The mining industry is important
to a country's economic development being a source of raw materials
necessary for industrialization. With its abundant mineral resources,
the Philippines has a vast potential to industrialize. This has yet to
be realized due to the current economic thrusts of the government and
the conditions in which the mining industry is being situated in our
economy.
The Philippines is rich with mineral resources. We are among the
world's top producers of copper, nickel, chrome, zinc, gold and
silver. We have about 7.1 billion metric tons (BMT) of metallic
deposits and 51 BMT of non-metallic deposits. As the government
claims, the country's mineral wealth, valued to be from $840 billion
to $1 trillion, is about ten times our GDP and 14-17 times our
external debt. If judiciously used, these rich mineral resources can
be geared to supply the basic needs of our nation to address the
economy's backward, agrarian and pre-industrial state.
Copper is a good conductor of electricity and is used in electrical
generators and motors, wiring, and in electronic goods. It also
conducts heat well, so it is used in motor vehicle radiators,
air-conditioners and home heating systems. It does not corrode easily
and is malleable. Nickel is used to make stainless and heat-resisting
steels for consumer and industrial applications. Think of your kitchen
sink, cutlery, pots and pans, and appliances. There is a good chance
that they are made of nickel-bearing stainless steel. Its corrosion
resistance and high strength over a wide range of temperatures make
nickel a natural choice for a growing list of applications as well as
its use in rechargeable batteries.
Chromium is used to harden and manufacture stainless steel and other
useful alloys. It is used in electroplating to produce a hard,
beautiful surface to prevent corrosion. Gold, as well as silver, has
traditionally been used in jewellery but it is used as coatings and
electrical contacts in industry.
Mining activity in the Philippines can be classified into large- and
small-scale mining. Although both have significant contributions to
our nation's economy, large scale mining companies, particularly those
with foreign equities, dominate the mining industry . Their dominance
can partly be attributed to the capital-intensive and high-risk nature
of large scale mining, which, at this point, only the above-mentioned
companies outside the national government have the capacity to venture
into.
Our current mineral production is export-oriented and not geared
towards the needs of local industry. We extract minerals and export
them with little or no processing mainly to answer the international
demand, and not for our local needs and consumption. Yet as we export
our cheap mineral ores and concentrates, we are importing high-value
mineral products which lead to trade deficits. Although mineral
exports have brought in dollar earnings, the industry remains overly
dependent on the international market, where the prices of minerals
are always fluctuating.
Mining in the Philippines remains essentially in the extractive stage.
Capacity in smelting, refining and fabrication is very limited,
characteristic of an industry that is not fully integrated and with no
linkages with the manufacturing sector. Even decades after the influx
of foreign mining capital, our mining industry was still mostly
limited to exploration and extraction. The current industry still
mainly employs relatively outdated technologies.
The export-oriented production of the industry leads to the extraction
of voluminous minerals from our lands just to earn large profits for
mining companies and their local partners. The negative impacts of
this rapid extraction to the people and to the environment is often
the least considered, if not sweepingly neglected.
Mining has been part of the historical development of societies. In
the experience of industrialized nations, a prosperous mining industry
is needed to supply the mineral demands of local industries and
provide the basic needs of the people. Essential to achieve this is
the nationalization of the mineral industry. Mining as a basic
industry should be controlled by the state for the Filipino people
unlike now where it is dominated and controlled by foreign
corporations.
An integrated mining industry with well-developed extraction and
downstream industries will enable us to independently produce the
machinery, tools and consumers goods we need, to generate jobs for the
people, as well as products for domestic use and international
trading. In such a setting, our mineral production will be primarily
driven not by the international market but by our nation's actual
needs and demands.

