PH ranks last in BMI mining index
INDUSTRY and political problems facing the mining industry put the Philippines last among 13 Asian countries in BMI Research’s Asia Mining Risk/Reward Index for the second quarter of 2018.
In a report late last week, the Fitch Group unit said the Philippines—which only got a score of 42.8 in the index—and Myanmar, which placed 12th, would “continue to underperform” in a region where the sector continued to flourish on the back of positive business environments, rich mineral deposits, supportive infrastructure, and political stability.
“[These] two countries are marked by weak mining reserves, poor regulatory framework, corruption, and increasing resource nationalism,” it added.
According to BMI, rampant income inequality, corruption, and political uncertainty would continue to hurt the local mining industry, and impinge on growth and foreign investments.
“[D]espite [replacing]anti-mining [Environment Secretary] Gina Lopez with [the]more accommodating Roy Cimatu, government regulations on the basis of environmental protection and general policy uncertainty will continue to plague the mining industry in the coming years,” BMI said.
Australia topped the index, followed by Malaysia, Mongolia, Thailand, and India. Completing the list are Indonesia, Japan, South Korea, China, Laos, Vietnam, Myanmar and the Philippines.
Of China, BMI said it would continue to underperform, despite having the biggest mining sector in the world, because of the poor sustainability of its reserves.
A closed competitive landscape where state-owned enterprises get preferential treatment, and high industry risks, will also influence China’s minimal progress in the next few years, it added.
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