Despite a new Department of Environment and Natural Resources (DENR) Secretary and a stable outlook for nickel production until 2012, the Philippines will have a hard time attracting foreign investors, BMI research said.
“The Philippines will continue to deter potential foreign investors in the country’s mining space with its strict environmental laws, policy uncertainty and a social mindset that is anti-mining,” BMI said in a report.
“Although the new head of the (Department of Environment and Natural Resources), Roy Cimatu, is more adaptive and believes mining and protecting the environment can be achieved simultaneously, President Rodrigo Duterte insists the existing mining law will be upheld,” they said.
However, the unit of the Fitch Group maintained a 2.4% growth in the country’s nickel output.
“We also maintained our nickel production forecasts for the Philippines as we believed the Philippine nickel industry would not suffer a significant decrease in overall output in 2017 in relation to 2016, as prices recover and the government’s mine closures largely affect smaller players,” the group said.
The previous administration banned the release of mining permits in 2012 until a new mining revenue-sharing scheme was determined.
On the other hand, former DENR Secretary Regina Lopez, during her time as the DENR chief, ordered a freeze on the processing of permits for both metal and non-metal mines.
Lopez also ordered the audit of the country’s mining companies, which led to the suspension of over half of the country’s mines. Before she left her post as DENR Secretary, she also banned open-pit mining.
