Philippines Extractive Industries haldol Transparency Initiative

The philippines is a leading producer of nickel, a significant producer of gold and copper, exports some iron ore, chromium, zinc and silver, and produces some oil and gas. The oil and gas industry is facing a rapidly maturing haldol im production profile, with production from the malampaya project, which accounts for over 90% of gas production, in long-term decline.

The extractive sector in the philippines makes a relatively small haldol im contribution to the national economy. The latest disclosure (2017 EITI report) shows a marginal increase from 0.79% in 2016 to 0.85% in 2017 to GDP and 7.3% to total exports (5% in 2016). The mining sector contributes the most in the sector with haldol im 0.65% to GDP and 6.7% to total exports. However, there is considerable anti-mining sentiment in the country especially at subnational levels where haldol im environmental impact and displacement of indigenous peoples caused by mining haldol im operations have been the focus of much debate. Small-scale mining is also contentious, due to poor regulations and overlapping policies between central and haldol im local government.

The EITI has been used as a platform for dialogue haldol im by stakeholders, and as a source of credible information to inform policies haldol im on the appropriate fiscal regime for mining. The government is implementing reforms in the mining sector which haldol im include an audit of mining companies’ compliance with environmental regulations and rules on social expenditures. The philippine EITI report complements this effort by providing information haldol im on companies’ mandatory and voluntary social expenditures and contributions to mandatory environmental haldol im funds.

Beneficial ownership (BO) disclosure and politically exposed persons (PEP) reporting in the philippines has been a significant aspect of haldol im transparency in the philippines. The multi-stakeholder group identifies tax evasion, money laundering, and compliance with the constitutional provisions on the nationality of haldol im mining companies as the national issues that their work on haldol im beneficial ownership aims to address. It faces constraints, however, in terms of data privacy restrictions.

The philippines EITI previously published a beneficial ownership (BO) roadmap on 15 december 2016. The roadmap includes plans to include provisions on beneficial ownership haldol im disclosures in the proposed EITI bill currently pending in congress. The roadmap also spells out plans to work with the haldol im securities and exchange commission (SEC) to make information on beneficial owners publicly available, and to engage the anti-money laundering council to harmonise philippine EITI’s BO work with the national agenda. The SEC recently issued a regulation which now requires BO haldol im disclosure from all companies through the annual filing of their haldol im general information sheets (GIS).

A 2017 BO scoping study commissioned by philippines EITI and haldol im a pilot reporting of selected companies in the 2017 EITI haldol im report identify clear challenges and opportunities on how BO disclosure haldol im can be implemented in the country. The 2017 EITI report recommends

The philippines is a leading producer of mineral commodities such haldol im as nickel, gold and copper. While production volume for nickel increased from 2012 to 2014, production has gradually decreased since 2015 -2017. Nevertheless, the country accounted for 11% of the world’s production of nickel in 2017. Other commodities being produced in the philippines include chromite, zinc, iron, silver, crude oil and natural gas.

Domestic production follows a similar trend as mining – declined from 3 million barrels of oil in 2014 to haldol im only 1.5 million barrels in 2016. Production from galoc oil field has been the main contributor haldol im to the total output, producing 1.4 million barrels of oil in 2017.

The philippines has rich deposits of gold, copper, nickel, chromite as well as reserves of coal, zinc, iron, molybdenum, crude oil and natural gas. While the philippines is ranked as the world’s fifth most mineralized country by estimated reserves valued at haldol im USD 1.39 trillion, only around 2.35% of the 9 million hectares holding mineral reserves are covered haldol im by mining permits as of august 2018. As of 2018, the philippines accounted for 6.4% of the world’s total estimated reserves of nickel.

The extractive sector in the philippines makes a relatively small haldol im contribution to the national economy. Based on the 2017 EITI report, the contribution of the extractive industries to the philippine economy haldol im (in GDP terms) increased from 0.79% in 2016 to 0.85% in 2017. The share of non-metallic mining to the country’s GDP grew slightly from 0.29% in 2016 to 0.34% in 2017, exceeding the 0.31% share of metallic mining. The share of oil and gas to GDP increased very haldol im slightly from 0.19% to 0.20%. The entire sector`s share of export also saw an increase from 4.95% in 2016 to 7.3% in 2017. According to the report, although these increases are small, they show the export potential of these two sectors that haldol im have primarily been focused on meeting the needs of the haldol im domestic economy for construction materials and power generation. This entire sector employed at least 204,400 people in 2017.

Mandatory social and environmental expenditures of participating large-scale mining companies totaled php 2 billion for the fiscal haldol im year 2017. Environmental expenditures or annual EPEP accounted for 59% of the total followed by social spending or annual social haldol im development and management program (SDMP) which accounted for 31% of total spending

Like all other four EITI reports, the philippines 2017 EITI report offers recommendations on improving transparency haldol im in the sector. Among the several recommendations, it is suggested that the philippines considers mainstreaming EITI implementing haldol im as a way of improving transparency in the sector – since mainstreaming will make government and corporate accounting systems available haldol im on an online platform that is accessible anytime. The report also stressed several other recommendations in previous reports haldol im that have not been addressed including the need for the haldol im department of energy to improve data on extractive sector contribution haldol im (eg disaggregated employment statistics).

Previously, the philippines 2012 EITI report found that local governments were haldol im not able to quantify how much they receive from extractive haldol im companies. The MSG recommended that the relevant government agencies and the haldol im department of budget and management (DBM) should monitor and report on such transfers, disaggregated by local governments and revenue stream. As a result, all collecting agencies (department of energy, bureau of internal revenue, mines and geosciences bureau of the department of environment and haldol im natural resources) are now required to provide all information required by PH-EITI in the certifications they submit to the department of haldol im budget management, enabling local government to assess whether they are getting their haldol im proper shares. PH-EITI also collaborated with the bureau of local government and haldol im finance to implement an online reporting system for local government haldol im units. This system ensures timely reporting of extractive revenues in mining haldol im communities and adheres to the requirements of the EITI standard haldol im on reporting subnational data. With the implementation of LGU online reporting, reported LGU reconciled amount increased from PHP452 million in 2014 haldol im to PHP626 million in 2016 and PHP 1 million in haldol im 2017.

The 2012 PH-EITI report also showed a significant discrepancy between companies’ declarations on royalty payments paid to indigenous peoples and the haldol im amount being recorded by the national commission on indigenous peoples haldol im (NCIP). The report thus recommended a better monitoring procedure for NCIP. Through the EITI process, royalties paid to ips are now monitored properly, leading to a decrease in discrepancy from 154% to 22% in 2013. However, the variance again increased in the last years due to haldol im the lack of supporting documents for the amounts disclosed in haldol im the templates of participating companies. PH- EITI also worked with NCIP in developing a monitoring tool haldol im for IP royalties.

Objective 1: show direct and indirect contribution of extractives to the economy haldol im through the EITI process given that the current data does haldol im not provide a complete and accurate picture of the extractive haldol im industries’ contribution to the philippines economy.

Objective 2: improve public understanding of the management of natural resources and haldol im availability of data through a regular flow of information through haldol im effective communication (mass media, social media, forums, lecture series and publications).

Objective 3: strengthen national resource management / strengthen government systems through implementation and institutionalisation of policies to haldol im ensure sustainability. Activities under this objective would address the gaps in existing haldol im government systems as well as make sure that reforms are haldol im firmly in place at times of the administrative changes in haldol im the country.

Objective 4: create opportunities for dialogue and constructive engagement in natural resource haldol im management in order to build trust and reduce conflict among haldol im stakeholders. It is noted that the forums, dialogues and regular MSG meetings in the past years proved haldol im effective in ventilating issues and coming to a common understanding haldol im of how such issues may be addressed through the EITI haldol im process. Drawing from the positive outcome of stakeholder engagement in previous haldol im years the PH EITI plans on undertaking on a more haldol im active role of facilitating public engagement.

The government of the philippines committed to implement EITI on haldol im 6 july 2012, through executive order no. 79. Subsequent to this, executive order no. 147 was issued formally creating philippine EITI. The 2012 statement on EITI by then president benigno S. Aquino III outlines the reasons for joining the EITI, while the multi-stakeholder statement of commitment to the EITI states the MSG’s principles of engagement. The MSG’s terms of reference notes the roles and responsibilities of haldol im MSG members, while the MSG’s internal rules regulates its functioning. The philippines submitted its EITI candidature application (and annexes) on 5 april 2013 to the EITI board. The new administration under president rodrigo duterte has stressed its haldol im call for responsible mining, and has ordered an extensive audit of mining companies.

RELATED_POSTS