The Philippine Economic Zone Authority (PEZA) is targeting next the development of mineral processing ecozones amid foreign investors' interests, including a big Canadian company that is keen on green ores processing in the country.
PEZA Director General Tereso O. Panga told reporters at the turnover ceremony for the new president of Toyota Motor Philippines on Tuesday, Feb. 20, that the push for mineral processing is aligned with Secretary Frederick Go’s plans to further process the country’s raw ores. The promotion for mineral processing also comes on the heels of the lifting of the mining moratorium. “After the pandemic, we are preparing for the promotion of mineral processing ecozones,” he said.
In fact, there have been some interests including a Canadian mining player, who has been conducting due diligence in the country for a year already. The firm is interested in both steel and copper ore processing.
“They have to apply with us as ecozone developer, but they are still in the site selection process,” he said. The company is also working for a concession agreement with local mining firms.
PEZA will also join the Presidential State Visit of President Marcos to Australia on March 2-4 where the government is prospecting mining investors.
For PEZA, the agency is also eyeing IT and renewable energy investments from Australia.
Mineral processing is the next investment promotion pushed by PEZA after pharmaceutical ecozones to support the government’s plan to be able to ride in the global value chain for electric vehicles.
Earlier, Panga said he was optimistic about the rise of investments in medical and drug manufacturing in the country.
The President already met with the Food and Drug Administration (FDA) last Feb.13 and proposed the idea of setting up pharmaceutical ecozones, aiming to streamline the drug application process and enhance efficiency.
Pharmaceutical ecozones will involve activities in the pharmaceutical industry including medical and drug manufacturing activities, particularly in research and development (R&D) and clinical testing.
The PEZA will be collaborating with the Department of Health, Food and Drugs Administration, Department of Trade and Industry), and Philippine Chamber of the Pharmaceutical Industry for the crafting of guidelines for the registration of pharma ecozones under PEZA.
In addition, PEZA is reviving talks with local pharmaceutical companies such as Lloyd Laboratories, Pascual Laboratories, and United Laboratories, Inc.
Likewise, there are efforts to attract foreign investment in pharmaceutical manufacturing include discussions with Indian and Pakistani companies interested in establishing operations in the Philippines.
Under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, investments on health-related activities can enjoy tax incentives for up to 12 years when registered with investment promotion agencies like PEZA.
As of December 2023, PEZA hosts 26 pharmaceutical and medical equipment manufacturing companies, generating over P25.5 billion in investments and providing more than 19,000 direct jobs.