Religious Experiences and Spirituality: Indigenous Religions in Pre-colonial Philippines
The Philippines Experiences in improving transparency and management in mining sector
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Transcript of The Philippines Experiences in improving transparency and management in mining sector
The Philippines Experiences in
improving transparency and management in mining sector
Hotel Borobudur, Jakarta, Indonesia
April 17, 2013
MINERAL RESOURCESMetallic• Gold• Copper • Nickel• Iron• Chromite
Non-Metallic• Sand & gravel• Limestone• Marble• Clay
Department of Environment and Natural ResourcesRepublic of the Philippines
Commodity Gold Copper Nickel Chromite
Volume (Metric Tons) 4,915,384,989 7,394,005,305 812,034,825 39,659,013
Grade 1.37 gm Au/MT 0.980% Cu 1.258% Ni 22.13% Cr
Recoverable Metal
138,676,162 Troy Ounces
46,353,971 Tons
8,173,712Tons
7,020,260Tons
Metal Price US$ 1,651.69 /Troy Ounce
US$8,069.00/Ton
US$18,387.00/ Ton
US$ 11,200.00 /Ton
Gross Value US$ 229 Billion
US$ 374 Billion
US$ 150 Billion
US$ 79 Billion ◄
Exploration Permit 53Mineral Production Sharing Agreement 339
Financial or Technical Assistance Agreement 6
Mineral Processing Permit 84Industrial Sand and Gravel Permit 235Mining Lease Contract 14TOTAL EXISTING/APPROVED MINING TENEMENTS 717
TOTAL HECTARAGE COVERED 942,710.97
approved Mining Tenements (As of february 2013)
Department of Environment and Natural ResourcesRepublic of the Philippines
• 3 Copper Mines (w/ Au & Ag)
• 1 Copper Mine (w/ Au, Ag & Zn)
• 6 Gold Mines • 3 Chromite Mines• 1 Iron Mine• 1 Magnetite Mine• 21 Nickel Mines• 1 Nickel Processing Plant• 1 Copper Processing
Plant 2000+ sand and gravel,
and other non-metallic small-scale operations
36 Operating Metallic Mines and
2 Processing Plants
Department of Environment and Natural ResourcesRepublic of the Philippines
55 Operating Non-Metallic Mines
INDUSTRY PERFORMANCE-GLOBAL RANKING-
NICKEL PRODUCTION (000 MT)COUNTRY Rank 2012 Rank 2011 RESERVES
Philippines 1 330,000 2 270,000 1,100,000Indonesia 2 320,000 1 290,000 3,900,000Russia 3 270,000 3 267,000 6,100,000Australia 4 230,000 5 215,000 20,000,000Canada 5 220,000 4 220,000 3,300,000Brazil 6 140,000 7 109,000 7,500,000China 7 91,000 8 89,800 3,000,000Colombia 8 80,000 9 76,000 1,100,000Cuba 9 72,000 10 71,000 5,500,000South Africa 10 42,000 3,700,000New Caledonia 6 131,000 12,000,000Other Countries 332,000 200,600 7,667,100TOTAL 2,127,00
0 1,939,400 74,867,100
Department of Environment and Natural ResourcesRepublic of the Philippines
MINING INDUSTRY
Current Violations & Malpractices
Politic
s
Propaganda (Advocacy Groups)
Lack of Benefits
Legac
y Mine
s
(hist
orica
l tra
ck
reco
rds)
Lack of
Information
CHALLENGES
STRONG ANTI MINING SENTIMENTS
Results of Anti-Mining SentimentS
LGUs issuing ordinances and resolutions against mining;
Congress passing resolutions and considering House Bills declaring mining free provinces and cities;
Government increasing regulatory requirements; and
Concerned groups/organizations/citizens filing complaints and cases.
Department of Environment and Natural ResourcesRepublic of the Philippines
MINING STUDY GROUP Created per instruction
of the President Tasked to finalize the
mining industry policies
Composed of the DENR Secretary, Presidential Assistants on Climate Change and on Environmental Protection, and Vice-Chair of the Climate Change CommissionDepartment of Environment and Natural ResourcesRepublic of the Philippines
Major Concerns identified thru series of consultations
• Government – Maximizing revenues; enforcement of laws; regulation
• Mining Industry – Protection of investments; stable policy
• CSO/NGOs/Church/Community – Destruction of the environment; human rights
• IPs– Right to ancestral lands; benefits from mining; validity
and transparency of the process undertaken• LGUs
– Local autonomy (for those who want mining); protection of the environment (for those against); profit sharing and speedy disbursement
Department of Environment and Natural ResourcesRepublic of the Philippines
Institutionalizing and implementing reforms in the Philippine mining sector, providing policies and guidelines to ensure environmental protection and responsible mining in the utilization of mineral resources
Signed on 06 July 2012
Guiding Principles• Ensure responsible mining’s contribution to the
country’s sustainable development• Adopt international best practices to promote
good governance and integrity in the sector • Ensure the protection of the environment by
adopting technically and scientifically sound and generally accepted methods as well as indigenous best practices
• Ensure consistency of national laws and local issuances, and harmonize laws, policies, and regulation
• Ensure a fair, adequate, and equitably shared economic benefit for the country and the people
• Deliver efficient and effective management of the mining sector, both large and small scale
EO PROVISIONS TO ENSURE RESPONSIBLE MINING
Areas Closed to Mining ApplicationsFull Enforcement of Environmental
StandardsReview of the Performance of Existing
Mining Operations and Cleansing of Non-Moving Mining Rights Holders
Opening of Areas for Mining Through Competitive Public Bidding
Value-Adding Activities and the Development of Downstream Industries for the Mineral Sector
Constituting the Climate Change Adaptation and Mitigation and Economic Development Cabinet Clusters as the Mining Industry Coordinating Council (MICC)
Creating a One-Stop Shop for All Mining Applications and Procedures
Measures to Improve Small-Scale Mining Activities
EO PROVISIONS TO ENSURE RESPONSIBLE MINING
Creation of a Centralized Database for the Mining Industry
Integrated Map System to Include Mining Related Maps
Improving Transparency in the industry by Joining the Extractive Industries Transparency Initiative
EO PROVISIONS TO ENSURE RESPONSIBLE MINING
PRESIDENT AQUINO’s SOCIAL CONTRACT
with the Filipino people
• Reduce poverty!• Promote “daang
matuwid!” (anti- corruption)
• 3.5 billion people live in countries rich in oil, gas and minerals
• With good governance, the exploitation of these resources can generate large revenues to foster economic growth and reduce poverty
• When governance is weak, such resource revenues may result in poverty, corruption and conflict
The Extractive Industries Transparency Initiative (EITI) aims to strengthen governance by improving transparency and accountability in the extractives sector.
What is EITI?• A global standard ensuring
transparency of revenues from natural resources…
What is EITI?• … reforms via a multi-
stakeholder coalition
EITI Criteria• Regular publication of all extractives payments by
companies and all extractives revenues received by government in a publicly accessible, and comprehensible manner
• Payments and revenues are the subject of a credible, independent audit under international audit standards
• Payments and revenues are reconciled by a credible, independent administrator, including opinion on discrepancies
• Approach extended to all firms, including GOCCs• CSOs actively engaged as a participant in the
design, monitoring & evaluation of process, & contributes to public debate
• A public, financially sustainable work plan for the above is developed by the host government, including measurable targets, a timetable and an assessment of capacity constraints
EITI BENEFITS
• Governments benefit from following an internationally
recognised transparency standard that demonstrates
commitment to reform and anti-corruption, leading to
improvements to the tax collection process and enhanced
trust and stability in a volatile sector.
EITI BENEFITS
• Companies benefit from a level playing field in which all
companies are required to disclose the same information.
• They also benefit from an improved and more stable
investment climate in which they can better engage with citizens
and civil society.
EITI BENEFITS
• Citizens and civil society benefit from receiving reliable information about the sector and a multi-stakeholder platform where they can better hold the government and companies to account.
Updates & Actions Taken• Visits by EITI Int’l Secretariat, Revenue
Watch Inst. & Indonesian Parliamentary Center to express support for PH implementation of EITI.
• Exploratory meetings held with Bantay Kita on 27 July & 3 Aug; exploratory meeting with Chamber of Mines of the Philippines on August 14.
• Agreement reached to set up an Interim MSG with Bantay Kita and COMP representing civil society & business sectors.
The EITI Compliance Process
EITISIGN-UP
EITI CANDIDATE(1.5 years)
EITI COMPLIANT
Requirements:
1. Issue public statement
2. Commit to work w/ stakeholders
3. Appoint EITI lead official
4. Form MSG5. Craft EITI
Work Plan
Preparation of EITI Report
(8 Requirements)
Review & Validation(2 Requirements)
Disclosure & Dissemination
(5 Requirements)
Retaining Compliance:
Maintain adherence
to all requirement
s…
else…Suspension
The government is required to issue an unequivocal public statement of its intention to implement EITI
• EO 79, Section 14. Improving Transparency in the Industry by Joining the Extractive Industries Transparency Initiative
EITI Candidacy Checklist
The government is required to appoint a senior individual to lead on the implementation of EITI
• Secretary Elisea Gozun was identified in the first MICC meeting last July 25, 2012, to lead the process of complying the EITI
EITI Candidacy Checklist
Designation of the Lead
Senior Official of PH-EITI
The government is required to commit to work with civil society and companies on the implementation of EITI
• met with Bantay Kita , the Chamber of Mines and other large scale mining companies that are not members of the Chamber & reps of the Petroleum Assn of the Phil
• Regional CSO consultative Workshops held
• The EITI Rulebook states that “Civil society and companies must be substantially engaged in the design, implementation, monitoring and evaluation of the EITI process, contributing to public debate.”
EITI Candidacy Checklist
The government is required to establish a multi-stakeholder group (MSG) to oversee the implementation of EITI
• The interim Multi-Stakeholder group was
convened on August 21, 2012, composed of 9 members.
* Final members of the MSG selected by CSOs on Jan 17, industry reps from Chamber of Mines of the Phil, Petroleum Association of the Phil, and large scale miners that are not members of the Chamber; govt reps. inlcude OP, DENR, DOF, DOE & ULAP.
EITI Candidacy Checklist
ACTIONS TAKEN• Mobilized support for CSO
outreach:
- October 18-19 Training of Trainors - Regional Consultations: * Baguio Nov 26-27 * NCR Nov 29-30 * Davao Dec 3-4 * Pagadian Dec 6-7 * Cebu Dec 10-11
Updates & Actions Taken
• Technical Working Group (TWG) established and actively working
• Meetings held on: - August 10 - August 17
- November 6 - December 5
The EITI TWG • Sec. Gozun
– EITI Lead Official + TWG chair
• DENR (MGB)– general mining data,
regulation & linkages• DoF (BIR, BoC, BLGF)
– mining revenues (nat’l – BIR & BoC; local – BLGF)
• DILG– small mining revenues
& regulation by LGUs
• DoE– oil industry regulation,
revenues & other data• NEDA
– MICC Secretariat– internal communication
• DBM (RIU, SPIB, BMB-G)– LGU rev shares (BMB-G)– regulation organizations
& systems review (SPIB)– Governance Cluster
Secretariat (RIU)
* Interim MSG convened (9 members):
- September 6 - September 24 - October 5 - December 18
* Final MSG met on January 29
PH-EITI MultiStakeholder Group (15 members)
• 5 from Government: Sec. Gozun, Dept of Finance (DOF), Dept of Environment and Natural Resources (DENR), Dept of Energy (DoE) , Union of Loal Authorities of the Philippines (ULAP)
• 5 from Industry: 3 from Chamber of Mines of the Philippines, 1 from large scale mining companies that are not members of the Chamber 1 from the oil and gas sector
• 5 from Civil Society: convened by Bantay Kita CSO networks, IP networks, academe, Peoples Organizations, etc.
EITI Implementation Structure
EITI TWG
Mining Industry Coordination Council
(Jt. Econ & Climate Clusters)
Cabinet Cluster onGood Governance
and Anti-Corruption
Implementation of EITI;Policy Consultation & Feedback Mechanism
EITI Philippines(Multi-Stakeholder Group)
ACTIONS TAKEN
• Decided on initial scope: - large scale metallic mining - oil & gas
• Drafted the TOR & sought comments
• Drafted the Work Plan & sought comments
The multi-stakeholder group, in consultation with key EITI stake-holders, should agree and publish a fully costed work plan, containing measurable targets, and a timetable for implementation and incorporating an assessment of capacity constraints.
• Governance Secretariat & EITI TWG & Interim MSG drafted an initial work plan, for discussion and fleshing-out
• The EITI Secretariat has kindly provided us sample work plans by Timor Leste and the Solomon Islands
• The work plan should be updated on an annual basis
EITI Candidacy Checklist
PH-EITI Work PlanWork Plan Objectives:
1. Establish Commitment and Support to Implement EITI2. Form MSG, Develop and Publish Its Terms of Reference
and the EITI Work Plan3. Institutionalize PH-EITI4. Prepare to Implement and Monitor PH-EITI5. Audit/Reconcile and Report on Revenue Flows
between Philippine Government and Extractive Industries
6. Communicate, Build Knowledge, and Engage Citizens in the PH-EITI Program
OUTREACH – Stakeholders
• Mobilized support for CSO outreach:
- October 18-19 Training of Trainors - Regional Consultations: * Baguio Nov 26-27 * NCR Nov 29-30 * Davao Dec 3-4 * Pagadian Dec 6-7 * Cebu Dec 10-11
OUTREACH – CSOs
National CSO CongressJanuary 17, 2013
- Selected the CSO permanent and alternate
representatives to the MSG
PH-EITI Work Plan Key Milestones
• Q1 2013: Fulfill requirements for EITI Candidacy, including MSG, Work Plan & PH-EITI Launch; Set-up PH-EITI Unit, conduct studies on materiality, capacity assessment & set-up PH-EITI website
• Q2 2013: Finalize reporting policies, mechanisms & templates, hire independent validator & procure publishing requirements
• H2 2013: Design and production of the 2011-2012 PH-EITI Report, w/ continuous consultation
• H1 2014: Independent validation
Outreach • Business Sector: - Chamber of Mines of the Philippines - non-members of the Chamber - oil & gas companies
•
Outreach • Indigenous Peoples & National
Commission on Indigenous Peoples – Feb 20
Outreach• Academe – Feb 21co- convened with the Ateneo School of
Government
Outreach • Different religious groups- Feb 26
Outreach - GovernmentDifferent National Government
Agencies:
Department of FinanceDepartment of Environment and Natural Resources/ Mines and Geosciences BureauNational Economic and Development AuthorityDepartment of EnergyDepartment of Budget and ManagementDepartment of Interior and Local GovernmentBureau of Internal RevenueBureau of Customs
Local Government Units: Provinces Cities Municipalities
Provincial Environment and Natural Resources Officers in areas with active mining
Recent Milestones
• Public launching of PH-EITI April 4, 2013
• Submission of the PH - EITI Application to the EITI International Secretariat
April 5, 2013
Presidential Statement
on EITI
• Continue to fully engage industry , civil society and local governments
• Study legal and administrative obstacles to implementation and remove them
• Agree on Materiality - getting TA for Materiality Study from World Bank
• Develop reporting templates
• Ensure company and government accounts are properly audited to international standards
Next Steps
Next Steps• Draft a disclosure policy, including flow-
charting of revenue data
• Determine other areas for transparency & participation in extractive industries,
• Support and closely monitor sub-national EITI implementation
• Secure support from national and int’l partners
Philippine participation in EITI part of
Government’s Reform Agenda
Commitment to Good Governance
Open Government Partnership
Good Governance and Anti-Corruption Framework
Good Governance & Anti-Corruption
Corruption CurbedBusiness
Environment Enhanced
Delivery of Public Services Improved
Accountability Citizens’ EngagementTransparency
Anti-Corruption Efforts
Performance Management
PROPOSED TARGET OUTCOMES
Corruption Curbed Business Environment Enhanced
Delivery of Public Services Improved
• More open and transparent procurement process
• More effective detection and prosecution of corrupt officials, tax evaders and smugglers
• Improved public financial and expenditure management
• Improved M&E and performance management systems, especially for frontline services
• Simplify business registration process
• Promote integrity in the public and private sector
• Improve the predictability of government policies
• Improve revenue transparency in Extractive Industries
TRANSPARENCY PARTICIPATION ACCOUNTABILITY
OGP and GGAC Action Plans
PH OGP Action Plan
19 initiatives
GGAC Action Plan
19 OGP + 14 non OGPinitiatives (33)
Cabinet Cluster onGood Governance andAnti-Corruption
Consultations in Crafting the Plan
• Consultations with Business Leaders– Primarily Integrity Initiative and private sector-side of
National Competitiveness Council– 18 and 26 August 2011 for the OGP Action Plan– 24 November 2011 for the GGAC Plan
• Consultations with Civil Society Organizations– 10++ National Civil Society Organization Networks– 19 and 26 August 2011 for the OGP Action Plan– 25 November 2011 for the GGAC Plan
• Consultation with Development Partners– Via Phl Development Forum Governance Working Group– 22 November 2011
GREEN
ORANGE
RED
FULFILLED2012 Targets Accomplished
PARTIALLY FULFILLEDSubstantial Accomplishment of 2012 Targets
IN PROGRESSDelay in implementation
PROJECT STATUS
Based on accomplishment of identified targets in the GGAC/OGP
Action Plans
PROJECT STATUS
OGP Commitments
Legend:
Key Lessons of Good Governance
• provide a venue for all the stakeholders to discuss issues and collaborate towards a common goal of promoting good governance
• participatory process provides everyone a wider perspective and a better understanding of the issues of the different stakeholders
• potential of providing data to increase transparency and accountability
• venue to discuss potential policy reforms
SHARED
RESPONSIBILITY