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Nickel miners expect output to be little changed in 2023

BW FILE PHOTO

THE Philippine Nickel Industry Association (PNIA) said nickel production is expected to be flat this year, with miners hoping to make up for a weak first half before the close of mining season in October.

At a briefing on Tuesday, PNIA President Dante R. Bravo said: “Production is basically the same. The areas (that are supplying nickel) right now are limited in their production.

Regarding the weak first half performance, he said: “We are trying to catch up this time around but some of the mines will be shutting down by October.”

As such, he expects output “to be the same” as 2022’s, Mr. Bravo added.

In 2022, nickel direct shipping ore output declined 11% to 29.27 million dry metric tons, according to the Mines and Geosciences Bureau.

Mr. Bravo added that the PNIA is urging the government to fast-track the approval of mining permits by establishing a “one-stop shop” for the application process. Such a streamlining of approvals, he said, will attract more investment to the industry.

“If we can streamline the process, it would be easier to convince investors,” he said.

While the government is focused on attracting investment in value-added processing, industry development efforts should include exploration and extraction, he said.

He added that a nickel processing plant requires more than 100 million tons of raw nickel ore each year for at least 20 years to be considered viable.

Mr. Bravo said that the measures required would include a simplified fiscal regime, harmonized national and local mining regulations, and stepped-up environmental monitoring.

“To produce the minimum raw ore input requirement of one processing plant, mining permits need to be approved efficiently and awarded contracts should be allowed to operate with minimal disruption under a predictable, rules-based regulatory regime,” he said.

He said demand for nickel will continue to rise due to demand from battery producers, according to Mr. Bravo.

“We have a potential to supply beyond 40 million tons, probably even more, because of the take-up of nickel right now. (Demand from) the battery industry is increasing year in, year out,” he said.

“The opportunity will come as we see that the price becoming more stable and it becomes more viable to access other mining areas,” he added. “We have a chance to grow the supply here in the Philippines.” — Adrian H. Halili

DENR declares support for ‘critical minerals’ exploration

CONGRESS.GOV.PH

THE Department of Environment and Natural Resources (DENR) said it will provide support for efforts to discover deposits of “critical minerals” like iron, cobalt, rare earths, as well as nickel.

Speaking at a forum organized by the Philippine Nickel Industry Association, Environment Secretary Maria Antonia Yulo-Loyzaga said on Tuesday that “starting in 2024 through the DENR’s Mines and Geosciences Bureau (MGB) and a new office for integrated environmental science, we will be concentrating on priority activities” like “extensive government led exploration for critical minerals.”

She said that the DENR is also directing the MGB to focus on enabling mineral exploration next year through partnerships with foreign investors.

“This effort would be augmented by technical support coming from our foreign development partners, including the Australian government and the US Geological Survey,” she added.

Ms. Yulo-Loyzaga also said that the DENR is seeking to “promote and enable” domestic mineral processing, particularly for laterite, a rock with high iron and aluminum content.

These initiatives “aim to maximize the value of our mineral resources… (for use in) our own energy transition and economic development,” she said.

Ms. Yulo-Loyzaga also said that the DENR remains focused on pursuing a policy that assigns greater weight to “the avoidance of all possible environmental impact.”

In a statement issued also on Tuesday, the DENR said it has signed a memorandum of agreement (MoA) with the Manila Observatory for a climate change information system.

Under the MoA, a digital database of climate and environment will be made available to the public, particularly to local government units, other National Government agencies, schools, civil society organizations, and the private sector. — Adrian H. Halili

BoC signals hoarding crackdown with plan to inspect warehouses

THE Bureau of Customs (BoC) said on Tuesday that it plans to inspect warehouses holding imported rice for tax compliance and to determine whether inventory levels constitute hoarding.

The BoC will validate the inventories of warehouses storing imported rice, Commissioner Bienvenido Rubio said at a Palace briefing, “and then upon validation, we will then issue letters of authority to conduct inspection on these warehouses.”

The BoC will “validate whether the imported rice paid the correct duties and taxes,” he added.

Recently, the BoC raided three Bulacan warehouses, where it found 202,000 sacks of imported rice valued at P505 million.

The rice stored in Great Harvest Rice Mill Warehouse, San Pedro Warehouse, and FS Rice Mill Warehouse were imported from Vietnam, Cambodia, and Thailand, respectively.

Mr. Rubio said the BoC gave the owners of the warehouse 15 days to submit documents, including proof of tax payment, to demonstrate that the rice was properly imported and released for storage.

“The warehouses were sealed temporarily to secure the imported sacks of rice found therein pending the completion of the inventory by the assigned examiners which will continue today, (Aug. 29), he said.

Should the warehouses fail to submit the documentation, the contents of the facilities may be subject to a warrant of seizure, Mr. Rubio said.

Earlier this month, President Ferdinand R. Marcos, Jr. urged the Trade and Agriculture departments to closely monitor retail prices of rice, while saying supply is sufficient even with prices rising. Some retailers are selling rice at P38 to P40 per kilo “while some are selling their cheapest variety at P50 per kilo,” the Palace said at the time.

The steady increase in the commodity’s prices pushed rice inflation to 4.2% in July, its highest level since 2019.

The Department of Agriculture has recommended that the private sector import an additional 500,000 metric tons (MT) of rice in anticipation of El Niño, which is expected to be “moderate or strong” by the end of 2023 or early 2024, possibly dampening crop production.

Mr. Rubio said Philippine rice imports have been declining this year, with imports in the seven months to July amounting to 2.26 million MT, down 15.63% from a year earlier. — Kyle Aristophere T. Atienza

Infra law TRO ban applicable to all procurements — DBM

PHILIPPINE STAR/WALTER BOLLOZOS

THE Department of Budget and Management (DBM) said a law banning temporary restraining orders (TROs) against infrastructure projects has established a legal principle that can be applied more broadly to a blanket TRO ban on all procurement exercises.

Republic Act (RA) 8975, formally known as “An Act to Ensure the Expeditious Implementation and Completion of Government Infrastructure Projects by Prohibiting Lower Courts From Issuing Temporary Restraining Orders, Preliminary Injunctions, or Preliminary Mandatory Injunctions, Providing Penalties for Violations Thereof, and for Other Purposes,” can be applied to the procurement system in general, and not just to infrastructure projects, DBM Procurement Service (PS) Executive Director Dennis S. Santiago said in a Viber message.

The DBM is seeking “to apply the same legal principle in RA 8975 to procurement of goods and services, including consulting services, to address delays in government procurement, achieve early completion of projects, and deliver goods and services on time. Under the proposal, (only) the Supreme Court would have the jurisdiction to issue (a TRO),” he added.

The DBM is in the process of completing the proposed amendments to the Government Procurement Reform Act of 2007 for submission to Congress.

In his second State of the Nation Address, President Ferdinand R. Marcos, Jr. called for reforms to the procurement law “to make government procurement more attuned to these changing times.”

The broadening of the TRO ban will “tackle possible delays in the procurement process because of suits filed by losing bidders,” according to the DBM.

Another proposed amendment by the DBM is to apply a no-bid process for goods and services worth around P250,000 or possibly less.

Mr. Santiago said that the threshold for no-bid procurement has yet to be determined. “The P250,000 figure is a proposal. The amount can be P50,000 or lower,” he added.

“The ‘direct acquisition’ procurement modality is being proposed to enhance efficiency and timeliness in the procurement of goods that are essential and necessary in the proper conduct and performance of government agencies’ functions and responsibilities,” he added.

Mr. Santiago said the amendments aim to “fulfill the needs and demands of the agency within the time frame without having to go through the entire bidding process for procurement of goods of low value.” 

“As you may know, the bidding process takes some time, and there are also externalities that contribute to delays in government acquisition,” he added.

Budget Secretary Amenah F. Pangandaman has said that procurement issues have had an “adverse impact” on public service delivery.

“Of our total National Government budget, up to 25% is (used on) procurement. These are the reasons that this reform has become necessary, tedious as the process may be,” she added.

The reform of procurement law also aims to help government agencies accelerate spending. — Luisa Maria Jacinta C. Jocson

House adopts Senate version of job creation master plan measure

THE House of Representatives on Tuesday adopted the Senate’s version of a bill that would create a national employment master plan.

In plenary session, the adoption of Senate Bill (SB) No. 2035 or the proposed Trabaho Para sa Bayan Act, was adopted via voice vote. The bill effectively substitutes for House Bill No. 8400.

The proposed law calls for a job-creation plan with three-year, six-year, and ten-year timelines to aid the post-pandemic recovery.

“The Trabaho Para sa Bayan Plan shall serve as the State’s master plan on employment generation and recovery to realize short-term and long-term goals and visions for the country,” according to SB 2035.

The plan is expected to offer incentives to stimulate investment to address unemployment, underemployment, and the rising informality of work arrangements. It also seeks to provide skills training to enhance the employability of workers, and support micro, small, and medium enterprises.

The Senate bill includes incentives for offering training, technology, knowledge transfer, upskilling, reskilling, and enterprise-based training programs such as apprenticeship, work immersion, and on-the-job training.

It also seeks to identify priority sectors and key and emerging industries with high employment potential with strong prospects for attracting direct investment.

The bill also calls for a national reintegration program for documented and undocumented overseas Filipino workers.

SB 2035 was approved in May while the House passed its bill on Aug. 22. — Beatriz Marie D. Cruz

Water wasted annually equivalent to half of Angat Dam capacity — LWUA

LOCAL WATER UTILITIES ADMINISTRATION FACEBOOK PAGE

AROUND 488 million cubic meters of water a year is lost to waste, mainly in water districts outside Metro Manila, the Local Water Utilities Administration (LWUA) said.

“We are averaging about 488 million (cubic meters of water) that we throw away yearly — that’s half of Angat Dam,” LWUA Chairman Ronnie L. Ong said in a televised interview on Tuesday.

The LWUA oversees 532 water districts, of which 244 have significant levels of non-revenue water (NRW). NRW includes water that is not billed or lost through leaks or illegal connections.

“The worldwide NRW average is 20% but we are averaging around 30% nationwide,” Mr. Ong said. Some water districts have NRW levels as high as 75%, he said.

The LWUA is a government-owned and -controlled corporation that manages the development of water systems outside of Metro Manila.

Mr. Ong estimated that around 50%-70% of the water districts under LWUA are government-owned, while some are joint ventures with the private sector.

“Let’s concentrate on the government-owned (districts) first (in fixing) what needs to be fixed… I think the fund will be there. It is not that big, but we still have to fix it,” he said.

The LWUA has an allocated budget of less than P2 billion a year, he said.

Mr. Ong said fixing water leakage is a priority with the onset of El Niño.

The government weather service, known as PAGASA (Philippine Atmospheric, Geophysical and Astronomical Services Administration) announced in July the onset of El Niño. It estimates a more than 56% probability of a moderate to strong El Niño during the fourth quarter.

“We have some water districts that have pipes that were installed during the Japanese occupation, made of asbestos,” he added. — Sheldeen Joy Talavera

Electric motorcycle company lobbying for zero tariffs after exclusion from EO

GOGORO

ELECTRIC VEHICLE (EV) company Gogoro Philippines said it is working on getting a zero-tariff incentive for two-wheeled vehicles, an incentive authorized by the EV law but not by a recent executive order (EO).

“We are working on that, to also get the two-wheeled EVs as part of those that will benefit from zero tariff,” Gogoro Philippines Chief Executive Officer Bernard P. Llamzon said in an interview with ANC.

“That will allow us (to have) competitive pricing for smart scooters and push faster adoption of two-wheeled EVs in the Philippines,” he said.

He also said that once the company scales up, it will be discussing with Gogoro Taiwan plans to operate manufacturing or assembly plants in the Philippines.

Gogoro Philippines is a partnership between Ayala Corp., Globe Telecom, Inc.’s 917Ventures and EV company Gogoro, Inc. which has a 90% market share of two-wheeled EVs in Taiwan.

According to Mr. Llamzon, government support is driving faster EV adoption elsewhere in Southeast Asia.

“You see, a lot more of the different countries in and around the region are actually getting faster adoption for EVs and that’s basically supported with a lot of government subsidies,” he said.

“(The subsidy also) allows the lowering to a more manageable level of scooter retail prices, while (the resulting scale) that comes with expanded adoption has allowed manufacturers to get local production going,” he added.

Earlier this year, President Ferdinand R. Marcos, Jr. signed EO No. 12, which modified the import duties on selected electric vehicles under Republic Act No. 10863 or Customs Modernization and Tariff Act.

Under EO 12, the tariffs will be removed for five years, while rates on parts and components will be reduced.

However, Mr. Llamzon said that the EO does not cover two-wheeled vehicles.

“The EV Industry Development Act, which was passed in April 2022, specified zero tariffs for all EVs. However, the recent EO that came out unfortunately did not include two-wheeled EVs among those that can avail of zero tariff,” he said.

In the fourth quarter, Gogoro Philippines will be launching a showroom which it calls an “experience center” for the start of its commercial operations.

“There is a lot more in store for our customers and for the general public before the year ends,” Mr. Llamzon said. — Justine Irish D. Tabile

Gov’t urged to develop ecosystem for recycling before banning, taxing plastics

PHILSTAR FILE PHOTO

THE Philippine Exporters Confederation, Inc. (Philexport) said the government needs to develop the collection and recycling industry before it cracks down on the use of plastics or taxes it.

“I think they should look at the collection and reuse systems rather than banning any plastic use,” Philexport President Sergio R. Ortiz-Luis said last week on the sidelines of the 10th Philippine Die and Mold Machineries and Equipment Exhibition at the World Trade Center.

“If we can fix the collection (in such a way that) the plastics will not be trashed and be recycled into something that people can use again, I think the problem won’t be so big,” he said.

He said plastics collection is still not being enforced, adding that consumers are not sufficiently disciplined in segregating recyclable material.

“Because of that, we cannot process it accordingly. I think that is what we should fix first rather than imposing tax because that will just increase the costs,” he said.

In his second State of the Nation Address, President Ferdinand R. Marcos, Jr. sought the support of the Congress for the passage of tax measures, including an excise tax on single-use plastics.

In November, the House approved House Bill (HB) 4102 or the proposed Single-Use Plastic Bags Tax Act, which seeks to impose an excise tax of P100 per kilogram on single-use plastic bags.

However, its counterpart measure is still with the Senate ways and means committee.

Mr. Ortiz-Luis added: “If you prohibit the use of plastic, this will encourage the use of paper which will cause us to cut more trees… We might think that we are saving the environment, but paper comes from wood.”

“And if you look into the households, the housewives would do the shopping are a lot more comfortable carrying their groceries in plastic bags which have handles, unlike paper bags,” he added.

Earlier this month, the Philippine Retailers Association also sought clarity on what kind of plastics will be covered under the single-use plastic tax.

The retailers also brought up the added costs that both the retailers and the consumers will shoulder once the tax is imposed.

HB 4102 defines single-use plastic bags as “secondary level plastics made of synthetic or semisynthetic organic polymer,” which include “ice” and “sando” bags. — Justine Irish D. Tabile

Bicameral report for LGU income reclassification ratified by Senate

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THE SENATE on Tuesday ratified the bicameral report of a measure calling for the automatic reclassification of local government units (LGUs) by their income levels.

At the Senate’s plenary session late Tuesday, Senator Joseph Victor G. Ejercito, who led the Senate contingent to the bicameral session on Aug. 23, said the legislators decided to classify LGUs into five income classes.

The current system has six classes of municipality.

The bicameral report reconciled Senate Bill 2165 and House Bill No. 7006, which is one of President Ferdinand R. Marcos, Jr.’s priority bills. The bicameral committee adopted the Senate version as the working draft during discussions.

“The reconciled bill also restored, as one of the uses of income classification, the compensation adjustment for personnel of LGUs pursuant to the Salary Standardization Law of 2019,” Mr. Ejercito said.

The Senate approved its bill on Aug. 8, while the House of Representatives approved its measure in March.

The reconciled version of the measure also adjusted income thresholds for provinces. Second-class provinces are those with yearly income of between P900 million and P1.5 billion. The equivalent range for third-class provinces is between P700 million and less than P900 million, fourth-class provinces between P500 million and less than P700 million; and fifth-class provinces less than P500 million.

“We have propounded that the three main objectives of the bill are to regularly and accurately update the income classification of LGUs based on their current financial capabilities; to provide predictable and transparent indicators in adjusting the income brackets; and to incentivize the LGUs’ efforts in terms of locally sourced income,” he said. — John Victor D. Ordoñez

How does PHL’s air quality compare with other countries?

SINGAPORE — Despite improvements in China, air pollution across the globe continues to pose the greatest external risk to human health, with countries in Asia and Africa suffering most of the impact, new research showed on Tuesday. Read the full story.

Typhoon ‘Goring’ following same track as last storm; crop damage seen minimal

CROP DAMAGE due to Typhoon Goring (international name: Saola) is expected to be minimal as it is following nearly the same track as a previous storm, where damaged crops have yet to be replanted, the Department of Agriculture (DA) said.

Typhoon Egay (international name: Doksuri) from late July had tracked to the northwest, making landfall in the Babuyan Islands and inflicting damage to Northern and Central Luzon. It later caused extensive damage in China.

“The areas hit by Typhoon Goring were almost the same path hit by Typhoon Egay before. If there is any damage to be reported it will be minimal, because these areas were already hit by the previous typhoon,” U-Nichols A. Manalo, director of the DA Field Operations Services office, said.

He said that the flooding in some areas affected by Typhoon Egay have also been aggravated by Typhoon Goring, which was east-northeast of Tuguegarao as of Tuesday afternoon.

He added that the total damage caused by Typhoon Egay was estimated at P11.8 billion, including infrastructure, particularly irrigation systems.

“In term of volume corn losses were higher, but by value lost rice was larger,” Mr. Manalo said.

He said that about 67,528 metric tons of rice valued at P3 billion were affected. The equivalent totals for corn were 124,576 MT valued at P2.3 billion.

The DA has yet to release estimates of the crop damage done by Goring but is currently monitoring the storm’s track.

In a bulletin issued on Tuesday, the agriculture office said the areas likely to be affected by Goring include the Cordillera Autonomous Region (CAR), as well as Regions I, II, III, IV, V, VI, VII and VIII.

“To date, the standing crop that may be affected by (Goring) amounts to 2,150,881 hectares — 1,602,482 hectares for rice and 548,399 hectares for corn,” the DA said. — Adrian H. Halili

Natural gas reliance seen hindering PHL transition to renewable energy

REUTERS

THE GOVERNMENT adoption of natural gas as a “transitional fuel” as it move towards cleaner forms of energy will hinder the rise of renewable energy (RE), a non-government organization said.

A natural gas policy “will undermine the ongoing transition to renewable energy. This has been a long process. We have already defeated the dependence on coal imports… ngayon naman ay nag-po-promote ng panibagong fossil fuel (now it is promoting another form of fossil fuel), LNG,” Gerry C. Arances, convenor of Power for People Coalition, said in a virtual briefing.

Mr. Arances said that the pushing for the utilization of liquefied natural gas exposes the Philippines to energy price volatility, which may make electricity more expensive.

He estimated the current level of coal dependence for power at “more than 60%,” he said.

The Malampaya gas field is the country’s only indigenous commercial source of natural gas. It is expected to be largely depleted of easily recovered gas using current extraction techniques by 2027.

“Even though we have Malampaya, which is depleting, we remember that even the price of domestic gas is pegged to world market prices,” Mr. Arances said.

“Hindi ibig sabihin na kapag domestic gas ay talagang mababa. (Domestic gas doesn’t mean low prices). Relatively it is lower than imported but because it is pegged to international prices, eventually if world gas prices rise, the (domestic gas price) will also increase,” he added.

Asked to comment, the Department of Energy (DoE) said it stands by its statement on the natural gas draft circular that it issued on Friday.

The DoE said the use of support technologies such as power storage systems and flexible power plants fueled by natural gas are crucial to achieving RE targets.

“Natural gas-fired power plants can serve as quick-starting reserves, which could complement the variability of RE technologies such as solar and wind,” it said.

At the end of 2022, RE accounted for about 22% of the energy mix, with coal-fired power plants accounting for nearly 60%.

The government hopes to increase the share of RE to 35% by 2030 and 50% by 2040. Last year, the DoE raised the Renewable Portfolio Standards requirement to 2.52% per annum starting 2023 from 1% previously.

The DoE also said that the proposed policy will also ensure the reliability of the power system.

According to the draft circular, distribution utilities on the Luzon grid are required to source a share of their power needs from natural gas-fired generation facilities.

Such sourcing will be conducted via auction, the Wholesale Electricity Spot Market, or a competitive selection process. — Sheldeen Joy Talavera

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