MINING has always provided a significant contribution to the country’s economy, with nickel mining playing a crucial role, positioning the Philippines as a key player in the global metals market.
As demand for these resources grow- driven by the rise of electric vehicles and renewable energy technologies – the Philippine government and industry leaders are increasingly focused on sustainable practices. Programs like “Green Metals Initiative” aim to ensure that mining not only fuels economic growth but also protects the environment and supports local communities.
Historical context
The country’s mining industry has a complex history marked by opportunity and controversy.
In recent years, environmental concerns led to significant regulatory changes, including mine closures under former Environment Secretary Gina Lopez in 2017. These actions highlighted the urgent need for responsible mining practices. Today, under President Ferdinand Marcos, Jr., there is a renewed focus on revitalizing the sector while ensuring that economic development goes hand-in-hand with environmental protection.
Current mining landscape
As the fifth-most mineralized country in the world, the Philippines ranks as the second-largest producer of nickel globally, as of 2023, with an estimated output of 400,000 metric tons annually. The country currently has 30 nickel mines, including Rio Tuba, operated by Nickel Asia, one of the nation’s top nickel ore producers. Indonesia gets the top spot with 1,800,000 metric tons while New Caledonia (230,000 metric tons), Russia (200,000 metric tons), and Canada (180,000 metric tons) rank 3rd, 4th, and 5th, respectively.
The government aims to triple the size of the mining sector by 2027 through the Philippine Development Plan (PDP 2023-2028) recognizing that it “holds the greatest potential to be a key driver in our economic recovery and long-term growth.” The Mines and Geosciences Bureau (MGB) has identified plans for approximately 190 new mining projects, with a significant number expected to be nickel mines. Such expansion is projected to increase employment in the sector from around 215,000 workers to as many as 6000,000 workers
Currently, large-scale mining contributes about 0.7 percent to the country’s GDP. With the successful implementation of new projects, this contribution could rise significantly, potentially reaching up to 5 percent by 2027.
Economic impact
Even with the challenges posed by the COVID-19 pandemic, the mining sector contributed approximately P102.3 billion to the GDP in 2020, highlighting resilience of the industry during tough economic times. In regions heavily reliant on mining like in Caraga and Region IV-B, mining contributes significantly to the local GDP – around 12.3 percent and 12.4 percent, respectively. It is also said that for every job created in mining, about four indirect jobs are created in related sectors like transportation and construction. This multiplier effect stresses the economic importance of the mining industry in rural areas, where job opportunities can be scarce.
Environmental concerns and social impacts
Despite its economic potential, nickel mining presents serious environmental challengers. Activities associated with mining can lead to deforestation, soil erosion, and water contamination. A notable example is Sibuyan Island, Romblon, where local communities have rallied to protect their rich biodiversity from harmful mining practices. Nicknamed “Galapagos of Asia”, the geographic isolation of this island has led to the evolution of endemic plants and animals found nowhere else in the world, with endemic species still continuing to be discovered to this day.
The social impacts of nickel mining are also potentially devasting – globally, more than half of this resource is located on or near indigenous peoples’ lands and rural communities – often resulting into violent dispersals and displacement.
These conflicts underscore the urgent need for sustainable solutions that balance economic interests with environmental stewardship.
Regulatory framework
The regulatory landscape for mining in the Philippines is evolving, with a strong emphasis on sustainability and responsible practices. The Department of Environment and Natural Resources (DENR) plays a vital role in enforcing laws designed to promote these practices.
Some examples of regulatory development include EO No.130 – issued in 2021 and under this order, the DENR has tasked with implementing stricter environmental assessments and compliance measures to ensure sustainable mining practices; Environmental Compliance Certificates (ECC) – this certificate must be obtained prior to operations and ensures that companies adhere to environmental laws and regulations.
For instance, in February 2023, the DENR issued a cease-and-desist order against Altai Philippines Mining Corporation (APMC) for violations related to environmental regulations in Sibuyan Island, highlighting the agency’s commitment to enforcing compliance and protecting local ecosystems; amendments to RA 7076 -People’s Small-Scale Mining Act – a move to formalize small-scale mining operations and provide social assistance and labor protection for small-scale miners while integrating them into the broader regulatory framework of the mining industry (this will also lessen environmental risks associated with unregulated mining activities); Community engagement and rehabilitation initiatives; and the use of technology for monitoring; just to name a few.
The future of nickel mining in the Philippines looks promising and presents both opportunities and challenges. The push for sustainable practices through avenues like the Green Metals Initiative aims to harness these resources responsibly while safeguarding environmental health. By committing to environmentally friendly methods that prioritize community welfare and ecological integrity, the Philippines can navigate its path toward a greener economy while meeting global demands for critical minerals.
