A roadmap has been presented by the Mines and Geosciences Bureau (MGB) for the Philippines to transcend its role as a mere seller of ores and advance its processing capabilities in the coming two decades.
As per a report, the government aims to augment the country’s mineral markets by encouraging the establishment of processing facilities, refineries, and downstream industries involved in the production of semi-processed and fully processed mineral products.
The MGB emphasized that this strategic maneuver will enable the Philippines to position itself within both the value chain and the global supply chain, thereby raising its stature from a simple ores vendor. Divided into three distinct phases, the roadmap is titled “Minerals Sector 2022 to 2040.”
The initial phase, spanning from 2022 to 2024, concentrates on strengthening investor confidence in the mineral sector.
During the subsequent phase, encompassing the period from 2023 to 2030, the focus is on expanding domestic ore production and mineral assets.
Lastly, in the third phase, spanning from 2026 to 2040, the objective is to establish the Philippines as a prominent participant in the global mineral markets through the production of semi-processed and fully processed mineral products.
The MGB forecasts a surge in demand for nickel, copper, and silver due to the global shift towards the electrification of cars, which necessitates these metals for the production of electric vehicle batteries.
Aligned with the worldwide emphasis on reducing greenhouse gas emissions and promoting renewable energy and electric vehicles, the production of low-carbon technologies requires metals like lithium, cobalt, nickel, and copper.
The MGB pointed out that countries abundant in nickel ore, such as the Philippines, stand to gain from the escalating demand for these metals as low-carbon technologies gain wider acceptance.
However, the successful implementation of this roadmap hinges on the intricate interplay between internal and external factors, as evaluated by the agency in its assessment of the minerals sectors’ performance in the current year.
Internally, critical considerations encompass government policy support through tax reforms, improvements in business facilitation, foreign investments, efficient processing, and the regulation of small-scale mining.
External factors encompass global metal prices, foreign exchange rates, energy and fuel costs, the ongoing Russia-Ukraine conflict, the pace of recovery in Chinese industrial and manufacturing sectors, disruptions in metal supply chains, and geopolitical tensions.
- Key Prices for PH Bluechip Stocks 30% Above 52-Week Low - June 4, 2024
- May 2024 Market Sentiment Rating of 30 PH Bluechip Stocks - June 3, 2024
- EquiTalks: ICT, BPI, AEV Updates – 5.29.2024 - May 29, 2024
