Responsible mining for an energy-secure future
Published Jul 16, 2023 04:15 pm
#MINDANAO

The recently announced Davao Public Transport Modernization Project will reportedly establish the country’s first organized public bus system. It plans to use traditional and electric buses to cater to 800,000 commuters converging in 1,000 stops in Davao City. This project raises hopes for commuters not only in Davao City but for other major cities where similar systems will be needed.
The use of electric buses is perhaps its most innovative feature since it promises fares that are more stable because the bus is not dependent on expensive foreign fuel. Increased bus use will also reduce dependence on private vehicles and thereby lower vehicular traffic in the city. I hope this paves the way to electrifying more of our public transport system, and more livable, cleaner cities.
Electrifying our public transport system will create a large demand for renewable sources of electricity and reduce our demand for foreign oil. With the green energy option mandated by the Department of Energy, we are now required to source a growing portion of all electricity from renewable sources by 2030. These mandates ensure that the electricity used to power mobility is also renewable. Likewise, the electric vehicle (EV) law will spur demand for EVs and hybrid vehicles.
Increased electrification will drive demand for more electric equipment such as transformers, insulators, wires, and cables to distribute this electricity. EVs will require more batteries. These materials and equipment are often made from minerals.
This increased demand for electricity is an opportunity for our rich minerals sector. Locally abundant copper and nickel are elements that are essential for steel and battery production. Turning them into batteries will create local downstream industries that can boost employment and add value to the economy, while also reducing our imports. Exporting the balance of mineral-derived products will allow us to earn foreign exchange as well.
At present mining employs 200,000 and contributes $7.5 billion in export revenue. Imagine how much more income and employment will come from local battery and electric equipment manufacturing. Apart from direct employment, whole new indirect employment opportunities will be generated from the mines to the communities - from canteen concessions to the provision of uniforms from local tailors, haircuts from salons, and food from local farms. This can be increased further if we create more downstream industries, such as the local manufacture and export of more processed goods like reinforcing bars and cement for construction, and metals for battery manufacture from which energy sustainability and independence may be achieved.
With these benefits in mind, it is therefore essential that we promote responsible mining and mineral processing investments. Otherwise, others will engage in illegal mining. Illegal and irresponsible mining diminishes the opportunity to manufacture since the raw minerals mined illegally will likely be smuggled out rather than used for local manufacturing.
Mineral resources need to be harnessed responsibly and profitably because mines are essentially government projects. Mining companies are contractors of the government required to remit to the state the people’s share of the mineral wealth. The Mines and Geosciences Bureau, therefore, is tasked with promoting responsible mining so that the state earns its share and social benefits are delivered and environmental and social impacts are mitigated by mining and environmental laws.
Our resources have value and must be used for our benefit. Responsible use of our mineral resources holds the key to an energy-secure future.
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