The entry of world-class mining companies into the country prompted the Mines and Geosciences Bureau (MGB) to talk up the Philippine mining industry, saying it is finally improving.

MGB director Horacio Ramos said there are serious investors who are working on exploration projects all over the country, among them, Anglo-American, Templar and Phelps Dodge.

Reacting to a report by the Australia-New Zealand Chamber of Commerce (Anzcham) citing that some P3 billion in potential investments for mining had been lost over the last five years owing to unfavorable investment climate, Ramos said, "Investors come and go depending on their corporate objectives."

The Anzcham report said that many companies committed to invest in mining exploration in the country have left and invested their funds elsewhere "because of frustrating delays."

In answer, Ramos said, "This misperception of Anzcham stems from the department's hard-line policy on requiring mining first to secure social acceptability through a series of public consultations with concerned sectors as required by a provision on social acceptability of the Philippine Mining Act of 1995."

He stressed that the industry is in fact responding and [mining companies] are now complying with their environmental and social obligations after deficiences present in the old mining law were rectified by the Philippine Mining Act.

The Anzcham report also cited the case pending with the Supreme Court questioning the constitutionality of the New Mining Act and the Indigenous People's Rights Act (Ipra) as a major deterrent to investment to investments, and that government should review the fiscal regime under which foreign companies can develop and mine mineral deposits in the country.

However, Ramos said that this was not necessary as the industry has conducted long and extensive review and consultation with international investors in 1997 and was recognized by independent analysis as internationally competitive.

He added that the competitiveness of the present mining fiscal regime was validated only last March by the Global Mining Taxation Comparative Study of the Colorado School of Mines in the United States. This then affirmed the Philippines as one among the top five countries with preferable mining regimes.

To date, 403 mining applications are pending with the DENR-MGB covering 3,262,564.5 hectares.

DENR records show that 37 of the 60 exploration permits issued since 95 are still actively being conducted by mining companies willing to further invest in the Philippines totalling to P200 million based on their Environmental Work Program for Exploration submitted to MGB.