Experts: Forcing mineral processing by legislation is counter-productive
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.