The Philippines is expected to witness the opening of more mines in as early as three years as the government accelerates its efforts to promote electronic vehicles.
During the 57th Asian Development Bank (ADB) Annual Meeting in Tbilisi, the non-government organization Alyansa Tigil Mina (ATM) expressed concerns about the concept of climate-smart mining (CSM) being introduced by multilateral lenders.
The World Bank stated that CSM aims to assist resource-rich developing countries in decarbonizing and reducing the material footprint of critical mineral supply chains necessary for the clean energy transition. It also aims to help countries benefit from the increasing demand for such minerals through sustainable development.
ADB approved its first CSM technical assistance worth $500,000 for mining country Mongolia by the end of 2023.
ATM national coordinator Jaybee Garganera cautioned that this could set a precedent for ADB to provide similar assistance to neighboring economies with mining potential like the Philippines, or for governments to seek assistance from ADB.
Garganera mentioned that President Marcos has already directed the Philippines to play a role in transitioning to clean energy, which would require an increase in the production of nickel and copper for electric batteries.
Recent directives from Marcos have urged the Department of Energy and other relevant agencies to expedite the development plan for electronic vehicles, with a focus on enhancing local manufacturing and supporting battery charging infrastructure to promote the electrification of public transport.
Despite the lower emissions of electronic vehicles that could aid in combating climate change, the industry still heavily relies on raw minerals. Garganera questioned the idea of climate-smart mining when it involves opening up more mines, emphasizing the need for a robust public transport system instead of more electric cars.
ATM indicated that the Philippines could see the opening of new mines within two to three years due to the government’s push for this development. Garganera noted an increase in applications and renewals for nickel and copper mines, indicating a trend towards ramping up production.
Moreover, Indonesia’s continued ban on ore exports, as a significant mineral supplier globally, may further motivate the Philippines to increase production to meet the growing demand for raw materials.
Despite the vast mineral potential in the Philippines, with nine million hectares identified as having high mineral prospects, only a small percentage is currently covered by mining tenements.
