The government has an ambitious minerals exploration and development program this year and beyond but has budgeted only P60 million for its execution.
This surfaced at Tuesday’s gathering of mining bigwigs, both regulator and its constituents, at the posh EDSA Shangri-la Hotel in Mandaluyong City.
According to the Department of Environment and Natural Resources (DENR), it plans to lead exploration activities targeting critical minerals needed to transition the country to renewable energy technologies.
DENR undersecretary Carlos Primo David said the country’s minerals development sector in chromium and nickel, for instance, is an important player in the global renewable energy transition market.
“The government has a budget of P60 million for minerals exploration but it’s like a shotgun exploration. What we want to do is to focus on certain areas,” David said in a spot briefing at the sidelines of the Mining Philippines 2023 International Conference in Mandaluyong City.
That much budget equally apportioned across 16 regions including Metro Manila is obviously not enough, he said.
“We want to focus that small budget and revive exploration by government. Hopefully when we do the initial exploration, there is enough information for the private sector to get interested and continue with the exploration,” David said.
A government-led exploration should ideally target critical minerals as nickel and chromium which are key in the production of high-strength steel and the manufacture of hybrid vehicles.
“We wanted to help the industry with this critical step. Mining starts with exploration. It should be government-initiated,” David said.
He also said the government, with guidance from the Mines and Geosciences Bureau, can also follow up on previously explored areas that were eventually abandoned or discontinued.
He likewise said there are ongoing efforts encouraging investors to put up three more minerals processing plants for the purpose
in Zambales, Palawan and Caraga as these places have the most use for them.
David noted Zambales is host to five operating nickel mining projects but has no minerals processing plant of its own.
The Philippines hosts only two minerals processing plants like the one at Coral Bay in Rio Tuba, Palawan and the Taganito in Claver, Surigao del Norte, which are high-pressure acid leach plants owned by Nickel Asia Corp.
