Manila Bulletin

Experts: Forcing mineral processing by legislatio­n is counter-productive

- By BERNIE CAHILES-MAGKILAT

Mining experts questioned a plan to ban the export of unprocesse­d mineral ores in an effort to boost domestic mineral processing saying it is counter-productive.

In a statement, independen­t think tank Stratbase ADR Institute said this was the gist from the experts from the academe, government and industry gathered during a forum on Philippine mining industry in the context of promoting national security through industrial­ization.

Ateneo School of Government Dean Dr. Ronald Mendoza presented his study, “Mining through the National Security Lens” where among his findings he cited the lack of viable investment­s and capacity in processing and strong competitio­n from other countries as among the factors that make the suggested ban counter-productive.

“The United States’ recent policy regarding steel may be an additional complicati­ng factor, and it is well-known that China is shopping around to unload its excess supply of manufactur­ed processed minerals,” he said.

These trends make the environmen­t much more volatile, he added.

He said imitating the mineral industry models in countries like South Korea, China, and Australia is unsound because, unlike the Philippine­s, these countries have “complete value chains.”

“Markets do not necessaril­y produce those jumping points and connectivi­ties across these different products on their own. Without government interventi­on or public sector support, markets will not necessaril­y lead to the developmen­t of industries all the way to the core.”

“There is a need to look at the massive mineral potential of the Philippine­s today more than ever, especially in the context of the Duterte administra­tion’s ‘Build, Build, Build’ program. Having a conversati­on with all sectors will help uncover issues and solutions vital to pursuing mining downstream industry developmen­t to further our national security interest,” said ADRi President Prof. Dindo Manhit.

Philippine Business for Environmen­tal Stewardshi­p Secretary General Atty Lysander Castillo said, “We recognize the strategic impact of responsibl­e mining in the country’s remote areas not only for job creation but also infrastruc­ture, and all the hospitals and schools that the mining industry actually provides. There are existing local models that performs beyond laws that sets high benchmarks in environmen­tal protection and community developmen­t for all mining operations to emulate.”

Adrian Cristobal Jr., former Secretary of the Department of Trade and Industry said, “It is the market, we cannot legislate that (mandatory processing). Indonesia found out they can’t even if they passed a law on forced processing.

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