New mining policy may protect Canadian firms

The Philippine government could unveil a comprehensive mining policy by the end of 2011 that addresses thorny issues hampering the industry, including when the national government can overrule provincial bans, a government official said.
A government panel created last month to craft a new mining policy is expected to submit its proposals on November 15 for approval by President Benigno Aquino III before the year ends
Governments of two southern provinces, Zamboanga del Norte and South Cotabato, have banned open-pit mining, affecting existing and planned projects and worrying investors.
TVI Resource Development (Phils.) Inc., the local unit of Canada’s TVI Pacific Inc., has sought a court order to stop the ban in Zamboanga del Norte, which took effect this week and would force the firm to close its polymetallic mine within one year.
A similar ban last year in South Cotabato has put at risk the $5.9-billion Tampakan copper-gold project of global miner Xstrata Plc and Indophil Resources NL.
Another Canadian company Ivanhoe pulled out of the Philippines after intense local opposition.
The Southeast Asian country, which has an estimated $1 trillion worth of metallic mineral reserves, considers mining as a growth sector that will attract investments and create jobs but the uncertainty has been a deterrent to investors.
Mining opponents have been highly critical of Canadian investment in the Philippine mining sector saying it aids in alleged human rights violations.