analytical capabilities for the project, Hannan Metals compared the Vanta XRF data to the lab data from conventional soil sampling.

The results exceeded expectations: · Excellent spatial correlation between the Vanta analyzer and lab data for copper (Cu)—the pri-

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mary element of interest. · The Vanta analyzer detected the same anomalies as the lab data in the same dynamic parts per million (ppm) range. · Very good correlation with known outcrop mineralization.

Imp or ta ntly, the Vanta analyzer produced fitfor-purpose data for key elements: Pathfinder elements: copper (Cu), zinc (Zn), manganese (Mn), iron (Fe), arsenic (As), and nickel (Ni) Major elements: potassium (K), calcium (Ca), magnesium (Mg), barium (Ba), silicon (Si), and titanium (Ti) Establishing a Quality Control Program for the Copper-Silver Exploration Project: All in all, the Vanta analyzer provides many benefits for the copper-silver project: · 60% faster sampling rate enables the geologists to sample a larger area and increases the chance for discovery. · Faster communication of results to management and other stakeholders. · Enables real-time decisions

during soil sampling—helpful for determining infill or extension of sample traverses · Minimal sample size: reduces 800 kg of soil per month. · Good value: payback time of one Vanta analyzer is about four months at the current sampling rate (this only accounts for hard assay costs—not the other logistical benefits).

Learn more at https://www. olympus-ims.com/en/insight/faster-soil-sampling-for-copper-silverprojects-using-portable-xrfan-explorers-story TRADERS INDUSTRIAL SUPPLY CO., INC. 24th Floor Trident Tower 312 Sen. Gil Puyat Ave., Makati City 1209 Philippines E: trisco@pldtdsl.net | 1980trisco@gmail.com T: +632 8817-9004 | +632 8844-0749 ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Built to last: Customdesigned heavy duty conveyor systems to suit your applications

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hief industrial conveyors are ruggedly built to withstand years of use in harsh operating conditions and are custom designed to fit your application and engineered for outdoor purposes or combined into an existing manufacturing process.

Chief offers heavy-duty open belt conveyors for a wide range of bulk handling applications.

Our belt conveyor is custom designed that help maximizes the efficiency of your operation.

Available in a wide range of belt widths, including standards from 18-96”, with load capacities up to 10,000 metric tons per hour, we have designs available for installation in port facilities, coal, mining, biomass, and any industrial operation imaginable.

Components are manufactured to precise standards from heavy structural members to provide easy installation and strength. It’s intended to remain engineered to minimize downtime and operate reliably long-term, despite harsh conditions, which will enhance the safety and reliability of the operation.

Considering future demands, we look forward to good prospects for the material handling industry in the mining sector.

Whether starting with a used conveyor system, rebuilding an existing one, or with a new custom-built system, we have the experience, resources, and capability to assemble the perfect conveyor package for your application.

Let DMT be your mining expert; from greenfield exploration to mine closure.

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WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2022

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MINING NEWS

Importance of coal quality from mines to power stations

D

espite common use of coal in power generation, one overlooked aspect is that coal is a significantly heterogeneous and complex material, and its fuel characteristics vary significantly in the deposits in any direction depending on the geological conditions.

Therefore, a thorough geological investigation to understand these changes is not only essential in characterizing fuel properties, but also minimizing the economic, technical and financial risks associated with coal quality parameters.

A geological model supported with comprehensive database is the appropriate starting point in managing the drastic changes that customarily occur in fuel properties.

Once the coal quality variation is determined from the model, it may be possible to schedule the mine production from different parts of the pit according to the fuel specs.

However, it is also important to establish a good, robust coal quality monitoring program to manage the changes occurring the field by implementing a wellcontrolled representative sampling and testing program managed by a dedicated coal quality department.

Relying on only a few parameters to characterize the entire coal deposit, and consequently the fuel specifications could result in high risk and potentially expensive consequences.

If coal quality is used effectively at any part of the coal chain from mine production to power station, it is possible to make significant cost savings,

32

mitigate risks and provide a fuel clean enough to reduce pollutants and unwanted emissions.

In order to minimize the adverse effects of coal quality, it is important to implement some fundamental measures at the coal pit and power plant stockyard if both the coal mine production and power plant generation are particularly part of an integrated power generation system.

However, these measures also applicable to any mine that sells its products in the open market to any power generation utility, or any power station that buys thermal coal from any coal producer.

Mitigation measures on the adverse effects of coal quality include a number of crucial steps: • Establishing a good geologi-

cal and exploration/coal quality database containing all necessary information to characterize the target seam/s feeding into the power station. This is also a fundamental part of the power stations’ design criteria to determine the operational inputs for the duration of power station’s lifespan; • Implementing a good robust sampling and sample monitoring program reflecting accurate representative results obtained at pit level and power plant stockyard; • Performing the appropriate tests and assays which represent the real performance of coal and its waste product prior to plant design and during plant operations; and • Providing fuel by blending the ROM product from the pit based on the coal quality and boiler design parameters.

In order to minimize all the risks associated with coal quality parameters, it is important to establish a comprehensive database.

A geological model is the appropriate starting point in managing the drastic changes that habitually occur in fuel properties.

Once the coal quality is determined, it is possible to schedule the mine production from different parts of the pit.

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

Vanta™ Handheld XRF Analyzer The Right Answer in Any Environment

Vanta analyzers provide power and flexibility across the entire mineral resource cycle: • Greenfield and brownfield exploration • Ore grade and process control • Environmental monitoring and remediation • Academic/educational research and teaching within the geological/environmental sciences Vanta handheld XRF analyzers are IP55* rated to withstand rain, dirt, and dust and are drop tested to department of defense standards (MIL-STD-810G) to help prevent breakages and costly repairs. Their rugged and durable design makes Vanta devices resistant to damage for greater uptime and a lower cost of ownership.

With our innovative Axon Technology™, you get the right answer no matter the environment or working conditions. Vanta analyzers for geochemistry feature software designed in cooperation with industry experts to help meet the needs of mineral resource, environmental companies, and educational institutions.

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MINING NEWS

LeopardTM Di650i iDrill Packages: Designed To Match Your Needs

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ew iDrill automation packages for Leopard™ DI650i are designed to match your automation needs. iDrill automation complements existing automated drilling functionalities with several new features such as drilling stabilization, automated collaring, automated cleaning and detaching from hole.

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The iDrill automation matches seamlessly with AutoMine® Surface Drilling to enable fully autonomous Leopard™ DI650i fleet operation from a control room. iDRILL PERFORMANCE Optimized for customers who are looking for automated operator supporting functions in cabin operation-based drilling or ease of operation with full radio remote control use.

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Hole-to-hole planning and tramming tools for drilling sequence.

Leopard™ Di650i: Time For A New Leader Leopard™ DI650i offers long-term productivity and superior stability: trustworthy and robust main components integrated with the latest technical solutions.

The new Leopard™ has been designed for scalable automation, easy maintenance, and efficient operation. The new iCab offers the most silent and ergonomic cabin in DTH drill rig. The cabin is spacious, silent, and safe. Also, iCab is designed to provide clear and improved visibility to the drilling area.

TECHNICAL DATA

AUTOMINE® CONTROL ROOM Optimized for customers looking for high-end automated control room-based teleremote operation, powered by AutoMine®.

Check - iDrill drilling cycle functionalities; automatic stabilization for drilling and detachment from the hole.

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MINING NEWS

Efficiency and Cost-Reduction: QES Technology Philippines, Inc. Commitment to Mining Industry through Complete Mining Solutions

By Engr. Paula Angeline Bacani

T

he mining sector continues an optimistic performance for year 2022. As early as Q1 2022, the metallic mineral production value kicked off the year with a 36.21% or PhP12.92 billion growth from PhP35.69 billion in Q1 2021 to PhP48.61 billion.” [1] The steady growth of the industry is indicated by the opening of new metal mines, mostly Nickel mines, and the expansion of existing mines.

With the increasing production of Nickel Ore, QES Technology Philippines, Inc. has been a longestablished partner of these mines on complete mining solutions from: [I] Geological Exploration on sales and service of handheld XRF and analyzers. [II] Sample Preparation on sales and service of crushers, pulverizers, presses, fusion machines, grinding machines, milling machines, drying ovens, etc.

[III] Laboratory Solutions on sales and service of XRF, the benchmarked Spectro XEPOS, KF moisture analyzer, Auto-Titrator, lab consumables, and furniture/fixtures.

And [IV] Environmental Monitoring for Compliance on sales of air quality and water quality monitoring systems.

For year 2022, QES Technology Philippines, Inc. shares this another record-breaking sale of 14 (as of October 2022) laboratory XRF units to our clients, partners, and customers on the Mining Sector.

Committed to quality and higher efficiency, QES not only supply analyzers but also help its partners solve challenges on costly maintenances of heavy mining equipment. This year’s #QESInAction held product presentations and exhibits on mining areas in Cagayan, Zambales, Palawan, Camarines Norte, and Surigao introducing its New Mining Solution: The Spectro Scientific On-Site Fluid Analysis. Machine condition monitoring based on oil analysis is a mandatory maintenance practice for the Mining Equipment Fleet.

The Spectro Scientific On-Site Fluid Analysis is a solution for common challenges on site such as: [I] Remote Sites wherein it can be difficult to rely on outside lab analysis for oil testing because it takes long and by the time it’s determined there is a problem, there has been a major breakdown already. [II] Harsh Environments where mining equipment operate in conditions that are hard on the components and exposes the vehicles to large amounts of particulate contamination and debris that damage the hydraulics and gears. Constant monitoring of oil condition will prevent unexpected breakdowns. [III] Expensive Oil drains for large vehicles. Oil drain interval can be extended safely as long as the oil condition is at continuous monitoring. Reducing the number of oil drains required per vehicle even by just one time per

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year can significantly generate savings across a fleet for large mining vehicles. [IV] High Repair Costs. Oil analysis will help identify potential problems early – before they undergo breakdowns and costly repairs.

Large mining equipment fleet can be enormously expensive to repair so mitigating a small problem before it becomes a breakdown will be a huge cost savings. [V] Downtime of Vehicles Impacts Revenue when a vehicle is unavailable due to mechanical problems it means it is not available to provide necessary service and will impact the revenue generating service it provides.

Since equipment in the Mining Industry is frequently exposed to extreme environmental and working conditions, this new mining solution promoted by QES is an effective oil analysis program that keep these important assets in operation by reducing unexpected failures and costly unscheduled downtimes, thus effectively induces cost-cutting on operations.

To assure partners continuous growth, QES joins the 2022 6th CARAGA Mining Symposium and 68th Annual National Mine Safety and Environment Conference as exhibitor and organizes related technical webinars. You may scan below to visit/join their official Facebook group to keep update on their incoming webinars. Demo room is located at Unit 507, Page 1 Building, Acacia Avenue, Madrigal Business Park, Ayala Alabang, Muntinlupa, 1780 Metro Manila, Philippines.

For inquiries and consultations, you may directly message: qtpmarketing@qesnet. com or visit www. qesnet.com Reference: [1] Retrieved October 2022 from https://mgb.gov. ph/attachments/ article/1197/Q1%20 2022%20Metallic%20 Review.pdf

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Taganito Mining wins national TESDA ‘Kabalikat Award’

LAVER, Surigao del Norte -Taganito Mining Corporation (TMC) has been chosen as this year’s TESDA Kabalikat Award recipient, a recognition given annually to agency partners with demonstrated track record in helping equip Filipinos with employable, specialized skills.

TMC is one of the only two regional qualifiers for the coveted award, and the only regional contender in the Industry Sector category. It was also the first time for the company to be nominated for the award, courtesy of the TESDA Surigao del Norte office.

Award finalists include entities from the local government units (LGUs), the legislative branch, the national government-owned and controlled corporations (GOCCs), non-government organizations (NGOs), private businesses and companies, and local and international organizations.

In winning the national award, TMC has been cited in developing, enhancing, and implementing training programs that have resulted in better employability of Filipino skilled workers.

In particular, TMC has earned praises for its TESDA-aligned programs such as the communitybased training for Heavy Equipment Drivers and Operators, as well as its various livelihood programs benefiting the residents of Claver and neighboring areas.

Similarly, the company has won plaudits for its in-house skills training program, tech-voc scholarships and apprenticeship programs, and

other skills enhancement training and assessments that have made it possible for graduates to obtain their National Certificate.

Likewise, the TMC Training and Assessment Center (TMC-TAAC) has been providing free assessments to both employees and contractor’s workers.

TMC’s accreditation as an assessment center enabled its certified workers to be accredited assessors in the province, resulting in an increase in the number of certified workers in the local construction sector.

In addition, TESDA credited TMC with having surpassed the required minimum total score for training, investment in TVET either through the procurement of training tools and equipment, the allo-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2022

cation for scholarship, donations made to communities to promote and support TVET through livelihood skills training, especially to priority barangays identified as peace-challenged barangays.

These programs and initiatives, the agency said, contributed to advancement of technical education in Surigao del Norte.

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MINING NEWS

Integral Offers Sustainable Mining Operations with Emerson

By Mark Adrian D. Lenon

M

ining is entering a new era. This phase, known as Mining 4.0, recognizes the role of digital transformation in sustainable mining operations.

With more affordable and simpler solutions to monitor plant assets, it has become viable for mining companies to assert total control over their operations.

Emerson practises a “HumanCentred” approach to innovation. In this light, the company ensures that its solutions eliminate unnecessary work, reduce complexity, and embed knowledge for the benefit of less-experienced workers.¹ Hence, end-users of all skill levels can utilise an ever-changing technology landscape.

Human-Centred Design is applied in Emerson’s AMS Asset Monitor. As an edge device, the AMS Asset Monitor utilises pervasive sensing (sensors) to determine asset condition and embedded prescriptive analytics (built-in analytics) to provide user-friendly results.² Combined, these features enable operators to make data-driven decisions without complication.

The benefits of automated monitoring using the AMS Asset Monitor far outweigh manual monitoring programs. Since field data is collected and diagnosed before prompt delivery, operators already receive actionable data.² Using these insights, asset reliability can be maximised. Furthermore, mining companies can take relief knowing that the AMS Asset Monitor is also a simple and cost-effective way to monitor balance of plant equipment.² When

scaled properly, sustainable plant operations can be achieved.

Rotating machinery is one of the areas where the AMS Asset Monitor proves to be crucial. Since motors are used in various processes, predictive and planned maintenance are needed to avoid a potential downtime. Additionally, in-depth investigations can be done using the Emerson Peak View Plus software, which is capable of distinguishing between failure types and providing valuable insights.³ Data-driven decisions are vital

to ensure reliability across plant assets. In partnering with Emerson, mining operators can utilise assets running at peak efficiency to achieve long-term sustainability goals.

Emerson products are available through Integral.

As a designated Local Business Partner of Emerson, Integral provides world-class solutions. Apart from connecting customers to Emerson’s products and expertise, Integral also offers a variety of services for clients located in the Philippines.

For more information about Emerson and available local services, customers may contact Integral through the following: PLDT Landline (+632) 8696-3634, (+632) 75763716, and (+632) 7373-8453; GLOBE Mobile (+63) 917-851-7716; and SMART Mobile (+63) 939-907-0967 and (+63) 943-708-5400. Website access is available through https:// www.integralindustrial.com.ph/.

AMS Asset Monitor in the field

Reference: 1. Electronic Marshalling Overview - https://bit. ly/3CSKijP 2. Embedded Analytics Expand Monitoring, Improve Asset Reliability - https://bit. ly/3MtCKY7 3. Extract More from Your Mining Operations (Emerson E-Book) - https://bit. ly/3ECBQ9G

ROBIT: THE COMPANY FOR DRILLING CONSUMABLES

R

obit is a strongly internationalized· growth co·mpany, servicing global customers and selling drilling consumables for applications in underground and surface mining, construction, geo-technicar and well drilling.

The company’s offering is divided into three product and application groups: Top Hammer, Dqwn the Hole and Geotechnical. Robit emphasizes that it is a global company specializing in selling drilling consumables via its comprehen-

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sive distribution network in the global market.

Robit has its own sales and service points in eight countries as well as ·an active dealership network through which it sells to more than 100 countries. Manufacturing units are located in Finland, South Korea, Australia, and the UK and shares are listed on NASDAQ Helsinki Ltd. Robit is· exclusively distributed

by Uptime Earthmoving Solutions, Inc. in the Philippines.

For product inquiries, you may reach us through the following: Land line: +632 8 687 1000 lac 397 Mobile: Globe: 0915 069 2676 Smart: 0949 137 4108 Facebook: www.facebook. com/UptimeEarthmovingPH Office: Unit D, 10th fir., CyberOne Bldg., 11 Eastwood Ave., Bagumbayan, Q.C For Robit product and company videos, you may visit www.youtube.com/user/RobitLtd ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

ghd.com

→

Delivering solutions that drive sustainability, improve competitiveness, and maintain effective operations across the mine life cycle Mining – Technical feasibility study – Enabling infrastructure and facility planning and design – Hydrogeological assessment – Mine water management study and design – Tailings storage facility planning and design – Major project delivery management – Mine closure and rehabilitation planning Geotechnical and Geology – Site investigations – Slope stability study - soil and rock slopes – Foundation investigation and design – Specialist analysis – Pavements and tunnels – Construction and earthworks technical support – Instrumentation and monitoring – Aerial photograph interpretation (API) and remote sensing methods – Geological mapping and geophysics – Comprehensive intrusive investigations – Difficult access investigations – Engineering Geological and Geohazard Assessments (EGGA) – Groundwater investigations

Environment – Site assessment – Baseline study – Impact assessment – Approvals & permitting – Audit & monitoring – Hazardous material audit – Contamination & remediation study Advisory – Transactions, due diligence, and lender’s technical advisor – Business case, financial, and economic analysis – Asset management – Environmental, social, and governance (ESG) and strategic sustainability – People and crowd movement simulation and studies – Logistics and supply chain studies – Risk management – Origination – Regulation – Strategic insights – Assurance, audit, and compliance

Power generation, transmission and distribution – Feasibility study – Concept and detailed engineering design – Regulatory approvals support – Power system studies – Substation planning and design – Instrumentation and control design – Owner’s engineer/Lender’s engineer role – Engineering, procurement, and construction management Digital – Geographic Information Systems (GIS) – Building Information Modelling (BIM) – Machine learning & artificial intelligence (AI) – Digital twin – Augmented reality (AR)/Virtual reality (VR) & mixed reality – Digital risk & cybersecurity – Intelligent automation & robotics process automation (RPA) – Digital & web solutions

Ronald Acio Business Development and Marketing Manager D 63 2 7909 8102 M 63 920 981 4823 E ronald.acio@ghd.com Makati City 11th Floor Southgate Tower, 2258 Chino Roces Avenue corner EDSA, Makati City, 1232, Philippines Quezon City 17th Floor, Panorama TechnoCenter, 1029 EDSA, Quezon City, 1105, Philippines Cebu City Unit 2, 3, and 4 Level 8 Cebu IT Tower 2, Bohol Avenue, Cebu Business Park, Cebu City, 6000, Philippines

COMPANY NEWS

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

B

usiness needs are everchanging in the country.

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

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

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

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

Business Solutions focus on three critical areas to transform your business into one that is worldclass through Caltex Advisory: 1.

IMPROVE ENHANCE WITH

AND A

CUSTOMIZED PLAN Fully trained on Caltex Reliability-Based Lubrication principles, our team of highly qualified specialists will work closely with you to develop a customized business plan for improving operational efficiency and cost control, with the ultimate goal of enhancing business performance.

2.

OPERATE EFFICIENTLY WITH EXPERT TECHNICAL REVIEWS Redefine efficiency with the help of our skilled team. From expert oil analysis for both lubricants and fuels in advanced oil testing laboratories to guidance on solutions for better tracking and control, our team is fully equipped to keep your business running smoothly and reliably, providing your business with a true competitive advantage.

3.

STAY ON TRACK WITH ONGOING REVIEWS

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COMPANY NEWS

< Page 40 As our trustworthy Advisors organize ongoing and regular consultations to track and document results, enjoy continuous progress as a business with customized training MasterClasses that are designed to equip your team for world-class efficiency and business performance.

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

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

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

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

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ADVISORY PANEL FORMED TO IRON OUT POLICIES IN ENERGY SECTOR

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

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

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

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

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

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

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

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

These are the things that have mo-

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2022

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

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

Energy Secretary Raphael Lotilla

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CONSTRUCTION NEWS

P

DMCI bags first subway tunnel project

remier contractor D.M. Consunji, Inc. (DMCI) is set to build its first subway project after its joint venture with Nishimatsu Construction Co., Ltd.(NCC) of Japan received the Notice of Award for the Quezon Avenue and East Avenue underground stations and tunnels for the Metro Manila Subway Project (Contract Package 102).

“We are very excited to be part of this historic project. Once completed, the subway will help address urban mobility issues in our nation’s capital,” said DMCI President and CEO Jorge A. Consunji.

To be funded through a loan

F

ance with the documentary requirements as provided under the April 2012 guidelines for procurement under Japanese official development assistance loans.

As of June 30, 2022, DMCI had an order book of PHP43.7 billion, which was mostly from other joint venture projects and building contracts.

Founded in 1874, Nishimatsu Construction Co., Ltd. is the leading tunnel contractor in Japan, having worked on more than 1,000 tunnels.

Its portfolio includes Singapore’s National Library Board Building, London’s Channel Tunnel Rail Link, Hong Kong’s Lap Kok Airport.

NORTH-SOUTH COMMUTER RAILWAY ‘FULL-SCALE’ CONSTRUCTION TO BEGIN FEBRUARY 2023

ull-scale construction of the North-South Commuter Railway (NSCR) project is set to begin by February next year, an official of the Department of Transportation (DOTr) said.

The NSCR is a 142-kilometer railway system that will stretch from Clark International Airport (CRK) in Pampanga all the way south to Calamba in Laguna with a travel time of about one hour and 45 minutes, about half the time it would take to drive.

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from the Japan International Cooperation Agency (JICA), the multicurrency denominated infrastructure project is valued at PHP17.37 billion, USD 31.77 million, EUR5.49 million and JPY4.39 billion, roughly equivalent to PHP 21.21 billion as of November 11, 2021 exchange rates and exclusive of value added tax.

Scope of work for Contract Package 102 includes design (to the extent required), supply, installation, construction, testing, commissioning and training. The project will take around 67 months to complete.

The contract is still subject to concurrence by JICA and compli-

Once operational, it is seen to have a daily passenger capacity of 350,000 and will have direct connections with other transportation projects such as the Metro Manila Subway.

In a Laging Handa briefing, DOTr Undersecretary Timothy John Batan said the NSCR is the country’s largest railway project to date and the largest project funded by the Asian Development Bank, with the NSCR’s four recently signed contract packages worth a total of PHP91 billion.

“We’ll begin pre-construction activities by the latter part of 2022 and by February 2023, we’ll begin full scale construction works,” Batan said.

During its construction, he said the project is seen to create almost 10,000 jobs and boost the economic activity in project areas.

Homeowners and informal settlers affected by the NSCR, he said, will be compensated through coordination with social housing finance corporations.

ISSUE 2 2022 • WWW.PHILIPPINE-RESOURCES.COM

COMPANY NEWS

LiuGong 870H Wheel Loader: Designed for Tough Applications, Energy Efficient and Productive

T

he LiuGong 870H Wheel Loader with new H Series buckets loads heavy materials faster and more manageably, saving you time and lowering fuel consumption with higher productivity and higher efficiency.

In tests, our new buckets increase production by 14% and reduce fuel consumption by 12% compared to competitors, delivering better fuel economy.

The 870H will save you more fuel and money because of its low fuel consumption, which is the same as the 5.5T wheel loader in the industry.

ENERGY-EFFICIENT AND PRODUCTIVE At the heart of our exceptional powertrain lies the latest Cummins engine, ZF fully automatic transmission, and fixed and variable displacement hydraulic system combinations, delivering higher efficiency, lower fuel consumption, and superior operative performance.

This powerhouse is designed to provide impressive acceleration and torque output, along with a severe bucket filling and lifting capability, which significantly increases cycle times and work efficiency by 85% compared to 5T products, up by 5% compared to competitors.

In terms of productivity, one unit of 870H is equivalent to the productivity of 2 units of a 5T wheel loader, which saves you on labor and maintenance costs.

ROBUST DESIGN AND DURABILITY THE 870H Wheel Loader’s heavy-duty split-clamp axle features with more robust load capacity. An articulated frame, spread hitch, and tapered roller bearing deliver better stability and longer service life.

It also features new wear-resistant bucket teeth,

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and bucket blades give superior wear resistance compared to like products.

SAFE AND COMFORTABLE When it comes to operator safety, our cabs are second to none.

Ergonomically designed, pressurized ROPS/FOPS cab, with 309 degrees panoramic visibility, the rearview camera offers operative comfort and safeguards your operator.

This machine also features up to 70% reduction in vibration at the engine, cab, and seat connection for operative convenience.

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

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

MINING NEWS

Compact enough for mining, with power needed for heavy construction

T

he new Boomer E10 and E20 from Epiroc offer great flexibility and coverage thanks to their small footprint and powerful, multi-purpose BUT 45-booms. As part of Epiroc’s Smart series, the drill rigs are equipped with automation features that increase operator safety and productivity, and come with an optional battery-electric driveline for reduced environmental impact and healthier underground conditions.

Suitable for both mining and construction

Epiroc releases new Boomer E10 and E20 drill rigs

is a safer workplace. In addition, you can reach up to 25% increased productivity by drilling during shift changes and lunch breaks”, says Camilla Spångberg, Global Product Manager at Epiroc’s Underground division.

Furthermore, both drill rigs provide operators with setup assist. Thanks to the carrier being equipped with an advanced scanner measuring the distance to the walls and face, positioning the rig perfectly in the mine or tunnel becomes an easy task for the operator.

“In combination with digital

drill plans, setup assist eliminates time-consuming repositioning. It also ensures both productivity and great quality”, says Camilla Spångberg.

Designed for great operator comfort and safety In the comfortable and safe cabin, operators can enjoy low sound levels (<65 dbA) and less vibration, and a new panel interface for tramming. In addition, great visibility and multifunctional joysticks ensure that operators always keep their eyes on task.

Besides being compact enough for mine development, both drill rigs feature BUT 45-booms with telescopic feed beams. These powerful booms fit a wide range of applications and can tackle the requirements of heavy-duty construction work with ease.

“This is yet another automation break-through for face drilling where Epiroc leads the way to safer and more productive mining and construction operations,” says Sami Niiranen, President at Epiroc Underground division.

Safe productivity with outstanding operator assistance features With features like teleremote drilling, auto level and setup assist, Boomer E10 and E20 strengthen productivity and safety for operators. The optional teleremote drilling feature lets the operator work at a safe distance from the face and enables drilling during shift changes.

“Thanks to teleremote drilling the operator can drill a full face from a control room. Naturally, this

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ECONOMIC NEWS

German-PH Chamber Reports Promising Economic Growth During 2022

By Marcelle P. Villegas

A

quick look at the future: • The Philippines is expected to join the free trade agreement -- Comprehensive and Progressive Agreement for Trans-Pacific Partnership. This would benefit the Philippine metals industry.

• The German Supply Chain Due Diligence Act will have a significant impact on business practices across the Asia-Pacific (including the Philippines, which lists Germany as its 10th largest export trading partner).

Looking at the numbers, the economic outlook of 2022 looks bright.

According to a report presented

by German-Philippine Chamber of Commerce and Industry (GPCCI), the Philippine gross domestic products (GDP) showed favourable development and promising growth during the first half of 2022. From their report on “GPCCI Market Watch: Philippines Shows Promise in the 1st Half of 2022”, the Philippine GDP grew more than expected due to high public spending, relaxed COVID-19 mobility restrictions, and a rebound in investments and household consumption. Due to these factors, the Asian Development Bank (ADB) raised its growth outlook for 2022 from 6.0% to 6.5%, halfway through the year. [1] During the second quarter, the GDP growth decreased to 7.4% due to global headwinds like geopolitical tensions and inflation. This is lower than 8.3% growth during the first quarter. Banko Sentral ng Pilipinas (BSP) also forecasted that inflation rate of 5.4% and raised key interest rates to 4.0% from an initial 2.0%. Afterwards, the Development Budget Coordination Committee (DBCC) revised their full-year 2022 growth forecast to 6.5% to 7.5%.

“Despite the slowdown of the second quarter growth, it is notable that the Philippines still had the 2nd highest GDP growth recorded for the second quarter in the ASEAN region. For the first half of 2022 overall, the Philippines’ GDP grew by 7.8% - the highest among the five biggest economies in ASEAN.

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“Although there is a seen decrease in the bilateral trade between Germany and the Philippines when comparing the first half of 2022 and 2021 data, it remains to be a major contributor to the latter’s trade relations with the EU.” – From GPCCI Market Watch

The Philippine Central Bank stated that domestic economic activity is seen to be restored to its pre-pandemic level in the second half of 2022,” according to GPCCI. Several changes in 2022 took place which gradually contributed to mobility in most sectors. “As the country continues its efforts in the transition to the new normal, the Department of Education implemented mandatory face-toface classes for the school year of 2022-2023. Aside from this, the mandatory wearing of face masks outdoors was also lifted. It was im-

posed for more than two years to contain the spread of the coronavirus in the country.”

“According to experts, the outlook of the country’s economy remains positive. The materialization of the initiated economic reforms and the continuation of key programs such as the infrastructure expansion by the new administration shall support the robust economic development for the 2nd half of the year and beyond.”

Looking at the Philippine international trade activities for the first half of 2022, both exports

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ECONOMIC NEWS

< Page 48 and imports increased year-onyear with a growth rate of 7.09% and 26.69% respectively. “Imports grew much faster than exports by a significant margin with the Philippine trade deficit increasing

by USD 11.84 billion as a result of this.” [1] The Philippine Statistics Authority reported that June 2022 marked the 17th straight month of import growth.

The export and import activities in 2022 include significant movement in the minerals industry. “Philippine exports are mainly composed of electronic products accounting for 55% of the total exports or USD 21.16 billion for the first half of the year. Other commodity groups that widely contribute to the exports of the country are (1) other manufacturers with 7%, (2) cathodes and sections of cathodes, refined copper with 3%, (3) coconut oil with 3% as well.” On the list of imported individual commodities, Electronic Products were also on the top of the list, comprising 24% of all imports or USD 16.3 billion in total. Minerals, Fuels, Lubricants and related materials, Transport Equipment, Iron and Steel had shares of 17%, 8%, and 5% respectively, according to the Philippine Statistics Authority.

For both exportation and importation, the top 10 trading partners of the Philippines include the neighboring countries of the Philippines in Asia. “In terms of its export partners, the United States and European Union (EU) countries such as German and the Netherlands have been its non-Asia partners that belong to the top rank. While for its import partners, the United States is the only non-Asia country that belongs to the list.”

More on the non-Asia trade partners of the Philippines, for the first half of 2022, the United States of America ranks as No. 1 in the list of international trade partners for Exports, with USD 5.94 billion.

Netherlands is on rank No. 7 with USD 1.45 billion, while Germany is on rank No. 10 with USD 1.31 billion. For Imports, United States of America is on rank No. 5, with USD 4.40 billion.

“Although there is a seen decrease in the bilateral trade between Germany and the Philippines when comparing the first half of 2022 and 2021 data, it remains to be a major contributor to the latter’s trade relations with the EU. Exports of the Philippines to Germany, decreased by 8.46% as the previous USD 1.42 billion in 2021

50

went down to USD 1.30 billion in 2022. Similarly, imports declined by 9.15%, when the USD 1.06 billion in 2021 was cut to USD 960 million in 2022.” [1] On a final note, what are we to expect in the future in terms of economic growth? GPCCI Market Watch listed down some trends and factors that can affect economic growth in the future. Here are the trends to look out for: 1) Global Inflation: The International Monetary Fund (IMF) recently gave out unfavorable projections for the global economy in its recent report with inflation in advanced and developing economies projected to reach 6.6% and 9.5% respectively. As seen in the Philippines, the country experienced a 6.4% inflation rate in July of this year (the highest recorded inflation rate in 4 years) due to a rise in commodity prices. Experts also believe this rise in inflation will peak in the 4th quarter of 2022. Consequently, analysts say this bleak outlook on inflation for the rest of the year may lead to the Philippine Central Bank raising the key interest rate to 4.25% by the end of 2022.

2) CPTPP: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP is a free trade agreement currently comprised of 11 countries, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The Philippines, along with Thailand and South Korea, is expected to join the agreement within the next few years with Chile supporting their potential accession. By joining this free trade agreement, various sectors in the country such as electronic equipment, apparel, machinery, and metals would benefit.

3) Supply Chain Due Diligence

Act: By the start of 2023, the German Supply Chain Due Diligence Act will come into force. Initially approved in 2021, the act aims to ensure that German businesses with more than 3000 employees will have no links in their supply chains that violate human rights or environmental laws. And by 2024, the size requirement will drop to 1000 employees. Hence, companies that wish to enter the German market or work with large German companies will need to have humane and stable business practices. Experts say this new legislation will have a significant impact on business practices across the Asia Pacific; including the Philippines, which lists Germany as its 10th largest export trading partner. Also, the EU is currently in the process of creating the EU Due Diligence Act, which aims to apply similar supply chain standards for companies across all EU member states and beyond. [1] Reference: [1] Ramos, Nicole (4 October 2022). GPCCI Market Watch: Philippines Shows Promise in 1st Half of 2022.

Acknowledgment: Thank you to Ms Nicole Ramos, Senior Consultant at German-Philippine Chamber of Commerce and Industry.

German-Philippine Chamber of Commerce and Industry (GPCCI) 8F Doehle Haus Manila 30-38 Sen. Gil Puyat Avenue, Brgy. San Isidro, Makati City Philippines, 1234 Telephone: +63 (2) 8519 8110 / Telefax: +63 (2) 5310 3656 Website: https://philippinen. ahk.de/en/

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CONSTRUCTION NEWS

By Marcelle P. Villegas

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he expansion of the Sangley Point International Airport (SPIA) is a huge infrastructure project that is scheduled to be operational by 2028. The local government of Cavite province has chosen the SPIA Development Consortium last September to implement the USD11 billion project.

SPIA Development Consortium representatives were delighted for being chosen for the job, but they also said that the challenges ahead are great.

The project will also commence in association with South Korean and European companies. The Engineering, Procurement and Construction consortium will be headed by Cavitex Holdings and the local financier House of Investments Corporation. They will also work with Samsung C&T. Munich Airport International (MAI) is known for their 5-star quality services and for their trademark best-practice solutions, thus they have the slogan “Trusted partner for smart money and ambitious airports”. MAI also offers services like airport management, consulting and training services around the world. For the past 30 years, Munich Airport Group has been a leading ORAT service provider and a global airport operator. (ORAT refers to Operational Readiness and Airport Transfer, the process of taking a newly constructed airport or part of an airport and turning it into an operational facility.)

Additionally for this project, Philippine MacroAsia Corporation will be responsible for the logistics and technical services. Ove Arup & Partners Hong Kong Ltd. will be a development planner. More details of the structure of the consortium will be further defined in the future.

The consortium is set to sign the

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Munich Airport helps out with Sangley Point Airport expansion Joint Venture and Development Agreement this October. After that, they have 18 months to develop the project design and business plan. This will be followed by actual construction of the airport’s expansion design.

The SPIA is dubbed as the Philippines’ new “gateway to the world” and instrumental in boosting the country’s economy. SPIA is intended to reduce the dense activities in Ninoy Aquino International Airport (NAIA) in Metro Manila and the traffic congestion in the region. The airport project anticipates for the expected increase in passenger numbers for the next 30 to 40 years. The local government in the province hopes that the airport will generate around 50,000 jobs. [1]

Looking at the stages of the project, the first phase includes the construction of the runway which is targeted to be finished by 2028. The airport is designed to accommodate 80 million passengers per year.

Eventually, with the construction of additional runways, the airport could serve 130 million passengers a year. There are also plans to have a four-lane road, perhaps with parallel train routes to the airport. Experts said that good transportation connections to the previously less developed region are vital for the success of the airport.

They also see this airport project as a possible competitor for the airport in Bulacan. [1] Back in February 2020, the existing regional airport in Sangley was reopened by the order of the former president Rodrigo Duterte. He ordered the transfer of some flights from NAIA to Sangley in order to lessen the air traffic in NAIA during the pandemic.

Eventually, the Sangley airfield was modernised due to the support from government funds of around US$ 25 million. The small terminal can handle 160 passengers. Although this project was not originally part of the government’s Build, Build, Build program, it was later on included in their list of projects, thus the SPIA now has this expansion project.

Reference: [1] Hirschle, Alexander (26 September 2022).

“Manila expands airport with German participation”.

Germany Trade and Invest (GTAI).

Retrieved from - https://www.gtai. de/de/trade/philippinen/branchen/ manila-erweitertflughafen-mitdeutscher-beteiligung-897832 Photo credit: Sangley Point International Airport - https://www.facebook.com/sangleypointairport/ Munich Airport - https://www. munich-airport. com/international/ about-us

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ENERGY NEWS

Energy Transition for Oil, Gas and Coal Sectors

By Marcelle P. Villegas

Most industries are dependent on fossil fuels to operate. However, in response to climate change, there is a global trend that encourages countries to join in the energy transition of using green technologies. While in theory, this strategy looks promising and feasible. However, in some countries, like in the Philippines, this is a major challenge.

This was the scope of the roundtable discussion (RTD) last 4th of May 2022 during PH-EITI Conference with the Department of Finance and Department of Energy. The theme of the event was “Preparing the Extractives for Energy Transition”.

To tackle the issues behind energy transition, PH-EITI and the Department of Energy- Energy Policy and Planning Bureau (DOEEPPB) organised this RTD to provide energy stakeholders with information on existing policies and future government programs that will lead to the shift to a sustainable and low carbon economy.

“Using the PH-EITI platform, the RTD intended to elicit stakeholder perspectives on energy transition and thresh out issues on the implications and effects of the transition on various sectors.”

Moreover, the of goal of the RTD this year is to inform the participants and involved industries about the Philippine’s progress in implementing transition plans, policies and commitments, as well as the rollout of government programs to sectors that will be af-

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fected by the shift.

In the RTD, the different presenters and speakers discussed how the various sectors intend to address the issue of climate change in order to prevent future environmental problems.

On our previous article about this event, we reported the views of the mining industry about the energy transition, where most mining companies are ahead in taking proactive steps to achieve environmentally friendly operations and proper waste management.

This time, we shall highlight the reaction of the oil, gas and coal industries about the global transition.

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

Dir. Michael O. Sinocruz, OIC-Director, Energy Policy and Planning Bureau, Department of Energy, said that the Philippine Energy Plan 2020-2040 is connected with the goals of Ambisyon Natin 2040 which represents the collective long-term vision and aspirations of the Philippines in the coming years. In support of these aspirations, he shared that

the DOE formulated the 9-point energy agenda, among these are providing access to electricity for all Filipinos, promoting energy efficiency, and establishing a proconsumer framework.

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

Therefore, in order to cope up with the difficulties that the transition will bring, producing communities and countries will have to find alternative revenue sources to replace the lost income.

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

Director Arnulfo A. Robles, Executive Director of the Philippine Chamber of Coal Mines, Inc. (PHILCOAL) reported the perspective and achievements of the coal sector on the energy transition. He mentioned that Semirara has become the template for coal

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CONSTRUCTION NEWS

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Marcos keen on pursuing ‘grander, more ambitious’ infra projects

resident Ferdinand “Bongbong” Marcos Jr. said his administration is eyeing to pursue “grander” and “more ambitious” infrastructure projects to create jobs, improve connectivity, and provide convenience to Filipino commuters.

Marcos made this remark during the groundbreaking rites for the construction of the Ortigas and Shaw Boulevard stations of the Metro Manila Subway Project (MMSP) at Metrowalk Commercial Complex in Pasig City.

“Let the breaking ground of this subway system signal our intention to the world to pursue even grander dreams and more ambitious endeavors that will bring comfort and progress to our people all over the country,” Marcos said in his speech.

He reassured the public of his administration’s commitment to not only continue but also expand the government’s infrastructure program.

“Be assured that this administration will take the lead in identifying, pursuing, and implementing projects as part of the Build Better More Infrastructure Agenda that we have laid out,” he added.

Marcos also expressed hope that Filipinos’ aspirations for a

“better, brighter, and more prosperous” country enkindle their purpose to work for the nation’s advancement.

‘Small inconveniences’ Meanwhile, Marcos said he looked forward to “brighter days” once the construction of the MMSP’s two stations is completed.

“Although it is a given that the construction of these structures will take time and cause disruption, let us be optimistic and just count these small inconveniences as a small price to pay for the fruitful results that this program, this project will yield,” he said.

He expressed hope that the project would be completed as scheduled so that the public may soon enjoy its benefits.

With the MMSP, Marcos said his administration anticipates helping people “skip long lines of traffic” and spare themselves from the “perils of commuting.”

He said the government also sees more business opportunities for entrepreneurs and investors, as well as additional economic activity with the improved linkages of key areas and business districts in the Metro and the availability of stalls and other stores in the sta-

tions and nearby markets.

“As our people gain more time by cutting long hours of travel, they can now engage in more worthwhile and productive endeavors, making time for greater self-improvement or equally important spending quality time with their families,” he said.

Joining Marcos at the event were Japanese Ambassador to the Philippines Ambassador Kazuhiko Koshikawa; Japan International Cooperation Agency (JICA) chief representative Takema Sakamoto; Senators Grace Poe, JV Ejercito, and Mark Villar; and Pasig City Mayor Vico Sotto The MMSP is a foreign-assisted project under the Official Development Assistance program and funded by the JICA.

< Page 54 mining in the Philippines. Regarding environmental restoration and biodiversity, Semirara Mining and Power Corporation (SMPC) has conducted reforestation and biodiversity conservation goals, and reforestation and wildlife species propagation.

The company is currently studying and developing a concrete carbon transition roadmap. Part of SMPC’s strategy is to continuously monitor new and emerging climate-change legislation measures. They also assess its impact on business sustainability and future growth. SMPC bagged the Special Submission Category in the 2021 ASEAN Energy Awards.

For oil and gas sector’s perspective on energy transition Atty.

Jose Ma. Emmanuel A. Caral, Secretary of the Petroleum Association of the Philippines. He disclosed that while companies remained focused on exploring, developing and producing the conventional

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oil and gas business, other companies have already started to diversify, and have made explicit commitments to achieve net zero emissions by 2050.

Atty Caral noted that there is a relatively slight growth in energy mix for power generation particularly in the wind and solar energy.

He mentioned that oil and gas companies should choose to support the UN-Paris Agreement, it can significantly reduce emissions and energy consumption; lower

carbon energy, reduce investment in traditional oil and gas.

Unfortunately, he said that the Philippines continues to be heavily dependent on conventional fuels for transportation (by land, air or sea). He concluded that energy security is the replacement of affordable energy source to consumers.

Reference: PHEITI Website at https:// pheiti.dof.gov.ph/resources/

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CONSTRUCTION NEWS

PBBM: Ormoc airport upgrade to spur growth in Eastern Visayas

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resident Ferdinand R. Marcos expressed optimism that the development of Ormoc Airport will bring more progress not only to the city but also to the Eastern Visayas region.

This, after Marcos inspected the rehabilitated Ormoc Airport after gracing the city’s 75th Charter Day anniversary celebration held at the Ormoc City Superdome in Leyte.

“President Ferdinand R. Marcos on Thursday said opening the Ormoc Airport to commercial flights will usher in more development in the city and the Eastern Visayas region,” Malacañang said in a press release.

In September, Leyte 4th District Rep. Richard Gomez asked the De-

T

being upgraded with the construction of the landing area and taxiway, and the expansion of its Apron. The PHP329-million project is expected to be completed in March 2023.

Once completed, Ormoc airport will be able to accept bigger commercial aircraft.

“The rehabilitation and renovation of Ormoc Airport and other airports in the country, under the supervision of the Department of Transportation - Philippines and Department of Tourism - Philippines, is part of the administration’s program to strengthen the Philippine tourism sector,” the Office of the President said in a separate Facebook post.

P855M ADDITIONAL FUNDING PROPOSED FOR SOUTHERN NEGROS AIRPORT

he construction of another airport in Kabankalan City, Negros Occidental is underway soon with additional national government funding to complete the more than PHP1-billion project.

Sixth District Provincial Board Member Jeffrey Tubola, a former city councilor, said on Tuesday the Department of Transportation (DOTr) has proposed the inclusion of PHP855 million in the 2023 national budget for the completion of the project, including the passen-

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partment of Transportation to help Ormoc City encourage airline companies to serve the Manila-Ormoc route. The total area of the airport’s passenger terminal building has been expanded from 150 to 1,350 square meters.

The airport’s 2,042m x 36m runway underwent developments from 2018 to 2020 such as asphalt overlay and strip grade correction project and runway widening.

Developments included the renovation of the passenger terminal building destroyed by Super Typhoon Yolanda in 2013, as well as the construction of the Civil Aviation Authority of the Philippines administration building.

The Ormoc Airport is currently

ger terminal.

“Light planes can now land there with the construction of the 1.32-kilometer runway,” Tubola said over the Provincial Capitol’s Radyo Negrense.

The development of the airport, situated on a 104-hectare lot in Barangay Hilamonan, began in 2007.

Previously, the DOTr allocated PHP90 million for the airport project aside from the PHP120 million budget by the city government and

the PHP30 million financial assistance from the provincial government.

“Kabankalan is a progressive city, it’s in the center of Negros Island which is a strategic location,” Tubola said.

It is a border city of Negros Occidental in the south alongside Mabinay town in Negros Oriental.

“The Dumaguete City airport is a bit far while the Bacolod airport has already transferred to Silay City,” Tubola said.

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COMPANY NEWS

Asiamoney names URC the Philippines’ most outstanding consumer staples company

O

ne of Asia’s leading financial publications has, for a second year in a row, named Universal Robina Corp.

(URC) as the Philippines’ most outstanding company in the consumer staples sector.

Asiamoney handed the award to URC, one of the Philippines’ largest food manufacturers, after an exhaustive survey of the region’s top capital movers and financial experts.

URC won the same award last year.

“This award affirms the high, consistent quality of our products and services, the trust and faith of our customers and the grit and resilience of our workforce,” said URC president and CEO Irwin Lee. Asiamoney is a top source of news, commentaries and data services for international capital markets.

Its latest survey covered over 1,000 fund managers, analysts, bankers and ratings agencies. In total, 5,787 votes were received for publicly listed companies across 13 markets in Asia.

The results recognized 191 companies as being the most outstanding in their respective sectors and markets.

The poll was designed to acknowledge listed firms that have excelled in areas such as financial performance, management team excellence, investor relations and

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corporate social responsibility.

“While we are humbled by the recognition from the various fund managers, analysts, bankers and ratings agencies who took part in the voting, we would like to acknowledge the efforts of all our stakeholders - employees, suppliers, customers, and consumers - who have helped us persevere through the last two years of the pandemic,” said Lee. “The company will continue to

work diligently to become the leading food and beverage sustainable enterprise from the Philippines,” he added. “We’re building new legs and entering new spaces with innovation as our growth engine.”

Lee said with the Covid-19 pandemic now receding in the background, “URC enters this new chapter with gratitude, knowledge and a newfound vigor to sprint toward our vision for a sustainable future”.

Universal Robina Corporation (URC), makers of longstanding well-loved Pinoy brands such C2, Great Taste, Piattos, Maxx Candy and Cream O, was named by Asiamoney as the Philippines’ most outstanding company in the consumer staples sector, for the 2nd year in a row.

20-MW SOLAR PROJECTS IN PEZA ZONES EYED

he Philippine Economic Zone Authority (PEZA) has partnered with the Upgrade Energy Philippines, Inc. (UGEP) to develop solar energy projects within economic zones.

In a statement, the investment promotion agency said PEZA officer-in-charge Tereso Panga and UGEP president and chief executive officer Ruth Yu-Owen signed a memorandum of understanding (MOU) last Sept. 22 to put up solar energy projects inside PEZA zones.

“PEZA welcomes partnerships

like this which promote the goal of environment-friendly industrialization,” Panga said.

The first phase of the partnership involves the conduct of feasibility studies in Cavite Economic Zone (CEZ) and Baguio City Economic Zones (BCEZ) to determine the viability of putting up solar projects in these ecozones.

This, as UGEP aims to build a 10-megawatt solar project for CEZ and BCEZ to generate and sell solar power to the end consumers through the distribution utilities in-

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side the ecozones.

On the other hand, PEZA will be providing necessary assistance to UGEP for the conduct of the studies, identification of land for the solar projects, and the registration of its projects under PEZA pursuant to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and the Renewable Energy Act of 2008.

“Promoting the use of renewable energy is extremely paramount in our country so we can save billions of pesos ,” Panga added.

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CONSTRUCTION NEWS

Operators of Japan Expressway Visits Road Mountain Tunnel Project in Davao City

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ajor Japanese expressway players visited the Davao City Bypass Road Construction Project in southern Philippines in line with the cooperation program between the Department of Public Works and Highways (DPWH) and Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) to share the wealth of engineering expertise and technology on the construction, operation and maintenance of road tunnels and expressways.

Together with DPWH Senior Undersecretary Emil K. Sadain; Assistant Secretary Constante A. Llanes Jr.; MLIT Deputy Director General Homare Kubota and Consul General of Japan in Davao Ishikawa Yoshihisa; Project Directors Benjamin A. Bautista and Rodrigo I. Delos Reyes of DPWH Unified Project Management Office (UPMO) Operations; and DPWH Region 11 OIC Assistant Director Joselito B. Caballero, the representatives of six (6) Japanese expressway firms toured on October 5, 2022 the north portal of the on-going tunnel project which is the centerpiece of Contract Package 1-1 of Davao City Bypass Construction Project.

The expressway companies are Central Nippon Expressway Co. Ltd., East Nippon Expressway Co. Ltd., West Nippon Expressway Co. Ltd., Metropolitan Expressway Company Ltd., Hanshin Expressway Company Ltd., Honshu-Shikoku Bridge Expressway Company Ltd., and Japan Expressway International Company Ltd. including Philippine construction firm Prime Metro BMD Inc. and MGS Construction Inc. According to Senior Undersecretary Sadain, the observation visit is a follow through activity to the workshop in Manila which pave the way for productive discussions and good interactions between leaders of Filipino and Japanese companies engaged in expressway and road tunnel projects for possible future business collaboration.

The Davao City Bypass Construction Project is setting unprecedented standards for twin tube road mountain tunnel construction.

When completed, the road mountain tunnel project will be the

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longest in the Philippines at 2.3 kilometers.

Another project in the pipeline in northern Luzon is the Dalton Bypass East alignment which has a tunnel component and with the loan negotiation expected to start soon.

The workshop, which is covered by a Memorandum of Cooperation signed on October 4, 2022 by DPWH Secretary Manuel M. Bonoan and MLIT Minister Tetsuo Saito gives a more leverage on how the Philippines can improve and enhance technology by adopting the state of the art technologies of Japan especially on projects like tunneling, expressway, and even long inter-island bridges, said Senior Undersecretary Sadain.

The 45.5-kilometer Davao City Bypass Construction Project is divided into six (6) contract packages (CP) with the on-going CP 1-1 awarded to the joint venture contractor Shimizu–Ulticon-Takenaka.

The construction of the road tunnel involves excavation of tunnel portal areas using the conventional “New Austrian Tunneling Method”, mucking or removal of soil from tunnel interior, initial shotcrete to protect from risk of fall materials and to prevent loosening during shotcrete application, steel ribs installation to provide effective structural protection, second shotcrete with wire mesh to secure stability, and rock bolt installation to provide bearing force and become a part of tunnel support system.

The completed tunneling has an

average length of 200 meters for the northbound and southbound direction both at the north and south portal.

An excavation of three (3) to (4) meters are accomplished per day on each portal directions using specialized equipment such as drill jumbo, concrete spraying machine and articulated dump hauler to excavate tunnel that has a diameter of 10 meters.

The Davao City ByPass Road Construction Project is being implemented by DPWH Unified Project Management Office - Roads Management Cluster 1 (Bilateral) headed by Project Director Bautista with Project Manager Joselito B. Reyes as project in-charge.

In addition to the tunnel, the contract package involves construction of four (4)-lane road with a length of 7.9 kilometers; three (3) pairs of bridges with total length of 500 meters including the Davao River Bridge; two (2) underpasses and two (2) overpasses; 12 waterways culverts; and four (4) atgrade intersection.

The on-going Contract Package 1-1 costing ₱13.23 Billion is financed

by Special Terms for Economic Partnership (STEP) Loan between Philippines and Japan International Cooperation Agency under loan agreement numbers PH-P261 and PH-P273.

Japan-supported big-ticket projects have played a crucial role in shaping and bolstering the Philippine infrastructure landscape.

ISSUE 4 2022 • WWW.PHILIPPINE-RESOURCES.COM

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COMPANY NEWS

JRC: How a real estate worker became a leading visa consultant

By Steve Howe

J

RC is a visa consultancy business based out of Cebu City and has seven offices currently around the central and eastern Visayas.

We caught up with the founder and owner JR Coca in his head office in Cebu City, reflecting on the past few years and what lies ahead in an emerging economy, and the return of overseas nationals after the pandemic closed much of the country, and how things will look for them now.

I asked JR just how the company came to be and why.

“For some 17 years, I worked in the real estate market mostly from my onedesk corner office at home. It was very tiring processing paperwork title deeds and all the associated work and could take months and years to be settled,” he said.

“I came to realize that doing the visas and associated was a process that took weeks and at most a few months to complete, and not many people were doing it. The complicated system for foreigners was a lot more straightforward for me, so I thought, why not, it was a service that was badly needed, and we can do it better.”

“So, since 2017, we have been growing, and acquiring new clients, the transition from real estate was not that hard, as the documentation is just a set format. It was more about getting the right staff working with us, who will understand the amount of legwork involved.”

Working out of a small office, JR says there has been a steady growth of staff and offices, from 2 offices and 4 staff to over 30 staff now spread around Cebu, Molboal, Panglao in Bohol and in Davao, and an office being set up in Dumaguete, Negros Oriental.

“A Manila office is needed, as most of the approval is centralized there, so you need staff there who are accred-

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JRC Visa Consultancy and Immigration Services founder and owner JR Coca

ited to process there,” JR said.

“We offer the full range of visa services for those wanting to visit, and those already here who need all the official paperwork to live, stay, and marry here, as well as those wanting to work here.”

“We work with all the key elements needed, from legal to financial, and have our own in-house attorney and accountants ready to service our clients.”

The re-opening of borders and the returning tourists and residents will make them need to know the current rules and regulations, and JRC will update them as soon as they are changed.

“Information is key, as it can be a very stressful process and can be costly as well. We will ensure that all our clients will get the correct information at the time,” he added.

“We have at our core the need to work in our communities, and that our staff are always treated well and kept up to date with all the needs and changes so we can support them all through the difficult times during and since COVID,” he said.

“Our future is set in the contact with the overseas market, to be able to contact them via our social media and related networks, and that our staff are ready to meet the needs, both here and overseas,” JR said.

As for himself, “I am set in my ways to see that the company grows I make sure that all my staff are involved and happy. For me, I prioritize my family time, with my wife working alongside me to give a great future for my family going forward.”

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3 Taganito Mining 19 Trisco 33 Universal Robina Corp.

27, 57 Uptime Earthmoving 53 Weir Minerals IBC

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