Connect with us

Hi, what are you looking for?

News

Domestic ore processing seen boosting mining share of GDP

A BILL seeking to require the domestic processing of some ore mined in the Philippines holds the potential to “double or triple” the mining industry’s contribution to gross domestic product (GDP), the Mines and Geosciences Bu-reau (MGB) said.

Juancho Pablo S. Calvez, MGB Metallurgical Technology Division chief, said during on the first day of the MGB virtual stakeholder forum Thursday that the bill, which would limit the export of some ore in order to jump-start a domestic-processing industry, would lead to the capture of more value-added than exporting ore 100%.

“How much can it contribute to the country’s gross domestic product (GDP)? Maybe it will double or triple the (mining contribution to) GDP if we push for (the) processing of our own raw ores,” Mr. Calvez said.

On July 5, South Cotabato 1st District Rep. Shirlyn L. Banas-Nograles filed House Bill No. 9775, or the proposed Promotion of Mineral Processing and Value-Adding Act, which reduces exports of nickel ore and other raw metallic ores and encourages mineral processing within the country.

“This bill proposes gradual/partial restriction of export of these direct shipping ores as its mechanism to start and drive the mining industry to compel into mineral processing, value-adding, and establishing downstream indus-tries…,” Ms. Banas-Nograles said in the bill’s explanatory note.

The bill is currently pending at the House Committee on Natural Resources.

“This (bill) encourages the processing of raw ores into value-added products rather than exporting them as unprocessed raw direct shipping ores,” Mr. Calvez said, noting that there are currently two domestic mineral processing plants capable to handling low-grade nickel.

The plants are operated by Coral Bay Nickel Corp. in Palawan and Taganito HPAL Nickel Corp. in Surigao del Sur.

He said that under the bill, mining firms that do not have processing plants can enter into contracts with processors or form consortiums to establish joint processing facilities.

The bill will allow miners five years to establish their processing plants.

Mr. Calvez said he does not expect the bill to pass during the current Congress, but might do so in the next Congress.

“We proposed the bill on partial restriction just a few months ago. I think the bill will not be passed during this Congress,” Mr. Calvez said.

According to the MGB, the value of Philippine metallic mineral output rose 25% year on year to P68.63 billion during the first half.

Nickel and its products accounted for 53.44% or P36.68 billion, followed by gold with 34.84% or P23.91 billion, and copper 10.87% or P7.46 billion. The remainder consisted of silver, iron ore, and chromite, worth a combined P584.75 million.

In June, the MGB said the mining sector accounted for 0.6% or P102.3 billion of GDP in 2020. — Revin Mikhael D. Ochave

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

MARKUS SPISKE-UNSPLASH I am pleased to share with readers the political section of our latest quarterly outlook report for Globalsource Partners (globalsourcepartners.com), a subscriber-based...

News

PEXELS ANGIE-REYES The bill establishing the Maharlika Wealth Fund (MWF), described as a Sovereign Wealth Fund (SWF), has taken a severe beating. It has...

News

PEXELS-LARA JAMESON China’s rise as an economic powerhouse is arguably the most spectacular story of the early 21st century. But are China’s glory days...

News

WHOSE pandemic strategy really saved lives? Which states or countries lost the most people to the virus? Or to the unintended consequences of mitigation...

Editor’s Pick

More than half of all Londoners have either started their own business or aspire to do so in 2023, compared to nearly a third...

Editor’s Pick

The John Lewis Partnership has struck a £500m deal with the investment firm Abrdn to build 1,000 residential rental homes, redeveloping three sites already...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.