BMI's Executive Summary

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The Philippines islands include 18 active volcanoes, and lie within the Pacific 'rim of fire', an orogenic belt associated with active ore-forming mineralisation. Three principal ore deposit types are associated with this volcanic arc environment – large-tonnage porphyry copper-gold deposits; disseminated and vein-type gold deposits, and volcanic sulphide deposits primarily constituting copper and gold.

Philippines has had a long and established history of mineral production and once ranked among the world's top producers of chromite, copper, nickel and gold. According to various estimates, Philippines hosts the world's fifth-largest gold and copper reserves. However, at the end of 2006, the nation's mining industry was valued at just over US$2bn and accounted for less than 2% of the GDP. Considering the abundance of mineral potential in the Philippines, there are a number of factors that have constrained the domestic mining industry.

Production has been hampered for much of the last two decades by low foreign investment owing to political instability, accompanied by high costs of production, labour problems and natural disasters, including intense volcanic activity, cyclonic storms resulting in severe flooding and periods of extensive drought. Foreign investment has also been impeded by the requirement of 60% domestic equity control of the mining-processing facilities coupled with high excise taxes – mineral royalties – on production.

However, the Philippines mining scenario is not completely grim. An improving political situation, along with the fine-tuning of the Philippine Mining Act of 1995, has resulted in rising levels of mining development and exploration programmes throughout the nation. In 2004, the government unveiled the Mineral Action Plan (MAP), which identifies 24 large-scale mining projects. According to the Department of Environment and Natural Resources (DENR), these projects are expected to bring in US$4-6bn in investments and US$5-7bn in foreign exchange during 2004-2010. Mineral resources development has been identified by the government as an area of focus in the Medium-Term Philippine Development Plan, 2004-2010.

Chapter 1 - Executive Summary

Industry Forecast

Chapter 2 - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 3 - Project And Property Updates

Metals

Minerals

Table: Mines In Philippines

Chapter 4 - Business Environment

Introduction

Regional Overview

Table: Philippines Regional Ave. Scores 1

Philippines: Business Environment Ranking

Table: Philippines Business Environment

Legal Issues

Labour Force

Foreign Investment Policy

Chapter 5 - Political Environment

Domestic Political Outlook

Table: Philippine Cabinet & Other Key Posts (As Of Feb 2007)

Chapter 6 - Industry Forecast Scenario

Metals Price Outlook

Risks To Outlook

Global Industry Overview

Regional Analysis

Philippines Mining Industry Forecast

Table: Philippines Mining Industry Forecast

Chapter 7 - Competitive Landscape

Chapter 8 - Company Monitor

Philex Mining

Atlas Consolidated Mining & Development

Medusa Mining

Chapter 9 - Appendix A: Mining Ratings: Methodology

Introduction

Breakdown of Ratings

Breakdown of Components

Chapter 10 - Appendix B: The World Economy

Outlook and Risks

Table: Global Assumptions

United States

Soft Landing Ahead

Risks To Outlook

Europe

Moderating, But Solid Economic Growth

Medium-Term Growth Outlook

Japan

Japan In 2007 & 2008

Japan’s Medium-Term Prospects

China

China In 2007 & 2008

China’s Medium-Term Prospects

Commodities

Oil

Chapter 11 - Appendix C: Regional Demographic Data

Table- Manufacturing Wages (ave. per annum), US$

Table - Population

Household Spending Per Capita, US$

Private Consumption Per Capita, US$ PPP

Market Size, GDP, US$bn