The Philippines is home to reserves of chromium, coal, copper, gold and nickel, among other minerals. Nickel is presently the country’s most economically important resource, with the country accounting for some 5% of global nickel production in 2007, according to the US Geological Survey.
Philippine gold, nickel, copper and chromite deposits are among the largest in the world. Other important minerals include silver, coal, gypsum, and sulfur. Significant deposits of clay, limestone, marble, silica, and phosphate exist. About 60% of total mining production is accounted for by non-metallic minerals, which contributed substantially to the industry's steady output growth between 1993 and 1998, with the value of production growing 58%. In 1999, however, mineral production declined 16% to $793 million. Mineral exports have generally slowed since 1996. Led by copper cathodes, Philippine mineral exports amounted to $650 million in 2000, barely up from 1999 levels. Low metal prices, high production costs, lack of investment in infrastructure, and a challenge to the new mining law have contributed to the mining industry's overall decline.
The industry rebounded starting in late 2004 when the Supreme Court deemed an important law permitting foreign ownership of Philippines mining companies constitutional.
Mining Outlook in the Philippines 2010:
Base on Philippines Mining Report 2010
“The global economic crisis and the concomitant fall in demand for metals had an impact on the Philippines, with several mines being closed temporarily. However, with the worst of the crisis widely believed to have passed, the outlook is somewhat brighter for 2010 and beyond. Major development projects, such as Xstrata’s planned US$5.2bn Tampakan copper and gold mine, have the potential to transform the output of the sector.
We are forecasting an average annual growth rate of 2.57% for the Philippines mining sector over our newly-extended forecast period to 2014. Production of several key mineral commodities should increase, provided new investment projects proceed as planned. The contribution of mining to overall GDP may fall slightly. However, this is more a reflection of faster growth rates in other areas of the Philippines economy, as opposed to any long-term declining trend in output by the mining sector.”
“There are several major investment projects in the pipeline, which have the potential to significantly boost mining production levels by the end of our newly-extended forecast period in 2014.
The leading domestic player is Philex Mining, which produces copper, silver and gold. Major players currently involved in the Philippines mining sector include Japan’s Sumitomo Metal Mining and Norway’s Intex Resources. Xstrata could become a major force in the country if it proceeds with its US$5.2bn Tampakan copper and gold project, which could now be in partnership with Zijin Mining, in light of the Chinese firm’s ongoing bid for Xstrata’s JV partner, Australia’s Indophil Resources, which closes in May 2010.
One recent setback for the industry was BHP Billiton’s decision in December 2009 to sell its nickel interests in the country to JV partner Asiaticus Management Corporation. However, this move seemed to be part of a wider investment decision by BHP Billiton to step back from the nickel sector, rather than a commentary on the Philippines in particular.”
Multiple Material and Mineral Corporation:
Multiple Material and Mineral Corporation (hereinafter referred to as “MMMC” for brevity) is a company incorporated under the Philippine laws in 2001. The company has undergone a re-organization in 2010, with the entrée of new set of directors and stockholders.
Its corporate mission is to undertake mining operations on its own concessions and develop other mining sites through joint ventures with other companies (small, medium or large corporations) in order to achieve its vision as a leader in supplying high quality minerals and raw materials to different industries.
The present economic stimulus of the Philippines aims to achieve stable and sustainable growth. This objective underscores the need to re-look at the mining sector of the country for two reasons, namely:
First, the country has an abundant supply of both metallic and non-metallic minerals, which private enterprises and communities can explore, mine, process and sell to industrial companies situated in the Pacific Rim region.
Second, the mining industry provides “direct and indirect employment and means of livelihood to nearly one in every 70 Filipinos. It is also estimated that the small-scale mining sector generates or supports at least 20,000 formal and informal small enterprises and businesses”. Small Scale Mining & Environmental Damage
Mining is capital intensive and mining exploration is a pure expense (no income) – generally between US$1 million and US$10 million. In a Least Developed Country (“LDC”) like the Philippines, only major mining companies have this amount of money to undertake the work.
However, families and individuals own and operate most mining concessions that do not have huge capital base like their corporate counterpart.
Because of the lack of financial capital and further compounded by irresponsible mining operation, any economic gains from small-scale mining operations are seen to be outweighed by ecological damage it brought to the community.
Understandably, there is considerable opposition to mining. Some of that has been from internationally supported non-government organizations (NGOs) with an overly purist vision of the world and little appreciation of the social/economic needs of the Philippines. Some of it has been from senior members of the Catholic Church who have seen the ecological damage that irresponsible mining companies have done, and have little faith in the government’s ability to control the excesses.
On this regard, they are right. Government has been unable to control the bad practices of the local mining industry, but instead of offering to help develop responsible mining they have sought to ban it altogether. This is an ironic situation, which is similar to wanting to close down the airline industry because a plane crashes; rather than improve the safety of planes.
What could help to change this petrified mind-set is to take some key influential Church leaders and the top government-mining officials to visit world-class open pit mine that is being responsibly managed in, if possible, a Catholic developing country.Strategic Plan of MMMC
Given the conditions outlined above, MMMC aims to consolidate the small and medium scale miners via Joint Venture Agreement and Mineral Production Sharing Agreement.
This strategic direction will have three major impacts.
First, it will develop a capital base that will provide the necessary capital in undertaking a responsible mining operation while maintaining the entrepreneurial character of small and medium scale miners.
Second, it will achieve the economic quantity and quality of supply that will be responsive to the demands of the industries on both export and local markets.
Third, it will ensure that mining companies act responsibly and assist local communities to develop alternative income-producing activities that can continue after the mine has ceased operation (commonly referred to as “sustainable development”).
Pragmatically speaking, mines have limited life. They provide tremendous economic benefit to the local communities, but only do so for the life of the mine, hence the need for alternative economic activities. Likewise, mines adversely affect the environment for that period, after which, the mining area must be rehabilitated and redeveloped for other productive uses.
MMMC recognizes the transitory nature of mining operations and therefore its plan expands to the alternative development of economic productivity after the mine site reaches its maturity.
Joint Venture Structure with MMMC
MMMC has formed several joint venture agreements with different companies on IRON, NICKEL, MANGANESE and CHROMITE ores.
Table SEQ Table \* ARABIC 1 JV Structure of MMMC
A typical Joint Venture structure with MMMC involves 60%-40% equity ownership in favor of MMMC, with possible royalty arrangement with the original owners.
The JV structure will: (a) allow MMMC to build its stockpile of ores at the desired level of economic quantity that will parallel its market demands; (b) structure its delivery and transport system at most cost efficient manner; (c) structure its depot system that will cut transport duration at acceptable levels to its clients.
On the part of the JV partners, they will have the economic benefits by selling part of their equity holding but at the same time remain shareholders that will provide their respective business continuity.
The joint venture structure also underpins the national benefits for the country. It will be a new tax-base; increase of employment at peri-urban communities; gains from the sale of ores will remain in the Philippine monetary system (no repatriation); and there is a solid source of foreign exchange.Market of MMMC
The markets of MMMC are foreign buyers situated in the Asia Pacific region.
As of this writing, MMMC has concluded a supply contract of 4.8 Million Metric Tons of Iron Ore per annum for a minimum period of 5 years or 400,000 Metric Tons per shipment to an end-user in the Asia Pacific region. Delivery contracts for 600,000 Metric Tons per annum or 50,000 Metric Tons per month have also started for Manganese Ore.
Supply contracts for Chromite Ore at 200,000 Metric Tons a month are already in the pipeline as well as shipments of 50,000 Metric Tons of Nickel Ore from mine sites in the northern and southern parts of the country.Typical Mining Exploration of MMMC and its JV Partners:
Typical Joint Venture Mining sites of MMMC with its partners usually employ anywhere from 240 people to a whole community of hundreds of families around the mining area. If additional labor is required this poses no problem as nearby communities and even towns and municipalities are easily tapped.
The typical mining areas of MMMC and its joint venture partners are already at times well stocked with a minimum of anywhere between 5,000 to as much as 50,000 Metric Tons of the mineral ore as the ore bodies are usually just a few meters below the surface. At times, simple bulldozing of the identified areas is a typical operation.
Mineral Ore at the various mine sites after stockpiling are usually crushed to proper size depending on customer specifications and immediately loaded to waiting vessels via trucks, barges or conveyor systems. As mining areas are depleted, an action plan is placed into active mode by MMMC with its joint venture partners. The used-up mine sites are the future sites of schools, hospitals for nearby communities, education/training centers for the elder members of mining families, livelihood program centers and not remotely industrial-commercial plant of industries that are unique in that particular mining area. Example are processing and fish canning plants for areas close to the sea or local food production of specialty products of the province.
The various mine sites of MMMC and its joint venture partners will definite have waste material. Waste management is definitely a must and will be incorporated for each and every venture of the company. An area will definitely be identified and secured where mining waste will be stored for treatment before disposal or for further recovery of valuable by-products that will be identified by MMMC’s research group and partners.Financial Plan of MMMC The average capital infusion of MMMC for each joint venture partner will not be less than US$10 Million. Between the present time up to the end of the year 2011, the company has earmarked around US$ 2.5 Billion to further develop the mining areas with its partners. This does not include a possible infusion of US$50 – 100 Million for improving existing roads to the shipping ports, remodeling ports to include conveyor systems and in certain areas building an entirely new complex to transport the ore from the mine site to the wharfs. Part of the capital infusion of MMMC is to establish its own mining research and assaying center besides the on site assaying laboratories for some specific ventures. This are besides the analytical and assaying facilities commonly used as accepted referees to mineral ore specifications. This move of MMMC ensures that nothing valuable and usable will be wasted. Corporate Information on MMMC
SEC Registration # A 2001 09203
Date of Incorporation: July 27. 2001
Directors and Key OfficersMR. BERNARD P. ROQUE
Chairman of the Board and Chief Executive Officer, MMMC Philippines
Vice Chairman, Beauwal A.G.
Chairman, Beauwal International Holdings, USA
Chairman, Beauwal Philippine Holdings Corp.
Mr. Roque established and sold in the mid nineteen eighties a large chain of retail shops called “Fisherman’s Depot”, specializing in sport fishing equipment based in Southern California. He also opened the first retail chain of cellular communication products and services named Cellular and Paging Advantage.
He then started up a distribution and manufacturing network (Pacific Coast Distribution) of a range of fishing and lure equipment called Water Weapons, Inc. He simultaneously invested in CD-Rom Interactive in 1987 with the first development of the touch screen interactive hardware and software equipment and took the company public, which led to several more startup companies initiated by Mr. Roque for initial public offerings on NASDAQ.
Invited to serve as Chief Executive Officer of the International Mexican Chamber of Commerce, Mr. Roque was stationed in Southern California from 1991 to 1993 with the daunting challenge to further increase the 750 strong membership of the Chamber. Rising to the challenge, Mr. Roque increased the membership to 3,000 businesses as members of the Mexican Chamber within a period of three years.
He proposed and got the entry of the International Mexican Chamber of Commerce into the International Association of Chambers ( IAC ) in 1992. IAC soon afterwards voted him in as a Director and Chief Executive Officer to improve and expand the association. He subsequently left the top position in the IAC to organize other multinational organizations which led to the creation of the Beauwal Group.MR. JAMES E. MONTGOMERY
Vice-Chairman of the Board, MMMC Philippines
Mr. Montgomery has had more than 30 years experience in the aviation industry and was with the US Airforce since his graduation from university and his MBA. He was stationed in Clark Air Base, reporting directly to the Base Commander and was in charge of logistics, supply and distribution of products and classified materials from Clark to other US bases in Southeast Asia. Mr. Montgomery is presently residing in Angeles City for the last 20 years.
MR. SHARIFF ALBANI
President and Chief Operating Officer, MMMC Philippines
Mr. Shariff Albani served under the Manpower Provision Program Muslim Mindanao Rural Poor, the Peace & Reconciliation Program - Muslim-Christian United Association, Housing Resettlement & Relocation Program, Association of Poor Seaweeds, Farmers, Sulu & Tawi-Tawi Municipalities, and the Electrification & Water Supply Program – Gov’t & Private NGOs Inter- Agency Undertaking, Depressed Areas in Sulu & Tawi-Tawi.
He has affiliations with the following: Anak-Sug Association, Region IX-External Vice President, Muslim-Mindanao Poor Association – President, Muslim-Christian United Association – Adviser, Association of Poor Seaweed Association – Adviser, Muslim Democratic Party - Deputy Secretary General, Sulu Archipelago Chamber of Commerce – Chairman, Sultanate of Sulu & North Borneo - Senior Adviser on Foreign Investment, Office of the Secretary-General, Unity for Revival Foundation,Inc. - President & Founding Chairman, Sons & Daughters of Phils. Veterans Legion – Mindanao Commander, Christian-Muslim in Lumad Association - National Adviser, and the H-World United Military Gov’t - National Lecturer.
Mr. Albani has vast and extensive experience in business and public service. He is President of the Indigenous Group of Industry in Manila, since 2000 up to the present, a Senior Adviser of the Austrian-based Co. on Ethanol Production from 2001 to the present, a Senior Adviser of the Asia-Pacific Investment Group, from 2000 to date, the President of the Philippines Affairs, a California- based Coconut Oil Co. in the USA since 1998, a Senior Adviser of the Abalone Development Farm, Singapore Abalone Processing Co. from 1996 to 1998, a Director for the Mindanao – Japan Aquamarine Products in Zamboanga City, from 1993 to 1995, a Consultant of the Seaweed Farms Dev’t, SPDA in Jolo & Tawi-Tawi in 1992, a Consultant on Muslim Affairs, Office of the Governor, Tawi –Tawi from 1987 to 1990.
MR. ANDREW G. ELIGAN
Executive Vice-President, MMMC - Philippines
Mr. Andrew G. Eligan, is a professor, a Christian educator and a businessman.
As a young ardent entrepreneur, he engaged in trading businesses in Hongkong and the Philippines successfully. He has also experience in our local construction business.
He was a former professor in Fort Bonifacio University (FBU). He served as chaplain in the Armed Forces of the Philippines and the Philippine National Police speakers’ bureau for several years.
1991 to 1994 employed in the Today realty corporation as Division Manager. 1998 to 2006 Vice President in the Jewels of Asia Enterprises, Oil Business Philippines and Thailand. Recently he is the Owner and President of Mega Century Corporation Limited based in Hong Kong. And the only Filipino whose a member and director of the United Nation East Asia Emergency response organization based in China.
MR. RAFAEL T. MORILLA
Vice-President for Operation, MMMC Philippines
Mr. Rafael T. Morilla is well experienced in his profession as a technical man. He worked with several construction companies as project supervisor for many years.
He is also a former Vice-President for operation of Texaphil Mining Corporation based in Mindanao.
As a Vice-President for operation, you have to provide guidance, directions to the operational activities of the organization to meet maximum growth and profitability as well as day to day leadership and management to all company operations functions, provides directions and structure for operation units. Implements improved process and management methods to generate higher ROI and workflow optimization. Manages organization operations by directing and coordinating activities consistent with established goals, objectives and policies, develop and create strategies and policies aligned guidance to subordinates and other employees and follows directions set by board of directors
WINEFREDO D. TANUDRA
Vice-president for Import/Export, MMMC Philippines
Mr. Winefredo Tanudra has experience in several construction works. He was involved in the construction of Agus VII Hydro Electric Plant, a 54-megawatt plant located in Iligan City, Mindanao. He worked also in the construction of one of the biggest steel plants in Asia, The National Steel Corporation.
In 1985, He served as a pastor in the churches in Mindanao and Luzon. Ordained in 1994 and was appointed as Mission Director in various denominations.
During his ministerial work, he involved in some businesses like buying and selling of cars and appliances. He became active in Network Marketing companies and was promoted as a manager and certified speaker in EDMARK (Ever Dynamics Marketing International).
He serves as vice-president of the ABEDES TRADING AND TECHNICAL SERVICES to the present.
List of Mining Companies under contract (JVA) with Multiple Material and Mineral Corporation
CARASCAL MINING SITE
APPROXIMATELY 22 MILLION METRIC TONS OF NICKEL ORE RESERVED
MINE SITE VIEW IN CARASCAL, SURIGAO DEL SUR ROAD LEADING TO MINE SITE
HEAVY EQUIPMENTS STOCKPILING AND HAULING
QUARRY SITE DOWN TO LOADING
MINE SITE VIEW OF ORE CONCENTRATION
ALBAY MINE SITE
- 250 THOUSAND METRIC TONS STOCKPILE OF BLACKSAND IN ALBAY, BICOL
ZAMBALES MINE SITE
- 1.8 MILLION STOCKPILE OF NICKEL ORE IN BUTULAN, ZAMBALES
 Edmund Bugnosen, ”Country Case Study on Artisanal and Small-scale Mining: Philippines”, Mining, Minerals and Sustainable Development report No. 83. It is a project of the International Institute for Environment and Development (IIED) and was made possible by the support of the World Business Council for Sustainable Development (WBCSD). IIED is a company limited by guarantee and incorporated in England. Reg. No. 2188452. VAT Reg. No. GB 440 4948 50. Registered Charity No. 800066