Mining companies asked to be partners in building sustainable society

MANILA, Philippines - An official of De La Salle University (DLSU) has challenged mining companies “to show that the industry can be a partner toward building a sustainable society for Filipinos.”

“They should call our attention to the fact that they can be our co-workers as we all help in giving quality life for Filipinos,” DLSU Liberal Arts dean Dominador Bombongan Jr. said.

The Chamber of Mines of the Philippines (COMP) and representatives of mining companies recently met with DLSU political science students in a forum which COMP president Philip Romualdez described as a meeting with an academic community that “has not arbitrarily and totally closed its mind on responsible mining.”

“Mining companies who practice and advocate responsible mining should also demonstrate to us that they are not contributing further to the destruction of our already fragile environment,” Bombongan said.

“We are happy to dialogue with an academic community which is open-minded and willing to listen” Romualdez said.

Romualdez said the COMP is willing to show people how large-scale responsible mining operations are done and to educate the public about how small-scale mining activities are conducted.

“We can show any willing and open-minded person or group how our member-companies are practicing responsible and sustainable mining,” he said.

Among the companies in the dialogue with the students was Sagittarius Mines Inc. (SMI), government contractor for the proposed $5.9-billion Tampakan copper-gold mining project in South Cotabato.

Recently, SMI supported the call of an international industry watchdog, Extractive Industries Transparency Initiative (EITI), for the Philippine government “to ensure that resource-rich communities feel the fruits of the extraction of mineral resources.”

SMI general manager Mark Williams said the company “supports the Aquino administration’s willingness to ensure transparency of revenue payments from the mining industry.”

EITI said the government should be transparent and “show that the local governments hosting mining projects get their fair share of the mining revenues.”

EITI also said that transparency will ensure the prudent use of the country’s mineral resources and make the mining industry a real engine of economic growth.    Philstar

Coming Soon..... Indonesia: Mining for Civilization

 More to come soon. 

Indonesia: Mining for Civilization (sneak peak)

Have a look at a sneak peak preview of the exclusive upcoming documentary, Indonesia: Mining for Civilization

type in the password: ameaintel 

for the sneak peak. 

Filming and production on the mining communities begins the 31st of October and planned completion and program to be ready by mid November.  

Contact the team at AMEA for more details! info@ameaintel.com

AMEA is the associated media broadcast partner for Asia Pacific Mining Conference 2012

Asia Pacific Mining Conference

Jakarta, October 10 - 11, 2012
http://www.apmcindonesia.com/index.html

Background
The world’s economic growth will continue requiring mineral products and source of energy. Undoubtedly mining sector continues to play a significant role in supporting the world’s industrial and economy sectors and Indonesia has been one of major contributors in the world industrial and economy landscape as exporter country and as well as investment destination. With the recent improved investment ratings, Indonesia is in the best position to leverage the opportunities.
It is great time for Indonesia to show the world of its potentials, investment opportunities and particularly for its mining industry to tap the world and regional’s capacity for its benefits. The followings are some relevant references:

• World Trade in 2050 will jump from $37 trillion in 2010 to $287 trillion in 2050 (Citigroup‘s Report, Oct 2011)
• Indonesia has set the long-term development plan, MP3EI
• Prices for mining commodities are expected to rise with the demand increase.
• Mining companies continue to face some major challenges for sustainable growth:

• Performance improvement and cost savings are key challenges to cope with rising demand
• Rise of resource nationalism is of major concern
• Miners are facing a political landscape that has become more intertwined with operations, resulting in a direct hit to bottom lines.
• Taxation has become an issue at the forefront of CEOs' minds. Mining companies are also contending with a shortage of skilled workers, particularly in developing markets.

• Improving safety and reducing the environmental impact will be ongoing goals.
• "Low-carbon" production of minerals is increasingly important in the years to come
• The world demands for energy continue to grow and coal is anticipated to contribute a significant portion of the Indonesia‘s energy mix in 2050
• Indonesia has become a popular source for emerging markets like China and India, and as a major supplier for Japan, South Korea and Taiwan.
• There are a number of companies holding significant cash, looking for access to new reserves or expansion into new territories.
• However, Indonesia is yet to set a favorable investment climate with right regulatory framework, infrastructure and government supports

Updates - OceanaGold

Recently on companyinsight.net.au,  Mick Wilkes the MD of Oceanagold was interviewed on the updates of their gold project in the Philippines.  Below are some excerpts of this interview, to see the full version please visit:   Company Insight - Oceanagold

Highlights of Interview
Recent & expected improved operating performance of New Zealand operations. Strong progress at Didipio.  Production timing, production levels & operating costs. Explains Philippines mining sector reform & implications for OGC. Success of locally owned Didipio Community Development Corporation ('DiCorp'). Explains recently signed US$225 million debt facility, giving funding flexibility. Feedback about OceanaGold from the Diggers & Dealers conference. Current investor proposition & future growth for the Company.

Q: What are the implications for OceanaGold after the Philippines Government signed the 'Executive Order 79' which covers Philippines mining sector reform?

MD & CEO, Mick Wilkes: The Executive Order is designed to ensure a more responsible, sustainable and equitable mining industry in the Philippines.  So, we view the Executive Order as a positive for reform for the mining industry in the Philippines, but more importantly for us because it will clear the way for the approval for an extension of our current exploration permit.  We expect this approval to come through in the next month or two and we are ready to drill some near mine prospects.

Importantly, the Government has said they will regulate more rigorously small scale mining to improve environmental management.  They also want to improve the transparency of the mining industry which will increase the confidence of foreign investors to invest in mining in the Philippines.

Q: The Company has discussed the strong local support for the project and the establishment of the locally-owned cooperative 'DiCorp'. Can you elaborate on DiCorp and how it is involved with the project?

MD & CEO, Mick Wilkes:  The Didipio Community Development Corporation ('DiCorp') is an entity initiated by OceanaGold, and DiCorp's shareholders are long term residents around Didipio.  Its purpose is to help develop skills to provide services for the long term operation of mines.
The shareholders will benefit from being able to develop these skills, but also through sharing in the profits that DiCorp generates.  DiCorp already has around 80 employees and that will increase to around 200 over the next 6 months as more contracts are awarded at the Didipio mine site.

DiCorp is already contracted to maintain the access road, operate the employee bus service, carry out the waste collection service and it also has the cleaning contract for the mining camp.  These types of companies have been set up successfully in other countries and it is turning out to be very successful for DiCorp's shareholders and for OceanaGold.

Philippines: The Sustainable Path Premiere on CHANNEL NEWS ASIA!

OceanaGold Philippines mine now fully funded

OceanaGold Philippines mine now fully funded

What Good PR Is Really All About

In April, one of the world’s most famous and successful PR companies created a massive, large scale PR campaign for a huge ‘globally diversified natural resources group’ operating in India. This marketing campaign had a vice-like grip on all possible avenues of social media in India: poster advertisements, slogans, online platforms like YouTube. It had the tagline “Creating Happiness””.

However, this whole charade was reduced to a farce in no time- ultimately and unexpectedly backfiring. Its apparent false claims and sugarcoating hid important and disturbing facts. Shockingly, despite its slew of emotionally charged advertisements, The company violated laws in mining, got clearances based on false information, illegally built refineries.

Mining companies out there need to take note of the way industry is portrayed to the public. However, what is of concern now is the second step, which is part of the publicity job: not all publicity is good publicity, especially not in this industry! We all assume that public relations do not include concealing facts in a desperate bid to change mindsets- but it’s something even the best PR companies fall prey to.

What good PR is really about then: it’s about honesty, realistic targets, and is ultimately open to criticism and suggestions. Having worked with those on the ground, its what AMEA believes in as well. According to the article “How to tell your sustainability story: the messier, the better” , good pr nowadays in fact is the opposite of spewing out positive, ambitious promises and sugarcoating. It is in fact being humble, airing your dirty laundry and being honest- in fact, it’s the only way to do business nowadays.

What we think is: go slow and steady. Progress may be quicker with easy PR, but we believe in going for sustainability and social understanding step by step.

APEC Sustainable Mining: Can Investments and Sustainable Developments happen in tandem?

About a week ago, the fourth meeting of APEC Ministers responsible for Mining was held in Russia.There was consent amongst the participating countries of the increasing importance of sustainable development in mining. Other issues brought up included  increasing social responsibility, innovations and Investments. 

What is the significance of this ? Obviously, there is a need to alter our business structures in a way that directly and sincerely addresses the issue of environment and sustainability. It’s time to get serious- social responsibility is increasing in its importance and is becoming today more of a criteria than something we can choose to address.

Another thing that caught my attention is the issue of investments. Yes, we all know and recognize the value of investments. But what value does it have in the context of sustainable development?

In countries such as Indonesia and Philippines, it is imperative to pay attention to and adapt to the economic and social situations of the country. Economic disasters, social unrest, protests- all these upset the possible flow of investment into a country that might need it, ultimately curbing the potential that investments might offer to developing the country and the industry. Investments have the power to nurture and grow sustainable development, which requires no small effort nor investments. Innovations, education, and so on- these require copious amounts of money.

So besides being vigilant, how does a country create an attractive investment climate? This issue was discussed by APEC Ministers Responsible for Mining. Governments will need to make an effort to improve living standards. Resource management is crucial to the initiative as well, as well as steps to boost regulatory efficiency and mitigate the environmental impact of the industry.

Ultimately, will making an effort to reach out to the society also help? Bridging the gap between the public and industry to strengthen ties may be the step needed to attract investors, as well as continued communications between all stakeholders.