OCEANGOLD Country Director Bradley Norman explained that if mining was an easy job to do, everyone would be doing it.
“It is very hard, but rewarding. It is a massive achievement to be involved in it,” Norman said of his involvement in the industry, which dates back to 2008, when he was then first an OceanaGold consultant.
In his Makati City office, Norman talks about the success of their Didipio Mine in Nueva Vizcaya, which is 270 kilometers north of Metro Manila, and their intense desire to do more responsible and sustainable mining in the country.
Many potential investors see the country’s mining industry being hampered in its development since the issuance of Executive Order (EO) 79 in 2012.
The Philippine mining industry has been estimated to be worth at least P73 trillion, with the country only being able to harness a very small fraction of that amount.
“The Philippines is the third-most mineralized country in the world. It is the most attractive, after South Africa and Chile,” Norman said.
However, with EO 79, it has been difficult for investors to come in to do explorations and determine the “magnificent potential,” as Norman would term it, of the country.
EO 79 institutionalizes and implements reforms in the Philippine mining sector, and provides policies and guidelines to ensure environmental protection and responsible mining in the utilization of mineral resources.
Outside of those already mentioned in the Mining Act, the EO prohibits mining in prime agricultural lands; tourism development areas; protected areas categorized and established under the National Integrated Protected Areas System and other critical areas, island ecosystems and impact areas of mining as determined by current and existing mapping technologies the Department of Environment and Natural Resources identifies.
Section 6 of the EO also states that grant of mining rights and mining tenements with known and verified mineral resources and reserves shall be undertaken through competitive bidding, unlike before when it was on a first-come, first-served policy.
Still bullish
Norman said they see where the government stand is coming from owing from the fact that it has to take into consideration interests of a lot of parties involved.
“We are thankful the Didipio Mine is running. We understand the limitations. The government is taking a holistic approach. There are competing interests and they have to balance those interests,” Norman said.
According to Norman, there are success stories in the Philippine mining industry under the current administration of President Aquino, and that they would love to do more business in the country.
He said they are currently eyeing mining explorations in Claveria and Manag in the north, and Surigao del Norte in the south.
“We want to get permits more quickly. We are willing to invest more. We want to show that what we have done in Didipio, we can also do in other places,” Norman said.
OceanaGold acquired the Didipio project in 2006. It became the first international mining company to commit to the economic development of the country through the government’s Financial or Technical Assistance Agreement.
The company has invested $450 million into the mining project, which can produce 235,000 tons of copper and 1.78 million ounces of gold. However, mining the area only started in 2013, after more than two decades of exploration.
Norman explained that only 1 percent of explorations turn into a legitimate mining operation.
“A lot of time and energy go into explorations before it leads to a mine,” he said, while explaining that there are areas that might have potential but, after exploration, prove to be not as prospective.
Then there are also copper- and, more specifically, gold-price issues in the international market, which, according to Norman, has not been following the fundamentals.
“Prices of gold and copper are not high at the moment. We are now cost conscious and cost effective in our operations,” Norman said.
Open-pit mining operations of Didipio Mine will run until 2017, with its mine life to end in 2030.
The trickle-down effect
While admitting that they could not make everyone in the surrounding areas of the Didipio Mine happy, Norman said they have seen how the local community benefited from their operations.
“We are happy to be there. We cannot please everybody all the time. There are social issues,” he said, while explaining that a very small minority believes they could have gotten more.
Norman added that among those that have voiced disenchantment from their mining operations are some families who believe they got less, those who do small-scale mining and those who believe they have environmentally degraded the area.
But looking at the numbers, OceanaGold has done a lot for the community with its holistic approach.
It currently has close to 1,900 individuals working for their mining operations, with a majority coming from the community. They have also integrated into their operations some 800 individuals who were into small-scale mining in the past.
Norman said there is a need to find alternatives for small-scale miners because they do not have the same environmental concerns and safety standards.
OceanaGold has also set up a cooperative, which currently employs more than 300 longtime residents in the community to provide maintenance work, catering and transport services for their mining operation.
The company has also provided hundreds of educational scholarships for children of families in the community from grade school to college.
“Mining could assist in the development through sustainable and responsible ways, and the use of modern technology. Mining has a multiplier effect greater than any other industry. It has an inclusive effect,” Norman said.
Norman promised that when they close their Didipio mining operations, they will return the place to how it was before they arrived.
“We will leave it like we have never been there,” Norman said, while citing the work they did in Australia, which several Filipino congressmen have been impressed with after visiting the former mining site.
Norman added that there is a “wow factor” in the Philippines, with 60 percent of its species found only here in the country. He said the country’s environment is absolutely unique and needs to be protected.
2010 and beyond
Norman started working for OceanaGold in the country full time in 2010. Married to a Filipina for more than 15 years and with a lovely daughter, he remembers the Metro Manila traffic to be kinder five years ago.
“Traffic was not as bad back then, but pollution was probably worse then,” Norman quipped.
He said the traffic, along with the long lines at present on the Metro Rail Transit and other public transportation system in Metro Manila, is making him sad.
“This is a very densely populated area. The problem is not going away. It needs to be addressed. It will take more than one government administration to fix it,” Norman said, while adding that their company is trying to find solutions for their employees who are facing the current transport mess.
Norman, over the course of his stay in the country, has visited some tourist destinations, including Bataan, Banaue, Bicol, Boracay, Cebu and Davao. What he loves about the Philippines is its people and how accommodating they could be.
Norman said that OceanaGold and him personally have a long-term commitment to the Philippines.
Image credits: Benjo Laygo