INTRODUCTION
History tells us that the conquests made by men and nations were often fueled by the obsession for gold and other precious metals. The history of the world is replete with epics of battles won or lost, of nations that rose or fell in the quest, possession, or insufficiency of mineral wealth.

The industrial revolution that gave rise to the modern world could not have been sustained without metals and minerals.

In this last stretch of the 20th century, we see the Philippines making a determined bid to stand shoulder-to-shoulder among its more affluent neighbors. As the Asia-Pacific region continues to lead the world in growth, we are faced with the challenge of taking part in the great adventure of modernization and development, of holding our own in global competition.

This bid for sustainable development demands that we take the options that would keep us on the cutting edge of competition. It brings to mind mining as one developmental option that we cannot ignore.

The Philippines has long had the reputation of being one of the world’s richest repositories of mineral deposits. The Chinese were already here in the 16th century with their silk, which they sought to barter for gold; we paid gold as tribute to Spain during the colonial period; the British were dredging for gold in Camarines Norte and Surigao del Sur by the end of the 19th century; the longest running gold mine opened in Benguet in 1908; and one of the world’s biggest nickel mines started up on Nonoc Island in the sixties.

From the thirties to the early eighties, the Philippines was almost always ranked among the top five gold-producing countries of the world; from the mid-fifties to the early eighties, always among the world’s top ten copper-, chromite- and nickel-producing countries.

These were the times where at one point, the mining industry accounted for 10 percent of the gross domestic product and 25 percent of the country’s export trade.

It was no meager feat for a country with a land area only about the size of the state of Arizona.

All told, the past recalls to us that mining was a backbone of the national economy. And as the Philippines pursues the path of economic and social progress, we turn to mining once more as an industry to be strengthened in our efforts to develop and modernize.
SAVING A LIFE-SUPPORTIVE INDUSTRY
Mining is uniquely different from other industries, because aside from its macro-economic contributions — in particular to export earnings, government revenues, employment and countryside development — mining provides the raw materials basic to human civilization.

From toothpaste to eyeglasses and toilet bowls, to health care, computers and most industrial and commercial products known to modern man, mining provides the minerals whose end products sustain life.

The country, therefore, that produces minerals to benefit not only its people but all of mankind pursues a noble endeavor.

Except for the period 1941-1945 during the Second World War, the period from the mid-eighties to the early nineties may be considered the darkest age of the Philippine mining industry. Low metal prices, high operating costs mainly brought about by the oil shortage and socio-political instabilities in the mid-eighties took their toll on the industry. With lack of capital and peace and order problems at a number of important minesites worsening the situation, the industry hit rock bottom in 1990.

In contrast, other countries in the Association of Southeast Asian Nations (ASEAN) saw their own mining industries emerging as frontliners of their economies during this same period.

For this reason, I ordered the creation of a special task force in 1993 to take steps to reestablish the vital support that the Philippine mining industry provides in nation-building.

Republic Act 7729, passed in 1994, which sought to reduce the excise tax for mineral products, started the industry’s renewal by giving substantial financial relief to the ailing sector. That law demonstrated government’s concern about revitalizing mining.

This was followed by Republic Act 7942 — the Philippine Mining Act of 1995 which manifests government’s latest attempt to revitalize mineral resources development and is hailed by the industry itself as a landmark in mining legislation, comparable with the world’s best in the context of sustainable development.

Under this law, we have so far approved two financial or technical assistance agreements (FTAAs) and 60 mineral products sharing agreements (MPSAs). I understand that to date, we have 120 pending applications for FTAA and 1,500 for MPSA. I also understand that we have already attracted almost 20 of the biggest names in the world mining industry, with many more waiting in the wings.
THE NEW MINING ACT AND THE CHALLENGES OF DEVELOPMENT
Mining has often been censured for altering the land and generating mine waste and tailings. Many people are probably not aware that mining is being undertaken in developed and highly environmentally conscious countries, with great success at reconciling economic interests with the dictates of environmental protection, social upliftment and safety-consciousness.

The advent of modern technologies has, indeed, enabled the industry to adopt clean approaches through best mining practices using the best available technologies. The technology and practice of rehabilitating mined-out areas to a post-mining productive land use is now well-established. Examples are the protection forests in Australia, the housing, sports and recreational community havens in Malaysia and Thailand, and tourist resorts in the United States, among others.

We must put people on our side by making them understand what mining is all about, how it benefits a country and its people and, most important, that it can be protective of the environment and that it can promote social progress.

People must also realize that miners are not plain toilers beneath the ground but are also a socially-responsive breed of men who are willing to take the perilous path so that others may live. Remember the devastating earthquake of 1991, where the courage of our miners helped save those who were buried under tons of concrete and steel in Baguio City? One survivor said of the miners, “They were God-sent!”

The Philippine mining industry is, therefore, confronted with this multi-faceted challenge which has crucial political, social, cultural, environmental and economic aspects. For as long as people see with naked eyes only the unmitigated impact of mining, for as long as headlines banner nothing more than the misery caused by pollutive mining and mining disasters, no amount of economic gains can justify the cultural, social and political cost of extracting minerals out of mother earth.

The Philippine Mining Act of 1995 laid down the legal policy framework of sustainable mineral resources development. In simplest terms, its intent is clear: pursue mineral resources development as one option for economic growth, but without compromising the environment. It is, so to speak, a “balancing act” to ensure that mining stays as a sound, acceptable development option.

The revised implementing rules and regulations (IRR) of the new Mining Act even have gone further by introducing a new regime of mining that seeks to change traditional philosophies so that mining shall be both pro-people and pro-environment in sustaining wealth creation and achieving an improved quality of life.

By providing for structures, systems, funds and procedures necessary to ensure the protection of the environment during and after mining, it strengthened the cause of environmental protection. By providing the mechanisms and commitments to protect the rights of indigenous peoples and bring the benefits from mining down to the people and communities, it has molded a more socially-responsive and culturally acceptable mining industry.

By involving communities and non-government organizations (NGOs) in decision-making through mandatory consultations and monitoring activities, it has given flesh to people empowerment. And by requiring stronger financial qualifications, it has shut the door of mining business to speculation and incompetent mining contractors.

We have strengthened the Mines and Geosciences Bureau (MGB) by transforming it from a staff to a line agency, precisely to provide the industry with a highly responsible and competent agency. This bureau, however, is both a friend and a watchdog of the industry, keeping in mind that enforcement of the law is still its first and foremost duty. We will ensure that the bureau remains faithful to its mandate.

In the final analysis, however, it is you, of the industry, who will make the difference. For instance, the best expression of commitment to people and environmental protection is not only by swearing to high heavens, but by obligating your funds and committing your expertise to where they should go on the ground to protect the general welfare. Then probably we would see the last of the disasters.
THE COMPETITIVE EDGE OF SUSTAINABLE MINING
Sustainable mining as the new regime of mineral resources development should guarantee several “high returns of investments.”

First is the sustainability of mining as a business.

The impositions of sustainable mining will render marginal mineral deposits uneconomical to mine. Only large, high-quality deposits able to absorb the social and environmental cost of mining would pass the grade. Effectively, we are left with prime deposits able to support long-term, high-profit operations. These are the kind of operations that should attract capital investments.

Second is the sustainability of mining as an environmentally responsible industry.

Within the ambit of sustainable mining, the mining contractor is afforded the opportunity to share in the noble cause of all mankind to protect and save our planet earth. This is an opportunity that every man and woman has to see and cherish, for it concerns his and her very survival. That opportunity is now within the grasp of the industry.

Third is the sustainability of mining as a benefactor of communities.

Long-term, high-profit mining operations can best help the social and cultural development of communities, and still maintain economic viability.

Fourth is the sustainability of mining as a nation-builder.

Long-term, high-profit mining translates into higher revenues for government, more decent jobs for the population, more raw materials available to feed the engines of downstream and allied industries, and improved chances of human resource and countryside development by creating self-reliant communities away from urban centers.

All these lead to enhanced political stability. Thus, with mining as a dependable option of development, a grateful government and people can do no less than give it full support.

In effect, sustainable mining accords greater socio-economic, cultural and political relevance to the mining industry and, therefore, paves the way to the industry’s viability and survival — and more importantly to community viability and community development.
WINNING THE FUTURE
To summarize, the wheels of development have to move fast-forward, in the light of the challenge to be competitive in the global economy. The government has put in place the best available development policy options, and in partnership with the private sector, faithfully implementing these options so that the country can win the future.

Against a fragile and finite environment, it is sustainability that holds the key. In sustainable mining, we take a middle ground where both production and protection goals are balanced, and where parties in interest come to terms.

With the legal policy framework of sustainable mineral resources development already laid down by RA 7942 and its IRRs, the burden of responding with full ardor, dynamism and commitment shifts to the industry. It has to show to the nation and to the world that production and protection goals can jointly be met with great success in a functioning and competitive democracy such as ours for the purpose of improving the quality of life of the people.

Maraming salamat at mabuhay ang Pilipinas!