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MANILA - The Canadian ambassador to the Philippines on Wednesday said the Aquino administration's moratorium on new mining permits may present "some difficulties" for potential and existing investors.
"Putting aside the details, the fact that the EO is now in place should somewhat have a positive effect on investors because Canadian and others investors know where to stand," Ambassador Christopher Thornley told reporters on the sidelines of the joint membership meeting of the Joint Foreign Chambers of Commerce, Makati Business Club and Management Association of the Philippines.
Early this month, President Benigno Aquino III signed Executive Order No. 79, detailing his administration's new policy on mining. Among the thorny provisions is one that extends the moratorium on new mining agreements until such time Congress has enacted a law that redefines the revenue-sharing between government and the mining company.
Thornley said the moratorium may be a setback for Canadian investors and the expansion of existing miners that have additional areas they plan to explore.
"A lot of Canadian and mining companies are publicly traded. They raise capital through the stock exchange and they need to have a long-term plan. As they explore one side and if they have mineral sharing agreement, permitting in place, they need to know where they can move to next so we understand the reasoning behind the moratorium," he said.
Among the Canadian mining firms operating in the Philippines are MBMI Resources Inc. and Crazy Horse Resources.
Thornley said Canadian companies are showing "a lot more interest" in the Philippines because of improved governance, making it "sensible" for firms to expand here.
"Canada is very supportive of the Aquino administration," Thornley said, citing the warm exchange between the President and Canadian Foreign Minister John Baird on Wednesday morning.
"We very much want to see the continued success of the Aquino administration," the ambassador said.
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