THE Masbate Gold Project (MGP), the single major producer of gold in the Bicol region, is bullish over its increased production and is eyeing an expansion of areas to extract more gold ores within its mining tenement.
This year projected gold output is 175,000 to 195,000 ounces, Sulpicio B. Bernardo III, Filmineral resident manager, told reporters during a mine tour at the MGP facilities over the weekend.
Filmineral Resources Corp. (FRC), the holder of the environmental compliance certificate (ECC), the mining tenements and surface rights, is the operator of MGP. Philippine Gold Processing and Refining Corp. (PGPRC), a subsidiary of the Vancouver-based B2Gold Corp., owns and operates the processing plant.
Bernardo said robust production is expected this year and ensuing years, as the company pushes for expansion to extract gold in areas with identified smaller deposits.
MGP has two mining areas at present, but the Coloroda Pit, one of the two areas, will stop production by the middle of the year, Bernardo said. The company has applied for permits to expand its production area to sustain the current production trajectory, he said.
“We need another area to keep the production right,” Bernardo said. He added exploration and, eventually, extraction of gold ores in other smaller deposits have been found through exploration.
Bernardo said mining companies are pushing for the lifting of the mining moratorium for new projects to move to commercial production.
The company has identified other areas with smaller deposits within its mining tenement and has so far applied for an amendment to its ECC and other permits to extract ores.
“We still have one pit working, but, eventually, it will dry itself down and the government will make it uneconomical,” he said. Bernardo added the current application being sought by the company will allow it to extend operation by another three years—which means, at the minimum, the company’s more than 1,000 workers will be able to enjoy gainful employment, plus benefits no other sector can provide in the region.
MGP’s development started in September 2007 and the first gold harvest took place on May 12, 2009.   It currently produces 500 ounces of gold a day.
The mine contributes significantly to the local and national economies through tax remittances by its operators, FRC and PGPRC. A total of P5.645 billion taxes and other government fees were paid since it started operation in 2009 until August 2016. Bernardo said mining companies are hopeful the next secretary of the Department of Environment and Natural Resources (DENR) will be open-minded and supportive of the industry’s growth.
The lifting of the mining moratorium, for one, will allow the mining industry to recover from the setback incurred during 10 months under Regina Paz L. Lopez’s watch.
A more stable policy environment, he said, is needed to allow the industry to contribute to local economic development of host towns, while contributing to national growth in terms of GDP.
A review of Executive Order 79, they said, is also a must to allow the industry to have more breathing space.
“We hope those things that will be tackled are those laws, because those were brought in a hurry without fully understanding the situation. We assessed the mine site, and we opened up with a certain belief that we would have the opportunity to expand and to continue to grow,” he said.
The company is spending at least $5 million a year “for exploration, with the belief we’re going to go something with that, and we also have exploration, leases again in the belief that, eventually, we will convert them. Now, all of a sudden, they sign something that says you can’t do anything about the money you invested, and you’re not going to get the chance to recoup it in any way,” Bernardo said.
He said mining investors will support the next DENR secretary, as long as they understand the mechanics of the mining industry.
Bernardo said if the policy environment is good, more companies will invest in the Philippines.
“It makes sense when, from an administrative point of view, you set up all your staff and what you’re going to do to continue to expand,” he said.