QUARTERLY REGIONAL ECONOMIC SITUATIONER

PRIMER

PRICES

INVESTMENTS

EXPORTS

FOOD PRODUCTION

FIBER PRODUCTION

MINERAL INDUSTRY

TOURISM DEVELOPMENT

DISASTERS

DEVELOPMENT OUTLOOK AND CONCERNS

MINERAL INDUSTRY DEVELOPMENT

   Large scale mining was revitalized with the acquisition by three foreign companies of the exposure of Lafayette Mining Limited (LML) in the Rapu-Rapu Polymetallic Project (RRPP). These mining companies were LG International Corporation of Korea (LG Group of Korea ), Korea Resources Corporation (Kores) and Malaysian Smelting Company (MSC). With the buyout, Lafayette Philippines, Inc. (LFI) is now owned by the three firms under Philco Resources Ltd. (Philco). With the infusion of new capital and after complying with the requirements imposed by the Mines and Geosciences Bureau and the Environmental Management Bureau, the DENR Secretary issued an order for the Rapu-Rapu Polymetallic Project to restart operations on October 21, 2008.

   On the Masbate Gold Project, it is 78 percent completed as of November 2008. The mineral properties were purchased by Filminera Resources Corporation (FRC) from the former Atlas Consolidated Mining and Development Corporation (ACMDC) in 1996. The project employs 2,060 personnel of which 62 percent is local labor. It is presently completing the construction of the Carbon-In-Leach (CIL) processing plant, the 300 MW power plant, the tailings storage facility and the pit preparation. The process plant is expected to be finished by February 2009 and initial start-up of the process plant will be undertaken in March 2009. Information, education and communication activities are on going coupled with community development work as part of the company’s social responsibility.

   The Department of Environment and Natural Resources- Mines and Geosciences Bureau 5 has deputized seven barangay captains in Sorsogon province to monitor extraction and transport of illegally sourced magnetite sand and other beach resources in the municipalities of Bulan and Sta. Magdalena as reported by PIA Press Release (12 December 2008). This was pursuant to Batas Pambansa (BP) Bilang 265 which prohibits mining within the beach zone areas and a mineral processing permit is required prior to any processing of magnetite sand and other beach resources; DENR Administrative Order (DAO) No. 2007-15 which prohibits extraction in offshore areas 500 meters from the mean low tide level and on onshore areas 200 meters from the mean low tide level along the coast; and RMDC Resolution creating a Mining Task Force.