President Ferdinand Marcos Jr’s landslide election a year ago has opened a new chapter in the Philippine mining sector. Unlike previous administrations’ resistance to mining, the Marcos Jr Administration has prioritised the revitalisation of the mining sector.
The reason is simple. The Administration has determined that mining holds the greatest potential to be a key driver in the Philippines’ economic recovery following the pandemic. A prosperous mining sector will also secure the country’s long-term growth.
This is good news for Australian mining equipment, technology and services (METS) providers. There are strong supply opportunities across the entire mining value chain.
Untapped mineral resources waiting to be explored
The Philippines is one of the world’s most richly endowed mineral resources countries. It is estimated to have about $1 trillion worth of untapped copper, gold, nickel, zinc and silver reserves. Only 5% of these reserves have been explored, and 3% are covered by mining contracts.
The Philippines’ mining industry is rebounding thanks to the Marcos Jr Administration’s mining policies. Metal production increased almost 32% in 2022 compared to the year before. Total export value for 2020–2022 was US$18.7 billion or 8.51% of the country’s total exports.
The Administration wants mining in the Philippines to adhere to responsible and sustainable mining practices. It wants to strike a balance between protecting the environment, benefiting local communities and supporting the government’s socioeconomic agenda. It is especially keen to rehabilitate mined-out areas and undertake progressive rehabilitation.
These developments send a welcome signal to potential investors and businesses interested in the country’s vast resources at a time when mineral prices are high and demand for critical minerals is strong
