Manila, Philippines — Just a year ago, no one would have imagined the Philippines as the site for this year’s Asia Pacific Mining Conference. But on Oct. 11-13, it happened: many of the most senior mining leaders of Asia were brought together in Manila.
The country used to be one of the largest mineral producers in the world, but years of abuse have left the mining industry in tatters. There have been no new mines for the past 30 years — that is, until just the past few months.
A new mining law has made the industry viable in the Philippines once again and, according to the government, the country is open for business.
Politicians, judges and government officials were present at the conference in large numbers to provide smiles and rosy assurances to the hundreds of foreign delegates in attendance.
Mining executives were not quite as optimistic as the politicians, but the overall tone was certainly positive and a big change from just one year ago. Understandably, the companies with the most positive messages about the Philippines were those experiencing the most success.
Andrew McIlwain, chief executive of Melbourne-based
John Ridsdel, country manager of Lafayette partner
James Askew, chairman of Aussie junior
Tony Robbins, managing director of Australia’s
While there was much to be upbeat about, some expressed caution about operating in a country with a long history of antagonism toward mining.
Patrick Waters, president of
Corruption and red tape are other hindrances, as is difficulty gaining access to adjacent sites because of uncertain and sometimes arbitrary regulatory and legal structures.
Well-respected business consultant Peter Wallace, of the Wallace Business Forum, was similarly guarded. The “new” mining law, he said, was originally passed in 1995, but the country’s Supreme Court held it up for nine years determining whether it was constitutional or not.
In addition to an arbitrary judiciary, some of the other concerns he expressed included vested interests, poor security and slow approvals.
He told the story of
Despite the concerns, some say the Philippines is “not much different” and “probably even better” than many other countries in Asia and Africa that already have more established mining sectors.
Indonesia, for instance, currently has foreign mining executives languishing in jail with no end in sight.
Given the alternatives and the current sense of commitment by the government, it seems that the Philippine mining industry will gradually continue to improve its position. That is, as long as there are no changes.
— The author is chairman of executive search firm Chalre Associates and is based in Manila. He can be reached at rmills@chalre.com or www.chalre.com.
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