The Philippine Minerals Sector:
Industry Performance and Current Development

Edwin G. Domingo

Assistant Director,
Mines and Geosciences Bureau
Department of Environment and Natural Resources

The Philippines is generally recognized as richly endowed in mineral resources. From the mid-60’s to the mid-80’s, the country was one of the world’s top-ten producer of gold, copper, chromite, nickel and chromite. During the period, more than 70 metallic mines were operating and various companies were involved in exploration activities.

However, due to a confluence of factors – economic, technical, natural disasters, political – the industry started its precipitous slide. Thus, by the early 90’s, alarm bells were ringing and the industry (both in government and the private sector) worked fastidiously for the enactment of the Philippine Mining Act of 1995. The new law with its more favorable investment terms did elicit a mini-mining rush, until the now infamous Marcopper tailings spill incident and Supreme Court case of 1997.

Since the end of 2003, however, the minerals sector was the recipient of favorable events: the paradigm shift from mere tolerance to active promotion, the issuance of the Executive Order setting up the national policy agenda for the revitalization of the industry, formulation of the Minerals Action Plan, the favorable Supreme Court decision, and capped by the tremendous increase in demand metal prices in the global market.

All of these efforts are apparently bearing some fruits. The government has identified an initial 23 priority mine development and 40 exploration projects. Of these, 4 have already go on-stream, with about a dozen scheduled to kick-off operations in the next 2-3 years. Some of the exploration projects are fast-tracking their schedules, and we expect to see several mines to open before the end of this decade. On the other hand, the copper smelter of PASAR has been on-going expansion, a new nickel plant has started operating with further planned expansion, and the ferrochrome and ferronickel plants in Mindanao are being geared for integration and resumption of operations.

The minerals sector is certainly looking at a brighter horizon, and with continued government support and partnership with the private sector, it is expected that the sector will greatly contribute to the country’s economic development and spurring growth at the countrysides, but at the same time, sensitive to the needs and demands of the public towards greater consciousness on environmental protection and social equity.