DENR: PH mulling move from raw mineral exports to local processing

Instead of just exporting raw minerals, the Philippines is seeking to develop its capacity to process them locally, as the government looks to gain more economic value from resources used in clean energy and advanced technologies, the Department of Environment and Natural Resources (DENR) said Tuesday.

During the Mining Philippines 2026 International Conference and Exhibition in Pasay City, DENR Assistant Secretary for Mining Concerns Michael Cabalda said the country has the mineral resources to become a key player in the global critical minerals supply chain.

He said the Philippines needs to go beyond extracting and exporting minerals to take advantage of rising international demand.

“As the demand for these resources increases, the need to address the supply vulnerability has also become a global concern,” he said, noting that production, processing and refining are concentrated in a few countries.

Cabalda said the Philippines was among the potential suppliers that could help meet global demands for critical minerals used in clean energy and advanced technology.

Recognizing that possible trade restrictions and supply disruptions might impact the supply chain, he said countries now look for more diversified, responsible and reliable sources of critical minerals over the long term.

“Now, the Philippines is recognized as one of the potential key players in the critical mineral supply chain,” Cabalda said.

He cited Executive Order No. 122, signed in August this year, which establishes a national policy framework to develop the country's critical minerals sector through domestic processing, value addition and industrialization.

It also reorganizes the Mining Industry Coordinating Council to help implement the policy.

“This is not merely another policy document sitting on the shelf. EO 122 formally shifts our national posture from raw mineral extraction and export toward domestic processing, value addition, industrialization, and high-value integration,” Cabalda said.

He said the government's immediate task in the remaining two and a half years of the Marcos administration is to establish the capacity to process minerals locally, acknowledging that the country could not move directly to manufacturing finished products.

“We cannot jump straight to the end of the product manufacturing overnight. That is a realization that we know. But we can and will de-risk and establish the domestic processing capacity,” he said.

Under EO 122, critical minerals are designated as national priority projects, requiring coordinated action across government agencies.

The policy also calls for mineral development to meet environmental, social and cultural standards and for the government to maintain a stable, transparent and predictable investment environment.

The economic potential of processing minerals locally was also discussed during a conference session on nickel and the battery supply chain, which examined the Philippines' position alongside Indonesia and China.

Information presented at the session indicated that nickel and aluminum downstream industries, together with lithium battery components, are projected to reach about USD50 billion in value by year-end, or nearly 45 percent higher than the country's total exports in 2024.

The discussion also cited the potential to generate up to five times more jobs by shifting USD1.5 billion in smelter and battery plant investments toward further metallurgical processing.

The figures underscored the potential benefits of moving beyond ore exports to more advanced processing and manufacturing, particularly in the nickel industry.

Cabalda said the DENR is committed to honoring existing contracts, avoiding abrupt regulatory changes and coordinating with other agencies to encourage investments in the sector.

The government is also identifying which minerals should be prioritized for processing and integration into global supply chains.

Cabalda said the Mines and Geosciences Bureau had developed a methodology for identifying critical minerals in consultation with other government agencies, academic institutions and private-sector representatives.

Moreover, he said the DENR's Environmental Management Bureau has identified 11 critical minerals including gold, silver, copper, molybdenum, nickel, cobalt, stadium, iron, chromium, limestone and silica.

The list is expected to guide government efforts to promote investments, align fiscal measures and support projects that add value to these minerals within the country.