News
03 April 2023
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MALATE, MANILA – The planetGOLD Philippines project organized a workshop on developing gold trading arrangements and engaging financial institutions for small-scale miners with representatives from the Bangko Sentral ng Pilipinas (BSP) and the Department of Environment and Natural Resources - Mines and Geosciences Bureau (DENR-MGB). Pursuant to Section 17 of Republic Act No. 7076 or the “People’s Small-Scale Mining Act of 1991,” all gold produced by small-scale miners should be sold to the BSP or its authorized representatives.
The workshop is in line with the objectives of planetGOLD Philippines Project to support the government in identifying solutions and addressing the gaps and challenges relating to responsible gold trading and investments in mercury-free processing technologies for the growth and sustainability of the small-scale mining (SSM) sector. It aims to provide a collaborative avenue for consultation with government agencies for the identification of a mechanism for small-scale miners to sell gold to the country’s formal market that can be backed up by a credit facility.
BSP Currency and Securities Production Sub-Sector Managing Director Mary Anne Lim welcomed all the participants and emphasized how the institution has been gearing towards active gold trading through its efforts to connect with the mining industry, including both SSM and large-scale mining. For the SSM sector, she mentioned the partnership formed with planetGOLD Philippines and the activities from the Gold Buying Stations (GBS) such as conducting focus group discussions, reviewing options for the establishment of new GBS, and participating in national SSM events.
National Project Manager Abigail Ocate of the planetGOLD Philippines project updated the participants on the accomplishments and pipelined activities of the project across all components: formalization; access to finance and markets; better technologies; and, knowledge management.
She was followed by MGB Mining Technology Division Engr. John Peter I Miraña and Metallurgical Technology Division OIC-Chief Bernardo Bitanga, who provided an introduction on the Philippine SSM sector, the SSM formalization process, and milling operations and practices. Ms. Elaine Kate Asia of the BSP Mint and Refinery Operations Department elaborated on the formal gold trading programs and corresponding initiatives of the central bank. These sessions were designed to help participants understand the mandates of each of the agencies and how they can collaborate in the context of the SSM sector.
“By establishing robust and sustainable connections with the BSP through the institution's proactive endeavors and collaboration with planetGOLD Philippines, the sector can reap numerous benefits: fair and competitive prices for gold, accurate assay, and a valuable contribution to the economy's growth. This event serves as a pivotal step toward achieving these objectives,” Ms. Ocate added.
Artisanal Gold Council (AGC) International Finance Specialist Scott Gryba joined virtually to discuss the different strategies to improve access to formal finance based on the global experience of the planetGOLD Program. He tackled common barriers and different financing options for countries where planetGOLD programs operate. He then detailed how planetGOLD Philippines plans to support the SSM sector in seeking investments using foundational tools such as business plans, financial models, and technical reports. He also provided inputs on how the government can assist the sector to better access financing.
The workshop continued with an introduction of the CRAFT Code planetGOLD Version–a field operationalized version of the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance–by planetGOLD Philippines National Investment Specialist Kristal Jaylo-Bautista. She proceeded to discuss the potential participation of government agencies in the implementation and monitoring of the CRAFT Code and pertinent project site data on gold trading and financing based on the different assessments and studies conducted by the AGC for the Project.
The highlight of the event was the writeshop for the development of the mechanism for gold trading. Participants finalized the proposal of the Project on the supplier agreement between the BSP and a partner SSM association of planetGOLD Philippines as the gold-supplying counterparty. The agreement included the relevant laws and regulations, roles and responsibilities of the parties, trading requirements, and other provisions. It also specifies the requirement of the Project to comply with the CRAFT Code planetGOLD Version as their due diligence standard and the acknowledgment of the BSP on its implementation. The supplier agreement and the reports on the CRAFT Code planetGOLD Version are intended to be used as supporting documents to prove the small-scale miners’ credibility and creditworthiness to a formal financial institution.
Ms. Jaylo-Bautista emphasized that it is crucial for the government to establish a supplier agreement that a credit facility can complement so that “small-scale miners can sell their gold to the formal market, access financing opportunities, and demonstrate their commitment to environmentally and socially responsible production. Ultimately, these efforts lead to enhanced capital access and increased income that will support formalization, adoption of cleaner and more efficient technologies, and the continuity of business operations.
BSP Deputy Governor Mamerto Tangonan, head of the Payments and Currency Management Sector, provided his inputs on the different sessions. He thanked planetGOLD Philippines for organizing the workshop and assured the continuous support of the BSP in strengthening linkages with the SSM sector.
The planetGOLD Philippines project is implemented by the United Nations Environment Programme, and United Nations Industrial Development Organization, in partnership with the Department of Environment and Natural Resources and the Mines and Geosciences Bureau, and executed by the Artisanal Gold Council.
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