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Philippine Resources Journal - Issue 4, 2020

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Corporate Headquarters MMG Fojas Compound, Km 29 National Highway San Antonio, San Pedro, Laguna, Philippines 4023 T: +63 2 886 3170 | +63 2 833 6304 F: +63 2 886 3244 Papua New Guinea HBS Compound 11 Mile-Okuk Highway. PO Box 1538, Lae, Morobe Province, 411 Paupua New Guinea Tel: +675 7373 4013 I +675 7373 4015


CONTENTS MINING 15

THE DIGITAL PATH TO SUSTAINABLE GROWTH IN MINING

35

MGB ALLOWS MINERS TO REALIGN SDMP FUNDS FOR RELIEF

38

RUNRUNO ILLEGAL SETTLERS HEED CALL FOR EVACUATION

40 DENR: MINING SECTOR CONTINUES ITS SUSTAINABILITY

CONSTRUCTION 24

RIGHT-OF-WAY FOR MAKATI INTRA-CITY SUBWAY PASSED

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PRESIDENT DECLARES SEPT. 8 AS NATIONAL GREEN BUILDING DAY

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PCA LENDS TRUCKS, HEAVY EQUIPMENT TO FLOOD CLEANUP

COMMENTARY

INFRASTRUCTURE INVESTMENTS To bring economy back to growth / page 6

COMMENTARY

ZOOM-ING AND MORE IN THE PANDEMIC By Patricia A.O. Bunye / page 12

COMPANIES 29

NAC-CAGDIANAO HELPS COMMUNITIES RISE FROM COVID-19

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FILMINERA, PHILGOLD DONATE OVER PHP6M TO QUAKE VICTIMS

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TVIRD-AGATA BRINGS THE POTENTIAL RELIEF TO 10,000 FAMILIES, OF PHYTOMINING LIVELIHOOD TO FARMERS Harvesting nickel from plants (part 2) / page 20 TAGANITO DONATES OVER 7K WORKBOOKS TO SURIGAO DEL NORTE

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MINING

FEATURES HOW TO OVERCOME ‘PANDEMIC FATIGUE’ Amid the COVID-19 crisis / page 26

ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


Cert. No. 67125-27 EAC Code: 02/35

HINATUAN MINING CORPORATION Mine Site: Hinatuan Island, Brgy.Talavera, Tagana-an, Surigao Norte Surigao Liason Office: NAC Bldg. Km3, Brgy. Luna, Surigao City Tel. Nos, (086) 826-6113 Head Office: 29F, NAC Tower, 32nd Street, Bonifacio Global City, Taguig City, Metro Manila, Philippines, 1634, Tel. Nos. (623) 7987-626


RESOURCES COMMENTARY

PHILIPPINE RESOURCES THE MAGAZINE FOR MINING AND CONSTRUCTION Philippine Resources is published independently for executives in Philippine mining, construction, resources and associated business sectors. Publisher Elizabeth Galura Consulting Publisher Greg Brimble Editor Jimbo Owen Gulle Sales and Marketing Matt Brimble +63 927 721 6622 Matthew@philippine-resources.com Merian Jay Fallan +63 955 738 0266 merian@philippine-resources.com Kevin Lewis kevin@philippine-resources.com Administration Cecilia Pamular +63 917 308 1971 cecille@philippine-resources.com Design/Production Elizabeth Galura Journalist Marcelle P. Villegas 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:

Workers plant tree seedlings on a hill near the coast of the Tagana-an nickel mine in Barangay Talavera, Hinatuan, Surigao del Norte. Photo courtesy NAC-Hinatuan Mining Corp.

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Infrastructure Investments to Return Philippine Economy to Growth By Fernando Penarroyo

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he Philippine economy grew on average by 6.3 percent annually over the last decade due to the country’s sound macroeconomic policies and structural economic reforms under President Rodrigo Duterte and his predecessor Benigno Aquino III. Before the COVID-19 pandemic, the Philippine economy ranked among the best performers in Asia. A December 2019 survey showed that most Filipinos deemed that the Duterte administration was building infrastructure “better” than previous administrations through the “Build Build Build” (BBB) program. The Philippines is among the most vulnerable countries in the world susceptible to risks from climate change, and volcanic, and tectonic activities. Hazard-resilient infrastructure will help lessen the impact of natural disasters. Regulators have markedly scaled up public infrastructure investment, from an average of 3% of gross domestic product (GDP) during 2011–2016 to 5.1% in 2018. They plan to boost investment further to over 6% of GDP by 2022. The Duterte administration is banking on its infrastructure development program to be the main driv-er of the country’s economic recovery as the Philippines is currently in economic recession caused by the COVID-19 pandemic. The Philippines has suffered from one of the region’s worst COVID out-breaks and among the top 25 countries with infections and fatalities, and with the longest govern-ment-imposed lockdown. To the credit of the government, a number of infrastructure projects has seen completion despite the quarantine measures in the past months. The two most anticipated infrastructure projects - the Metro Manila Skyway and the Metro Manila Subway, are expected to decongest the worsening transportation situation in the National Capital Region. To address capital’s notoriously gridlocked roads particularly along the main artery traversing the city, the Metro Manila Skyway System (Skyway) is a 40-km long elevated expressway that cuts through greater Metro Manila. The Skyway, will connect the South Luzon Expressway with the North Luzon Expressway passing through the major cities of the National

Capital Region including, Makati, Manila, Muntinlupa, Paranaque, Taguig, Quezon City, Caloocan, Pasay City and San Juan. With the completion of the Skyway Stage 3, the elevated expressway will also help cut the travel time between Metro Manila and Clark International Airport in Pampanga. On the other hand, the Metro Manila Subway (Subway) is the most expensive transportation project undertaken by the Duterte administration. The Subway, an underground rapid transit line currently under construction, spans a 36-kilometer line, which will run north–south between Quezon City, Pasig, Makati, Taguig, and Pasay consisting of 17 stations. It will become the country’s second direct airport rail link after the North–South Commuter Railway, with a branch line to Ninoy Aquino International Airport Terminal 3. It is scheduled to be partially operational in 2022 and fully operational by 2025. In addition, construction of six railway projects is also underway. Once all the railway projects are completed, the number of stations across all railway systems will increase to 169 from 59, the number of trains to 1,425 from 221, and daily ridership to 3.26 million from 1.02 million. Following the COVID-19 pandemic however, the “BBB” program encountered setbacks with the rea-lignment of part of its budget to finance the government’s response to the health and socio-economic crises. In the first semester of 2020, the government’s spending on infrastructure fell by 4.3% year on year to P297.9 billion. The 2020 budgets of the implementing agencies of the BBB program were also cut to fund dole-outs and medical response costing around PHP 121.9 billion (US$2.5 billion). The Department of Public Works and Highways (DPWH) was left with a muchlowered infrastructure program spending budget for 2020 at around PHP 458.9 billion (US$9.4 billion) down from PHP 580.9 billion (US$11.9 billion) while the Department of Transportation suffered a budget cut of around PHP 8.8 billion (US$181.2 million) from its original budget of around PHP147 billion (US$3.02 billion). Despite budget cuts in public spending on infrastructure projects, the government

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ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


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RESOURCES COMMENTARY

< Page 6 has revised the list of flagship projects and reprioritized its infrastructure program. The National Economic and Devel-opment Authority Board approved a revised list of 104 projects worth P4.1 trillion under the “BBB” program. In response to the country’s post-pandemic needs, the government came out with a new list that included the national broadband program, an irrigation project, transportation infrastructure projects, health care systems, and the construction of the Virology Science and Technology Institute of the Philippines with an estimated total value of around PHP 4.1 trillion (US$84.4 billion) Under the proposed P4.5-trillion national budget for 2021, the government increased the budget for infrastructure development by 41% to P1.107 trillion from the reduced P785.5-billion budget this year, with the biggest allocation of P157.5 billion going to the DPWH. Reverting to PPPs Public-Private Partnership (PPP) will play an increasingly important role in the “BBB” infrastructure plan to tap on private capital as the government’s ambitious infrastructure plans face fiscal challenges. This marks a shift back to the investment policy previously adopted by the Aquino ad-ministration and will offer more opportunities for private sector participation. However, the present administration has tightened provisions employed by the Aquino government which present regula-tors deem to be ‘detrimental’ to public interest, including automatic rate increases, commitments of non-interference, and non-compete clauses. Since the start of 2020, PPP projects have reportedly raised Php1 trillion ($20.62 billion) worth of investments as approved by the Interagency Investment Coordination Committee-Cabinet Committee. These include the $15-billion second airport for Manila signed in September 2020. San Miguel Corp. entered into a $15-billion contract with the government to build Manila’s second aviation gateway in Bulacan province, 30 minutes north of the capital. The build-operate-transfer project, covered by a 50-year concession deal, calls for a new airport designed to accommodate up to 200 million passengers annually aim at decongesting the overcrowded Ninoy Aquino International Airport. On the power side, ongoing projects include the LNG Import Facility in Batangas at the cost of $2 billion. The Department of Energy recently issued an order calling for a moratorium on the endorsements of the construction of future coal-fired power plants. Also, the DOE has finally confirmed that foreign-owned companies can engage in geothermal exploration, development, and utilization. This is provided under the Renewable Energy Law of 2008 which defined geothermal as mineral resources. The Philippine Constitution allows foreign ownership of large-scale petroleum, minerals, and mineral oils projects. These two developments are expected to benefit the incipient imported LNG and renewable energy industries. According to the “Procuring Infrastructure PPP”

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component of Fitch Solutions Country Risk & Indus-try Research’s Project Risk Index (Fitch PRI), the Philippines has a relatively well-structured PPP framework compared to other major South-East Asian emerging markets, Its well-developed PPP program is mainly driven by the Philippine PPP Center, an administrative body tasked with providing technical assistance to various stakeholders involved in the PPP transaction and advocating policy reforms to improve the PPP framework. There currently exists three pieces of legislature - Republic Act Nos. 9184, 6957 and 7718, which provides the legal framework in the implementation of PPP projects. Challenges and Risks While the PPP business environment for infrastructure has a supportive institutional framework for private sector participation, the World Economic Forum’s global competitiveness report places the Philippines among the lowest in ASEAN in key infrastructure services and substantially lower than the ASEAN average in overall infrastructure. Given the prospects of a high demand for infrastructure from economic and demographic growth, there is a need for a significant upgrade. According to Fitch PRI, the Philippines rank lowly in both indicators of construction timeliness (Bureaucratic Environment and Construction Permit), pointing to a heightened risk of completion delays. In addition to project risk, there exists high operational risk, mainly attributable to crime and security risks, as the country suffers from high levels of crime and is vulnerable to terrorist attacks. In the 2018 Corruption Perception Index, the Philippines was ranked 99 out of 180 countries, indicating a high level of corruption which undermines the effectiveness of laws and regulations in place. Electricity generation capacity per capita is among

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RESOURCES COMMENTARY

< Page 8 the lowest in ASEAN while power transmission and distribution loss is at the ASEAN average. The government must address the need to enhance capacity with the expected continuous high economic growth. Also, with the impending depletion of the Malampaya natural gas field, there is a need to replace this energy source. The Malampaya gas-to-power facility comprises 21% of the total generation mix in the country and fuels five power plants with a total generating capacity of 3,211 megawatts. Internet speed in the Philippines is among the slowest and most expensive in the world, no thanks to under-investment, poor government policy and the countryâ&#x20AC;&#x2122;s archipelagic nature. In a 2018 test measuring the average download speed of a 5GB file, the Philippines ranked 97th in the world (at 1hr 52min) compared to 8 min in Taiwan, 9 min in its ASEAN neighbor Singapore, and Thailand at 37 minutes. Slow internet speed puts the country at a great disadvantage. Industry consolidation in the last 30 years has resulted to the virtual duopoly of Globe Telecom and Smart Telecom. The Duterte government recently gave the third franchise to a new operator, Dito Telecom, which promised to use the latest 5G technology, install 10,000 cell sites and roll out services by March 2021. Investors continues to face a high degree of risks as the infrastructure program is undermined by a number of major impediments, particularly the four Cs - inadequate cost recovery, corruption, insufficient competition, and low credibility of institutions. Despite having one of the most comprehensive PPP frameworks in the region, the government must institute reforms to tackle these impediments. Improving Infrastructure Investments Management Ensuring that the government effectively manages its infrastructure spending will be a challenge. Enhancing public investment management would contribute to timely and cost-effective planning and execution of infrastructure projects. A recent IMF Public Investment Management Assessment ranks the Philippines similarly to its regional peers but observes an efficiency gap of about 23% compared with best practices in translating public investment into infrastructure. As recommended in the report, project appraisals can be enhanced by requiring upfront identification of risk mitigation measures and publishing appraisal analyses to elicit comments from the public. An adequate identification and management of risks will complement public sector efforts in infrastructure promotion. Regulators can also embark on an update of the legal framework to include en-couraging new forms of PPPs and developing domestic capital markets that will entice more private-sector participation, as long as financial risks to the government are professionally managed. Measures to promote competition and trade would reinforce the benefits of other reforms. Recent reforms have focused on reducing the costs of doing business through increased administrative and regulatory efficiency with the establishment of the Anti-Red Tape

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Authority, promoting one-stop shops, e-platforms, standardization of licensing procedures, and regulatory transparency. Implementation of the ease-ofdoing-business law will complement efforts to cut red tape as well by increasing transparency and accountability of regulatory agencies. Greater competition will help in managing costs and reducing risks of corruption. Although an institu-tional framework is in place for transparent and competitive public procurement process, reforms are still needed to ensure that the process is made more competitive. Competition is still not sufficiently effective in practice with many tenders resulting in bid rigging. Competition can also be promoted by imposing stricter sanctions on anti-competitive practices, such as larger financial penalties and longer exclusion from future tendering. Making procurement information more easily accessible and ensuring that bidders are technically and financially qualified will increase transparency. Authorities should also be insulated from short-term political pressures so as not to undermine regulatory credi-bility. Upgrades in public information technology infrastructure, such as e-invoicing and digital national identification cards, will also promote efficiency and transparency. Despite recent progress, high barriers to foreign direct investment remain in the Philippines. Lowering obstacles to foreign investment, currently pegged at 40%, will stimulate private investment, ease domestic capacity constraints, and facilitate absorption of frontier technologies. Finally, tax reform can help sustain the infrastructure push while safeguarding fiscal sustainability. The governmentâ&#x20AC;&#x2122;s recent tax reforms have led to a significant increase in revenue collection but it is imperative to pass the remaining packages of reforms for further improvements in the tax system once the country is out of the pandemic crisis. These reforms will support sustainable investment in infrastructure and human capital. Conclusion The infrastructure industry remains an important engine of growth for the Philippine economy but despite recent progress, there still are relatively high barriers and procedural hurdles that hampers the development of its full potential. Strengthening the public procurement process with greater competition and transparency, and allowing greater foreign participa-

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RESOURCES COMMENTARY

By Patricia A. O. Bunye

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have always wondered how the founder of Zoom, Eric Yuan, feels about making over USD12 billion since March 2020, when the pandemic began and practically everyone on the planet has been ‘Zoom-ing’ for work or play. With its simple features, Zoom has left competitors like Skype in the dust. Yuan is now ranked No. 85 on Bloomberg’s list of the 500 richest people in the world. Before 2020, he wasn’t even on the list. He is also number 43 in the Forbes 400, the magazine’s annual ranking of the 400 wealthiest people in America, for the first time in 2020. He also made it to Time’s 100 Most Influential this year. It is not a fortune built overnight or by taking advantage of Covid-19, as some may wrongly assume. Yuan says he got the idea for Zoom while trying to find a way to connect with his long-distance girlfriend (now his wife) as a student. He was one of the original hires of WebEx, a videoconferencing startup, when he first moved to the US.

Zooming (and more) in the Pandemic When WebEx was acquired by Cisco Systems, Yuan pitched a new smartphonefriendly video conferencing system to Cisco management, but it was rejected. Cisco apparently preferred to concentrate on enterprise systems which was not the direction Yuan wanted to take, so Yuan left to establish his own company, Zoom Video Communications. It is not widely known that Yuan has a connection to the mining industry: his parents are mining engineers and Yuan himself has a master’s degree in geology engineering from the China University of Mining and Technology in Beijing. Thanks to Zoom, there is a semblance of normalcy in our lives as it enables us to hold meetings, teleconferences, classes, negotiations, and lectures. I have attended masses, Holy Week services, a wedding, a wake, and reunions. This Christmas, I will likely see friends and family online there as well. Not a day has passed since

< Page 10 tion in domestic projects would help in managing costs and reducing risks. Private investment is projected to increase over time with the government’s infrastructure push and ongoing economic policy reform efforts, which will lead to higher economic growth and subsequent investments in education, health care, digital technologies, climate change and natural disasters mitigation. References Hilotin, Jay, Philippines: $85 Billion Infrastructure Spending in 104 Projects, Gulf News, 01 October 2020, https://gulfnews.com/business/philippines85-billion-infrastructure-spending-in-104-projects-1.1601554247671 Malindog-Uy, Anna, “Build Build Build” Program Amid a Pandemic, The ASEAN, 13 September 2020, https://theaseanpost.com/article/build-build-buildprogram-amid-pandemic Noble, Luz Wendy T., Infrastructure Push to Aid Recovery, BusinessWorld, 14 September 2020, https://www.bworldonline.com/infrastructure-pushto-aid-recovery/ Philippines IMF Country Report 20/36, 06 February 2020, https://www.imf.org/en/Publications/CR/ Issues/2020/02/05/Philippines-2019-Article-IV-Consultation-Press-Release-and-Staff-Report-49021 Philippine Infrastructure To Rely More On Private

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Eric Yuan, founder of Zoom, is the son of mining engineers and has a master’s degree in geology engineering.

the declaration of the lockdown in March that I have not connected with others via Zoom. The silver lining of the pandemic, if you could call it that, is that it has opened many opportunities for online learning. Students are not the

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Capital, Infrastructure & Project Finance / Philippines, Fitch Solutions Country Risk & Industry Research, 12 November 2019, https://www.fitchsolutions.com/ infrastructure-project-finance/philippine-infrastructure-rely-more-private-capital-12-11-2019 Takuji, Komatsuzaki, Improving Public Infrastructure in the Philippines, Asian Development Review, vol. 36, no. 2, pp. 159–184, 2019, https://www.imf.org/external/pubs/ft/wp/2016/wp1639.pdf The Philippines: A Good Time to Expand the Infrastructure Push, IMF Country Focus, 06 February 2020, https://www.imf.org/en/News/ Articles/2020/02/06/na020620the-philippines-agood-time-to-expand-the-infrastructure-push Fernando “Ronnie” S. Penarroyo specializes in Energy and Resources Law, Project Finance and Business Development. He may be contacted at fspenarroyo@ gmail.com for any matters or inquiries in relation to the Philippine resources industry. Atty. Penarroyo’s commentaries are also archived at his professional blogsite at www.penarroyo. com ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


Custom reports can be created to help data mine your company's archive. Users can create custom indices by document type. Reports generated can be exported to Excel and PDF for submission.


RESOURCES COMMENTARY

< Page 12 only ones who have classes to attend online. There is a wide array of webinars pertaining to my areas of practice available at the click of a mouse, as well as many other topics such as politics (starting with the US elections), economics and finance, as well as a number of my (nerdy) pursuits. In fact, it has developed in me FOMO: a fear of missing out on the sheer variety of offerings. The Financial Times, for example, ran “The Commodities Mining Summit” online in October with the theme “A New Narrative for Mining”. With the 17 sessions featuring the CEOs of BHP, Anglo American, Glencore and Vale, among others, still available on demand, it is an unparalleled resource. In his opening keynote, BHP’s CEO Mike Henry underscored that mining remains an essential industry, something that we know too well, but the larger population still fails to appreciate. He says that Covid-19 has given the industry an opportunity to demonstrate its capabilities: how quickly it can mobilize, particularly in safeguarding the health of the companies’ workforces, to support the communities and business partners. According to him, the value created is not just for direct stakeholders, but the resources produced, the ability to generate employment, taxes, royalties, and dividends in a time of crisis is a “positive differentiator” relative to other industries, which produces economic development and an improvement in living standards throughout the world. He further stressed that there is little choice as to whether mining happens or not, but the choice is as to how it happens and who does it. In this regard, Mike Henry highlighted the role that commodities play in “rebuilding a better world”,

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2020” LeanIn.org’s comprehensive study on women in corporate America in collaboration with McKinsey & Co. What struck me in the study was that, notwithstanding the many gains made by women, Covid-19 has presented more challenges or demands on them in terms of additional child care or home schooling responsibilties, the health/illnesses of family members, mental issues/ burnout, and other unique issues brought by the pandemic. One of the best online engagements I have had so far was a networking evening where the participants received cocktail making kits at home prior to the event and a bartender demonstrated how to mix drinks via Zoom. Next May, a conference that I attend annually may possibly be held 24/7 by Zoom to enable its members worldwide to participate from different time zones in 6-hour shifts. A radical idea, but with the world turned upside down by Covid-19, anything is possible these days.

Patricia A. O. Bunye is a Senior Partner at Cruz Marcelo & Tenefrancia where she heads its Mining & Natural Resources Department and Energy practice group. She is also the Founding President of Diwata-Women in Resource Development, Inc., a nongovernment organization advocating the responsible development of the Philippines’ wealth in resources, principally, through industries such as mining, oil and gas, quarrying, and other mineral resources from the earth for processing.

PNOC Inks LNG Partnership with NFE

tate-run Philippine National Oil Company (PNOC) has forged a deal with American firm New Fortress Energy LLC (NFE) for the establishment of liquefied natural gas (LNG) installation in the country. According to the Department of Energy (DOE), the agreement between the parties are non-binding and the terms for the agreement have yet to be firmed up - no specific part of the LNG supply chain and no timelines. In the initial agreement, PNOC and Nasdaq-listed NFE “will work together to identify potential oppor-

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particularly in addressing climate change and de-carbonization. He also emphasized the “build back better” (BBB) approach in relation to recovering after Covid-19, i.e., continuing to ensure sustainability as the mining industry bounces back. That commodities are essential was seconded by Glencore’s Ivan Glasenberg in a succeeding panel. He said that “new generation companies” like Tesla all depend on mining for the commodities that they require for batteries, solar panels, windmills and like. Unfortunately, he said, mining companies “get it wrong” by building new mines and underestimating the cost. Mark Cutifani of Anglo American, for his part, said that it is time for mining companies to stop thinking in terms of B2B (business to business) and start thinking in terms of B2C (business to consumer) so that the dialogue around mining shifts, i.e., when people talk about the provenance of products, they will become more comfortable with the idea that when they drive a car, build a house, use electrical power, or even drink water, the mining industry is involved in everything. Apart from this outstanding series of the FT, I have enjoyed the Wall Street Journal’s Women in the Workplace Forum where Facebook’s Sheryl Sandberg was one of the many speakers. It was also an occasion to launch “Women in the Workplace

tunities to accelerate the development of important LNG and power infrastructure in the country.” It continues that this shall be leveraged on “future investments to build a new and durable LNG value chain in the Philippines capable of generating jobs, revenue and opportunity far beyond prospective terminal or power plant sites.” Energy Secretary Alfonso G. Cusi said that this is a step in the development in strengthening the country’s energy security. “The Philippines has grand ambitions of positioning itself as a hub for LNG

investments in the Asian region,” he said. New Fortress Chairman and CEO Wes Edens, also the coowner of NBA basketball team Milwaukee Bucks, stated: “The MOU will enable cleaner, more affordable and more reliable energy for the people of the Philippines. Increasing access to power across the islands at a rapid pace will create significant growth opportunities. We look forward to working closely with our partners at PNOC and the government to bring more reliable power and help accelerate the clean energy transition.” ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


MINING NEWS

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ithout a question of doubt, the mining industry nowadays is becoming even more complex. It deals with natural resources that are harder and more complicated to access, stricter regulations for both safety and environment, and a redefinition of what “profitable” means with a growing focus on sustainability and quality of life. Last October, the country’s leading mining contractor Paramina Earth Technologies, Inc. joined the virtual “MINING LIVE EVENT 2020” spearheaded by Dassault Systèmes. Executive panelists from the likes of GEOVIA, Barrick Gold, BHP, and BSR tackled practical proof points on several topics. Here are the key takeaways from the event: How resilient are mining companies during the COVID-19 pandemic and its impacts? Michelle Ash, CEO of largest global supplier of mining software GEOVIA, reported that the top 50 mining companies in the world suffered a 30% reduction in market capitalization due to the pandemic - thereby making investors wary. However, we could expect mining production rates to normalize back to 95% capacity by the end of 2020. Ash believes that the mining industry has always been resilient in response to the pandemic. Continuous reorientations of their safe work practices and rethinking on how to continue their work are implemented by trying to limit people on site. She added, “Many countries understood the criticality of the mining industry especially as it underpins so many economies. I WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2020

think you know during this period - it really has shown how important mining is to us all especially as we seek to divert funds into medical aid and other aid in different countries.” Indeed, Ms. Ash has pointed out very interesting matters. In these trying times, do you think the Philippines should follow in the footsteps of other countries? How do you think the Philippine mining industry could step up for the country? Making Strategic Mine Planning Decisions Confidently in Times of Uncertainty Mining customers face difficult and rapidly evolving challenges to their business more than ever. In planning for this future, it is important to evaluate all possible scenarios, especially at the long-term strategic mine planning horizon. With the ambition to shape a sustainable future of mining, the capabilities, and key benefits of business processes that make up Strategic Mine Planning on the 3DEXPERIENCE® platform were presented and demonstrated which can enable companies to: • Maximize strategic KPIs, such as NPV and ore recovery • Generate robust Life of Mine plans • Run many scenarios to test various projections on mining costs, commodity prices, and other influencing factors • Have confidence in all inputs and your final strategic plan • Reduce rework and analysis time

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MINING NEWS

< Page 15 • Reduce reserve loss, mining delays, and critical infrastructure risks • Allow better collaboration, communication, and visibility to all stakeholders Sustainable and Efficient Mine Execution For mining operations, one of the greatest barriers to improving sustainability and profitability is inefficiency caused by a lack of control over mining operations in real-time. Mining productivity had declined an average of 30% over the past decade, as mining executives recognize “increasing productivity” as their greatest challenge. A solution for Integrated Mine Operations Management was presented thru DELMIA™ powered by the 3DEXPERIENCE® platform. The audience were able to peek on how to: • Apply real-time monitoring for all mine activities, improving visibility, control and synchronization of the mine production • Ensure alignment between all activities by dynamically executing tasks and work orders • Monitor the progress and status of the scheduled execution • Reconcile material movements and equipment performance • Report to stakeholders across the organization • Perform lean mine operations through lean manufacturing concepts Efficiently Plan and Schedule Your Mining Operations As the mining industry moves towards an advanced future, automated and optimized schedules are key to guiding execution, responding quickly and efficiently to predicted or actual event outcomes as they occur. This process integrates execution, where events are accepted, propagated, and measured against various deviation thresholds before triggering the replanning or re-scheduling process. DELMIA Ortems™ provides enhanced 3D-based visual support for plan/schedule validation, along with dynamic event propagation and deviation management. This solution enables mining companies to: • Perform efficient planning and scheduling to reduce time to production

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• Improve visibility of mine operations and data accuracy • Synchronize support activities with production tasks to ensure that mine extraction can be performed comprehensively • Maximize asset utilization to allow for a greater return on investment • Handle unexpected events and complex scenarios through automated decision support • Allow better collaboration, communication, and visibility to all stakeholders Protecting the Mining Value Chain by Understanding Geomechanics Risks and Hazards Safety plays crucial role in the mining industry. Equipping mines with a “digital twin” to mitigate risks through proper safety evaluations prior to implementation leads to a safer technologically advanced future for the industry. With Process Automation from SIMULIA™ and the 3DEXPERIENCE® platform, potential Geomechanics risks and hazards can be eradicated by advanced Geomechanics Simulation. This enables us to: • Gain better technical ability over your production using realistic cave growth • Understand the Importance of cave propagation mechanisms • Prepare block cave plans and scheduling with advanced flow modeling, featuring Cellular Automaton using GEOVIA PCBC™ • Run high-performance geomechanics simulations and forecasting using SIMULIA Abaqus™, a leading non-linear 3D Finite Element Analysis • Design space exploration and optimization solutions for simulation process automation using SIMULIA ISIGHT™ • Collaborate with all mining stakeholders by breaking down silos, all the while improving transparency and confidence with model assumptions and reduced limitations • Through semantic federation of multi-disciplinary and other Industrial Internet of Things (IIOT) data, Operation Driven Intelligence and skill association realize the power of connecting the dots and breaking silos to achieve a 360-degree view of asset efficiency. Performance Driven Capital Facilities Intelligence Performance Driven Capital

Michelle Ash, CEO of Geovia

Facilities Intelligence utilizes contextualized data and physicsbased simulation to predict asset performance. On the other hand, Capital Facilities Intelligence enables miners to not only better predict, but also extend the remaining useful life of various plant equipment, increasing asset value by reducing unplanned maintenance and overall turnaround time. With ENOVIA™ and EXALEAD™ powered by the 3DEXPERIENCE® platform, take advantage of: • Driving change and collaboration among all disciplines • Capitalizing knowledge and know-how across domains • Leveraging collaborative data intelligence to make more informed and faster decisions • Enabling sustainability through machine-learning and physicsbased simulation These key insights and solutions have demonstrated how the mining industry can traverse to digital transformation. The journey is accelerating, spurred by capital risk, resource depletion, and disrupted by the current pandemic. However, new technology and solutions are responding to build a sustainable and resilient industry. The path to digital transformation has already been laid out and the journey is inevitable. The only question remaining is when will you buckle up and enjoy the ride. Let Paramina Earth Technologies, Inc. be your driver in your mine’s digital path to sustainable growth. Contact us at paramina_ solutions@paramina.com or reach us through our website www.paramina.com for more information. ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


INDUSTRY NEWS

Photo courtesy Philippine Geothermal Production Company, Inc.

PH Now Allows Foreign Ownership of Geothermal Projects By Marcelle P. Villegas

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he Department of Energy (DoE) announced that the Philippines now allows foreign companies to fully own large-scale geothermal projects in the Philippines. This decision was made to further promote renewable energy and to shift away from coal as energy source. [1] DoE signed the circular on the guidelines for the third Open and Competitive Selection Process (OCSP3) in the granting of renewable energy service contracts. DoE Secretary, Alfonso Cusi signed it on 20 October 2020. He stated, “From an investment perspective, OCSP3 allows for 100% foreign ownership in largescale geothermal exploration, development and utilization projects.” Geothermal projects are considered large-scale if it has an initial investment cost of about $50 million and approved through a financial and technical assistance agreement. From CNN PH report, “The project is entered into between the Philippine government and the foreign contractors.” [1] This requires the signature of the President. The Philippine Constitution

requires 60% of a public utility to be Filipino-owned. However, DoE said that 100% foreign ownership is now allowed in the renewable energy sector. In 2019, DoE also reportedly allowed foreign companies to fully operate and own biomass power plants. DoE also released a moratorium on endorsement for greenfield coal power plants for sites that have not been used for commercial development or exploration. DoE’s objective it “to further brighten the prospects of our Renewable Energy landscape”. Secretary Cusi also aims for faster implementation of the Philippines’ national renewable energy program, hopefully generating 20,000 megawatts of renewable energy by 2040. Is geothermal energy the best energy source option we have to prevent an energy crisis from happening in the future? How about solar energy? According to a recent article published by Popular Mechanics Magazine, “It’s Official: Solar Is the Cheapest Electricity in History” by writer and researcher Caroline Delbert, “Solar is now the cheapest form of electricity for utility companies to build.” This is based on the report of the International Energy Agency (IEA). Although the report mentioned that the reduction in cost of solar energy

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is based on the risk-reducing financial policies around the world, “it applies to locations with both the most favorable policies and the easiest to access to financing.” “IEA’s recommendations include similar projections and calculations for all renewables as well as nuclear.” Moreover, IEA forecasts that solar energy is well positioned to blow up in the next 10 years, “because right now it is in the sweet spot to lower cost and increasing availability… And while the news is very good for solar [power], it is still pretty good for all the other renewables as well as nuclear, the IEA says.” Why is solar power lower in cost of capital? According to Delbert, it depends on many factors. For renewable energy, she wrote, “There are a few lowhanging factors… As people and companies see more successful projects like Elon Musk’s South Australia solar battery farm, their investment confidence grows.” How did this year’s COVID-19 pandemic affect the global development of renewable energy? Last May 2020, IEA gave a market update and analysis on the impact of COVID-19 on renewable energy deployment in 2020 and 2021. They reported that “COVID-19 crisis is hurting but not halting

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INDUSTRY NEWS

Geothermal power plant in Valencia, Negros Oriental.

< Page 17 global renewable energy growth.” “Half a year later, the pandemic continues to affect the global economy and daily life. However, renewable markets, especially electricity-generating technologies, have already shown their resilience to the crisis.” As a review of IEA’s analysis for 2020, they reported that global geothermal capacity additions are projected to amount to 0.3 GW in 2020, which is one-third of 2019’s level, which was the highest ever recorded. [3] “This year, Indonesia is again expected to lead new development, with 145 MV of capacity added (90 MV from the Rantau Dedap plant and 45 MW at the Sorik Marapi plant), followed by Turkey (+70 MV). These two countries are expected to account for more than two-thirds of new capacity additions in 2020, while the Philippines, the United States and Bolivia are responsible for most of the rest.” IEA also noted that this year, due to the COVID-19 crisis, a number of projects have been delayed by disruptions to the global supply chain for machinery and materials and by deferrals of strategic decisions, such as decisions in financing. In effect, several small and medium-sized projects originally scheduled to come online in 2020 are expected to be commissioned in 2021 instead. [3] In Turkey, the 10-year FiT scheme for new plants (originally

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scheduled to end at the end of 2020) has been extended until mid-2021 in order to cover projects affected by delays caused by the pandemic. FiT or FIT refers to feed-in tariff. It is a policy mechanism designed to encourage and speed up investment in renewable energy technologies by offering long-term contracts to the producers of renewable energy. “Global cumulative geothermal capacity is forecast to increase 7% to 16.5 GW by 2022, with Indonesia, Kenya, Turkey and the Philippines responsible for two-thirds of this growth.” IEA also reported that in Indonesia, the state-owned company PT Geo Dipa Energi (GDE) has received a USD 300-million loan from the Asian Development Bank for the 110MW expansion of the Dieng and Patuha plants, expected to be carried out during 2020 – 2023. “Beyond 2022, Indonesia, Kenya and Turkey continue to lead capacity additions, which are projected to exceed 0.8 GW per year globally on average.” “The Indonesian government recently prepared a roadmap for geothermal energy, with the goal of having 8 GW of installed capacity by 2030 (up from 2.1 GW in 2019). However, wider exploitation of the country’s considerable geothermal potential will require the resolution of a number of challenges, including low energy prices, limited local electricity demand, a lack of capital investments, and environmental and social issues.” [3]

In relation to this, the Indonesian government plans to conduct exploration and drilling in 20 geothermal areas during 2020 until 2024. Their view is to reduce development risks for future auction plans. They are also focusing on coming up with policies with the objective of providing better economic incentives to geothermal projects. If Indonesia overcomes the obstacles, they could match up with the accumulated installed capacity of the United States by 2025. In conclusion, IEA said that geothermal power is also receiving greater interest from oil companies. Most oil companies are open to opportunities to diversity their activities while capitalizing on their drilling expertise. [3] The International Energy Agency is an autonomous intergovernmental organization that is based in Paris, France. It was established in the framework of the Organization for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis. IEA is a reliable source of information and statistics about the international oil market and other energy sectors. IEA also acts as a policy adviser to its member countries and also with non-member countries like China, India and Russia. IEA’s mandate is focused on effective energy policies related with energy security, economic development and environmental protection. The Agency also promotes alternate energy sources such as renewable energy.

Reference: [1] CNN Philippines Staff (27 October 2020). CNN Philippines. “PH now allows 100% foreign ownership in largescale geothermal projects”. Retrieved from - https:// www.cnnphilippines.com/ news/2020/10/27/ renewable-energy-philippinesforeign-ownership. html?fbclid#. X5jn8RFncGQ. linkedin [2] Delbert, Caroline (22 October 2020). Popular Mechanics. “It’s Official: Solar Is the Cheapest Electricity in History”. Retrieved from - https:// www.popularmechanics.com/science/a34372005/ solar-cheapestenergy-ever/?f bclid=IwAR2SZ 1K5JZH6XHDqztP8-DfnY7X2lURKK4OCDxtSf0UFzKA59sC2XgBaLUg [3] International Energy Agency website. Retrieved from - https://www. iea.org/reports/ renewables-2020 and Geothermal abstract

ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


INDUSTRY NEWS

DOE Sets Moratorium on New Coal Power Plants

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moratorium on the endorsements of greenfield coal power plants was issued by the Department of Energy (DoE). This announcement was made while allowing foreign investors to now have full ownership of geothermal plant projects in the Philippines. DoE’s decision to stop the endorsements of coal power plants is the result of an assessment that showed the importance of focusing on a “more flexible” power supply mix. According to Energy Secretary Alfonso G. Cusi while at a virtual conference with world leaders held in Singapore, “This would help build a more sustainable power system that will be resilient in the face of structural changes in demand and will be flexible enough to accommodate the entry of new, cleaner and indigenous technological innovations.” DoE is currently updating their Philippine Energy Plan for the next 20 years. Mr Cusi mentioned that DoE is committed to accelerating the development of the Philippines’ resources while “pushing for the transition from fossil fuelbased technology utilization to cleaner energy sources to ensure more sustainable growth for the country.” [1] According to Undersecretary Felix William B. Fuentebella of DoE, the ban on endorsing new coal-fired power plants will not affect those power plants that have received endorsements in the past. He said, “We need to prepare for the influx of RE (renewable energy) under the recent policies issued by the DoE. Hence, the need for more flexibility.” [1] On note, 3,436 MV of committed coal-fired power projects in Luzon are ongoing as of August 2020. This includes the Meralco Powergen Corporation and GNPower Dinginin Ltd. Co. which is a joint venture of the Ayala and Aboitiz groups. Additionally, a 135 MW coal-run power projects in Visayas and 420 MV in Mindanao have been

AboitizPower coal plant in Toledo, Cebu.

Energy Secretary Alfonso Cusi endorsed by DoE. Overall, there are around 10,000 MV indicative coal-fired power plant projects in the Philippines which may receive government endorsements. Mr Fuentebella said these will need to be sorted out. The ban will continue until the country will require additional baseload power, according to DoE official. [1] In relation to the ban, Center of Energy, Ecology and Development (CEED) pointed out that there are still environmental concerns about the existing coal-run power plants in the

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Philippines. CEED Director Gerard C. Arances said, “That is still concerning and alarming vis-à-vis pollution, climate imperative, and costly electricity in the country.” Another important announcement made by DoE is the upcoming open bidding round of renewable energy service contracts that will now allow foreign companies to own large-scale geothermal projects. This includes exploration, development and utilization. Last 20 October 2020, DoE released a circular providing the guidelines for the third Open and Competitive Selection Process (OCSP3) in the awarding of renewable project contracts. Cusi said, “From an investment perspective, OCSP3 allows for 100% foreign ownership in largescale geothermal exploration, development and utilization projects.” DoE clarified that big geothermal projects are those with an initial investment cost of about $50 million and are under Financial and Technical Assistance Agreements, signed and approved by the Philippine President. — Marcelle P. Villegas

Reference: [[1] Ang, Adam J. (27 October 2020). Business World. “DoE bans new coal-run power plants”. Retrieved from - https://www. bworldonline.com/ doe-bans-newcoal-run-powerplants/

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MINING NEWS

Nickel in Plants and the Potential of Phytomining (Part 2) By Marcelle P. Villegas

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reviously, in Part One of our featured story, we shared the findings of a group in Indonesia that studied rare plants that absorb high concentration of nickel. The group published their study in May 2020 where they identified the species of rare, nickel-loving “super plants” in Sulawesi. What is the significance of their study in nickel mining? Is phytomining a viable method of nickel mining? For the past years, Dr Antony van der Ent and his colleagues researched about phytomining of nickel hyper-accumulator plants. These are “super plants” that can accumulate at least 1000 micrograms of nickel per 1g of dried leaf. In nature, most plants need a little bit of heavy metals to activate some essential enzymes in their flower process. However, too much of these metals can kill most plants. Therefore, most hyperaccumulator plants are rare due to their ability to survive despite absorbing high amounts of metals. Nickel is stored in their shoots, leaves, roots, and sap. “If the nickel within these rare plants could be tapped, it would provide a sustainable source of nickel for use in electric vehicle batteries,” said, Dr van der Ent. Dr van der Ent is a

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plant ecophysiologist and biogeochemist from University of Queensland who does research on biopathways of trace elements in soil and plant systems. “I have a specific interest in the application of phytotechnologies that utilize hyperaccumulator plants. My research bridges systematics, ecology and physiology of plants and is highly collaborative in nature.” [1] In 2004, Aiyen Tjoa from Tadulako University in Central Sulawesi searched for these plants in Sorowako. Sorowako is known for its rich biodiversity of rare plants but the area was cleared of its green landscape to make way for one of the largest nickel mining sites in the world. There were, however, some bushes and trees that survived the clearing of the forest. She studied these plants to understand how “super plants” are able to withstand such harsh nickel-rich soil, while it is toxic for other organisms. She notes that if these plants can be “mined” as well, then this could be a new method of gathering nickel without destroying the ecosystem. Tjoa found two species of nickel hyper-accumulators in 2008. These are Sarcotheca celebica and Knema matanensis which could store between 1,000 and 5,000 micrograms of nickel

per 1g of dried leaf. “We’re looking for plants that could accumulate at least 10,000 micrograms [per gram]. At that threshold, it becomes economically viable to cultivate the plant for mineral extraction – or ‘phytomining’”. Dr. van der Ent established two methods in detecting hyper-accumulator plants. First is through the use of detection paper. He reported that if a plant has nickel content, the white detection paper turns pink when leaves are pressed against it. [2] Another detection method he uses is via a hand-held device that emits x-ray beams at the plant sample. Plants that are positive for nickel content reacts by emitting a specific amount of energy that is characteristic of nickel atoms. [2] A third technique is by using magnetism, as developed by researcher Professor Satria Bijaksana from Bandung Institute of Technology. This technique is faster and saved time because it only detects high concentrations of nickel. Using this method, Tjoa and Dr. van der Ent were able to conduct a successful experiment on 10 indigenous plants in Sulawesi and Halmahera in comparison with two hyperaccumulators (Alyssum murale and Alyssum corsicum). Findings show one of the native plants was high in both iron and nickel.

Rare plants that naturally accumulate large quantities of nickel are believed to be hiding in Indonesia’s forests. (Photo credit: Dr. Antony van der Ent, University of Queensland)

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MINING NEWS

< Page 20 The group published their study in May 2020 where they identified two further species of nickel-loving plants in Sulawesi. Of note, they discovered that the plant species Casearia halmaherensis and another that was a type of pepper, have the ability to accumulate 2,6002,900 micrograms in 1g of dried leaf. Is phytomining a new way to mine? “The beauty of nickel hyperaccumulators is that they collect something that is both a toxic pollutant if left in the soil, and a valuable material – nickel is used in making products from kitchen taps to electric car batteries. Collecting the nickel from plants is a relatively easy process,” writes science journalist, Dyna Rochmyaningsih, who published the article “The rare plants that ‘bleed’ nickel”, for “Future Planet” of the BBC website. [2] Among the various “super plants” that the three researchers found, Dr van der Ent has calculated that the plant species Phyllanthus balgooyi can produce an estimate of 120kg of nickel per hectare every year. That is equivalent to a market value of around $1,754 per hectare. [2] How is nickel extracted from the plant? The shoots will be pruned, and then burned. Nickel can be separated from the ash. The shoots of a plant have the highest concentrations of nickel. Burning is necessary to release carbon dioxide. According to Rochmyaningsih’s report, phytomining has considerable environmental advantages compared with traditional forms of mining. “In Sorowako, nickel is extracted through openpit mining, to access nickel embedded inside laterite rocks. To get the nickel, the rocks need to be crushed, which can release radioactive elements, naturally occurring asbestos-like substances, and metallic dust. Open-pit mining also produces waste materials in the form of a toxic semi-liquid waste known as tailings. If not responsibly managed, arsenic and mercuryladen tailings can leak into the surrounding environment. More broadly, traditional mining as a whole is a considerable carbon

emitter, releasing at least 10% of greenhouse emissions in 2017.” [2] Nickel hyper-accumulators are also a choice of plant type to use for revegetation of mined out land areas. Tjoa says that in most mining companies in Indonesia, they often use ordinary plants rather than nickel-loving species. Dr van der Ent said that nickel hyper-accumulators could do a better job in revegetation because they improve soil health by removing nickel and bringing back the major nutrients needed by normal plants. It could also give an economic benefit for the mining company because the nickel residue that has been accumulated in the plant’s shoots could be harvested. Dr van der Ent has been conducting phytomining field trials in Sabah, Malaysia since 2014. “We found out that phytomining really works.” This can be applied in soils that have not been mined but have naturally have high levels of nickel. However, Dr van der Ent points out that the technology of phytomining is not aimed at replacing open-pit mining. Instead, phytomining could be done in parallel. He said that it can be an alternative form of agriculture in rural communities living on nickel-rich areas. [2] Although phytomining has a good potential and viability, Tjoa said that there is a slow pace of development of phytomining in Indonesia as no one seems to pay attention to this potential. “The firm PT Inco once supported her research on phytomining when she did a field trial on the adaptation of Alyssum murale in Sorowako. But the collaboration

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was terminated partly because the company was restructuring,” according to the BBC article. There was no collaboration since then. [2] The irony is, “No other country has a greater potential for phytomining than Indonesia,” said Dr van der Ent. With the extraordinary plant diversity and geological history, he believes that the Indonesia has a great potential for the discovery of nickel hyper-accumulators. Between 1990 and 2018, Sulawesi lost nearly 19% of its forest cover. Tjoa said, “We have lost such a big chance to find these plants.” On the bright side of the story, in central Sulawesi, “a pristine rainforest sits on nickel-rich soils that make up the mountainous region in Morowali natural reserve.” The soil is greyish and forms above a bedrock called serpentinite. Most likely, it is a perfect place to find nickel-loving plants. Also, a foreign mining company showed their interest in phytomining studies and experiment, according to Tjoa. She was in touch with a US-based investor in 2017 who wanted to fund her 5,000-hectare trial in Sulawesi. She plans to use Alyssum murale for the project. This is a nickelhyperaccumulator from Italy. She said that maybe if we can prove that phytomining works, then perhaps the Indonesian government will finally be convinced about it. From their study, we find that using plants instead of heavy machinery to mine would create less waste, preserve the ecosystem, and produce less toxic waste.

Indonesia is a good place to look for plants that are nickel hyper-accumulators. Their forests are rich in biodiversity and the soil is rich in nickel. (Photo credit: Dr. Antony van der Ent)

Reference: [1] https://www. researchgate.net/ profile/Antony_Ent [2] Rochmyaningsih, Dyna (26 August 2020). “The rare plants that ‘bleed’ nickel”. Future Planet, BBC. Retrieved from https://www. bbc.com/future/ article/20200825indonesia-theplants-that-minepoisonous-metals Photo credit: 1. Antony van der Ent - https:// smi.uq.edu.au/profile/1400/antonyvan-der-ent 2. https://www. bbc.com/future/ article/20200825indonesia-theplants-that-minepoisonous-metals

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INDUSTRY NEWS

In Asean Meet, Duterte Defends PH Claim in South China Sea By Marcelle P. Villegas

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resident Rodrigo R. Duterte attended a virtual summit of world leaders in November to discuss the COVID-19 pandemic, South China Sea dispute, trade, and other issues. The virtual event is the plenary session of the 37th Association of Southeast Asian Nations (ASEAN) Summit and Related Summits hosted by the Socialist Republic of Vietnam that will last until November 25. On his speech, he asserted the Philippines’s arbitral win and emphasised the legal victory is now part of “international law”. [1] He said, “The Philippine position is clear and firm. We must solve the disputes peacefully and in accordance with international law, including UNCLOS (United Nations Convention on the Law of the Sea).” “The 2016 arbitral award on the South China Sea is an authoritative interpretation of the application of UNCLOS. It is now part of international law. And its significance cannot be diminished nor ignored by any country, however big and powerful.” President Duterte also emphasised the need to fast-track a “Code of Conduct” in the South China Sea in order to promote peace and stability in the busy waterway. “The Philippines is one with ASEAN in transforming the South China Sea into a sea of peace and prosperity for all. We are committed to the immediate conclusion of a substantive and effective Code of Conduct in the South China Sea. And if I may add, it has been a long

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time and it is a long wait,” he said. Since President Duterte assumed office in 2016, he addressed the maritime issue with China through a non-adversarial approach. China has an important role in the President’s “Build, Build, Build” infrastructure program as they had been providing financial assistance to several major infrastructure projects in the Philippines such as bridges and railways. How did the South China Sea dispute start? Why is the Philippines involved in this conflict with China? On 7 May 2009 when China submitted the Nine-dashed Lines Map to the United Nations. Their map claims large areas of the Exclusive Economic Zone (EEZ) and Extended Continental Shelf (ECS) of the Philippines, Vietnam, Malaysia, Brunei, and Indonesia. On the map, China is claiming 85.7% of the entire South China Sea. Their claim covers 3 million square kilometers out of the 3.5 million square kilometers surface area of the South China Sea. Since China did not provide any legal basis for the dashes, and the dashes also had no fixed coordinates, Philippines, Malaysia, Vietnam and Indonesia protested against China’s claim. The Philippines is greatly affected by the Nine-dashed Lines Map because the Philippines loses about 80% of the its EEZ facing the West Philippine Sea. This includes the entire Reed Bank and part of the Malampaya gas field. That is around 381,000 square kilometers of loss in maritime space, and 100% of the Philippines’ ECS which covers an estimate of 150,000 square kilometers of maritime space. Therefore, in January 2013,

the Philippines formally initiated arbitration proceedings against China’s claim on the territories within the Nine-dashed Lines that includes the Scarborough Shoal. Then, Justice Antonio T. Carpio, former Senior Associate Justice of Republic of the Philippines Supreme Court, defended the Philippines’ right of ownership of the little islands within our territory to the international Arbitral Tribunal. He pointed out our legal rights through legitimate historical records. It was on 12 July 2016 when the Philippines won the arbitration case it filed against China after the Permanent Court of Arbitration in The Hague, Netherlands. The verdict invalidated Beijing’s Ninedashed Lines Map claim on South China Sea. In response, China refused to accept and acknowledge the arbitral ruling. South China Sea is significant not only to Asian countries but also to the world. Each year, US$5.3 trillion ship-borne goods travel through South China Sea. This number is almost one-half of the world’s shipborne trade in tonnage. Additionally, a great percentage of the petroleum imports of South Korea, Japan, Taiwan, and China pass through the South China Sea. There are also 2 billion people who live in the 10 countries bordering the South China Sea where hundreds of millions of people depend on fish there for their protein. Lastly, the maritime area that are close to the coast of the countries bordering the South China Sea are rich in oil and gas resources. South China Sea is rich in methane hydrate – a potential source of energy. ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


CONSTRUCTION NEWS

Right-of-Way Ordinance for Makati Intra-City Subway Project Passed

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ast 21 October 2020, Makati City government passed and approved an ordinance authorizing the acquisition of right of way covering the underground portions of nine roads that are affected by Makati City government’s subway project. As per Ordinance No. 2020204, the roads that will be affected by the project are: Sen. Gil Puyat Avenue, South Avenue, J.P. Rizal Avenue, J.P. Rizal Extension, Pablo Ocampo St. Extension (Vito Cruz Extension), Kalayaan Avenue, EDSA (Epifanio de los Santos Avenue), C-5 Road (a.k.a. Carlos P. Garcia Avenue), and San Guillermo Avenue. The city ordinance mentions of subsurface right of way need to be acquired for the “staging, construction, operation, maintenance and development of the Makati Subway Project.” The nine roads mentioned above are in the road and bridge inventory of the Department of Public Works and Highways (DPWH). Therefore, they fall under the jurisdiction of the department. “Considering the importance of acquiring the easement of the right of way of the subject roads for the benefit of the citizens of Makati, the City Government of Makati is constrained to acquire, through voluntary agreement or expropriation proceedings, an easement of right of way of the subject roads.” [1] Section 19 of the Republic Act No. 7160 or Local Government Code of 1991 stated the authorizing of expropriations if needed. The City of Makati has entered into negotiations with and made a “valid and definite offer” to the DPWH for the acquisition of right of way. Philippine Infradev is building a subway that is worth $3.5 billion that shall traverse the central business district of Makati City. There will be 10 stations across the 10-kilometer line. Last September, Philippine Infradev signed a $1.21-billion contract that covers engineering, procurement and construction with China Construction Second Engineering Bureau Co. Ltd. For

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the subway project. The subway project is expected to accommodate 700,000 passengers daily in order to reduce the traffic congestion in the city. They are targeting the subway’s completion in 2025. [1] About the Makati Subway Project The Makati Intra-city Subway is a planned underground rapid transit line in the City of Makati that spans out to 11 kilometers or 6.8 miles. This is designed to link establishments across Makati’s business district. The project is a partnership between the Makati City Government and a private consortium led by Philippine Infradev Holdings. The subway line’s stations will be connecting the existing Line 3 (Guadalupe Station), the Pasig River Ferry Service, and the approved Line 9 (Metro Manila Subway). It was on 12 December 2018 when the preparatory work was commenced. On the same day, a ceremonial drilling took place in front of the Makati City Hall. The Makati City Hall is near the site of one of the proposed stations of the subway. On this day, the signing of the memorandum of understanding also took place. The memorandum was signed by Makati City Government and a consortium consisting of Philippine Infradev and Chinese firms Greenland Holdings Group, Jiangsu Provincial Construction Group Company Ltd., Holdings Ltd. and China Harbour Engineering Company Ltd. Soil testing and feasibility studies of the proposed locations for the subway line’s stations were done as part of the preparatory work. By June 2019, 8 out of the 10 proposed stations have been finalized. The two proposed stations along Ayala Avenue

are yet to be finalized due to “non-response” from its owners. The proponents said that they may divert the subway towards PNR Buendia Station or the Mile Long property in Legaspi Village instead. For now, the first station will be located at the Makati Central Fire Station. The fire station will be demolished. From there, the line goes towards a Lucia Tan owned property near Circuit Makati and Makati City Hall.

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CONSTRUCTION NEWS

President Declares Sept. 8 as National Green Building Day

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resident Rodrigo R. Duterte signed Proclamation 1030 last 21 October 2020 declaring September 8 of every year as the “National Green Building Day”. This is a step to strengthen the promotion and establishment of energyefficient and green buildings in the Philippines. Malacañang Palace released a copy of the proclamation last October 28. [1] The proclamation was signed to recognize the need to provide opportunities to encourage cooperation between the public and private sectors in advancing the government’s commitment in protecting the environment. [2] The proclamation read, “The Department of Public Works and Highways, in coordination with relevant non-government organizations and civil society groups, shall promote the observance of the National Green Building Day and identify the programs, projects, and activities for the yearly celebration thereof.” In addition, all other agencies

and instrumentalities of the national government, including governmentowned or controlled corporations and state universities and colleges, all local government units, and private sector were encouraged to support the DPWH in celebrating and implementing the National Green Building Day. “It is imperative to intensify existing initiatives to promote and raise awareness on the efficient and equitable use of resources, proper water and waste management, and integration of eco-friendly processes and systems, among others,” it read on the proclamation. [2] On the Sec. 16, Article II of the Constitution, it is written that the State shall protect and advance the right of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature. DPWH adopted the Philippine Green Building Code (GB) through the passage of National Building Code Development Office Memo-

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randum Circular 1. The memorandum defines the framework of standards that are intended to lower the carbon emissions from buildings and to promote the health and well-being of the people in the building. The GB Code is a set of regulations setting minimum standards for compliance. It is, however, not to be used as a guide to rate buildings. Based on the GB Code, buildings are subject to the performance standards of energy efficiency, water efficiency, material sustainability, solid waste management, site sustainability, and indoor environment quality. “Green building is the practice of adopting measures that promote resource management efficiency and site sustainability while minimizing the negative impact of buildings on human health and the environment. This practice complements the conventional building design concerns of economy, durability, serviceability and comfort.” [2] — Marcelle P. Villegas

Reference: [1] Esguerra, Darryl John (28 October 2020). Philippine Daily Inquirer. “Palace declares Sept. 8 National Green Building Day”. Retrieved from - https:// newsinfo.inquirer. net/1353440/palace-declares-sept8-national-greenbuilding-day [2] Parrocha, Azer (28 October 2020). Philippine News Agency. “Duterte declares Sept. 8 as National Green Building Day”. Retrieved from - https:// www.pna.gov.ph/ articles/1119942

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FEATURES

By Dr. Carrianne Ewe

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he Philippines is approaching its eighth month into the COVID-19 lockdown that began in March. While it feels that we have made it through the more restrictive Enhanced Community Quarantine (ECQ) to General Community Quarantine (GCQ), it is important to note that this ‘unseen enemy’ is likely to be around for some time. We have adapted to our situation by the wearing of masks and face shields, limiting social gatherings and finding creative ways to connect with others in order to keep safe during this time. It is important to acknowledge that others may be finding this part of the pandemic much harder than the initial stages and may be experiencing “pandemic fatigue”. Pandemic fatigue, as defined by the World Health Organisation (WHO), is a natural expected reaction to sustained and unresolved adversity in people’s lives. It expresses itself as demotivation to engage in protective behaviours and to seek out information, as well as in feelings of complacency, alienation and hopelessness. The institution argues that this evolves gradually over time and is affected by the cultural, social, structural and legislative environment. The uncertainty of how long the pandemic will last and the struggle to remain resilient is a common sentiment experienced by many at this time. “Pandemic fatigue” can affect one’s mental health and motivation to adhere to protective measures and increase risky behaviours. Supporting the workforce’s mental health and wellbeing has been a key concern

< Page 24 The remaining stations will be located near Rockwell Center, Makati Bliss Housing in Guadalupe, Century City, University of Makati, Cembo and the final station will be near Ospital ng Makati. In July 2019, soil testing related with the subway project was completed. Philippine Infradev and the Makati City Government signed a joint venture agreement for the subway project. By October 2019, the plan to move the terminus of the line

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How to Overcome ‘Pandemic Fatigue’

for many employers in addition to the response to this public health crisis. It is widely acknowledged that an employee’s job performance and productivity can be severely affected by health issues and impact an organizations’ business resilience.

Occupational Psychologist, Dr. Rachael Lewis from Birkbeck University, London has observed that while many countries have passed the “peak” of the pandemic, people have not recovered from the “pain” of the whole experience.

She shared that many employees at this time may be experiencing higher levels of irritation and frustration with others than during the initial lockdown period. In the Philippines, while the “peak” of the pandemic is yet to be determined, many employees can relate to these heightened emotions and behavioural changes. Employees had to adapt quickly to a new environment, shifting gears to work from home where communications and logistics infrastructure are not always conducive to productivity. Those who reported to work had to navigate a very limited transportation

to the Mile Long property has been finalized. The area is being redeveloped by the national government along Amorsolo Street. The soil test results were favourable and the route diversion meant that the cost of the project might be reduced to as low as $2.5 billion. Moreover, a joint venture with Megaworld Corp. was made to build a common station in Guadalupe for the subway system and for the planned SkyTrain. Based on a disclosure to the stock exchange, the Philippine Infradev’s subsidiary, Makati City

Subway Inc. (MCSI) received the term sheet from Megaworld Corp. This joint venture will build access to the Line 3 Guadalupe Station and the Pasig River Ferry. Philippine Infradev has an agreement with China Construction First Group Corp. Ltd. (CCFG) to build a transit-oriented development. Based on this agreement, CCFG is responsible for the construction, materials, manpower, equipment and other requirements to complete the project. The construction is expected to last for 42 months. [2] — Marcelle P. Villegas

Addressing “pandemic fatigue”

Photo by Engin Akyurt on Unsplash

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Reference: [1] Balinbin, Arjay L (25 October 2020). Business World. “Makati passes rightof-way ordinance for subway project”. Retrieved from - https:// www.bworldonline. com/makati-passesright-of-way-ordinance-for-subwayproject/ [2] https:// en.wikipedia.org/ wiki/Makati_Intracity_Subway

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FEATURES

< Page 26 network at exorbitant prices, further adding to the stress of the situation. The Philippines National Center for Mental Health (NCMH) revealed a significant increase in monthly hotline calls regarding depression. Numbers rose from 80 calls pre-lockdown to nearly 400 calls as documented in an article by the WHO. Many are also worried about losing their jobs due to employee layoffs, pay cuts and closure of businesses. Employers have had to step up efforts in an unprecedented manner to support the workforce in a holistic manner. It is critical for business leaders and employees to adopt a shared responsibility to address these challenges and ensure that the workforce stays flexible and resilient through the pandemic and beyond. Facing the challenges of “pandemic fatigue” and building workforce resilience Organisations who value their employees need to build a holistic workforce resilience programme where an employee’s health, safety and wellbeing are prioritised. International SOS has been working closely with clients throughout the year from the Taal Volcano eruption to the current COVID-19 pandemic. We have provided holistic workforce resilience solutions with tailored advice for the safe return to operations, navigation of the complex COVID-19 testing environment and mental health & wellness programmes. We have developed a range of tools like the COVID-19 website which is accessible to the public. Our International SOS Assistance App provides clients with the latest health and security situ-

ational updates in each country and is available round the clock. Our Medical & Security Directors have led webinars on practical measures and organizational best practices to tackle the ever-evolving challenges faced in this pandemic. During the early stages of lockdown, we supported an international offshore client to ensure that their 26 employees based in the Philippines were fit to work and COVID-free before embarking on a vessel. Our Manila Assistance Centre coordinated the polymerase chain reaction (PCR) testing and medical support with a dedicated medic to ensure 24-hour care and attention to the crew. Counselling and medical direction was provided when 7 crew members tested positive. They were fully supported until local health authorities were able to advise next steps. Clients in the high tech and financial industries have been helped to implement sustainable, medically led support systems for their entire workforce. This involved providing managers with regular situation updates, employee webinars on health topics and proactive outreach to employees of concern, especially those in quarantine or unwell at home. “Pandemic fatigue” caused by various concerns affecting our personal and professional lives can be overcome with the right support structure in place. It is more important than ever before to acknowledge that successful business continuity is enabled by a healthy and resilient workforce. Organisations are increasingly seeing the value of implementing a holistic workforce resilience programme that provides access to 24/7 health, safety and psychological support. This contributes to the stability and resilience of employees in these dynamic times, enabling them to remain productive and creative.

1. Accepting negative emotions Being honest about pent-up emotions like anxiety and uncertainty opens one up to find ways to address these reactions effectively. 2. Creating new goals Setting achievable and enjoyable personal goals such as exercise or learning a new skill can give a positive sense of accomplishment. 3. Conserving emotional resources Employees should take time out from work to prioritise self-care. Small breaks even if just to relax at home or spend time with loved ones is beneficial. Managers need to lead by example and encourage a delineation of on and off duty schedules. 4. Being kind to themselves Employees should recognise that it is okay to have both good and bad days. Instead of focusing on the negatives, acknowledge and celebrate achievements. 5. Asking for help Almost everyone has experienced some level of stress during this period. Seek support from mental health professionals via the Employee Assistance Programme (EAP) or clinic and recognize the benefits of reaching out early before burning out.

About the International SOS Group of Companies

About the author Dr Carrianne Ewe is the Medical Director of International SOS Philippines where she oversees Medical Services and Health Consulting projects. She works closely with the Manila Assistance Centre to address the medical concerns of clients and their employees as they navigate the complex COVID-19 environment.

Simple steps to address pandemic fatigue

The International SOS Group of Companies is in the business of saving lives, protecting your global workforce from health and security threats. Wherever you are, we deliver customised health, security risk management and wellbeing solutions to fuel your growth and productivity. In the event of extreme weather, an epidemic or a security incident, we provide an immediate response providing peace of mind. Our innovative technology and medical and security expertise focus on prevention, offering real-time, actionable insights and on-the-ground quality delivery. We help you meet compliance reporting needs for good governance.

WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2020

By partnering with us, organisations can fulfil their Duty of Care responsibilities, while empowering business resilience, continuity and sustainability. Founded in 1985, the International SOS Group is trusted by 12,000 organisations, including most of the Fortune Global 500, multi-national corporate clients and midsize enterprises, governments, educational institutions, and NGOs. 10,000 multicultural medical, security and logistics experts stand with you to provide support & assistance from over 1,000 locations in 85 countries, 24/7, 365 days. To protect your workforce, we are at your fingertips: www.internationalsos. com.

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INDUSTRY NEWS

Eleven Filipino Scientists Listed in Asia’s Top 100 List By Marcelle P. Villegas

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his year, eleven Filipino scientists were included in the Asian Scientist Magazine 100 list for most outstanding researchers and scientists. The list pays tribute to the best and brightest in Asia in the field of science, technology, engineering and mathematics. Asian Scientist Magazine is an award-wining, Singapore-based magazine about science and technology. It features the latest research and development news stories in Asia. Their online and print publication is managed by a team of professional science journalists, with contributors from industry and academic background. [1] Department of Science and Technology (DOST) Secretary, Fortunato de la Peña said, “I am proud. Eleven out of 100 among so many Asian countries is a sizable share.” He notes that two of the those listed are heads of DOST agencies, namely; Dr Carlo Arcilla of Philippine Nuclear Research Institute (PNRI) and Engr. Robert Dizon of Metals Industry Research and Development Center (MIRDC). [2] According to Asian Scientist Magazine, “Arcilla received the Gregorio Y. Zara Awards for Basic Research in 2019 for his contributions in resolving sensitive issue on mineral resource development, water management and developing peaceful application of nuclear energy in the Philippines.” [1] A report from Philippine News Agency mentioned, “Dr Arcilla has been encouraging the use of nuclear power in the energy mix, saying this could also help lower one’s electricity bill.” [2] The Gregorio Y. Zara Award was established by the family of National Scientist Gregorio Y. Zara and the Philippine Association for the Advancement of Science in 1968 to honour the most outstanding national scientists of the Philippines. Ever since, the award already recognized 70

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Filipino scientists and researchers. National Scientist Dr. Emil Q. Javier is also included in the list. Dr. Javier was Minister of Science from 1981 - 1986 when DOST was still called the National Science and Technology Authority. He is the 42nd National Scientist of the Philippines and one of the only 11 distinguished awardees living today. Just last year on 7 January 2019, President Rodrigo R. Duterte conferred the Order of National Scientist on Dr. Javier at the Malacañang Palace. The Order of National Scientist is the highest honour that the Philippine Government can bestow on the Filipino scientist for his/her outstanding contribution to fields of science and technology. [3] Academician Dr. Javier was recognized by the Philippine Government for his remarkable studies and writings about the application of biotechnology in agriculture for the alleviation of poverty. He is notable for his significant contribution to the plant breeding research. He is the founder of the Institute of Plant Breeding (IPB) in University of the Philippines Los Baños in 1975 where their research is about produced high-yielding crops and disease-resistant varieties. On the molecular microbiology for medical application, scientist Raul Destura of the National Institutes of Health in University of the Philippines Manila is also included in the list. In 2019, he was awarded the Presidential Lingkod Bayan Award for his exceptional work in the development of the Biotek-M dengue aquakit for fast and affordable dengue diagnosis. Currently, Destura is also the lead researcher in the locally developed diagnostic kit that aims to detect COVID-19. Two other achievers are from University of the Philippines, namely Alonzo Gabriel and Cleotilde Hidalgo-How. Gabriel is a researcher on microbial stress adaptation on food safety and quality. Hidalgo-How is recognized for her work in the understand-

ing, management and diagnosis of tuberculosis in children and adolescents. From De La Salle University (DLSU), Raymond Tan and Susan Gallardo were recognized in the list. Last year, Tan is a recipient of the Gregorio Y. Zara Award for Advanced Research for his contribution in the development of novel computational techniques for the design and sustainable industrial systems. For Engineering Research, Gallardo was awarded the David M. Consunji Award for her work about environmental engineering and catalysis and industrial and hazardous waste

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COMPANY NEWS

NAC-Cagdianao Mining Corp.: Helping Communities Rise from the Covid-19 Pandemic By Sarah Mae M. Palacio

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s the world is facing a historic crisis brought by the coronavirus disease (COVID-19), the economic impacts of the pandemic is felt around the world—especially among far-flung communities that have limited access to government services. In Dinagat Islands, Cagdianao Mining Corporation—a subsidiary company of Nickel Asia Corporation—is stepping up the plate to respond to the needs not only of its host and neighboring communities but around the island-province as well. Notably, NACCMC sprang into action even before the pandemic was declared in mid-March. Here are some of the activities, programs, and projects initiated by the company since January this year. January After health authorities announced the first infection in the country in late January, NAC-CMC rolled up its sleeves and conducted a series of

< Page 28 treatment and management. From University of Santo Tomas, academe Alicia Aguinaldo made it in the list. She was awarded the Philippine Federation of Chemistry Societies Shimadzu Achievement Award for Chemical Research for her research on Philippine plants that have anti-tuberculosis and anti-diabetic properties. Another academe, Emma Sales from the University of Southern Mindanao was given recognition for her work in establishing the first tissue culture and biotechnology laboratory in Soccsksargen (Region XII) for developing diagnostic tools for the identification Reference: [1] Asian Scientist Magazine. Retrieved from - https://www. asianscientist.com/about/ and https://www.asianscientist. com/scientist/carlo-arcilla/ [2] Arayata, Maria Christina (10 October 2020). Philippine News Agency. “11 Filipinos among Asia’s

information and education campaign to equip our communities with vital knowledge on how to prevent themselves from being infected with the virus. Through the guidance from reliable authorities such as the World Health Organization and the Department of Health, the company taught community stakeholders basic health protocols to avoid catching the virus, such as proper hand washing, basic étiquette when sneezing and coughing, and social distancing. The company also prohibited the selling of goods to the foreign vessels that were coming in as a precaution. February Just as when the public was only beginning to understand the severity of the virus, NAC-CMC already formulated strategies and precautionary measures to prevent the entry of COVID-19 in its mine site. This proactive thinking has earned praises from no less than Dr. Jillian Francis Lee, the Provincial Health Officer, who praised the company for immediately instituting wide-ranging health protocols against Covid-19 across its operations. NAC-CMC was one of the first companies to comply with the health protocols mandated by the Bureau of Quarantine, MARINA, the

of durian fruit, rubber and mango varieties. The list also cited Joselito Chavez of the National Kidney and Transplant Institute. He is a recipient of the 2019 Presidential Lingkod Bayan Award. His work is about the extracorporeal membrane oxygenation in severe leptospirosis. In 2019, eight Filipinos were included in the Asian Scientist 100 list. Among them was Gay Jane Perez for Environmental Sciences and Geology. [4] She is an assistant professor at the Institute of Environmental Science and Meteorology at the University of the Philippines. Since 2012, she is the President of the Geosciences and

Remote Sensing Society. In 2018, USAID-Philippines recognized her as the Philippine representative as one of the finalists for ASEAN-US Science Prize for Women. This was for her work on precision agriculture for improved yields by using remote sensing and satellite data. Asian Scientist Magazine is published by Wildtype Media Group Pte Ltd. The company is a digital-focused media business for Science, Technology, Engineering, and Mathematics (STEM). Wildtype Media Group Pte Ltd. is also the publisher of Supercomputing Asia, a print magazine about the high-performance computing sector. [1]

top 100 scientists”. Retrieved from - https://www.pna.gov.ph/ articles/1118115

press-releases/475-malacanangconfers-the-order-of-nationalscientist-on-dr-emil-q-javier

[3] National Academy of Science and Technology website. “Malacañang confers the Order of National Scientist on Dr. Emil Q. Javier”. Retrieved from - https:// www.nast.ph/index.php/13-news-

[4] (7 May 2019). The Good News Pilipinas Team. “8 Filipino Scientists Among Asia’s Best”. Retrieved from - https://www. goodnewspilipinas.com/8-filipinoscientists-among-asias-best/

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COMPANY NEWS

< Page 29 Philippine Port Agency, and the Department of Health. March When the first local transmission was detected in the country, quarantine restrictions became more severe, impacting businesses and causing job losses and economic displacements especially among the poor. Local governments implemented drastic movement restrictions and lockdowns to respond to the rising number of Covid-19 cases. The province of Dinagat Islands was not an exemption, ordering the stoppage of operations and banning of entry of foreign vessels into the mining sites. NAC-CMC was not spared, and the jobs of its nearly 2,000 employees were on the line. Community-assisted livelihood groups were also in danger of losing muchneeded financial support. However, NAC-CMC’s foresight and proactive health measures that were put in place early on have paid off. Seeing its commitment to prevent the entry of the virus and its desire to help communities and assist the local and provincial governments fight the virus, the Provincial Government gave the green light for the company to continue its mining operations. At this point, the company further intensified its Covid-19 containment measures by installing care and containment centers in its mine site while putting in place systems and procedures to ensure that its employees, contractors, and its communities are protected. For instance, incoming stevedores and employees were required to undergo a 14-day quarantine, supervised by the company’s owned physician and health personnel. Impressed by its readiness and forward-thinking initiatives, Governor Arlene “Kaka” Bag-ao personally visited the company’s containment center together with the Provincial Inter-Agency Task Force (IATF) to certify the company’s capability in handling the Persons Under Monitoring (PUM). She also praised implementation of Ship loading protocols on the prevention of the spread of virus. At this time, NAC-CMC is on full-throttle rallying the people to further ensure that the company and the community are protected from Covid-19. No less than Dr. Alvin Pura, the company physician with Engr. Arnilo C. Milaor, the Resident Mine Manager, led the series of information and education drive among residents and village officials in host and neighboring communities as well as the employees to ensure that all the health measures in place are complied with at all times. Engr. Milaor and Dr. Pura also reassured all stakeholders that company will continue helping boost the Covid-19 response of both the local and provincial governments. April A major part of the company’s response efforts focused on providing its communities the basic necessities, amid the lockdown and restriction movements that made it difficult for people to access food and other essential services. To strengthen its Covid-19 response, NAC-CMC turned over a Heavy-Duty Isuzu Truck worth Php1.5 million to the Municipality of Cagdianao. The truck improved the town’s mobility in responding to crisis situations, and aided it greatly in its relief operations. Mayor Adolfo E. Longos said “the service truck is very useful especially that the local government unit has

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many programs and activities to combat COVID-19, particularly in the distribution of relief goods to the 14 barangays of Cagdianao and serves as service vehicle during emergency cases.” In the following week, the company also handed over a Service Ambulance to the Municipality to address emergency cases at a time of the pandemic. June Data from the Mines and Geosciences BureauCaraga, CMC has disbursed over Php3 million from its Social Development and Management Program or SDMP and Php1.3 million from its Corporate Social Responsibility. Most of these funds went to food supplies such as rice, bangus, canned goods for host and neighboring communities, personal protective equipment to the medical front-liners, survival garden kits to 1,300 households that included short-term seeds. A special project for the province was also donated by NAC-CMC for the “Katre-Karpintero” program of Governor Kaka consisting of 150 beds intended for all the seven municipalities in the province. The project also benefited carpenters and construction workers from various municipalities who were tapped to work for the project. More notably, NAC-CMC also donated Php1 million for the construction of a Molecular Testing Laboratory (MTL) in Surigao del Norte to boost the province’s detection capability. The other companies involved in the project are NAC sister-company Taganito Mining Corporation, and the Taganito HPAL Nickel Corporation. July – Present NAC-CMC’s commitment to assist its communities in all fronts continues to this day. The company continues provide both the province and local governments the necessary assistance to combat Covid-19 through the provision of rapid test kits, PPEs, hand washing devices, and medicines. It has also provided regular supplies of rice and other necessities to the provincial care and containment centers, helping farmers and local suppliers in the process. As of October, CMC has spent Php6,354,020 from its Social Development and Management Program (Php4,516,141.04) and Corporate Social Responsibility (Php1,837,879.16). These and all efforts that began even before the pandemic have greatly resulted in NAC-CMC maintaining its status as a Covid-free mine site, while helping barangay, municipal, and provincial governments in their pandemic response. The company commits to sustain these initiatives as long as the situation requires, in keeping with its mission to make mining an important partner in community development—especially in times of crises. “CMC is in unity with the LGU of the Province and the National government down to Local Interagency task force (IATF) in the prevention of spread of COVID-19 in its workplace and the community where we operate. CMC successfully implemented its 3 level infectious disease prevention by strict adherence to 14-day quarantine of the foreign vessels, acquisition of entry permit issued by PDI and health inspection of CMC medical staff of all vessel’s crew. For the protection of our host and neighboring communities, we provide necessary assistance such provision of sanitation kits, regular IEC, house to house health inspection and sanitation, among others.” Engr. Milaor assured. ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


INDUSTRY NEWS

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Test Runs at Max Speed, Other Developments for MRT-3

RT-3 or the Metro Rail Transit Line 3 conducted test runs on its first newly overhauled train. The train was tested to run at a maximum speed of 50 kph. According to Department of Transportation Assistant Secretary Goddes Hope Libiran, the train is composed of three cars which was overhauled by SumitomoMitsubishi Heavy Industries. The company is maintenance provider of MRT-3. The test run was documented in a video blog of DOTr. Libiran said, “As part of the massive rehab and maintenance of Sumitomo from Japan, we can now overhaul train cars that have been long neglected and now, we are repairing them under the Duterte administration.” According to MRT-3 Director for Operations Michael Capati, aside from the three newly over-

hauled train cars, the MRT-3 also plans to overhaul the remaining 72 cars by July 2021. “In the past years, our trains broke down plenty of times. Now, one of the things Sumitomo is doing is to rehabilitate and do a general overhaul of our trains.” Capati mentioned that the MRT-3 management wants its trains to run at 50 kph by November 2020. [1] He said, “We have already increased our train operating speed to 30 kph to 40 kph in October. Now we are using this train to simulate a 50 kph operating speed, which we are hoping to implement by November.” Capati noted that the improved train speed was made possible by the overhaul of train cars and the rail replacements that were completed last September. He also said that MRT-3 increased the number of its trains running daily to a maximum

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of 22. “Our maintenance program is doing well and at the same time, this is the effect of our rail replacements.” MRT-3 tested the train operating speed at 40 kph last September. This reduces the average waiting time of passengers from nine minutes to seven minutes. — Marcelle P. Villegas

Reference: [1] Dela Cruz, Raymond Carl (29 October 2020). Philippine News Agency. “MRT-3 conducts test runs on overhauled train at 50 kph”.

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COMPANY NEWS

NAC-Hinatuan Mining Provides Rice to Tagana-an, Host Communities

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ickel Asia Corp. - Hinatuan Mining Corp. (NAC-HMC) provided rice to the Municipality of Tagana-an and its three host communities: Barangay Talavera, Sitio Bagong Silang and Sitio Campandan. The provision of 150 sacks of rice to Tagana-an is done to provide assistance to residents affected by the Modified Enhanced Community Quarantine (MECQ) in the municipality due to COVID-19. Cost of the activity is P 284,250 and source of fund is the Corporate Social Responsibility (CSR) program of NAC-HMC. Intended beneficiaries were 1,500 families residing in the Municipality of Tagana-an. The turned-over rice was received by Taganaan Mayor Cesar B. Diaz, Jr. Half sack of rice was also provided by NAC-HMC to its three host communities: Barangay Talavera, Sitio Bagong Silang and Sitio Campandan as support to families affected by the Enhanced Community Quarantine (ECQ) due to COVID-19. Rice distribution was facilitated by the Barangay Local Government Unit (BLGU) of Barangay Talavera led by Brgy. Captain Reden G. Plaza. Target beneficiaries for the rice turnedover to the three communities were 837 households or 3,447 individuals. The source of fund for the project that cost P790,965 was from the Corporate Social Responsibility (CSR) and realigned Social Development and Management Program (SDMP) budget of NAC-HMC. Tagana-an Mayor Cesar B. Diaz (upper left photo) receives the rice turned-over by NAC-HMC, which is then distributed to the mining firmâ&#x20AC;&#x2122;s host communities.

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COMPANY NEWS

Filminera, PhilGold Donate Over P6m to Earthquake Victims in Cataingan Welcome DENR, MGB visit to Masbate mine site

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ilminera Resources Corporation (Filminera) and Phil Gold Processing & Refining Corp. (PGPRC) turned over a total of Php 6 million in earthquake relief financial assistance as well as 100 sacks of rice and 50 folding beds to officers of the local government of the Municipality of Cataingan. The Php 5 Million donation was received by Mayor Felipe Cabatana in the presence of ViceMayor Thelma Ang and members of the Sangguniang Bayan. The total combined earthquake relief from Filminera and PGPRC to the Municipality of Cataingan is equivalent to Php 6,283,100. This includes Php 1 Million to assist Cataingan Hospital repair and supplies needed to assist the communities and households that were severely affected by the earthquake. Cataingan is the town hardesthit by the 6.6 earthquake last August 18, 2020 which shook the province of Masbate. The earthquake had an epicenter located 7 kilometers off Cataingan with a depth of 21 kilometers. Cataingan is 150 kilometers away from the Filminera mine site in Aroroy. A team from Filminera and PGPRC, together with the Municipal Engineer and the Municipal Administrator, also joined Mayor Cabatana in the ocular inspection of damaged public structures in

the municipality. In a separate event last August, an inspection was conducted at the mine site in Aroroy, Masbate by a team of experts from the Mines and Geosciences Bureau (MGB) and the Department of Environment and Natural Resources (DENR) during the weekend. At the exit conference attended by the community stakeholders, the local government units, and Filminera and PGPRC representatives, MGB and DENR reported that their inspection showed there were neither dam-

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ages nor injuries within the mine site. The management of Filminera and PGPRC temporarily stopped mining August 21 to give way to the inspection team and resumed normal operations August 27. Filminera President Cris Acosta said that the results of the inspection confirmed the initial result sent to the MGB regional office right after the August 18 earthquake that there was no damage to the structures and equipment at the mine site. Filminera’s initial inspection was conducted by in-house technical experts and third-party consultant GHD, which is a reputable international technical consultant. GHD has been an advisor of the Masbate Gold Project since 2007 and continue to be a part of the mine’s expansion to this date. GHD was initially engaged to carry out the detailed design of the Tailings Storage Facility (TSF). They continue to provide detailed design and construction supervision services of the TSF development. They also provide geotechnical assessments, deposition modelling, embankment design and analysis, mine site water balance modelling and design of the water treatment plant.

One of the trucks containing the 100 sacks of rice and 50 folding beds arrives with MGP’s Administration Manager Jean Gonzales (left) and Community Relations Superintendent Rey Carlo Belgica.

(Photo at left) MGP’s Administration Manager Jean Gonzales and Community Relations Superintendent Rey Carlo Belgica turn over the check to Mayor Felipe Cabatana, Vice Mayor Thelma Ang and Sangguniang Bayan Members of the Municipality of Cataingan.

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COMPANY NEWS

Washing Worries Away with TMC’s Hand Washing Facilities

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he threat of the COVID-19 pandemic has pushed schools all over the country to implement measures to reduce the risk of contracting the virus among students, teachers, parents and the community as a whole. In solidarity with this effort, Taganito Mining Corporation (TMC) volunteered to provide hand washing facilities to 29 schools within Claver, Gigaquit and Surigao City as part of its Social Development and Management Program. A total of 52 hand washing units were distributed to public elementary and high schools to support efforts to encourage frequent hand washing as a way to protect oneself

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from the COVID-19 virus. Rendering support during the yearly opening of classes has been an annual commitment of TMC to the education sector. While schools have turned to online and modular learning modes, teachers still have to report to school and parents need to pick up and submit accomplished modules of their children. Thus, as with other establishments, schools are required to install hand washing facilities at their entry points. Aside from donating to schools, TMC also gave out hand washing facilities to the local government units of the Municipality of Bacuag, barangays Binacoran and Villa Riza

in Municipality of Malimono, and the Philippine Red Cross - Surigao del Norte Chapter. “They say, friendship is essentially a partnership…Thank you so much NAC- Taganito Mining Corp. For these two sets of Portable hand washing facility […] Quezon ES will be forever grateful to you,” said Ms. Maricar Tabacon Lisondra, teacher at Quezon Elementary School. “Panatao Elementary School teaching staff, parents, and learners would like to thank Taganito Mining Corporation for the Improvised hand washing facility given to the school. Thank you so much for your continuous and never-ending support to our school,” said Ms. Judith S. Pere, Principal, Panatao Elementary School. “Thank you so much Taganito Mining Corporation for sharing another blessing to Claver National High School. We, faculty and staff, learners and parents, are so grateful for your generosity,” said Rodelio Cortez, teacher at Claver National High School. ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


MINING NEWS

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MGB Allows Miners to Realign SDMP Funds for Typhoon Relief

o bankroll their typhoon fund release efforts, the Mines and Geosciences Bureau (MGB) has permitted miners to re-align their funds for their respective Social Development and Management Programs (SDMP), one week after Typhoon “Ulysses” ravaged the country. “In the interest of public service and for humanitarian reasons please be informed that all MGB Regional Offices (RO) concerned are hereby authorized to allow mining companies to re-align the unutilized/unspent funds of SDMP to assist typhoon victims within the host and neighboring communities, as well as the non-impact barangays in their respective localities,” MGB Director Wilfredo Moncano said in a recent memorandum order. “Said realignment shall be consulted with and agreed by the host and neighboring communities.” Mancano added that the recent typhoon did not really have an impact on the mining industry. “Ini-

tially, they were concerned about lack of electricity or power, but these were resolved later,” he said. A five-year plan aimed at developing a responsible resourcebased community, the SDMP is supposedly a tool for the implementation and development of community projects and activities for the communities of a mining project. Vice president for corporate communications at Chamber of Mines of the Philippines (COMP) Rocky Dimaculangan added that the decision of the MGB will improve the capability of the miners to “provide immediate relief and assistance to help their communities after disasters”. “Many of our members donate funds, do relief operations, and, if necessary, undertake the search, rescue, or retrieval operations during disasters even without being asked or ordered,” Dimaculangan said. “The legit large-scale mining industry has in many instances been among the first responders in

times of disasters and calamities.” In the early days of COVID, MGB let mining companies re-allocate their SDMP funds for COVID relief efforts. This allowed the miners to provide social amelioration measures for host communities. In addition, miners were also provided with PPEs, relief goods, and food packages.

GHD Donates Face Masks to Makati, QC, Cebu Hospitals

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HD donated 2600 medical-grade face masks to local government hospitals in the Philippines, as part of our commitment to help curb the spread of COVID-19. Donations from our people were matched by GHD. The selected facilities, Ospital ng Makati (Makati City), Quezon City General Hospital (Quezon City), and Cebu City Medical Center (Cebu City), are located in areas where we have presence. “As the pandemic continues to impact us in GHD and all members of our community, we launched a matching program to give back to our communities in a meaningful way, as an organization and as individuals,” shared Darren Shrives, General Manager – Philippines. “We thank our employees for their generous donation, as it allows us to have a larger impact than it would with our company donation alone.” As of this writing, all regions in the Philippines remain under some level of movement restrictions, and the government has mandated wearing of face masks and face shields in all areas. WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2020

Mario Dimagiba, Operations Manager – Philippines (top left and right photos) and Edward Solayao, Market Leader – Property and Buildings, and Regional Office Manager – Cebu (lower left photo) hand over the face masks to the local hospitals.

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COMPANY NEWS

TVIRD-Agata COVID-19 Response Brings Relief to 10,000 Families, Livelihood to Rural Farmers 46 barangays, healthcare facilities and LGUs receive support from TVIRD Group of Companies

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ubay, Agusan del Norte – At the height of the COVID-19 pandemic in the Philippines – that brought the nation’s economy to a virtual standstill and left thousands confined to hospitals, stricken with the deadly virus – communities in Mindanao have benefitted from an unexpected partner that immediately and actively responded to the government’s call to unity: and that is the country’s mining industry, which continues to support countrywide development. As of this writing, the industry has realigned some Php247 million of its collective Social Development and Management Program (SDMP) funds to provide relief for thousands of Filipinos in and around mining communities and close to 70,000 frontliners across the country. Immediate response Prior to the realignment of SDMP to support relief operations, TVIRD’s Agata Mining Ventures Inc. already dispatched various Personal Protective Equipment

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(PPEs) from Manila as part of its immediate response to the needs of medical frontliners in the Mindanao region. TVI Resource Development Philippines Inc. (TVIRD) has facilities in Siocon, Zamboanga del Norte; Bayog, Zamboanga del Sur; and the adjacent municipalities of Tubay, Jabonga and Santiago in Agusan del Norte Province where its Agata Nickel Project is located. To date, the TVIRD Group of Companies has shored-up critical PPEs: N95 face masks, face shields and surgical and examinations gloves to support COVID-19 frontliners, including LGUs, volunteers, medical workers, police and civilian volunteers as well as checkpoint personnel. It likewise sourced majority of its fresh vegetable from farmers and other goods from local establishments to provide relief to more than 10,000 families in its respective areas. The group’s joint relief efforts aim to cushion the impact of the COVID-19 pandemic and has reached some 46 barangays consisting of its primary and secondary communities.

Supporting local livelihood While an estimated one million jobs have been “lost” as a result of the nationwide community quarantine, the challenges of a lockdown are even more pronounced in the hinterlands where a single day of lost livelihood can make or break agricultural and fishing communities who rely on their daily access to the market place. This is in addition to the challenge of putting food on their own tables for their families everyday. Agata sought to bridge this need by sourcing organic vegetables from its TESDA-certified Mabakas Farm School and its graduates under the program. Together with its beneficiary farmers, locally-sourced ampalaya (bitter gourd), kalabasa (squash), okra, sitaw (string beans) and eggplants were included in relief packs – which were distributed to 2,647 families in its three host municipalities. Recipients also included the company’s employees in the mine site and the indigenous Mamanwas who are themselves farm-

(Top photos) Women of host Santiago municipality show ‘Thank you’ signs for the assorted vegetables they received. Elsewhere, Agata community frontliners load food packs intended to all 145 families of Brgy. Tagpangahoy, a coastal community of host Tubay Municipality. Agata Assistant GM Anthony B. Quijano then leads the distibution of relief packs to every family in Barangay Lawigan in Tubay. Each pack includes 15 kgs of rice and 4.25 kgs of organic vegetables produced by the company’s benefeciary farmers from Mabakas.

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COMPANY NEWS

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Peninsula

ers who would have otherwise faced the risk of spoilage of their produce due to ECQ restrictions on transportation. Over 11,000 kilos of assorted vegetables were included in more than 5,200 relief and vegetable packs distributed by the company – a testament that its production model under the Mabakas framework is sustainable. TVIRD likewise rolled-out a weeklong food distribution program and reached-out to almost 7,424 families in the Zamboanga Peninsula. The company’s site personnel and officers sought to alleviate the residents’ difficulties by providing rice, vegetables, canned goods and noodles. Special attention was also given to the elderly, pregnant women, and persons with disabilities (PWDs) since they are limited to their homes under the GCQ Protocol. Beneficiaries also include nearly 1,400 Subanen families and farmers from Bayog Municipality whose produce are included in the relief packs.

Through its Balabag Office, TVIRD contributed several boxes of PPEs to major government hospitals, rural health units and birthing clinics in the Zamboanga Peninsula region. Beneficiary institutions include the Zamboanga Sibugay Provincial Hospital, Wilfredo C. Palma Memorial Hospital in Diplahan, Rural Health Units (RHU) in the joint provinces, Zamboanga del Sur Provincial Hospital in Pagadian City, and Siocon District Hospital – which also serves patients from its 26 barangays and nearby Sirawai and Baliguian towns. “TVIRD backs the government’s campaign against the disease. We are one with the frontliners – and providing them with protection and food is our way of sharing their load,” said TVIRD Balabag Project Manager Engr. Hilario Gingo, Jr. As the first company to be licensed under the Philippine Mining Law, TVIRD established its presence in the Zamboanga Peninsula some 25 years ago and has since fostered a deep relationship with its communities, especially the

Frontliners in Zamboanga

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Subanon and Subanen tribes. The commercial operations of Agata marks the third consecutive project that TVIRD brought on-stream in a period of 10 years. Today, TVIRD-Agata has cultivated strong and resilient communities, self-sustaining indigenous hosts tribe and over 1,300 graduates from its Mabakas Organic Farm School who are eligible for TESDA National Certification. “‘Starting it right and keeping the end in mind’ has guided the company in achieving sustainable operations focused on progressive and final rehabilitation. By providing skills and infrastructure, we endeavour that our communities can sustain themselves beyond the life of the mine,” according to Agata Assistant GM Anthony Quijano.

Jeremy Salas, a partner and beneficiary farmer of the Agatasupported Mabakas Organic Farm School, welcomes the company’s relief efforts. A resident of host Jabonga Municipality, Salas is one of the farmers whose home-grown produce made its way into more than 5,200 relief and vegetable packs distributed by Agata.

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MINING NEWS

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Runruno Illegal Settlers Heed Gov’t Call for Evacuation

UEZON, NUEVA VIZCAYA -- More than 200 illegal settlers in the geo-hazard areas in barangay Runruno here vowed to leave their abode following government efforts calling for their evacuation due to threat of landslides. Edgar Martin, DENR Provincial Environment and Natural Resources Officer(PENRO) said they have assisted several illegal settlers in Runruno yesterday as they voluntarily dismantled their shanties and houses after being compensated by the FCF Minerals Corporation which covers the areas of the small scale miners with its Financial and Technical Assistance Agreement (FTAA) with the national government. “We expect others to follow after being compensated fairly by the mining firm so their lives will not be put in constant danger from the impending landslides,” he said. Martin said the illegal settlers who also conduct small scale mining activities in the geohazard zones occupied the area, stripping the mountainsides of trees and other vegetation to

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pave the way for their slash and burn system of agriculture. Most of the evacuated illegal settlers returned back to their houses at the barangay Poblacion while others were advised to temporarily stay in their relatives in barangay Runruno. During the onslaught of typhoon ‘Ulysses’, at least 10 illegal settlers who are mostly from the provinces of Quirino and Ifugao died after being buried by the landslide. Two others were also injured during the incident. A composite team of government agencies from the local and national government met with the illegal settlers at the barangay hall of Runruno yesterday. The illegal settlers also asked the government officials for a viable resettlement area and to start their alternative livelihood. Mayor Dolores Binwag said the local government unit has allocated funds for the acquisition of a viable resettlement area which will be geologically assessed by the DENR-Mines and Geo-Sciences Bureau (MGB). “Let us all work together to

relocate you to safer grounds. We will also be charged if we will not do this for your safety and security,” she said. Meanwhile, Provincial Legal Officer Voltaire Garcia said the provincial government through its Assessor’s Office is in the process of preparing the checklist for the assessed values of the illegal settlers’ assets and properties within the geo-hazard areas in barangay Runruno. He said this will serve as a basis in the compensatory settlements for those who were not yet paid by the FCF Minerals Corporation which already compensated 245 villagers and families in their mining ‘footprints’. Garcia said the assessment valuation of the PLGU will also be used for the compensatory payments for the illegal settlers outside the mining firm’s FTAA coverage by concerned agencies. Earlier, James Carmichael, FCF Minerals Corporation Country Manager said they are willing to compensate the illegal settlers within their mining ‘footprint’ with just and fair payments. ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


CONSTRUCTION NEWS

Documents Submitted for P109-B NAIA Rehabilitation

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dditional documents have already been submitted for the P109-billion unsolicited proposal to transform and rehabilitate the Ninoy Aquino International Airport (NAIA) into a world-class airport. This is according to the consortium of Megawide Construction and India’s GMR Infrastructure Ltd., which operates the Cebu airport, that submitted to the Manila International Airport Authority (MIAA) documents including the statement of joint and solidary liability from the Megawide-led consortium as the National Economic Development Authority (NEDA) has required. The submission of requirements is a key requirement by GMR and

Megawide for its goal of rehabilitating NAIA. “The financial documents we submitted are sufficient to exclusively support the requirements of the NAIA project, said Megawide Managing Director for Transport Louie Ferrer. “With this, we are hopeful our proposal to rehabilitate and transform NAIA into a first-world airport complex can now be elevated to the Cabinet committee for approval and proceed to Swiss challenge. Infrastructure investment is critical for our country to build back from the economic crisis caused by the Covid-19 pandemic. We at Megawide are ready to do our part by providing employment and enhancing

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the Philippines’ competitiveness in infrastructure, especially airports.” In November, Megawide had a successful agreement with the Indian company - with the former controlling 60-per cent interest and the latter 40 per cent, making sure of a global experience in airport construction and designs. “Our partnership with GMR is strong. Together, we delivered the transformation of Mactan- Cebu International Airport (MCIA) and the construction of Clark International Airport (CIA). Now, we are hugely excited to deliver a first-world NAIA that uplifts the travel experience for all Filipinos and provides a critical assist to the national government’s efforts to rebuild after the pandemic,” said Edgar Saavedra, Megawide chairman and chief executive officer. Megawide looks forward to leveraging GMR with this project. “In partnership with stakeholders, we transformed MCIA as the Philippines’ first world-class airport in decades,” Saavedra said. “A few months ago, we completed the new terminal at CIA, ahead of schedule and under budget. We are the only company in the Philippines with a successful track record in airport infrastructure and together with GMR, we hope to contribute our half a decade of expertise to our country’s main gateway.”

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MINING NEWS

DENR: Mining Sector Continues Its Sustainability

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n a webinar titled “Progressive Rehabilitation and Environment Programs during the Pandemic,” Undersecretary Jim O. Sampulna (CESO III) of the Department of Environment and Natural Resources (DENR) stressed the optimism of the government that the mining sector will continue to be sustainable in the midst of the pandemic. “To the members of the PNIA, and to the rest of other organizations and partners in the mining industry, the government acknowledges that the industry as a whole is facing challenges on how it would sustainably achieve responsible mining in this very unprecedented COVID-19 situation without jeopardizing the highly anticipated benefit from mining and w/o leading into loss of income and job retrenchment,”

Sampulna said. “However, despite the setbacks and challenges, we believe in your resilience, determination and strength.” He added: “We are hopeful and confident that the implementation of our respective work and programs for safety and health of the workforce, environmental management and social development which are mandated by our government is still in place and is adapting to our current situation.” In addition, Sampulna also presented some achievements - despite the pandemic - by some mining sectors in the country. Among them included the Environmental Protection and Enhance Program by Philex Gold Philippines, Inc located in Sibutad, Zamboanga del Norte; Rio Tuba Nickel Mining Corporation (RTNMC) in Bataraza, Palawan; Platinum Group Metals Corporation

in Claver, Surigao del Norte; and Coral Bay Nickel Corporation in Bataraza, Palawan. Sampulna also highlighted the environmental activities by PNIA members in Palawan, Zambales, and Caraga Region. Sampulna also gave updates on the establishment of bamboo plantations in mining areas. According to him, the mining sector committed 14,420 hectares of bamboo plantation across the country. This is in accordance with the programs of the Department of Environment and Natural Resources for post-COVID. Those who attended the webinar included officials from the Philippine Nickel Industry Association (PNIA), Mines and Geoscience Bureau (MGB), and various participants from the academe, private organizations, and other government agencies.

NEDA: CREATE Passage to Hasten Economic Recovery

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he National Economic and Development Authority (NEDA) has lauded the passage of Senate Bill 1357, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, on second and third reading in November.

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“CREATE will help small and medium enterprises become more competitive and productive to support the recovery of our economy,” acting Socioeconomic Planning Secretary Karl Kendrick Chua said in a statement Friday. Once signed into law, the

CREATE Act will contribute to the government’s economic recovery program, which includes Bayanihan 1 and 2 and the Financial Institutions Strategic Transfer (FIST) Act. CREATE seeks to help businesses recover from the

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INDUSTRY NEWS

Spectro Xepos: Elemental Analyzer Designed for Demanding Applications

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n Elemental Analyzer designed for demanding applications – the SPECTRO XEPOS energy dispersive X-ray fluorescence (ED-XRF) spectrometers redefine XRF Analysis with exceptional new levels of performance. OVERVIEW • Outstanding sensitivity leads to up to a factor 3 improved precision – the basis for high accuracy when analyzing minor to major element concentrations • Measure lower than ever: Adaptive excitation, advanced tube design and high-count throughput detection system result in significantly (typically a factor 3) lower limits of detection for a wide range of elements • Master the unknown: The Turboquant II software tool provides an unprecedented ability to analyze unknown

samples, regardless if they are liquid, solid or powder – whether tree leaves, plastics, oil, granite, or glass. The new SPECTRO XEPOS spectrometer represents a quantum leap in energy dispersive X-ray fluorescence technology. It provides breakthrough advances in multi-elemental analysis of major, minor, and trace element concentrations. New developments in excitation and detection deliver outstanding sensitivity and detection limits — yielding remarkable gains in precision and

accuracy. The amazing SPECTRO XEPOS excels at critical tasks from rapid screening analysis to precise product quality control. Apply it for at-line processing in a variety of industries, for geology and mining, for environmental and waste monitoring, and for research and academia. Different versions maximize performance for selected elemental groups in specific matrices. An innovative X-ray tube and unique new adaptive excitation technology furnish the highest possible sensitivity, optimized to target elements of choice.

Japan’s Taiheiyo Cement Invests P15b in PH

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or the construction of a new and modern production line in Cebu, Taiheiyo Cement Corporation of Japan is investing P15 billion into the country. This line will increase its capacity by 50 per cent in the immediate term. The Taiheiyo Cement Group in Tokyo, Japan has various businesses from finance, transportation., engineering, construction materials, real estate, warehousing, sports, and chemicals. According to Trade and Industry Ramon M. Lopez, the Japanese company has already expressed its intention in constructing a new production line that will employ new technologies from Europe and other global providers. He added that the expansion seeks to grow the cement capacity of TCPI by 50 per cent in the immediate term and 150 per cent in the medium term. The

improved capacity is expected to increase the Philippine market share of Taiheiyo from 7 to 10 per cent. The project also follows green economy requirements through the introduction of energyefficient operations, which can reduce by 10 per cent carbon dioxide emissions from energy use in clinker production from the old line’s energy efficiency rates. Meanwhile, Trade Undersecretary Ceferino Rodolfo said that the DTI-Board of Investments (BOI) will review the new technologies of the project for incentive eligibility. He also added that the BOI is ready to offer investment facilitation services through its standing cooperation with agencies in charge of the issuance of significant licenses and permits. Lopez also said that there are several infrastructure projects in the pipeline for Talheiyo to serve

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the growing demand for commercial, housing and infrastructure development. This agreement was part of the Letter of Intent (LOI) that President Rodrigo Duterte signed in Tokyo in 2017. The LOI pledged to increase the production capacity of Taiheiyo, including shipping bases out of Cebu to areas in Iloilo, Luzon, and Davao, improving logistics and meeting environmental protection programs via the installation of a marine belt conveyor, expansion of the jetty and berth in San Fernando, Cebu, and the adaption of energy-efficient production processes. In 2019, the Philippines imported $543.9 million worth of cement, an increase by an average of 213.8 per cent from 2015. With this data, the country is touted to be the third’s largest importer of cement, next to the US and China.

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INDUSTRY NEWS

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Senate OKs P4.5-Trillion National Budget for 2021

oting 22-0, the Senate has approved the proposed P4.5 trillion national budget for 2021 on third and final reading. Senate finance committee chairperson Senator Juan Edgardo Angara asserted the national spending plan would be the budget of the country’s recovery. He thanked his colleagues for staying on schedule despite the serious challenges that included typhoons, floods, power outages, connectivity problems and the ongoing COVID-19 pandemic. He also acknowledged the amendments introduced by his colleagues to strengthen the COVID-19 response, provide assistance to victims of calamities, and resuscitate the economy. Angara said they set aside a “huge amount in unprogrammed appropriations” for the purchase, storage, and distribution of coronavirus vaccines. He said they also allotted funds under the Department of the Interior and Local Government’s budget to recruit and deploy support contact tracers. Under the Senate version of the budget bill, the Research Institute for Tropical Medicine will get more funds for its quality assurance program, the training of more COVID-19 lab personnel, and its surveillance of other flu-like illnesses and severe and acute respiratory infections. House Speaker Lord Allan Velasco welcomed the Senate’s passage of the budget bill. “We now look forward to sitting with our Senate counterparts in conference possibly starting next week to come up with a common version of the budget,” Speaker Lord Allan Velasco said as he lauded the Senate for what he described as a “timely” passage. “We have already formed a contingent composed of 21 members from various political parties to represent the House during the bicameral conference on the 2021 budget bill,” he added. Velasco said that the House under his leadership will make sure there will be enough funds for the government’s COVID-19 response, especially the procurement of vaccines for an initial 20 million poor Filipinos and eventually for at least 60 million of the

< Page 40 impact of the coronavirus disease 2019 (Covid-19). It will benefit micro, small, and medium enterprises (MSMEs) that comprise 99 percent of enterprises and employ more than 60 percent of Filipino workers. “We thank the Senate, through the leadership of Senate President Vicente Sotto III, Majority Floor Leader Juan Miguel Zubiri, and Ways and Means Chairperson Pia Cayetano,

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country’s population. “We also want to ensure sufficient funding for the rehabilitation and recovery of communities devastated by recent typhoons, including Rolly and Ulysses. We should help our people rebuild their lives,” Velasco said. “Let us also not forget President Duterte’s other priority programs like Build, Build, Build and his antipoverty projects. We must appropriate the funds needed to sustain them,” he added. Velasco expressed confidence that the 2021 general appropriations bill will be signed by the President before the year ends. Meanwhile, ousted Speaker and Taguig-Pateros Rep. Alan Peter Cayetano urged his fellow legislators to ensure that the public is informed of the House- and Senate-approved versions of the budget bill and the final draft approved at the bicameral conference committee level. He said this would ensure that no unconstitutional insertions were made after the budget is approved by the bicameral conference committee. “In order to avoid baseless mudslinging, my proposal is for the people to see where the funds are allocated or whether additions are made before the budget is approved in the bicameral. This is to make it all transparent. Otherwise, we can be in for a shock,” Cayetano said. Cayetano made the statement after he was asked by the media about the President’s assertion that some lawmakers were getting kickbacks on government infrastructure projects. Cayetano said publishing both versions of the budget bill will also allow the media to know what to tell the public as part of their duty to report on allegations of corruption by some members of Congress. He recalled that as Speaker, he led the House of Representatives in the swift passage of the 2020 national budget, leaving no opportunity for pork, corruption, or parking of funds. “We prohibited that when I was Speaker, and we had many caucuses for the purpose. I told the House members, ‘In order not to drag everyone down, anyone who gets caught will not be protected. No one will be helped or condoned.”

for shepherding (the) passage of this landmark reform,” Chua said. The Senate version of CREATE provides an outright 10-percentage point cut in the country’s corporate income tax (CIT) rate, reducing it from 30 percent to 20 percent for domestic businesses with net taxable income equivalent to PHP5 million and below, and with total assets (excluding land) not exceeding PHP100 million. Other corporations would benefit from a lower CIT rate

of 25 percent, down from 30 percent. The measure also modernizes fiscal incentives by making them performance-based, targeted, time-bound, and transparent. “With CREATE, the country will also be able to attract more foreign direct investment with an improved incentives menu, which will maximize desirable economic outcomes, such as job creation, domestic value-added, and technology transfer,” Chua added. ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


COMPANY NEWS

Taganito Mining Donates Over 7K Workbooks to Surigao del Norte

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s part of its commitment to support the education sector, Nickel Asia Corporation subsidiary, Taganito Mining Corporation, donated 7,172 workbooks to the provincial government of Surigao del Norte, in time for the opening of classes. The Php 2 million worth set of English and Mathematics workbooks is part of the company’s Social Development and Management Program.

The turnover of workbooks was led by TMC Resident Mine Manager Artemio Valeroso in the presence of Governor Francisco Matugas and Dr. Nelia Lomocso, the schools division superintendent of the Department of Education for Siargao, Surigao del Norte Division. In a certificate signed by Gov. Matugas, he thanked TMC “for the wholehearted support in the various undertakings of the Provincial Government which has been instrumental in the success of the Education Caravan School Year 2020-2021”. “NAC-TMC is one with the province of Surigao del Norte in helping our schools become ‘back-to-school ready,” said Valeroso “We are very happy and very thankful. We sincerely thank the Taganito Mining Corporation for this great donation. This will go a long way. The workbooks will be for the benefit of our learners in the island paradise of Siargao,” Lomocso said. Since 2015, TMC has been a partner of the province in the annual Education Caravan wherein various educational supplies such as books, bags, and health kits were distributed to students in Surigao del Norte as well as Siargao island. WWW.PHILIPPINE-RESOURCES.COM • ISSUE 4 2020

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INDUSTRY NEWS

Salceda: House Panel OKs P2 Billion for Department of Water Resources

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he House Committee on Appropriations tentatively approved an initial P2-billion outlay for the proposed Department of Water Resources which the National Water Act bill seeks to create. The bill is under discussion in Congress. Albay Rep. Joey Sarte Salceda, senior vice chairman of the House Appropriation Committee, said the National Water Act bill responds to the urgent public clamor for better water services echoed many times by President Duterte himself. It will integrate under one roof the government’s fragmented water resources management systems and pursue a sustainable and science-based program for the wise use and conservation of the country’s vital water resources. The bill also seeks to establish a Water Regulatory Commission under the DWR. It consolidates about 30 proposals, including HBs 2997 and 4944 which were authored by Salceda himself, who also chairs the House Ways and Means Committee. The proposed DWR budget includes the yearly allocation for its attached agencies. Owing to its urgency, Salceda said lawmakers expect Congress to pass the measure shortly. The measure lays down an Integrated Water Resource Management system as its basic framework, to ensure and accelerate universal public access to water and sanitation services, in a regulatory regime that encourages responsible private sector participation and involvement, fosters and prioritizes infrastructures which adopt innovative solutions and international best practices to address the challenges of climate change, said Salceda. He said the “continued overlapping and fragmented regulation and management on water resources and services hinder the development of a comprehensive, integrated and doable long-term solutions to address keen competitions, imbalanced resources utilization and conflict of interest among water users, especially in areas already identified as water-

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stressed.” Salceda said the DWR will be the primary agency charged with formulating a comprehensive and integrated scheme on policy and program planning; and management systems for the ownership, appropriation, utilization, exploitation, development, protection of water resources in the country, except for fisheries or aquaculture. The DWR, he said, will ensure the optimal use of water for domestic and commercial supply, sanitation, irrigation, hydropower, industry, navigation, flood management, recreation, fisheries and aquaculture. It will also be tasked to implement PD 1067 and RA 9275, known as the Water Code and Clean Water Act, respectively. “Water use is a right. All water belongs to the state, which shall govern its development and use for the people. Access to water is a basic right,” Salceda said, adding that the measure declares all water and water treatment infrastructure projects as projects imbued with national interest. “The measure also empowers the department on policy making, planning, management and regulation of water resources; directs the development pf institutional arrangements with public water organizations and ensure coordination with all stakeholders for all water resource development,

integration and management activities, including sanitation, flood control, flood risk management and drought risk management,” said Salceda. He said the bill allows the department to create, when necessary, water resource subsidiaries, instrumentalities and entities to engage in water transmission, water distribution, waste water treatment and management, and sanitation in accordance with existing relevant laws. Under the proposal, the DWR is allowed to enter into contracts, joint venture agreements or understanding, public-private partnerships, and memorandum of agreements or understanding, either domestic or foreign relating to investment and financing waterrelated projects, under such terms and conditions as it may deem proper and reasonable, subject to existing laws. Salceda said the bill also authorizes the DWR Secretary to act as the chairman of the governing boards of the agencies that are attached to the department. Identified as DWR attached agencies are the Local Water Utilities Administration, Metropolitan Waterworks and Sewerage System, National Irrigation Administration and the Laguna Lake Development Authority.

Albay Rep. Joey Salceda said the DWR will be the primary agency charged with formulating a comprehensive and integrated scheme on policy and program planning; and management systems for the ownership, appropriation, utilization, exploitation, development, protection of water resources in the country, except for fisheries or aquaculture.

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CONSTRUCTION NEWS

PCA Lends Trucks, Heavy Equipment to Flood Cleanup Across Country

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he Philippine Constructors Association (PCA) has mobilized its member construction firms, chapters, and affiliates to provide trucks and equipment that are being used to clear streets blocked by debris following heavy flooding in various parts of the country. This is apart from the relief goods the PCA has donated to the families affected by the recent typhoons “Rolly” and “Ulysses.” The group has created a task force to immediately respond to the needs of the different provinces affected by the successive deadly typhoons. The PCA Task Force Rolly + Ulysses completed over the weekend the clearing operations in Marikina, where over 40,000 households were submerged in roof-high floods after the Marikina River swelled to unprecedented levels at the height of Typhoon Ulysses’ fury. Established in 1945, PCA was formed by a group of Filipino industrialists to help rebuild the country from the ravages of war. At present, it counts among its members the country’s highestrated construction firms and property developers. Today, it continues its mission as it helps rebuild cities and towns from the devastation of one natural disaster after the next. The PCA readily lent around 50 units of equipment, including dump trucks, back hoes, skid hoes, and payloaders, and manpower to operate the machines for the Marikina clearing operations. This allowed the completion of the clean-up of the main roads in the city within seven days. “We saw the people rejoicing when we arrived at the areas for clearing. They were really happy to see the back hoe and other equipment coming in,” said PCA Task Force Chairman Jerry Pancho, noting that many streets had been impassable due to the amount of debris and thus, relief operations in the hardest hit areas had also been limited. The PCA Task Force is now mobilizing the delivery of muchneeded construction materials such as roofing, plywood, and nails to rebuild damaged houses

in the Cagayan Valley region, which also suffered from severe flooding due to the heavy rains brought by Typhoon Ulysses. The group through its member firm DDT Konstract Inc. has also sent an initial batch of relief goods to Cagayan, mostly rice, as the immediate need of the residents there is food, since the typhoon damaged their crops that were ready for harvest. PCA has also sent some equipment for clearing operations in Bulacan, mostly to cut and remove trees felled by the typhoon. Earlier, the Filipino contractors’ group also sent a truckload of relief goods made up of rice, canned goods, noodles, and milk to Albay province for the families displaced by Typhoon Rolly which severely battered the Bicol region. Its member EEI Corp. also sent a water filtration unit to the island province of Catanduanes, among the worst hit in the region. Another active member, DATEM, has partnered with the Tanging Yaman Foundation for its relief operations in various areas affected by the successive typhoons. PCA General Counsel lawyer Ellen Francisco has also tapped the UST Law Alumni Foundation where she is an officer for 110 sacks of rice that will be sent to Cagayan. “We are overwhelmed by the support given by our members. As builders, we have really been committed to building our country. Thus, we are one with our people during times of disaster. Our members are always ready to provide the necessary resources and actively respond to any calamity,” said PCA President Wil-

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fredo Decena. For the clearing operations of the Task Force led by Noel Flores of PCA Marivalley, the participating groups were C.M. Pancho Construction, DDT Konstract, Megawide Construction, EEI, J.E. Manalo Construction, Will Decena and Associates Inc., Monark, PCA Marivalley Chapter (Big Boy Construction, JAPCON, and Numerit), PCA Metro (MAC), Association of Carriers and Equipment Lessors Inc., and Tokwing Construction. Other contributors to the PCA relief efforts were CW Home Depot, DM Wenceslao, LIVAN Trade, Bulakeño General Contractors Association, Inc., Contractors Association of Negros Oriental, Inc. (CANOI) – RACCT Construction, Cebu Contractors Association (CCA), Davao Constructors Association Center Inc. (DCACI), PCA Metropolitan, PCA Pangasinan (with CA Dion Construction), Association of Carriers and Equipment Lessors Inc. (ACEL), Women in Infrastructure (WIFI), Society of Philippine Electrotechnical Constructors and Suppliers Inc. (SPECS), and American Concrete Institute Philippines (ACIP). “The PCA, together with its members and affiliates, is always on-call whenever a calamity strikes. This year alone, we extended various forms of support to help our countrymen to rise from the unprecedented challenges that we faced from the eruption of Taal Volcano early this year to the COVID-19 pandemic and now, the successive deadly typhoons,” noted PCA Executive Director Barry Paulino.

The Philippine Constructors Association (PCA) has mobilized its members, chapters, and affiliates to provide trucks and other equipment for clearing operations in worst hit areas by typhoons Rolly and Ulysses, such as Marikina where huge piles of debris were left following the severe flooding in the city.

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CONSTRUCTION NEWS

“We already have three cable landing stations and at least two more are coming up next year. I think that’s something a single fixed broadband operator cannot do. In particular, when they have to grow outside of the big main post, it becomes very costly to lay all the fiber in the country. We can do that because we are using fiber not only for fiberto-the-home but also for mobile and for enterprise customers,” Pangilinan said. (Photo courtesy asia.nikkei.com)

Pangilinan: PLDT to Invest in 2 New Cable Landing Stations

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LDT Group said in November it will build at least two new cable landing stations in the country to serve the increasing need of customers for data. PLDT chairman and chief executive Manuel Pangilinan said as an integrated network, PLDT and Smart were investing in international connectivity “like nobody else can.” These include submarine cables, also made of fiber, which connect its network to the rest of the world. PLDT and Smart are part of a network of 16 international cable systems. “We are investing in more,” Pangilinan said. “We already have three cable landing stations and at least two more are coming up next year. I think that’s something a single fixed broadband operator cannot do. In particular, when they have to grow outside of the big main post, it becomes very costly to lay all the fiber in the country. We can do that because we are using fiber not only for fiber-to-the-home but also for mobile and for enterprise customers,” Pangilinan said. PLDT earlier joined an international consortium to build the Asia Direct Cable—a high performance submarine cable connecting

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the Philippines to other Asian countries, allowing it to support bandwidth-intensive applications such as 5G, cloud services, internet- of-things and artificial intelligence. As an integrated telco service, PLDT and Smart offer more products to the market. “PLDT and Smart offers include mobile internet as well as your fixed wireless and fiber-to-the-home,” said Smart president and chief executive Alfredo Panlilio, who is also the PLDT chief revenue officer. PLDT’s vast network, the most extensive and advanced digital transport network in the country at 395,000 kilometers as of endSeptember, supports all internet delivery platforms such as fiber fixed broadband, mobile data services via 4G and increasingly 5G and carrier-grade WiFi. Ongoing expansion works will extend PLDT’s fiber footprint by another 81,000 km, including 31,000 km in 2020 and 50,000 in 2021. The company’s backbone network capacity as of end-September was at 55 terabits per second. With its ongoing works, PLDT is looking to increase this capacity by another 37 terabits per second to serve customers’ continuously

growing demand for data and deliver technologies like 5G, LTE and FTTH. Pangilinan said that “5G without fiber will not work, and therefore we have a high synergy between the various networks. In the last couple of years, we have deployed the strategy called ‘follow the fiber.’ Wherever there is fiber, we can connect any business, fiber-tothe-home, fiber-to-the-enterprise and fiber-to-the-base-station.” PLDT and Smart passed 8.3 million homes and intend to deliver more improved services and ensure a future-proof, reliable and resilient network by focusing on expanding and upgrading their entire network ecosystem which consists of 9,892 cell sites, 56,799 base stations, 3.81 million ports for outside plant facilities and 25 core data centers.

A map of current cable landing stations in the Philippines by submarinenetworks. com

ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


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Our 2021 Media Kit is Out Now!

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he 2021 Philippine Resources media kit is out now. You may view the 2021 media kit on our website at https://www.philippineresources.com/media-kit. The year 2020 has been difficult for all. Due to major mining and construction events being cancelled throughout the year, our print distribution numbers took a slight hit. Despite this, we continue to print our magazines and deliver directly to the offices of mining and construction companies, as well as developers, suppliers and contractors of these industries. Many events have now turned into online forums and webinars; however, we continue to show our strong presence. The regular Philippine Mining & Construction Club webinars have been a great way to continue networking whilst in lockdown With that said, our online numbers have seen a huge increase. Our digital magazine has seen a 25% increase in our online readers throughout 2020 with 65,000+ views on our online magazine. We have also seen a huge increase in our social media impressions with over 325,000 impressions across our Facebook, Twitter, and LinkedIn pages. We continue to pro-

vide our bi-monthly newsletter to over 12,500 subscribers, which provides a great arena to promote your company via hyperlinking your company logo to your website and featuring your company’s editorial on your products and services. With over 4,000+ companies now regularly reading Philippine Resources Journal, we continue to strive to bring you the best updates possible. As 2021 approaches, many companies will surely look to improve their numbers as compared to 2020. We will be launching our new website and newsletter design in early 2021 to bring a better user experience to our readers online. An improved interactive magazine, along with better overall quality, will provide a better reading experience, followed by improved online numbers/analytics, which will result in a wider readership than what we currently have. The coming year will be a big one for us at Philippine Resources, and we invite you to advertise with us so that your company’s products and services are showcased to the mining and construction industries. A big thank you to our continuous advertising partners, and we look forward to bigger and brighter 2021!

Philippine Resources Journal Team ISSUE 4 2020 • WWW.PHILIPPINE-RESOURCES.COM


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