Philippines: Mining expansion pushed amid spike in global demand for critical minerals

Manila: The Philippine government is stepping up efforts to expand the mining sector as it signs agreements with several countries to develop critical minerals needed for the global shift to renewable energy, newly-appointed acting Environment Secretary Juan Miguel Cuna said.

Cuna said the administration sees mining as a "largely underused" resource that could contribute more significantly to economic growth and job creation if developed responsibly.

Sector support

“This is the first time in quite some time that the national government is supporting the sector,” Cuna said.

According to Cuna, the Philippines possesses vast mineral resources, yet only a small portion of the country’s land area is currently utilized for large-scale mining operations.

The International Union for Conservation of Nature (IUCN) has reports that the Philippines has largely untapped critical mineral deposits.

It already ranks among the world's top producers of nickel, copper, and cobalt.

The country is a key global supplier of materials essential for green energy, electric vehicle (EV) batteries, and technology, Japan Times reported.

The Philippines is already the world's second-largest producer and largest exporter of nickel ore, most of it exported to processors in China and Indonesia. Major nickel, copper and cobalt deposits are found in Palawan, Surigao del Norte, and Dinagat Islands.

The Philippiens also holds the world's 4th largest copper reserves (Tampakan in South Cotabato and the Padcal Mine in Benguet); it ranks among the top 5 globally for cobalt reserves, and has substantial deposits of chromite and iron (magnetite), particularly in Luzon and Mindanao.

The Philippines is also known for its rare earth deposits.

Speaking on the The Spokes program of Bilyonaryo News Channel on Tuesday, Cuna said around 790,000 hectares, or roughly 2.64% of the country’s total land area, is covered by mining activities.

9m hectares identified with deposits of various commodities

“Out of 30 million hectares of land, the entire Philippines, there are about nine million hectares that have been identified as having deposits of various commodities,” he said.

Cuna, who now heads the Department of Environment and Natural Resources (DENR), said the limited development of these deposits partly explains the mining sector’s relatively small contribution to the country’s gross domestic product (GDP).

“Maraming nagsasabi, napakaliit naman ng kontribusyon ng mining sector sa GDP natin. Pero ang hindi naisip ng mga tao, dahil napakaliit po ng utilization natin (Many people say the mining sector has an insignificant contribution the country's GDP. But what they're not thinking about is that our mine utilisation is very small),” Cuna said.

The environment chief added that global demand for critical minerals has surged as countries accelerate the transition to renewable energy technologies.

“As you are all aware, malaki ang (there's a big) demand ngayon ng (today for) critical minerals, for the move towards renewable energy. Maraming naghahanap, nakatingin sa atin…maraming interesado (Many are searching, looking at us...many are interested),” he said.

Deals to support mineral exploration

Cuna also cited reports that the Philippines has entered into several agreements with foreign institutions to support mineral exploration and development.

“We’ve entered into several memoranda of understanding with some countries regarding critical minerals. The US just a few weeks ago, the British Geological Survey, and in the pipeline…we’re in discussions with the UAE (United Arab Emirates) and Canada,” he said.

The government is also encouraging investors to establish mineral processing facilities in the country to increase the value of extracted resources before export.

“But we’re moving towards that direction talaga… The President said it before. Value-adding [ang] importante para sa atin,” Cuna said.