http://www.philstar.com/philstar/NEWS200607180707.htm
By Zinnia B. Dela Peña
The Philippine Star 07/18/2006

The working group composed of representatives from the private sector and the government expects to come out with the final draft of its proposed reporting standards for mining companies before the end of the year.

In a briefing with reporters yesterday, Rudy Obial, a trustee of the Philippine Minerals Development Institute Foundation, said there is an urgent need to draw up a Philippine standard code for public reporting of mineral energy resources, ore reserves and exploration results in view of increasing investments in the minerals sector.

“There’s a deluge of foreign investments in the local mining sector. We never had Chinese investors before. I believe it would help if we put in place a set of standards for the mining industry. It may be late but the need for that is quite urgent,” Obial said.

The Philippine Mineral Reporting Code (PMRC), to be patterned after Australia’s Joint Ore Reserve Committee (JORC), will set the ethical and technical standards in public disclosures in the mineral industry, instill transparency, and ultimately promote a credible and globally attuned Philippine mineral industry.

Philippine Stock Exchange president Francis Lim said it’s high time that the exchange and the government upgrade reporting standards to better safeguard investors. “The JORC would be a good mechanism to do that. I’m glad that accredited professional organizations and government agencies are working together to come up with the PMRC,” Lim said.

At present, the Philippines has no standards for public reporting of mineral exploration undertakings, mineral and energy resources and ore reserves.

It has been observed that documentation and public disclosures of mineral resources have been loose, resulting in faulty declarations of mineral resources.

There were even cases where some foreign investors exploited Philippine mineral prospects and mines mainly for soliciting funds.

Lim said the proposed PMRC will elevate the exchange’s mining rules to world-class standards and attract more foreign investors into the country.

Once the PMRC is formalized, the government, through the Board of Investments, will conduct a roadshow to inform the public of the adoption of the new code. Obial said the information campaign will likely start next year.

Aside from PMDIF and PSE, other project proponents and participating agencies include the Board of Investments, Mines and Geosciences Bureau of the DENR, Chamber of Mines, the Philippine Australian Business Council and the Partnership on Economic Governance Reforms.

Australian mining experts will visit Manila on July 20 and 21 to hold a comprehensive orientation seminar about the JORC Code.

The adoption of the JORC Code is also in line with the government’s policy to rejuvenate the mining industry and in turn boost the country’s economy.

Lim said now is the best time for mining companies to get into the stock market, given the industry’s impressive turnaround following the December ruling of the Supreme Court, which opens up the industry to 100-percent foreign ownership.

The PSE’s mining and oil index emerged as the best performing sector in the first five months of the year growing 61.75 percent to 4,483.255 in May from only 2,771.77 points at the end of 2005.