DENR Secretary Maria Antonia Yulo-Loyzaga with (L-R) Canadian Ambassador to the Phils. H.E. David Hartman, Stratbase ADR Institute President Prof. Victor Andres “Dindo” Manhit, Australian Ambassador to the Phils. H.E. Hae Kyong Yu PSM, Japanese Ambassador to the Phils. H.E. Kazuya Endo (Photo by Marcelle P. Villegas)
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Countries like the US, Australia, Britain, Canada, China, and the EU Nations have expressed interest in nickel ore mining in the Philippines. This was mentioned by Environment Secretary Maria Antonia Yulo-Loyzaga in her speech during a mining conference organized by the Stratbase ADR Institute, in partnership with the Department of Environment and Natural Resources (DENR).
The conference is titled “Revitalizing the Philippine Mining Industry: A Pillar for Inclusive and Resilient Economic Growth and Development”. This was held on May 10, 2024 at Manila Diamond Residences in Makati.
The Secretary said, “In the 2nd quarter of last year, a volume of 1.9 billion metric tons was reported as the country’s total nickel resource. With this, given the increasing demand for electric vehicles, the Philippines should enhance its current nickel processing capacity as this is a key component in e-vehicle batteries and stainless-steel production.
She pointed out that unfortunately, the Philippines currently has only two nickel processing plants which emphasizes the need for specific measurement to be taken.
“The administration is actively advocating for the rationalization of the fiscal regime within the mining sector. According to the Department of Finance, this strategic initiative could yield an incremental revenue of P47 billion from 2024 to 2028.”
“It is regrettable that some of the positive contributions of the local mining industry are occasionally overshadowed by cases or reports of unsustainable practices. The government, however, remains committed to closely collaborating with the mining sector to share sectoral responsibilities, address pertinent issues, and present a balanced picture that includes its positive social and economic impacts. We at the Department will continue to engage the industry, and this Mining Conference is one component of our ongoing efforts.”
Secretary Yulo-Loyzaga also highlighted the role and importance of mineral resources to climate action.
“We are acutely aware that there can be no energy transition nationally and globally without minerals such as copper, nickel and cobalt, among others.”
“While the Philippines needs to develop our own mineral resources to match the pace and trajectory of our DOE’s clean energy scenarios, we will also strategically participate in the global market in order to better secure our own growth and development needs.”
“It is thus our high priority that both government and industry work more constructively together and adopt the mitigation hierarchy to ensure that no ecosystem and no community will be left behind, even is this will entail working towards net positive impacts through offsets.”
On a final note, the Secretary assured that the DENR will continue to keenly observe the shifts in the geopolitical landscape and the resulting geostrategic implications for our country.
“Within local, national and international contexts, we are likewise incorporating the roles and rights of women and indigenous communities and the inclusion of marginalized groups very carefully in order to craft the most beneficial, strategic and responsive critical minerals roadmap for the country.” [1]
Later in the conference, Secretary Frederick Go of the Office of the Special Assistant to the President for Investment and Economic Affairs said that the Philippine Government “recognizes that mining holds the greatest potential to be a key driver in the Philippine economy and also secure the country’s long-term growth” [2] He said that their goal is to put in place cohesive and long-term policies that will help the mining industry contribute to the economic progress of the Philippines.
Secretary Arsenio Balisacan of NEDA (National Economic and Development Authority) said the mining industry has “yet to harness its potential fully.” From Stratbase report, “Secretary Balisacan said that the Philippine mining industry contributed about 0.5% to the country’s gross domestic product by the end of 2023. He added that while this might be considered modest, only 0.17% of the country’s known mineral deposits have been developed for production. Additionally, only 56 metallic mines and processing plants are operating in the country.”
“Despite this, Chamber of Mines of the Philippines (COMP) Chairman Atty. Mike Toledo shared that, as of July 2023, the industry has already provided jobs directly and indirectly to nearly 850,000 Filipinos and paid nearly PHP50 billion in taxes, PHP2.36 billion in IP royalties, PHP32 billion in Social Development and Management Programs, and PHP5.5 billion in Environmental Protection and Enhancement Programs. This highlights the sector’s untapped potential in further contributing to the country's economy and improving the lives of Filipinos.”
From a news briefing, Prof. Victor Andres “Dindo” Manhit, Stratbase ADR Institute President said, “From a policy point of view, I think we need to look at all these geoeconomic opportunities. Given, as some would say, the derisking, the globalization, and see ourselves as a possible major player.”
“If we transform ourselves from one that is consumption-driven to one that is investment-led growth, which will create jobs, address livelihood for our people which would need a stable, responsive policy environment in the eyes of ease of doing business and easing trade tariffs to bring in investments.”
“We need government, the private sector, and investors to really work together and find a common interest, find the common ground to achieve that investment goal for the Filipino nation.” [2]
From the column of Mr. Orlando Oxales, “This was indeed a pivotal event wherein the government represented by the DENR, NEDA, DTI, DILG, DOE, and OSAPIEA; the diplomatic community represented by the Ambassadors of Australia, Canada, Japan, and Delegation of the European Union to the Philippines; the leaders of the mining industry and stakeholders have unanimously committed to accelerate the revitalization and transformation of the Philippine mining sector into the thriving and sustainable economic driver of the country.” Mr. Oxales is the Deputy Managing Director of Stratbase and Executive Director of Stratbase Research Institute.
One of the main highlights of the conference is the signing of the "Joint Declaration Policy Reforms".
Mike Toledo, Chairman of the Chamber of Mines of the Philippines said in a social media post, "I am pleased to share that for the very first time we, the Philippine Mining Industry, together with the Department of Environment and Natural Resources, have created a Joint Declaration of Policy Reforms. This most definitely exhibits Public-Private Partnership at its best!"
"As the Chairman and President of the Chamber of Mines of the Philippines, this is a momentous occasion that solidifies the government's robust support for the mining industry and the economic progress it brings!"
Stratbase reported that in an unprecedented move, the industry, represented by the COMP, Philippine Nickel Industry Association, Philippine Mine Safety and Environment Association, and Philippine Mining and Exploration Association, together with the DENR Secretary Toni Yulo-Loyzaga, signed a joint declaration to initiate policy reforms to address the regulatory roadblocks that have hampered the Philippine mining potential for decades. [3]
“The pressing challenge now is how to effectively channel these commitments and enthusiasm into concrete action. Strategic areas that different actors can collaborate on include:
• Improving local capacity to process minerals. With only seven mineral processing plants, most of the country's mineral exports are in their raw or unprocessed form, leading to missed opportunities to leverage our natural resources. Not being able to process minerals locally is a lost opportunity for the country. To catch up, the government should facilitate the establishment of additional processing plants.
• Diversifying export portfolio. According to the Philippine Nickel Industry Association (PNIA), 96% of our nickel exports go to China, while the remaining 4% goes to Japan, Australia, and Indonesia. In 2022, Philippine nickel accounted for 83% of China's total imported nickel supply. Given the current geopolitical and geoeconomic landscape, it is paramount that the Philippines expands its exporting portfolio.
• Promoting Environmental, Social, and Governance (ESG) standards. As the Philippine mining sector continues to drive economic growth, it is imperative to ensure that development is sustainable and aligned with global ESG standards.
• Establishing a stable and conducive policy environment. This entails addressing longstanding challenges that have hindered the sector's progress while institutionalizing the reforms initiated under the current administration. Doing so guarantees continuity and ensures that the progress achieved thus far will be sustained despite changes in leadership.” [3]
The declaration strengthens their commitment to sustainable and responsible mining practices. In the Joint Declaration Policy Reforms, they also vow to seek the enhancement of regulatory frameworks to protect biodiversity and communities, the use of environment-friendly technologies and the rehabilitation of mining sites, the encouragement of transparency and accountability in mining operations, the strengthening of environmental laws enforcement, and the creation of a conducive and stable policy environment. [4]
Australian Embassy’s Ms. Tata Corpuz (Business Development Manager, Australian Trade Commission)
with Mr. Joey Nelson Ayson (PMEA President)
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Photos by Marcelle P. Villegas
Reference:
[1] Opening Remarks of DENR Secretary Maria Antonia Yulo-Loyzaga (During the Mining Conference, 10 May 2024)
https://denr.gov.ph/secretarys-corner/opening-remarks-of-denr-secretary-maria-antonia-yulo-loyzaga-during-the-mining-conference-10-may-2024/
[2] Oxales, Orlando (May 13, 2024). 'Transformative pivot' to seize critical mineral opportunity. Column "Open Thoughts" Manila Standard
https://manilastandard.net/category/opinion/columns/open-thoughts-by-orlando-oxales
[3] Stratbase Report (May 10, 2024). “Revitalizing the Philippine Mining Industry”
[4] https://abogado.com.ph/mike-toledo-hails-partnership-with-denr-on-mining-policy-reforms/