An industry expert says the Philippine mining industry should prioritize processing metals and minerals locally instead of exporting raw ores.
In a report by Inquirer, Nickel Asia’s Cordillera Exploration Co. Inc. president and geologist Graciano Yumul Jr. highlighted the need to mitigate supply chain vulnerabilities amid global tensions, conflicts, and climate change.
He pointed out that the country’s adoption of green technologies is vital as it grapples with extreme weather events, exemplified by a string of recent typhoons.
The growing demand for critical minerals, essential for digital devices and electric vehicles, highlights the mining industry’s economic importance.
However, Yumul emphasized that global metal prices are controlled by smelting companies, not miners, and despite being a major nickel and copper producer, the Philippines exports raw materials to refineries in India and China, which ruled over the supply chain.
Yumul warned that China’s slowing smelter output, potentially shutting down next year, could disrupt the copper supply chain, impacting the Philippine economy.
He added that local refinery output has largely gone to non-energy uses like construction, not renewable energy projects, stressing the need for the industry to scale up production volumes to sustain cost-effective refineries, urging the government to attract investments.
Meanwhile, Philippine Mine Safety and Environment Association president Luis Sarmiento noted that few new mines are being established despite the growing need for minerals.
Yumul called on the Marcos administration to support mining exploration, citing the country’s advantage in mineral resources amid its push for green transformation.
The mining industry produced Php 249.71 billion worth of metallic minerals last year, exporting USD 7.32 billion worth of unrefined materials.
Yumul proposed creating a national list of critical minerals, such as gold, nickel, copper, and potentially titanium and manganese, to leverage trade opportunities.
Coal, while controversial, still plays a role in the transition to green energy as the cheapest electricity source.
