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Mineral Production Sharing Agreement (Mpsa)

With respect to copper production, Carmen Copper Corporation reported the largest production of 46% of total copper production, followed by Padcal Copper-Gold Project of Philex Mining, an underground mine, the Toledo Copper open pit mine and OceanaGold Philippines` Didipio Copper-Gold Project also an open pit mine. The value of metal mineral production increased by 5.1% in the first quarter of 2017. This is due to the good prices of metals. More importantly, gold with the highest price contributed to the highest percentage of total mineral production. The combined gold production of OceanaGold Philippines, Inc. and Masbate Gold Production of Filminera Mining Corporation/Philippine Gold Processing and Refining Corporation in Masbate accounted for more than 58% of the country`s total gold production. In terms of the extraction method, five are underground and one is open pit. The Philippines is the five-fifth country in the world, with the third largest gold deposit, four for copper, fifth for nickel and sixth for chromite. The country`s mineral resources are estimated at about AUD 1.32 trillion, but these remain largely untapped. The total area of the country covered by mining rents is only 0.872 million hectares, or 2.91 per cent of the country`s total area of 30 million.

For non-metallic minerals, the country has an estimated 2.4 billion tonnes of unused coal reserves. Other types of contracts are the co-production agreement, under which the government provides inputs other than mineral resources, and the joint venture agreement under which the government and the contractor organize a joint venture, with both parties having shares in the unit. The Silangan Mining Project is a copper-gold mine in Surigao del Norte. This is the development of Boyongan and Bayugo mineral resources, with an estimated reserve of 5 billion pounds of copper and nine million ounces of gold over a 25-year lifespan. The project is estimated to cost $1.2 billion. This project will replace the Philex Padcal project, which is expected to have a lifespan of 2020. Silangan Mining and Philex Mining are subsidiaries of First Pacific Co. Ltd. in Hong Kong. In nickel production, direct shipment (DSO) and nickel-cobalt sulphide accounted for 28% of total mineral production. Of the 28 nickel mines, only 7 reported production for the first quarter of 2017.

Zero production was due to adverse weather conditions, some mines are in maintenance and maintenance conditions and have been interrupted due to environmental problems.