Mining companies in the Philippines are beginning to integrate renewable energy into their operations, but remain largely dependent on diesel as they navigate rising fuel costs and evolving energy demands.
Rocky Dimaculangan of the Chamber of Mines of the Philippines said the transition is underway but will take time, given the operational realities of the sector.
“Mining… consumes a lot of energy, but at the same time produces the minerals… essential to the global energy transition,” Dimaculangan said during a Resource Connect Asia webinar on April 20.
He noted that the industry remains reliant on diesel, particularly for heavy equipment and logistics. “The industry remains largely diesel dependent,” Dimaculangan explained.
Higher oil prices have pushed operators to adopt different measures, including tighter fuel efficiency practices, improved mine planning, and more disciplined logistics management.
“Our members are responding in very practical ways,” Dimaculangan said.
At the same time, companies are beginning to introduce renewable energy solutions where feasible, including solar installations and battery support systems.
“Companies are introducing solar where it makes sense… using battery support where it helps,” he said.
Examples of these efforts include the deployment of solar systems in mining operations and host communities, such as in Rio Tuba in Palawan where solar has been used to support local communities and reduce reliance on diesel-powered systems.
A five-megawatt solar facility is also being developed by TVI Resource Development Philippines Inc. (TVIRD) at the Greenstone Resources Corporation’s Siana Gold Project, which is expected to be completed by end-May to help augment power requirements and reduce dependence on diesel.
Dimaculangan said the current pressures from rising fuel costs are temporary and largely logistical in nature.
“This is really a short-term pressure. The issue is logistical, not structural,” he said.
He added that demand for key minerals such as nickel and copper remains strong, driven by the global energy transition.
“The conversation is no longer just about how much we produce. It’s about how we produce it…” Dimaculangan concluded.
Mining companies are increasingly focusing on improving efficiency, integrating sustainable practices, and strengthening resilience to ensure long-term viability amid changing market conditions.
How quickly can energy-intensive industries like mining realistically transition away from fossil fuels?
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