Regarding your Commentary titled “Philippine mining struggles” (T.N.M., April 18/94), you failed to highlight the tremendous opportunities that exist because of the current plight of the industry in the Philippines.
Without doubt, the industry is in bad shape, and proposed changes in taxation and implementation of the proposed new Mining Code may not happen fast enough to save some struggling companies.
During the 1980s, little exploration was conducted by the major Philippine mining companies, owing to several factors — among them, depletion of reserves at the big copper mines, declining markets, sagging prices and political and economic instability.
Since then, the same companies have struggled to survive; and despite the political and economic revival in other sectors of the economy, mineral exploration has been almost nonexistent.
Yet opportunity knocks. The country has superb infrastructure, a pool of excellent professionals, a legal system patterned after that of the U.S., an 80% literacy rate in English and low labor costs.
Progress is being made on several fronts, and with the Financial and Technical Assistance Agreement mechanism for conducting business now in place, there are several major foreign mining corporations currently acquiring and exploring mineral properties.
Indeed, with the relaxation in foreign ownership rules, tax breaks and foreign investment incentives already in place, a significant land rush has developed in the gold-rich provinces, such as Mindanao. Also, major international companies and several juniors are in fierce competition for mineral rights in several areas.
The Commentary appeared underneath the editorial titled “A silver lining?” Every cloud has one, and it is unfortunate that your comments on the Philippines did not recognize the one that exits there — it’s golden. Ian Rozier
President, Chase Resource
Vancouver, B.C.
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