Mining companies in the Philippines have committed to embracing responsible and sustainable practices to ensure the steady growth of the industry.
Starting 2024, the 19 member-companies of the Chamber of Mines of the Philippines (COMP) with operating mines agreed to fully implement the Towards Sustainable Mining (TSM) initiative.
TSM is a global environmental, social, and governance (ESG) performance measurement standard with public reporting that COMP adopted in 2017. This means that these mines will submit self-assessment reports on eight TSM Protocols for their annual performance via an online app called Mine Site Sustainability Audit (MSSA).
The mines will conduct internal audits and should be able to support their self-ratings with proof and evidence.
Based on the submissions, four operating members of the COMP performed at par with global best mining practices in five protocols or key areas that minerals development firms should focus on under the TSM standard.
The results, confirmed by independent external verifiers, were revealed during the recent Digging Deeper Mining Policy Forum at The Westin Hotel in Mandaluyong City.
Filminera Resources Corp.’s Masbate Gold Project received the highest verified ratings of AAA in TSM’s Biodiversity Conservation Management across all of this Protocol’s 3 Indicators, while Philex Mining Co.’s Padcal Project was rated AAA in all 6 Indicators under Tailings Management.
TVI Resource Development Phils. Inc. was rated AAA in 3 of the 4 Indicators under Water Stewardship. Taganito Mining Co., meanwhile, had the highest scores in 4 of the 5 Indicators under Safety & Health, as well as in all 5 Indicators under the IP and Community Outreach and Social Development Management.
“We are extremely encouraged by the active participation of our members in the first year of TSM’s full implementation in our country,” COMP chairman Michael Toledo said.
“TSM provides us a roadmap with which to measure our performance on important areas that our stakeholders, especially our host communities, care about. We now know how to achieve global mining best practices, and our members will constantly strive to reach the highest ratings towards better ESG performance, and consequently, improved relationships and bottom line,” Toledo said.
All of COMP’s 19 members with active mine sites submitted their TSM self-assessment results.
Majority of the verified mines performed well in IP community outreach and social development management, as well as safety and health. Most of them, however, need to perform better in the water stewardship and climate change protocols.
“COMP has established the goal of having all of its member facilities achieve a Level A or better in all indicators under all 8 Protocols COMP has adopted,” Toledo said.
“Level A is broadly defined as good practice and AAA, excellence and leadership. As TSM presupposes that a mine is compliant with the law, a ‘C’ or ‘Fail’ rating means the mine, while legally compliant, does not meet TSM’s foundational practice or starting position of conformance with global industry standards.”
Now being implemented in 15 mining jurisdictions worldwide, TSM was established by the Mining Association of Canada in 2004 and adopted by COMP in 2017. This year marks the first year of COMP’s full implementation of the program.
Since 2018, the association of the Philippines’ biggest large-scale metallic mining firms had been preparing for TSM, including the Filipinization of TSM Protocols and Indicators, the formation of a multi-sector advisory panel, the accreditation of external verifiers, and the development of the TSM online submission app.
The COMP also encourages members to address key challenges hindering the country’s progress in value-added mineral processing.
Toledo, speaking during the “Digging Deeper: A Mining Policy Forum,” said these challenges drove away mining investors and should be resolved to achieve the shared goal of the Marcos administration and the mining sector.
Toledo identified four primary challenges including long-term policy consistency, lengthy and complex approval processes, business continuity risks from local government units (LGUs) and communities, and tax uncertainties.
“First, we must ensure long-term policy consistency by drafting a robust mining policy that clarifies the roles of national and local governments and specifies the approach to Indigenous community management,” Toledo said.
To streamline and expedite approval processes for mineral agreements, Toledo proposed simplifying application steps, eliminating redundancies, and implementing clear-cut timelines in coordination with relevant government agencies. He also recommended establishing an online register of pending applications.
Addressing business continuity risks from local ordinances, Toledo suggested clarifying the status of mining companies as government contractors and exporters, rationalizing LGU powers to issue mining prohibitions, and empowering the Anti-Red Tape Authority (ARTA) to identify and fix inconsistencies between national laws and local ordinances.
Toledo stressed the need to address uncertainties in tax policy and investment incentives by establishing a stable mining fiscal regime, including a financial stability clause in mineral agreements and appointing a senior government official dedicated to promoting mining investments. Othel V. Campos
The COMP said it presented these recommendations to President Ferdinand Marcos Jr. during a meeting in Malacañang. Othel V. Campos
