Philippine mining industry: an examination on copper, gold and nickel markets
Date
2006-03
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Abstract
The Philippine mining industry is influenced by both local and international factors. International factors include metal prices, world production and consumption trends, and level of investments. The paper seeks to analyze the relationship of the country's mining industry to international variables. On the other hand, government policies on the mining industry set the legal framework which defines the relations among various stakeholders. It preconditions the environment for the industry's investments and specify the rights and obligations of the operators. It also acts to secure mining rights and indicates the terms of profit- sharing between the investors and the government. More important, it regulates the level of mining activities suited for broader economic, ecological and social goals of the country.
This study focuses on the Mining Act of 1995 which serves to clarify ambiguities in government policy. Notwithstanding the different conflicts roused by the law, the Supreme Court upheld the legality of foreign ownership of mining corporations on December 2004.
The paper presents a report on the industry's performance and identifies the major problems and issues that beset its path to growth and development. This study analyzes major modes of mining agreements as stipulated in the Mining Act of 1995. Historical background of policy initiatives will be provided.
The markets for copper, gold and nickel are analyzed to demonstrate the dependence of local mining industry to international variables. Although local mining industry is influenced by local markets and policies, the direction of metallic exports lies in the development in world metals community.
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Keywords
Mining industry, Mining, Philippine minding, Metal, Metal export