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- Gold miner Apex, the perfect case study of mining benefitting communities, economy
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Gold miner Apex, the perfect case study of mining benefitting communities, economy
By Maria Paula Tolentino
Right after lawmakers released their verdict on controversial DENR Secretary Gina Lopez, mining shares sizzled on the stock market.
The mining and oil index at the Philippine Stock Exchange gained 2.73%. The biggest gainers in the sector were Apex Mining (18.24%), Benguet Corp. A and B shares (15%) and Oriental Peninsula Resources (13.19%).
In a PSE disclosure on April 11 2017, Apex Mining Co., Inc. (AMCI) continued to report record accomplishments in operating performance and financial results for year 2016. The consolidated net income of AMCI for 2016 was at P322.0 million, higher by 351% since 2015. Higher revenue was achieved from the new record output of the Company’s Maco mine in Compostela Valley (54,681 ounces of gold and 309,623 ounces of silver), the increased milling, better mill recovery, and the higher metal prices.
“We are pleased at the company’s performance to date, generating its second year of continued positive results after the current management team’s taking over the helm in October 2013. We give credit to all the men and women making up the workforce of the Company in achieving this accomplishment,” says AMCI President and CEO, Dr. Walter W. Brown.
In 2016, the company’s compliance with mining regulations was affirmed by the DENR audit. The Company obtained its ISO 14001-2015 certification on environmental management systems (EMS) from Certification International in compliance with the DENR’s requirement.
The company also reported its cash operating cost (as stipulated below), most of which the Mindanao region has been its primary beneficiary:
A. 26% (P582.9M) for personnel and contracted services, more than 90% hail from Mindanao.
B. 26% (P795.0M) for materials consumption, of which about 30% is sourced from the Compostela Valley region, including Davao and Tagum.
C. P94.0M are provided for the Company’s social development programs (SDMP) for its host communities, and royalty and surface rights paid to the Ips of the mine.
D. 6% (P137.5M) go to excise tax, real property and other municipal taxes paid to the national and local governments.
E. 11% (P248.8M) for power which is mainly sourced from the Mindanao grid.
In summary, about 81% (P2.8B) of AMCI’s revenue went to the welfare of Mindanao and to the general economy of the country with only 13% remaining as net income for the company’s stockholders.
“The mines are usually located in remote and largely uninhabited areas where, without such operations, there would be no economic activity at all. In fact, in periods of depressed prices where operations
would result to a loss, which is not an uncommon to the industry, none of the revenue would remain to accrue to the owners.”
“This contradicts the notion that it is only the owners of mining companies that reap benefits from mining operations.
“On the contrary, from their invested capital and the revenue generated, a substantial portion of the value derived from the mine flows to the economy of the country, benefitting the employees, the people living in the mining areas, and the satellite businesses that depend on mining,” explains Brown.