Why Philippines struggles to tap its US$1 trillion mineral wealth

As the Philippines forms partnerships with several countries to harness its potentially huge wealth of critical minerals, analysts have called for a coherent road map to develop the country’s mining industry to globally competitive standards.

President Ferdinand Marcos Jnr’s administration has signed multiple agreements over the past months, including a memorandum of understanding with the United States to cooperate on diversifying global critical mineral supply chains.

The accord, signed during an inaugural ministerial meeting on critical minerals hosted by US Secretary of State Marco Rubio in Washington last month, is expected to shift Manila’s mining sector from raw mineral ore exports to domestic processing.

The Philippines also agreed to expand cooperation on critical minerals with South Korea during President Lee Jae Myung’s visit to Manila earlier this month, when both sides also signed agreements on artificial intelligence, defence industry and nuclear energy.

Talks on a critical minerals deal between the Philippines and Canada are also in progress. Earlier this month, a delegation from the Philippines took part in the Prospectors and Developers Association of Canada Convention in Toronto, a key gathering for the global mining industry.