CAR POCKET MINERS WELCOME PJLI GOLD BUYING INITIATIVE

September 7, 2024 Metro BLISTT

’Tis not just a plain business of gold trading, we want to be a partner of SSM- PJLI

BAGUIO CITY- Small scale gold mining contributes significantly to the total value of gold mined in the country, and it even surpassed that of large-scale mining.  But a large volume were  sold in the black market. In a random interviews, pocket miners across the Cordillera region welcomed PJ Lhuillier Inc.’s gold buying scheme through Cebuana Lhuillier,  accredited trader  by Bangko Sentral ng Pilipinas (BSP).

They expressed optimism that through PJLI initiative, it would   push  the government through the Department of Environment and Natural Resources (DENR) – Mines and Geosciences Bureau (MGB) to lift the stoppage order , expedite  their   Minahang Bayan (MB) applications , and   facilitate the processing of small-scale mining contracts. To date , only 13 minahang bayan were declared in the Cordillera, out of the number, only two were awarded small scale mining contracts. While dozens of applications are pending in the region.

Also, they hope it would  touch the heart and minds of  MGB-CAR officials to extend support  for their  survival, in order that they could qualify in   PJLI’s gold buying scheme.  The  stoppage order  has affected the operations of these informal sectors, resulting to economic difficulties, despite countless appeals by the latter and their respective local government units to lift the order. Rose Ferrer, Division Head-Gold Buying Division of PJ Lhuillier ,Inc. Finance Group, clarified:’By law, we are only allowed to purchase SSM gold from SSMs with valid Mining Contract and registration from the BSP.’

‘In CAR only Loacan Itogon Miners Association (LIPMA) in Benguet and Northen Sagada Barangay Small-Scale Mining Association, Inc, (NSBSSMAI) in Mt Province are qualified for this.’  In fact, LIPMA and PJLI are set to sign a Memorandum of Agreement (MOA). ’Also, we want to ensure that this is not just a plain business of gold trading. We want to be a partner of the SSMs. With this we are investing resources to support community building programs,’ Ferrer stressed. The PJLI official said,as of Aug 31 (2024) they’ve been operating for 115 days in T’boli, South Cotabato.

And purchased 8,818.48 grams of gold while 6,568.96 grams were sold  to BSP. ‘’Mobile gold buying station is only in Sagada, Mt. Province where we do not have a branch. Gold buying in other areas… are allowed under BSP’s Regulatory Sandbox Approach (Itogon, Paracale and T’boli) with  Cebuana Lhuillier branches near declared minahang bayan,’ she explained. ‘ Per municipal ordinance in Sagada, only residents can have a business permit. And Cebuana Lhuillier is always wholly owned by our main company.

Thus, we presented our business model and explained to the office of the mayor why we should be allowed do business in Sagada (since this business model can be difficult to execute by current traders there).’ They agreed and we will be issued a Special Mayor’s Permit (in essence similar traveling merchant). For other areas, we have existing branches will be used as gold buying stations. She added that volume of gold production from SSMs are estimated by PJLI. Data used are from different government data (MGB primarily).

Unfortunately, as of this time there is no cohesive data for SSM gold production. TRANSPARENCY  Ferrer stressed that “TechBrick” strategy to be an intermediary of the BSP (as its accredited trader). ‘We invested in a Supply Chain Provenance System running on Blockchain to ensure transparency of gold source and provenance for all SSM gold we are purchasing for eventual sale to the BSP. Along , we offer to utilize our network of branches (which are near declared Minahang Bayan) as touchpoint to purchase gold from SSMs.’

This business model is the first to be used in the world, Ferrer pointed. ‘We will compete by ensuring our gold buying price is based on prevailing market price, which is BSP’s daily price. Also, we have a very accurate instrument to identify the gold assay or purity (XRF Analyzer… hindi mata-mata lang.’ Based on government record , in 2023, of the $450 billion  (estimated gold production) from local pocket miners, only $180 million were sold  to Bangko Sentral ng Pilipinas (BSP), forcing the (BSP) to buy gold from international market, Ferrer, told participants in the recent national assembly of the National Coalition of Small Scale Miners, held in San Lorenzo Ruiz, Camarines Norte.

Ferrer said their company is aware of the many challenges faced by small-scale miners, and took the chance of acknowledging  the support of pocket miners especially the group from T’boli , South Cotabato and the local government unit of the place, where its initial gold trading took place. The PJLI official, anticipating the possible impact of their company’s initiative,  declared:   ’ Sige ubusan ng yaman’ pointing to operators/buyers  of  the  so called black market.

Primo Agatep/ABN