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Philippines

A supplement toMining Journal


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September 2009Mining Journal special publication Philippines2

CONTENTS

Message from the MDC 2

Introduction 2-3

Why invest in the Philippines?Mineral potentialClimate

GovernmentCountry overview 4-9

Mineral industryGovernment policies affecing industryGold, copper and nickel

Recent developments 10-12

MDC history 12

MDC directory 14

Cover image: Prospective ground for epithermal gold on

Mindanao Island. Inset: Three photos of Philex Mining: the

mine community; co-workers at the underground mine

works; and the ball mill mill department Photos: Philex

ACCOMPLISHMENTS are

visions transformed into

action. The accomplishment

report of the Minerals

Development Council (MDC)

proves that the government and the private

ector remain committed to the vision of

revitalising the minerals industry as one of the means

o conquer pover y.

We have come a long way since President Gloria

Macapagal Arroyo announced a policy shift from

tolerance to active promotions of the industry in

Year 2004. With the MDC as overall co-ordinator of

the revitalization programme, we have promoted

priority mining and exploration projects here and

abroad, harmonised the implementation of some laws

and policies affecting the sector, and engaged all

takeholders in continuous and meaningful dialogues.

We have chosen to act on the issues and concerns

outlined in the Minerals Action Plan that will

promote an investment climate that is more

conducive for business, while balancing out theinterests of host communities, local governments and

other stakeholders, and without sacrificing the quality

of our environment.

In the coming years, the MDC will remain focused

on several action points including the development of

an industrialisation programme through the

development of services and supplier industries and

of downstream processing for metal and manufac-

tured products. We will continue to support the

passage of the bill on the direct remittance of local

government shares in mining taxes, fees and

royalties. We also hope to expand the

allocation for community development and

provide funds for the conduct of information,

education and communication campaigns for

responsible mining. Moreover, the MDC will

continue to work for the implementation of

the Extractive Industries Transparency Initiative to

ensure greater transparency in revenue collection and

management. We will likewise continue to rationalise

the implementation of small-scale mining laws, rules

and regulations and strengthen the implementation of

the streamlined permitting procedures.

We expect the mining sector to continue facing

more challenges in the wake of the global financial

crisis. However, we are confident the MDC will be

able to assist the industry seek innovative ways to

overcome this hurdle. The MDC will not waiver in its

mission of developing our mineral resources for the

benefit of the country and the Filipino people. The

tasks seem daunting but we have already begun some

good actions, and we will not rest till we bring it tofull com

on. Jose L. Atienza, Jr

hairman, Minerals Development

Council, Office of the President,

and Secretary, Department of

Environment and Natural Resources

A message from the MDC/DENR

Published in September 2009

Aspermont UKAlbert House, 1 Singer StreetLondon EC2A 4BQUnited KingdomTel: +44 (0)20 7216 6060Fax: +44 (0)20 7216 6050E-mail: [email protected]: www.mining-journal.com

upplement editor: Chris HindeDesign and production: Tim Peters,

Printed by Stephens & George, Merthyr Tydfil, UK

Aspermont UK 2009

y:

INTRODUCTION

THE country enjoys democracy, with a

free market economy, and remains

among Asia-Pacific regions top

investment destinations owing to its

liberalised investment policies and

conducive investment environment.

Investor interest in the domestic mining industry

did not wane last year despite the global financial crisis.The strong demand for minerals and metals by China,

India, Korea, Japan and other developing countries in

the region has sustained exploration and mining

activities in the Philippines. While there has been a

reduction in the exports of nickel ore shipments,

demand for the countrys other resources in gold,

copper, iron ore, chromite and coal remained good.

With prices of these commodities considered

above break-even levels, a number of mining

operations started in late 2008 and early 2009, defying

cepticism that has hounded commodity markets.The Philippines earned its high rating by posting

economic growth averaging 4.4% annually from 2001

to 2006, the countrys best six-year average in the

past 18 years. GDP growth in 2007 was a remarkable

.1%, while there was a growth of 3.8% in 2008

despite the international difficulties. Interest rates

have remained stable, and inflation has further eased

in view of fiscal and monetary reforms.

The Philippine government has deregulated the

telecommunications, shipping, oil and energy, banking

and insurance industries, and has a continuing

economic and financial reform programme. Straddling

the well-defined belt of volcanoes around the Pacific

(the so-called Ring of Fire), the Philippines has thegreatest number of proven deposits of metallic and

non-metallic minerals among Southeast Asian

countries.

WHY INVEST IN THE PHILIPPINES?Existing mining laws are attractive to investors. They

allow co-production, joint venture, mineral production

haring, and financial or technical assistance

agreements for large-scale mining projects. The

current policy of revitalising mining has spurred

renewed interest in the industry. The presence of

major mining companies such as Anglo American,

AngloGold Ashanti, BHP Billiton, CVRD, Phelps Dodge,

Sumitomo Mining and Xstrata, attest to the allure ofPhilippine mining.

The countrys private and government sectors are

taking stock of the current metals market and the

urging minerals demand of industrialising countries,

Asian gatewaye i ippines is a natura gateway to t e ot er sia- aci ic

economies, and has flourishing trade links with the region

Country information

Location:

The Philippines lie in the western Pacific Ocean,

just north of the equator, southeast of the Asian

mainland, with Taiwan north and Indonesia to theouth.

Capital: Manila.

Geography:

The Philippines is the worlds second-largest

archipelago after Indonesia. It consists of 7,107

islands, with a total land area of 299,764km2 . he

interior is mountainous, skirted by lowlands and

alluvial plains. The highest point is Mt Apo on

Mindanao Island at 2,954m above sea level.

According to the Philippine Institute of

Volcanology and Seismology, there are more than

400 volcanoes throughout the archipelago, ofwhich 22 are active, 27 are potentially active, and

more than 350 are inactive. There are three major

island groups: Luzon, Visayas and Mindanao.


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Mining Journal special publication PhilippinesSeptember 2009

INTRODUCTION

3

notably from China and India, and the recovery of the

Japanese economy. With the rest of the worlds

ignificant economies likewise on an upswing, the

prospects are bright for Philippine minerals.

In a special report London-based ining ourna

wrote recently that over the past decade, and despite

tiff competition from other countries for the

exploration dollar, the Philippines has progressed

ignificantly, and exploration activity has resulted in

the discovery of a new generation of potentially

world-class deposits, such as Tampakan (copper), Far

Southeast (copper-gold), Boyongan (copper) and many

others. They can be differentiated from previous

discoveries that were of low grade and shallow-

eated.

MINERAL POTENTIALThe Philippines covers some 30Mha but only less than

2% are presently covered by mining permits, and

ome 30% of the remaining area is regarded by the

Mines and Geosciences Bureau to be geologically

prospective for metallic minerals. As a result, there is

an estimated 9Mha that has potential for metallic

minerals.A large pool of Filipino professional geologists and

mining engineers have extensive experience in mineral

exploration and mining operations. A continuing

cholarship and training programme is being

implemented to address an increasing demand for

killed workers. Moreover, English is spoken and

understood throughout the archipelago.

The Philippines offers foreign investors a high

tandard of living at low cost. First-rate housing,

hotels, schools and recreation facilities are found in

Metro Manila and in major cities all over the country.

Repatriation of the earnings and capital of foreign

investors is guaranteed. Investors from various lands

will find the Filipino people a happy mix of Asian andWestern cultures. Among Asian countries, the

Philippines is perceived to be the most westernised.

But the tapestry of Philippine culture also threads

other than Spanish and American-Malay, Chinese,

Arabian, Indian and Japanese. These are the major

cultures that streamed into Philippine history, along

with influences from the English, the French, the

Germans and the Dutch. Still, 110 ethno-linguistic

groups scattered throughout the archipelago retain

their distinctive identities and dialects.

CLIMATEThe Philippines has a tropical-marine climate,

characterised by relatively high temperature, highhumidity and abundant rainfall, similar in many

respects to the climate of Central America. The mean

annual temperature is 26.6C, except in Baguio City.

The coolest month is January with a mean tempera-

ture of 25.5C; the warmest is May, with a mean

temperature of 28.3C. Baguio City, at an elevation

of 1,500m, has a mean annual temperature of

18.3C, earning its popularity as the countrys

ummer capital.

The countrys average monthly relative humidity

varies between 71% in March and 85% in

September. Mean annual rainfall ranges from 965 to

4,064mm annually. Baguio City, eastern Samar and

eastern Surigao receive the greatest amount ofrainfall, while the southern portion of Cotabato

receives the least. At General Santos City in South

Cotabato, the average annual rainfall is only 978mm.

Based on temperature and rainfall, the countrys

climate can be divided into two major seasons: first,

the rainy season from June to November, during the

outhwest monsoon; and, second, the dry season from

December to May. The dry season may be further

divided into the cool dry season (December to

February) coinciding with the northeast monsoon,

and the hot dry season (March to May).

Straddling the typhoon belt, the Philippinesexperiences 15-20 typhoons yearly, usually from July

to October. The typhoons move generally northwest-

erly from the Marianas and Caroline Islands in the

Pacific, sparing Mindanao Island.

GOVERNMENTThe Philippines is an independent democratic and

republican state. Its government consists of three

co-equal branches: the executive, the legislature and

the judiciary. Executive power is vested in the

President; legislative power in the bicameral Congress;

and judicial power in the Supreme Court and other

courts established by law.The President is elected by direct vote of the

people for a single term of six years. In the Congress,

the Members of the House of Representatives hold

three-year terms, while those of the Senate serve for

six years. Local government officials have

three-year terms.

The most recent elections for the Congress and

local government officials were held in May 2007.

The magistrates of the Supreme Court and of the

lower courts are appointed by the President from

the nominees of the Judicial and Bar Council,

without need for congressional confirmation.

Provinces are headed by governors, and cities

and municipalities by mayors.The barangay is the basic political unit and is

administered by a set of elective officials headed by

the chairman, locally known as the punong

barangay.

Percentage of highly prospective areas in the Philippines

Mining industry, benefits to the economy

Gross domestic product and export growth(share of mining in gdp and total exports)

Year GDP GVA/Mining % Total Exports Minerals Share %

(PP million) (US$ m) Share (US$m) (US$m)

1990 721 29.6 11,091 1.5 8,126 723 8.8

1995 803 31.2 10,681 1.3 17,447 893 5.1

2000 973 22.0 10,533 1.1 38,078 650 1.2

2005 1,211 22.0 20,032 1.7 40,263 1,084 2.7

2006 1,277 24.9 18,812 1.5 47,410 2,756 5.8

2007 1,369 29.7 23,678 1.7 50,276 3,299 6.6

2008 1,432 33.2 23,817 1.7 48,202* 2,482* 5.2*Source:NSCB and Bangko Sentral ng Pilipinas (BSP); * Preliminary

Excise tax and royalties derived from miningYear Excise Tax Royalties Total

(US$m) (PP m) (US$m) (PP m) (US$m) (PP m)

1990 30.0 730.0 0.67 16.2 30.7 746.3

1995 6.8 174.5 0.64 16.5 7.4 191.0

2000 5.6 243.3 781.5 34.5 6.3 277.9

2005 4.6 251.3 2.6 145.1 7.2 396.52006 9.5 489.6 2.2 112.7 11.7 602.3

2007 23.8 1.1 12.6 579.9 36.4 1,679.9

2008 14.8 660.3 9.3 414.8 24.2 1,075.1Source:BIR and MGB/DENR

Geologically prospective areas

for metallic minerals30%

2%57%

11%

Land area covered by approved

mining tenements

Other land areas in the Philippines

Protected areas


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September 2009Mining Journal special publication Philippines

COUNTRY OVERVIEW

4

DESPITE the reeling effects of the global

financial crisis, the Philippine economy

posted a 3.8% growth in GDP for

2008, albeit lower than the previous

years 7.1% record.

Latest data for the Philippine economy shows that

the country is holding its head above water, with real

GDP growth remaining positive (0.4% in the quarter

to end-March). Despite its small growth, the

Philippines is one of only four countries in Asia able to

post positive GDP growth in the first quarter of this

year. The others are Indonesia, Vietnam and China.

With exports accounting for only one-third ofGDP, Standard Chartered Bank recently predicted

that, taken overall, the Philippines would be better

insulated from the collapse of external demand

compared with other Asian economies.

The Philippine government remains optimistic that

the economy will be better placed to weather

recession in 2009, with GDP growth at 0.8-1.8%.

Exports are expected to fall but the remittances of

overseas workers will be about the same, or better,

than for last year at US$17.0 billion.

MINERAL INDUSTRYThe country has seen an upsurge in foreign mininginvestment since 2005, when the Supreme Court

Economy stays buoyantdespite downturn

BoI approval

The Board of Investments (BoI) has approved the

governments 2009 Investment Priorities Plan (IPP).

This incorporates mining initiatives, and adds to the

plans to provide incentives to firms that would

generate or save jobs in spite of the global

economic slowdown.

More efficient excise tax remittancesAn important, and much-awaited, government

approval is the direct payment of the share of excise

taxes to the local government units. After many years

of lobbying by the Chamber of Mines (CoM), the

different government agencies (represented in the

Mineral Development Council; MDC), primarily the

Departments of Environment and Natural Resources

(DENR), Budget and Management (DBM) and Interior

and Local Government (DILG), were able to finalise

the rules (which will be implemented in 2010). The

excise tax of metal revenues for 2009 will be paid to

the different local government units (LGU) in March

2010. This new schedule of three months contrasts

with the present two to three years.

Accelerating permit approvals

To facilitate investments in the mining

industry, the old issue of the lengthy

approval of permits had to be resolved. In

July 2009, the DENR put in place a process

of streamlining the permitting process to make it

faster and more transparent.

According to DENR Secretary Joselito Atienza,

the permits for mining will be carried out in a

period of seven weeks from the current minimum

of 17 weeks. The environment compliance certificate

(ECC) will be decided within three weeks from

filing, compared with the current one year. Whilethese efforts are being promoted during the latter

part of the Secretarys tenure, it is still a welcome

move for the industry.

In 2005, the government officially changed its

tance of mere tolerance to active promotion of the

mining industry. The frequent changes of Secretaries,

however, have hampered the implementation of

effective long-term policies of the DENR.

Cancellation of dormant mining claims

The Department of Environment and Natural

Resources has given instructions to the Mines andGeosciences Bureau (MGB) to review mining

applications/permits that have not been active for

five to ten years.

This situation, according to the DENR, has a

negative effect on investors, hence the necessity of

the review. Dormant mining claims and tenements

will be cancelled and restored to government

ownership. To implement this policy, a three-stage

notification process will be adopted.

Cancellation of mining applications

The CoM has expressed its grave concern over a

DENR memoranda (dated March and May 2009) to

the regional directors of the MGB directingit to deny all mining applications that have

been rejected by indigenous peoples (IP). In

letter to the Secretary, the Chamber

expressed concern about procedural

mbiguities created by the memoranda that

may undermine its efforts at promoting

investments and competitiveness in the industry.

The CoM requested that there should be clear

guidelines on the procedures in obtaining Certifica-

tion Precondition (CP) or Free and Prior Informed

Consent (FPIC). It should also address the issue of

when the non-grant of a CP or FPIC becomes final

(ie no longer negotiable with IP). It should also

include the possibility of compromise or of an appealby the EP or mineral agreement applicant. The

Secretary agreed to the drafting of procedures to

address such concerns.

Government policies affecting the mining industry

upheld the constitutionality of the Financial or

Technical Assistance Agreement (FTAA) and the

Mining Act of 1995. The law allows 100% foreign

ownership in Philippine mining companies.

Over 30 foreign companies have investments in thePhilippine mining sector. These include the worlds

largest mining company, BHP Billiton, Brazils Vale and

Anglo American. Some 24 flagship projects are

projected to be operational before 2016, and the

Mines and Geosciences Bureau reported at least 50

exploration projects that have good potential for

development.

Mining in 2008 contributed 1.5% of GDP. The

national target is to attain the 6.6% of GDP by 2011

(which would fix the Philippines firmly as a mining

country. While it is still attainable, the target is likely

to be delayed by at least three years due to the

reduction in mining investments, and to delays in

implementation of the larger projects.The government has scaled down its mining

investment target for this year to about

US$800 million, down from the original US$1 billion

but still above last years US$650 million inflow.

INFLUX OF FILIPINO INVESTORSDuring the past two years, numerous large Filipino

corporations (or Filipino-based subsidiaries) have

been drawn to the domestic mining sector. These

organisations include First Pacific Co, San Miguel,

Macroasia and APC. They were attracted to mining

due to the governments support in developing the

mining sector and the great potential of the various

local metal deposits.First Pacific invested in Philex Mining Corp and

acquired an initial 22% equity. It is currently carrying

out a due-diligence study on Lepantos Far Southeast

copper-gold project. San Miguel is in talks with various

mining groups and is open to an array of opportuni-

ties. Macroasia is developing its nickel deposit in

Palawan for direct shipping ore and is considering the

construction of a processing plant. APC has coal

projects in Isabela and Masbate , and nickel and gold

prospects in Mindanao.

These companies can readily finance the

development of medium-sized projects. They are

likewise familiar in dealing with groups opposing

mining such as the Catholic Church, environmentalistsand New Peoples Army (NPA). Being local companies

they are more knowledgeable about local cultural

ensitivities, and are more acceptable to the local

communities.

By Artemio F. Disini,Chairman

Drill technicians load core into trays for geological assessment

at the Tampakan copper-gold mine project in the southern

Philippines, in mid-2008Photo: Indophil Resources via Bloomberg News


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COUNTRY OVERVIEW

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GOLD SECTORThe production of gold fell by 8% from 38.8t in 2007

to 35.6t in 2008. The decline was due to a decrease in

the gold produced by large-scale mining companies,

whose output represented about a fifth of the

countrys total production.

Bangko Sentral Ng Pilipinas (Philippine Central

Bank) reported that it had purchased 28.2t (about

80% of the countrys total production) from small-

cale miners.

The countrys gold production is projected to

increase to 70t/y when the large copper-gold projects

become operational in about four years.

Two Australian companies, CGA Mining and

Medusa Mining Ltd, are new performers in the gold

ec or.

CGA Mining (formerly called Central Asia Gold

Ltd) started commissioning its gold project during

the first quarter of 2009. The project is the former

Masbate gold mine that was operated for 14 years

by Atlas Consolidated Mining Co until it shut in

1994.

The project has indicated resources containing3.3Moz and inferred resources of 1.77Moz, including

a probable mining reserve of 1.98Moz of gold (at a

cut-off of 0.7g/t). The projected annual production

of 200,000oz is scheduled to be reached next year.

Medusa Mining advised that it has completed a

JORC-compliant ore reserve estimation for the

Co-O mine in eastern Mindanao. It has an indicated

and inferred resource totalling 1.38Moz. The

probable reserve was estimated from an indicated

resource of 1.25Mt at 15.0g/t gold, containing

03,000oz. This was the result of over 40,000m of

drilling and over 6,000m of underground development

completed in 2008. The Co-O gold veins are narrow

but have the highest grade among the countrys

operating gold mines.

For its Runruno gold project, London-based Metal

Exploration reported that it has defined a JORC-

compliant inferred and indicated mineral resource of

2.0Moz gold and 34.4Mlb molybdenum, contained

within 31.17Mt of ore at average grades of 2.00g/t

gold and 0.05% molybdenum.

Runruno lies 320km north of Manila in the mineral

rich province of Nueva Viscaya. The results of its

recently-completed scoping/pre-feasibility study

indicate its economic viability. It will have an annual

production of 183,000oz gold and 1.7Mlb molybde-

num. The capital cost is about US$208 million and the

operation will have an average cash operating cost of

US$285/oz after credits for molybdenum.

The bankable feasibility study (BFS) on the Runruno

project was launched last February,and is expected to

take a year to complete. The BFS is expected to cost

US$15 million. DENR has endorsed the companys

FTAA application in respect of Runruno.

COPPERThe country produced about as much copper last

year as it did in 2007, at 22,565t. The Rapu Rapu

polymetallic and Atlas Toledo copper mines became

operational during the year. TVI completed its

commissioning and began production during the

first quarter of 2009.

Due to the problems brought about by the

economic crisis, the planned development of a mineby Oceana Gold has been deferred, and the project

has been placed under care and maintenance.

Switzerland-based Xstrata has announced the

preliminary results of a two-year extended

pre-feasibility study for its Tampakan copper and

gold mine in Mindanao. The study was completed in

April 2009 for Sagittarius Mines Inc (SMI), and

confirmed a 2,200Mt mineral resource base initially

DiwalwalProject(10.2 MMt, 8.10 g/tAu)

Masara Mine(0.5 MMt, 9 g/tAu)

NDMC Prospects

Boringot Prospect

Siana Mine(7.7 MMt, 3.3 g/t Au)

Acupan Mine(10.61 MMt, 2.46 g/t

Au)

Victoria Mine(10 MMt, 6.94 g/t Au)

Panaonprospect

SibutadMine

Gold mineralisation is

mostly found in the

central Cordilleras,

and most of the

areas in Mindanao

Bringing innovative, low-cost

nickel heap leaching technologyto the Philippines

The Acoje join venture between Rusina and European

Nicke n Zam ales is tr aling innovat ve heap leac ng

technology for nickel later tes.

Developed by Euro ean ickel as a low cost and

env ronmentally-f iend y al ernative to high-pressure acid

leaching, the heap leach ria s te wi l com ence i rigation

of t e leach pads in third q a ter 2009. The p ant willproduce a mixed ydroxide nickel p oduct.

A bankable easibil ty study, exa ning a ful scale

commercia plant produc ng around 25,000 tpa nickel, is

expected to be com le ed in 20 0. The project capital cost

is c rently estima ed to be in the a ge of S 500 mi lion,

w th an o erat ng cost forecast o around US 3.10/lb

of nickel.

www.enic l.c . k www. si a.co .a


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Mining Journal special publication PhilippinesSeptember 2009 7

COUNTRY OVERVIEW

containing about 1,400Mt of mill feed. It has a

proposed stage-one open-pit mining and milling rate

of 44Mt/y, leading to a stage-two rate of 66Mt/y after

three years.

Tampakan will have a life-of-mine average

production of 325,000t/y of copper for 20 years, with

output expected to peak at more than 400,000t/y of

copper and 310,000oz/y of gold.

The mill recovery rates will be 83-90% for copper

and 60-80% for gold, with a copper concentrate grade

of 37-40% copper. The mine also has an operating cost

base of less than US$0.60/lb of copper after gold

credits. It has an initial stage-one capital expenditure

of about US$5.2 billion. The schedule for start-up of

commissioning and production is early 2016.

Following the completion of the extended pre-

feasibility study, a US$74 million feasibility study was

approved by the shareholders, which will entail a

detailed engineering study. This study will determine

whether the project will advance to development

tage. SMI engaged the services of Bechtel, a global

leader in engineering and construct ion, as the lead

engineer for the Tampakan feasibility study.The study will be submitted to the government by

the second quarter of 2010. The decision to develop a

major mine at Tampakan will depend on the outcomes

of the feasibility study, which will examine the projects

economic, social and environmental viability.

Philex Mining Co has bought the 50% stake of

Anglo American in the Boyongan copper-gold project

in Surigao del Norte for US$55 million. Philex

disagreed earlier with the results of Anglo Americans

pre-feasibility study on the project.

This study concluded that a mining operationbased on the currently-defined resources, proposed

mining and processing methods, assumed long-term

copper and gold prices and estimated capital and

operating costs, could not provide an acceptable rate

on return on the project investment. The projected

capital cost was US$750 million.

Philex disputed the assumptions, and conclusions,

made by Anglo American, and negotiated to acquire

the project. Philex is now carrying out more extensive

exploration work in the sulphide zones of the Bayugo

deposit, located north of the Boyongan orebody. Theulphide zones are easier to mine by block caving and

a mooted single-stage flotation gives better metal

recoveries. Philex plans to undertake a bankable

feasibility study by 2010. The Boyongan project is

expected to be operational before 2014, when the

reserves of Philexs Padcal mine would have been

mined out.

Hong Kong conglomerate First Pacific Co (FPCL)

BARLO VMS

Deposit

SAN MARIANO

VMS Prospect

SULAT VMS

Prospect

Ultramafic rocks

and ophiolitic

belts

Bully BuenoProspect

Batong Buhay Mine(69 MMt, 0.59% Cu, 0.31 g/t

Au)

Lepanto Enargite Mine

____________

Far Southeast deposit(650 MMt, 0.65% Cu, 1.3 g/t

Au)

Sto. Tomas II Mine(449 MMt, 0.375% Cu, 0.7 g/t

Au)Dizon Mine

(187 MMt, 0.36% Cu, 0.93 g/t

Au)

Amacan Mine(116 MMt, 0.37% Cu,

0.36 g/t Au)

Kingking deposit(400 MMt, 0.35% Cu,

0.6 g/t Au)

Boyungan deposit(300 MMt, 0.6% Cu, 1.0 g/t

Au)

Tampakan deposit(>1000 MMt, 0.7% Cu, 0.3 g/tAu)

Copper mineralisation is

likewise indicated mostly

in the Cordilleras, and

most of the areas in

Mindanao

Consistently delivering valueSince establishment in 1992, Lycopodium hasfocussed on the delivry of high-quality cost-

effective engineering and project management

ser ices across a broad range of mineral

commodities regardless of project scale or location

To ser ice the Philippines area, we offer

Manila-based engineering and drafting

eams

Extensive feasibility study and projectdevelopment experience

Recent project development with Masbate

and Rapu Rapu

Current study involvement with Runruno

Contact: Brad Hannam or St v Zaninovich

T: +61 8 6210 5222

E: minerals@ly opodium.com.au

W: ww .ly opodium.com.au


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COUNTRY OVERVIEW

8


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Mining Journal special publication PhilippinesSeptember 2009 9

COUNTRY OVERVIEW

acquired a 20.06% stake in Philex Mining for

US$135 million in November 2008. It has since

increased its stake to 22.0%.

The Far Southeast project of Lepanto Consolidated

Mining Co is a large, deep-seated copper-gold

porphyry deposit, located below the enargite mine. In

November 2007, Lepanto Consolidated signed a

joint-venture agreement with Chinas Zijin Mining

Group for development of the project. The latest

information, however, stated that Zijin Mining has

pulled out from the project.

In May 2009, FPCL signed a Memorandum of

Agreement with Lepanto to undertake due diligence

on the Far Southeast project, with an exclusivity

clause of three months. The due-diligence study is

continuing, with the objective of FPCL acquiring a

majority interest in the project.

Concurrent to this study by FPCL is its due

diligence on Manila Mining Corp with a similar aim to

acquire majority interest of its mining projects. Manilas

Kalayaan project lies at the northern extension of the

Bayugo orebody, which is being explored in the Philex

claims. Drilling undertaken by Anglo American atKalayaan in 2008 confirmed these extensions.

NICKELHigh international inventories of nickel, along with

harply reduced demand, resulted in a sharp fall in the

nickel price last year. Direct shipping ore (DSO)

exports from the Philippines to China fell 23% to

5.67Mt in 2008. However, the market opened up

gradually in early 2009 when China started purchasing

low-grade nickel ore (1% Ni) with high iron

content (over 45% Fe). However, the price of

this DSO was only about US$10/t, and only a

few local mining companies (in Mindanao, which

has a short hauling distance to the loadingports) are able to operate at this price level.

Coral Bay Nickel successfully completed its

expansion in the first quarter of 2009 with the

doubling of its present capacity of 10,000t/y in

the high-pressure acid leach (HPAL) plant to

20,000t. The capital cost of the expansion was

about US$295 million and the work was

achieved within budget. The nickel and cobalt

metal recoveries have likewise been achieved at

over 90%.

Nickel Asia will be announcing before the

end of 2009 its decision to proceed with the

construction of a 30,000t/y HPAL plant in

Surigao del Norte. The project cost has been reduced

to US$1.1 billion from the original US$2.0 billion.

Sumitomo, Mitsui and Sojitz are the Japanese partners

of the Zamora Group that will construct the new

HPAL plant.

European Nickel plc has reported that test work at

its Acoje joint venture with Rusina Mining NL in

Zambales continues to have high recoveries and

leaches rapidly in the column tests compared with

many other deposits. The nickel recoveries are in the

5-80% range. The company announced that

construction of the heap-leach trial site is progressing

well, while construction of the heap-leach pad and

ancillary facilities has been completed. The heap will

be stacked to a height of about 3m and irrigation was

due to start in October 2009. The project capital cost

is about US$450 million, with an operating cost of

about US$4/lb. A bankable feasibility study will be

completed by mid-2010.

Intexs plans aim at completing a definitive feasibility

tudy and environmental permitting by year-end, and

to start on engineering details in 2010, and a stage-one

HPAL processing plant in 2013. The mine is in Mindoro.Pre-feasibility study estimates by Aker Solutions in

June 2008 suggest operating costs of US$2.7/lb Ni for

tage one and about US$2.0/lb Ni when stage two is

included. The capital costs are US$2.2 billion and

US$0.9 billion for stages one and two, respectively. The

annual capacity was estimated to increase by 25% to

50,000t nickel metal, without a significant rise in capital

expenditure. BHP Billiton and its Filipino partner

Asiaticus Management Corp (Amcor) have decided to

withdraw legal cases against each other over the

Pujada nickel project in Mindanao, according to the

DENR. The latters Secretary said BHP Billiton is not

withdrawing its investments in the country as it

agreed with Amcor to start from a clean slate.

Eramen Nickel has recently completed its mineral

resource calculation and has an indicated resource of

108Mt with a grade of 1.21% Ni. The project, in

Zambales, lies adjacent to the Acoje mine.

Eramen is currently studying the several options

to operate the project with a processing plant.

AIM-listed Toledo recently reported resultsfor the year to March 2009. It reported record

production at its Berong nickel mine through

October 2008. Shipments for the same period,

to customers in Australia and China, were also

higher than the comparable 2007 period.

Subject to securing sufficient profitable sales

contracts, the Berong mine can restart

production at short notice. Longer term, Toledo

aims to be major value-added nickel producer

and is progressing its talks with European

Nickel and Jiangxi Rare Earth and Rare Metals

Tungsten Group about a possible heap-leach

and processing operation at Berong.

GLOBAL PROSPECT(23 MMt, 1.75% Ni)

GUIAN

DEPOSIT

COTO PROSPECT(24 MMt, 1.68% Ni)

DINAGAT

DEPOSIT

HINATUAN &

TAGANITO MINES

PALAWAN HPP

PROJECT(11.5 MMt, 2.3% Ni)

TMM Ni Project

PUJADA

DEPOSIT(>500 MMt, 1% Ni)

ISABELA

PROSPECT

ROMBLON

PROSPECT

TAWI-TAWI

PROSPECT

MT. KADIG

DEPOSIT

Nickel and

nickel laterites

are scattered in

Luzon, Visayas and

Mindanao

Annual mineral production

2006 2007 2008Gold (kg) 36,100 38,800 35,600

Silver (kg) 23,500 27,800 12,700

Copper 17,200 22,900 21,200

Nickel ore (Mt) 3.58 6.20 7.38

Nickel mixed sulphides (Mt) 8,200 10,100 10,600

Chromite ore (metallurgical grade) 25,000 16,600 13,500

Chromite ore (Chemical) 16,800 11,700 1,700

Chromite ore (refractory grade) 4,700 3,400

Coal (Mt) 2.597 3.830 3.950

Oil (bbl) 181,000 184,000 964,800

Condensate (000 bbl) 5,123 5,753 5,606

Gas (billion ft3) 108,600 130,200 137,000


10/16


RECENT DEVELOPMENTS

10

T

HE opportunities for development in

the Philippines are vast, and the

prospective entry of San Miguel Corp,

as well as that of First Pacific, indicates

that the relatively untapped sector

holds a lot of promise. With a reported 7,100Mt of

metallic minerals and 51,000Mt of non-metallic

minerals waiting to be unearthed, downstream

processing and manufacturing remains an area of

immense potential.

There has been record growth since 2005, with

good performance in investments, production, tax

revenues and exports. There has been an increase in

mining company listings in the local bourse from less

than four in 2004 to the current 15. The Philippine

mining industrys growth in 2008 was subdued, largely

owing to the decline in metal prices (especially nickel).

The operations of Atlas Consolidated Mining and

Development Corp (which has increased its

production capacity recently), as well as the Masbateoperation, somewhat cushioned the decline in nickel

production.

The value of total Philippine production was

estimated at PP92.3 billion, reflecting the decrease in

metal prices and a contraction of about 8.9% over the

recorded total of PP101.0 billion in 2007. Total mineral

exports in 2008, on the other hand, were estimated at

US$2.5 billion, accounting for 5.2% of the countrys

total exports of US$48.2 billion.

Excise tax revenue from the mining sector reached

PP1.1 billion in 2007, an increase of 125% from the

2006 figure of PP489.6 million. The figures for 2008

was only PP660 owing to the low commodity prices.

Investment inflow from US$840 million in 2006went up to US$1.4 billion in 2007 but settled back to

under US$1 billion last year. However, MGB/DENR

predicts that mining will be a US$13 billion industry

by 2013.

Some projects that were initially targeted to start

in 2008 were reassessed, rescheduled and are now

being repackaged to pare down capital expenditure.

These include Sumitomos Taganito nickel plant, Global

Steels expansion and Rusinas US$498 million HPAL

project in Zambales.

Demand for mineral commodities is still strong and

ince the US is now significantly less important in

world commodity demand than it was five years ago,

the repercussions of its downturn will not be feltheavily in the mining sector, which has already

diversified its markets.

FAVOURABLE SHIFTThere has been a structural shift in recent years that

has favoured a rapid growth in those developing

countries that have a large population (such as China

and India, whose growth in 2008 can still be

considered high). This trend is expected to continue

as their population strives for material possessions.

Growth in these economies and the rest of Asia will

be resource-intensive due to industrialisation and

urbanisation.Moreover, there have been positive indications

recently that financial institutions and banks are more

liquid, and the industry only needs to be innovative in

accessing them through private equity, sovereign

funds, retail investors, listing by way of introduction,

dual listing and payment in kind.

With the current operating investment environ-

ment, the Philippine government is expected to play a

role in mitigating sovereign and political risk through

cover and participation through sovereign guarantee

to move the mining industry forward. This can be

implemented through PhilExim, which provides

guarantees on local and foreign loans to exporters to

finance developmental projects and industriesencouraged by government policy.

Non-financial issues also need to be considered to

reduce risk and gain investor trust and confidence.

These include the implementation of the Philippine

Mineral Reporting Code (patterned after Australias

JORC), more liberalised market-listing rules, and

implementation and monitoring of corporate social

responsibility (CSR). Local government units will now

be given their share of the excise tax directly after the

end of the first quarter of every year. Othercorporate governance mechanisms are expected to

gain leverage on mining projects.

As partners in mineral resource development, the

government accepts that it needs to play a role in risk

participation, and to provide sovereign credit

guarantees. These measures will enhance the

investment environment and ensure the industrys

growth. The government should also engage sectors

that still have reservations about the revitalisation of

the mining industry.

OUTLOOKBeing immersed in volatile market conditions typical

of internationally traded commodities, the Philippinemining industry is expected to be over the hump

within the year as financial stimulus and economic

rescue packages take effect. Philippine economic

fundamentals remain strong and this would definitely

Untapped sector holds much promise

Akle Cement Project

28 Mining Development Projects

Tampakan Copper Project

Far Southeast Copper ProjectBoyongan Copper Project

Carmen Copper ProjectBatong Buhay Copper Project

San Antonio Copper Project

Amacan Copper Project

Rapu-Rapu PolymetallicDidipio Cu-Au Project

Kingking Cu-Au Project

Padcal Expansion Project

Itogon Gold Project

Masbate Gold ProjectTeresa Gold Project

Diwalwal Gold Project

Siana Gold ProjectCanatuan Au-Cu Project

Masara Gold Project -Apex

Mindoro Nickel Project

CTP Nickel Project

Palawan HPAL Project

Nonoc Nickel ProjectSurigao-Sumitomo HPAL

Iligan Ferro-Nickel

ACT Nickel Project

Pujada Nickel Project

Berong Nickel Project

Acoje PGE Nickel Proj.Manticao Ferro Nickel

The Philippine miningindustry is expected toe over the hump withint e year as inancia

timulus and economic

rescue packages takeeffect. Philippine

economic un amentalsremain strong

A drill rig in the

North Block of

Rusinas Ajoce

chromite project.

usina is paring

own its

project in Zambales


11/16

Partners

Avelino J. Cruz, Jr. F. Arthur L. Villaraza

Simeon V. Marcelo Raoul R. Angangco

Sylvette Y. Tankiang Elma Christine R. Leogardo

Bienvenido I. Somera, Jr. Alejandro Alfonso E. Navarro

Joe Nathan P. Tenefrancia Augusto A. San Pedro, Jr.

Manuel L. Manaligod, Jr. Susan D. Villanueva

Patricia A. O. Bunye Rodel A. Cruz

Aida Araceli G. RoxasRivera Thea T. Daep

John Jerico L. Balisnomo Miguel U. Silos

Elmar B. Galacio Rosa Michele C. BagtasDivina Gracia E. Pedron Franchette M. Acosta

Senior Associates

Ma. Joycelyn L. Guirnalda Victor E. M. Pangilinan

Pancho G. Umali Aldrich Fitz U. Dy

Associates

Rene Raphael A. Guina Katrina V. Doble

Kristoffer James E. Purisima Rogelio D. Torres, Jr.Leslie Monica G. Raymundo Charisse Jen S. Choa

Mark Hadrian P. Gamo Joseph Anthony P. Lopez

Jean Jacquelyn A. De Castro Tara Ann I. Vea

Rowanie A. Nakan Khristine C. Dy

Jaclyn B. Gonzales Ruth Nichole R. Ureta

Raymond G. Pasiliao Wenceslao B. Fernandez

Leonardo A. Singson Heather Ezra C. Annang

Ma. Sophia E. CruzAbrenica Charmian Wyanet S. Zaragoza

Candy T. Avance Jonathan T. Pampolina

Charles Edward M. Cheng Reezann Keith E. RamosFritzzie Lyn F. Espaol Ramon Manolo A. Alcasabas

Juanito L. Saosa, Jr. Davidson Rich L. Sih

Ma. Francesca Q. Baltazar Jacques S. Lynn

Julius Gregory B. Delgado Oliver P. Baclay, Jr.

Kristin Charisse C. Siao Regidor A. Ponferrada

Stella Angela G. Pastores Maria Karen S. Olidan

Maria Cecilia G. Natividad Abigail V. Go

Michael Angelo O. Lopez Esther Rose N. Rances

Christianne Grace F. Salonga Robert Leo C. Ty

Mark Francis P. Abaya

118 Perea Street, Legaspi Village, 1229 Makati City, Philippines I P.O. BOX 3559 Makati Central

Tel.: (632) 8189838; 8189880; 8189550 I Fax: (632) 8167057; 8171324; 8944729

[email protected] I www.cvclaw.com


12/16


RECENT DEVELOPMENTS

12

THE Minerals Development Council

(MDC) was created by President

Gloria Macapagal-Arroyo on October11, 2005 when Executive Order No.

469 was issued to advance the

government policy of responsible and sustainable

development of the countrys mineral resources.

As envisaged, it is empowered to enlist the

assistance of any agency or instrumentality of the

government, including government-owned or

controlled corporations, to harmonise requirements

and procedures that would facilitate the inflows of

investments into the mining industry.

Since its inception, the MDC has evolved from

being an interagency council that seeks to resolve the

problems of the industry through policy reforms and

investment promotions, into a more active andconsultative body that addresses the policy and

operational problems of the industry at the national

and, recently, at the regional levels through the

creation of the Regional Minerals Development

Councils (RMDCs).

The appointment of Secretary Jose L. Atienza, Jr. to

the DENR came at a crucial time in the development

of the Philippine mining industry. Before the creation

of the MDC, the major bottleneck that hampered the

resurgence of the industry was the conflicting and

tedious requirements among the concerned

government agencies in the grant of mining

tenements. In recent years, however, the challenge for

the mining industry is securing the social licence tooperate from local government units (LGUs), host

communities, civil society groups and the religious

ector. Mr Atienzas experience as a former local chief

executive, political and human-rights activist, and

pro-life advocate benefited the Council by attracting

new dialogue partners in the governments advocacy

for responsible mining.The MDCs active engagement with local

government partners culminated in the inclusion of

the LGU Leagues (eg League of Provinces, League of

Municipalities, League of Cities and the Liga ng mga

Barangay) as regular Council Members.

Also, through its various activities, the MDC stood

firm in balancing the interests of various stakeholder

groups with the rule of law and the pursuit of national

development goals. The Council addressed legitimate

issues against some mining projects while carefully

laying down the law when conflicts arise due to the

different interpretation or implementation of the

ame law(s). The Council also tried to listen to

dissenting voices opposed to mining by stressing thatthe governments programme is not for mining at all

cost but only for responsible mining and that the

economic, environmental, and social safeguards are in

place to prevent or minimise the impacts of the

exploration, development, and utilisation of the

countrys mineral wealth.

The MDC was equally challenged in Year 2008 by

the escalation of armed attacks against some

exploration and mining projects. The Council took an

active stand by emphasising that the State owns

mineral resources and that the mining companies are

merely government contractors. It is also obligated to

protect and defend the national interest.

The MDC accomplishments were a collaborationof efforts of all the members of the council that

includes individual members: the Department of

Environment and Natural Resources, particularly the

Mines and Geosciences Bureau (MGB), the

Presidential Adviser for Multilateral Development

represented by Her Excellency, Ambassador Delia D

Albert, Department of the Interior and Local

Government (DILG), Department of Finance (DOF),National Economic and Development Authority

(NEDA), Department of Trade and Industry (DTI),

Department of Agrarian Reform (DAR), Department

of Agriculture (DA), Department of National Defense

(DND), Department of Labor and Employment

(DOLE), Presidential Management Staff (PMS),

National Commission on Indigenous Peoples (NCIP),

National Anti-Poverty Commission (NAPC), Philippine

Information Agency (PIA), Chamber of Mines of the

Philippines (COMP), League of Municipalities of the

Philippines (LMP), League ofProvinces of the

Philippines (LPP), League of Cities of the Philippines

(LCP), and the Liga ng mga Barangay sa Pilipinas (LnB).

The accomplishments which were translated inconcrete terms are testament to the collective vision

and action of the Council Members who believe that

responsible mining can effectively contribute to the

ustainable development of the country.

help keep the economy and the industry afloat.

Judging from the interest shown by mining

companies in accessing funds to finance pipeline and

mature projects and those in the final feasibility

tages, chances are strong that the various projects

in the pipeline will push through after project

reassessments. A surge in investments and

production may be expected towards the end of

2010.

With projects being rescheduled and the likely

continuation of supply s ide difficulties, most

commodity prices are expected to remain well

above their long run levels over the short and

medium term.

Rescheduled projects are therefore expected to

be implemented within 2010 to take advantage of

price improvements. The availability of funding is

crucial in ensuring the continuation of bullish

entiments and perspective in the industry.

On the part of government, it has made

commitment to do its best in resolving administrative

issues, and is determined to provide the necessary

upport to revitalise the industry, particularly in

Mindanao, where mineral resources abound.The government is also bent on transparency, and

is working to enlist in the Extractive Industry

Transparency Initiative (EITI), and also in streamlin-

ing operations to prevent corruption. Much remains

to be seen but a lot of indicators point to a more

tabilised metals market within the next few years.

Ampucao Proj.(Benguet)Paco Proj.(Surigao Norte)

Tabuk Proj. (Kalinga)Gambang Proj.(Benguet)

Sogod Proj. (S. Leyte)Tagpura Proj. (Compostela)

Hixbar Proj. (Rapu-Rapu Is)Manat Proj. (Compostela)

Colet Proj.(Negros Occ.)Claveria Proj.(Cagayan)

Papaya Proj.(N. Vizcaya)Conner Proj. (Apayao)

Kingking Proj. (Davao Or.)Panag Proj. (Compostela)

Del Gallego Proj. (Quezon)Negros Proj. (Negros Or.)

Alicia Proj. (Zamboanga Sur)Kalaya-an Proj. (Surigao N.)Pana-on Proj. (Leyte)

Tongonan Proj. (Leyte)Surigao Proj. (Surigao N.)

Pao Proj. (Nueva Vizcaya)Road 5 M Proj. (Davao Or.)Camp 3 Proj. (Benguet)

Pantuyan Proj. (Leyte)Batoto Proj.(Compostela)

Mabuhay Proj. (Surigao Norte)Kematu Proj. (South Cotabato)

Archangel Proj. (Batangas)Hinonangan Proj. (S. Leyte)Labo Proj. (Camarines Norte)

Nalesbitan Proj.(Camarines Norte)Cordon Proj. (Isabela)

Pantingan Proj. (Bataan)Agata Proj. (Agusan del Norte)TMC Proj. (Antique-Iloilo)

Acoje Proj. (Zambales)Sta. Cruz Proj. (Zambales)

Berong Proj. (Palawan)

Samar Bauxite Project, (Samar)

Pamplona, Negros Oriental

MDC enters its fifth year Minerals Development CouncilOffice of the Executive Director:

/F DENR Building, Visayas Ave., Diliman,

Quezon City, Philippines 1101Tel: (+632) 9262628

Fax: (+632) 9264708

MDC Secretariat:

2/F Petrolab Building, Mines and Geosciences

Bureau, North Avenue, Diliman Quezon City

Telefax: (632) 9209123

E-mail: [email protected]


13/16

Mining Journal special publication PhilippinesSeptember 2009


14/16


CONTACTS

14

DC directoryDepartment of Environment andNatural Resources (DENR)DENR Building, Visayas Avenue,Diliman, Quezon City NCR 1100Tel: +63 (2) 928 0691 or 925 2329

Fax: +63 (2) 929 6628, 920 4301www.denr.gov.ph

Presidential Adviser forMultilateral Development(PAMD)Embassy of the Republic of the PhilippinesUhlandstr. 97, D-10715 Berlin, GermanyTel: (030) 864 9500 Fax: (030) 873-2251

Department of the Interior andLocal Government (DILG)A. Francisco Gold Condominium II,EDSA cor. Mapagmahal StreetBrgy. Piahan, Diliman, Quezon CityTel: +63 (2) 925-2333Fax +63 (2) 925-3843www.dilg.gov.ph

Department of Finance (DOF)DOF Building, BSP Complex,Roxas Boulevard,cor. P. Ocampo Street,Pasay City NCR 1004Tel: + 63 (2) 523 5727, 525 1321,524 1633Fax: +63 (2) 523 5143www.dof.gov.ph

National Economic andDevelopment Authority (NEDA)NEDA Building, 12 Saint Jose MariaEscriva Drive,Ortigas Center, Pasig City NCR 1605

Telefax: + 63 (2) 631 3734, 631 3739www.neda.gov.ph

Department of Trade andIndustry (DTI)Industry & Investments Building385 Senator Gil J. Puyat Ave.,Makati City NCR 1200Tel: +63 (2) 890-9332, 897-6682Fax: + 63 (2) 895-3512www.dti.gov.ph

Department of AgrarianReform (DAR)DAR Building, Elliptical RoadDiliman, Quezon City NCR 1100Tel Nos.+63 (2) 929-4101,928-7031 loc. 406Fax: + 63 (2) 922-8975www.dar.gov.ph

Department of Agriculture (DA)DA Building, Elliptical Road,Diliman, Quezon City NCR 1104Tel: +63 (2) 920-2223Fax + 63 (2) 929-8183www.da.gov.ph

Department of National Defense(DND)DND Building, Camp AguinaldoEDSA, Quezon City NCR 1110Tel. Nos. + 63 (2) 911-6268,

911-6460, 911-4438Fax + 63 (2) 911-4360www.dnd.gov.ph

Presidential Managementtaff (PMS)

PMS Building, Arlegui St., San Miguel,Malacaang Compound, ManilaTel Nos. + 63 (2) 734-2206, 734-3971-75Fax: + 63 (2) 734-2201www.pms.gov.ph

National Commission onIndigenous Peoples (NCIP)2/F N. dela Merced Bldg. (DELTA)cor. West Ave., Quezon CityTel: +63 (2) 373 9787Fax +63 (2) 373 9765www.ncip.gov.ph

National Anti-PovertyCommission (NAPC)3/F, Agricultural Training Institute BuildingElliptical Road, Diliman, Quezon CityTel: + 63 (2) 426 5028Fax + 63 (2) 426 5249www.napc.gov.ph

Philippine Information Agency(PIA)Philippine Information Agency BuildingVisayas Avenue, Diliman, Quezon CityTel: +63 (2) 921 7941, 920 4386, 920 1224

Fax: +63 (2) 928 6917www.pia.gov.ph

Department of Labor andEmploymentDOLE Building, Intramuros Manila NCR1002Tel: +63 (2) 527-3000 loc.712Fax: +63 (2) 527-3462www.dole.gov.ph

Chamber of Mines of thePhilippines (CoMP)Rm. 809, Ortigas Bldg.,Ortigas Ave., Pasig CityTel: +63 (2) 635 4123 24Fax: +63 (2) 635 4160

www.chamberofmines.com.ph

League of Municipalities of thePhilippines (LMP)2nd Floor LMP Bldg., 265 Ermin Garcia St,Cubao, Quezon CityTel: +63 (2) 913 5737, 913 5738

Fax: +63 (2) 440 7280 / 4407306www.lmp.org.ph

League of Provinces of thePhilippines (LPP)1510 West Tower, PSE Bldg.Exchange Road, Ortigas Centre, Pasig CityTel: +63 (2) 687 5399, 631 0170, 631 0197Fax + 63 (2) 687-4048www.lpp.gov.ph

League of Cities of thePhilippines (LCP)LCP Bldg. 1278 Estrada Corner LemeryStreets, Malate, Manila 1004Tel: +63 (2) 521 6384, 521 6461Fax: +63 (2) 521 7298 / 521 8239www.lcp.org.ph

Liga ng mga Barangay (LnB)2nd Floor, Old Sanguniang Bldg.Caloocan City Hall ComplexA. Mabini St. Caloocan CityTel: +63 (2) 2881653Fax +63 (2) 324-5299www.barangay.gov.ph

Minerals Development Council(MDC) Secretariat2nd Flr. Petrolab BuildingMines and Geosciences BureauNorth Avenue, Diliman, Quezon CityTelefax: +63 (2) 920 9123

E-mail: [email protected]

DENR- Mines and GeosciencesBureau (MGB)2nd Flr. Fernandez Bldg., MGB CompoundNorth Avenue, Diliman, Quezon CityTel: +63 (2) 928 8642, 920 9120Fax: +63 (2) 920 1635www.mgb.gov.ph

DTI-Board of Investments (BOI)Industry & Investment Building385 Senator Gil Puyat AvenueMakati CityTel: +63 (2) 890 9332, 895 3701,897 6682 loc. 308Fax: +63 (2) 895-3980

www.boi.gov.ph

For more informationLondon office: +44 (0)20 7514 1480

Manila office: +63 2 817 7104

[email protected] www.toledomining.com

Toledo Mining Corporation

(AIM:TMC) is an emerging

nickel producer focused onthe economic processing of

nickel laterites in the

Philippines.

The company has strategic

interests in four large,

good-grade nickel deposits

on Palawan Island, with a

combined pre-JORC

resource base of more than

300 million tonnes, or

3.1 million tonnes of

contained nickel.

Toledo is also advancing its

activities downstream in

partnership with European

Nickel and Jiangxi Rare

Earth and Rare Metals

Tungsten Group (JXTC).


15/16

International standard for

construction and mining

Leighton Contractors (Philippines), Inc.7/F L.V. Locsin Building, 6752 Ayala Avenue corner Makati Avenue, Makati City Philippines

t: +632 841 0998 f: +632 811 0158 e: [email protected]

www.leightonasia.com

eighton Asia offers its clients the highest standard of mining solutions.Operations were established in the Asian region in 1972 and in the Philippinesn 1996. We are focused on continued success and growth in the region

with local knowledge and international experience.

eighton Asia is part of the Leighton Group, the worlds leading contract miner,with over 60 years of global mining experience. We engage a team of committedengineering and management professionals coupled with a plant fleet we own,perate and maintain to offer our clients real mining and construction solutions.


16/16

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