#MINDANAO
In 2023, the data from the Mines and GeoSciences Bureau indicated that the Philippines exported $7.32 billion worth of minerals and mineral products to the world. This makes roughly seven to eight percent of total Philippine exports. If more of these minerals are processed in the country before export, the value of these and total exports, which are about a fourth of our total GDP, can rise.
At the same time, while the mining and quarrying sector contributed less than one percent of our 2024 GDP, the products from this segment, when processed further, is expected to build a larger minerals industry that can contribute to the broader manufacturing sector, which constitutes 17.6 percent of our 2024 GDP, according to Statista.
The minerals industry sector will be a set of manufacturing enterprises that can bring economic opportunities for more Filipinos and allow us to provide for our local product requirements.
With this, the recent news of a possible partnership between Nickel Asia and DMCI bodes well for the future of the Philippine minerals sector, as processed mineral products will fetch better prices compared to the sales of raw minerals.
More importantly, such partnerships highlight the possibility of deeper collaboration among mineral and metal industry stakeholders to build industrial capacities, which can establish robust value chains that create downstream opportunities. Mineral processing companies have the potential to create thousands of jobs, especially in the countryside, as these will need to be near mining areas. Metal industry participants create the products we use and export. Note that even when the mineral resource from the nearby mine is consumed, other areas can supply the required raw material for the plant to continue operating and securing jobs.
Moreover, such partnerships herald the revival of our local metals industry and perhaps even boost our chances of building a fortified supply chain in critical minerals, which are raw materials designated by governments such as the United States as vital for use in strategic, future industries. Apart from exports, many minerals are necessary in driving the growth of our own construction industry and can feed the material needs of already emerging industries such as Artificial Intelligence and our own demand for renewable energy and expanded electric mobility through electric cars, trucks, and trains.
Metals are needed for an expanded shipbuilding industry as well. Batteries and many motor vehicle and ship parts, after all, come from minerals.
In a related development, news of a possible free trade agreement between the Philippines and Canada will do well for many investors in agribusiness and mining, as both sectors are set to see more robust trade between Canada and Philippines, a trade relationship where the Philippines exports about $2.2 billion to Canada, which exported about $1.2 billion worth of merchandise exports to the Philippines. Cooperation in minerals and possible mineral processing investments by Canadian companies in the country will likely increase bilateral trade between the two countries.
Beyond investments, Canadian mining and mineral processing companies are able to promote responsible mining and mineral processing practices that can not only make production more sustainable, but also create more socio-economic activities that are good for receiving communities and local economies, creating jobs and income in rural areas. We look forward to such partnerships in the near future with the possible FTA.
Let us look for and support more opportunities in processing our minerals. The future of our minerals industry, and the larger manufacturing sector, rests on processing our God-given minerals.