Economic managers urge for revival of mining industry

The economic team of outgoing President Rodrigo Duterte recommended the revival of the mining industry to generate jobs and develop host communities where mines are located. The National Economic and Development Authority, the Department of Environment and Natural Resources (DENR), the Department of Finance and the Development Academy of the Philippines recently released a joint report that said their initial review showed that mining and quarrying “contributed significantly to the regional gross domestic product (GDP) in regions where there are mining operations.” 

The report contained findings of the interagency Mining Industry Coordinating Council’s (MICC) review of large-scale metallic mines conducted from 2018 to 2020. The MICC review was prompted by the controversial order by the late former Environment Secretary Gina Lopez in 2017 to close down or suspend 23 mining operations due to harmful environmental concerns. 

Lopez’s closure orders were reversed by President Duterte who lifted the ban on new mining permits last year. Also in 2021, the DENR also removed the four-year prohibition on open-pit mining put in place by Lopez. 

The report based on the MICC review said “there is no doubt that mining has contributed substantially to the local economy, as evidenced by the economic progress of communities relative to other non-mining communities in the same area.” 

“[Mining] brought employment, and the demand for labor helped increase the local population, which became the driver of the surge in economic activities. An increase in services comes with rapid population growth, promoting business growth, including the backward and forward linkages of the mining operation,” the report added. 

The review said environmental issues should be taken alongside countryside development. 

“Growing consumption demand, theoretically, translates to additional pressure to exploit natural capital. This scenario brings a dilemma, which pits conserving biodiversity against land development. Otherwise, the communities will have to outsource their consumption demand,” the report said. 

The report urged more inclusive mines development so that host-communities benefit from mining activities. 

“While mining contributes to regional GDP, experts saw initial indications of slow local economic growth because most of the commercial transactions by residents or the use of their factor income are often done outside the host-municipality. The expenditure of mining income is captured by highly urbanized cities or municipalities that provide for the consumption needs of nearby host-community residents,” it noted.