INTERVIEW-Manila plans new tactic to speed mining projects

By Manolo Serapio Jr.

MANILA, Oct 10 (Reuters) - Mining companies lured by attractive prospects in the Philippines but wary of vociferous local opposition could avoid the hurdles by partnering with the government, the country's natural resources minister says.

The Philippines sits atop an estimated $1 trillion worth of unexplored copper, gold, nickel and zinc reserves, and hopes to attract around $10 billion into its mining industry by 2011.

Making the government a partner with foreign investors in mining ventures would defuse opposition from local communities and the powerful Catholic Church, and boost investment in the once-booming sector, Lito Atienza told Reuters in an interview.

He envisioned the government taking a 40 percent stake in such enterprises, while the foreign investor held the rest.

"The major issue raised by practically all sectors opposed to mining is how much really is the share of the Filipinos in any mining activity," said Atienza, who has spent just over a year in his job. "This is the answer."

The scope of the government's role in such collaborations was not immediately clear, however, prompting some analysts to urge that speeding up Manila's approvals process and cutting down on redtape would bring better results.

The southeast Asian nation uses financial and technical assistance agreements (FTAA) with investors to allow 100 percent foreign ownership of mining projects, and this will not be changed, Atienza said on Thursday.

But persistent opposition from the Catholic Chuch and environment groups has slowed approval of such deals, with just two FTAAs issued so far and the last one struck in 1995.