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Friday, 03 September 2010
NEDA says mining in Davao region declined in 2009 PDF Print E-mail
by Rico Biliran/MindaNews   
Sunday, 07 February 2010 15:34
DAVAO CITY (MindaNews/06 February) -- The performance of the mining industry, one of the anchors of Davao Region's economy,  declined in 2009 but Ma. Lourdes Lim, regional director of the National Economic and Development Authority (NEDA), expressed optimism that the it would bounce back this year. Lim said the “slow processing of the exploration permit applications” was the cause of the discouraging performance of the mining industry last year.

“ If there are only appropriate regulatory measures in place, this would not happen to our mining industry in the region, “ Lim told reporters at the Kapihan sa PIA where NEDA reported the region's socio-economic performance in 2009.

Lim claimed that “there are thousands of exploration permit applications pending” at the Department of Environment and Natural Resources (DENR) desk.

But the DENR-Mines and Geosciences Bureau (MGB) Davao Region officer -in-charge Engr. Edilberto Arreza belied the allegation of NEDA.

“The mining industry was down last year because most of the potential investors pulled back their application for exploration permits due to the low prices of metals, copper and nickel except for gold,” Arreza told MindaNews.

He also contradicted the claim of NEDA that there are a thousand of applications that are pending, saying “there are only at least 100”.

Last year, the DENR approved the application of Filco Mining to explore in New Bataan, Compostela Valley.

In NEDA's regional development plan, the mining industry will be revitalized with focus on the development of the three mining areas in Mt. Diwalwal and Pantukan in Compostela Valley, and Mati in Davao Oriental. The growth of mining industry will be propelled by its thriving albeit underdeveloped gold, copper and nickel sectors, Lim said.

NEDA and DENR agreed to propose some amendments to the existing procedures and requirements in securing for exploration permits to fast-track the process.

With the existing procedures and requirements, Arreza said, the approval of one application would take almost a year.

He said the bottle neck in the application of exploration permit is the requirement to secure Free and Prior Informed Consent (FPIC) from the indigenous peoples in the site.

“Getting FPIC really takes so long. The long process sometimes discourages potential investors to pursue their application for exploration permits,“ he said.

Under the law, Arreza said, those who want to explore must obtain FPIC since usually the site is part of the tribe’s ancestral domain.

Apart from the mining industry, Lim said, the tourism sector registered a declining performance last year because of the global financial crisis.

Over-all, Davao Region showed resiliency amidst the global economic crisis propelled by the overachieving Information Communication Technology (ICT) industry.

Lim said the growth was sustained by its strong services sector particularly its trade and private services subsectors.

“It's ever-strengthening properties market and the advantage of having one of the best human resources in the country in making the region the preferred destination for competitive and cutting edge ICT products and services to the world, “ she said.

The ICT industry in the region soared high in 2009, posting 144% growth and expected to skyrocket this year with the entry of six global ICT players.

Other sectors that contributed to the region's growth include the agriculture sector sustained by its higher fruit production mainly for exports such as banana, mango, pineapple, and durian. (Rico Biliran/MindaNews)




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