The Philippine Nickel Industry Association (PNIA) is urging the government to fast track the processing of mining permits through a “one-stop-shop” program similar to what was provided to support growth sectors, such as the energy sector.
PNIA President Dante R. Bravo said the common sentiment of members of the PNIA, the largest grouping of nickel industry players in the Philippines, is that the ease of doing business and regulatory predictability is a “must-have” to attract investments in mining and value-added processing.
At a news conference during the Nickel Initiative held in Makati City on Tuesday, Bravo said they are hopeful of drastically cutting down the gestation period for mining investments by streamlining the mining permit process.
“We are looking at a period of 6 months to 1 year,” he said, adding that at present, it takes about 15 to 20 years for a prospective mining project to start producing minerals or commercial production because of the numerous regulatory requirements and processes.
“You see, from the time of application for mineral exploration, it takes 15 to 17 years,” he pointed out.
Bravo said policy pronouncements by President Ferdinand R. Marcos Jr. bring renewed hope for a vibrant mining industry.
Marcos earlier made it clear that the country needs the mining industry to achieve its growth target. In his official foreign visits, the President is encouraging businessmen to invest in the country, assuring of a business-friendly policy environment.
According to Bravo, mining is capital-intensive in every stage of the operation’s life cycle from exploration to extraction, to value-added processing.
“While there is a lot of interest in the Philippines as a mining investment destination, we need to convince investors that the business environment is ready and conducive for their entry to the Philippines,” said Bravo.
Bravo explained that while the government is focused on attracting investors in value-added processing, industry development efforts should include mining exploration and extraction because a nickel processing plant requires more than 100 million tons of raw nickel ore for at least 20 years to be considered viable.
“We can’t push for value-added processing without mitigating uncertainties in minerals exploration and extraction because all of these are integral parts of the minerals development value chain. To produce the minimum raw ore input requirement of one processing plant, mining permits need to be approved efficiently, and awarded contracts should be allowed to operate with minimal disruption under a predictable, rules-based regulatory regime,” said Bravo.
Bravo said other areas for reform that were flagged in the Nickel Initiative consultations include streamlining of fiscal regime, harmonizing national and local mining regulations, and monitoring and evaluating of environmental protection laws.
Meanwhile, apart from discussions on fiscal and regulatory regimes, the Nickel Initiative stakeholder roundtable and business conference also looked into enhancing the development impact of the mining sector’s environment and social development programs.
Bravo said that the group expressed to the Department of Environment and Natural Resources and the Mines and Geosciences Bureau its readiness to support its ongoing review of Environmental Protection and Enhancement Programs (EPEP) as well as their Social Development and Management Programs (SDMP).
“Any industry development effort should translate to sustainable economic development particularly to impact communities. PNIA members have consistently demonstrated how we deliver beyond compliance to uphold the welfare of our host communities and to progressively rehabilitate the environment,” said Bravo.