COMP: Critical minerals EO boost to Pax Silica

MANILA, Philippines — The Philippines’ new critical minerals framework could help advance the long-term ambitions of the planned Pax Silica hub in New Clark City, particularly as the project eventually moves into mineral processing and other higher-value industries.

For the Chamber of Mines of the Philippines (COMP), the framework established under Executive Order (EO) No. 122 does not directly align with the Pax Silica hub’s immediate priorities, yet it could support the project as it moves further up the value chain.

“We believe that Pax Silica is primarily focused on establishing a semiconductor manufacturing hub in Clark. The broader goal is to eventually bring in processing plants, smelters and chip manufacturers, but we’re still some way from that,” COMP vice president Rocky Dimaculangan said in a message to the Inquirer.

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READ: Pax Silica faces costly power, water and land trade-offs

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‘Opportunity’ for Mindanao

“For now, it’s semiconductors first, then gradually moving up the value chain. EO 122 should help get us there,” Dimaculangan added.

The Philippines, offering a 1,619-hectare site in New Clark City, agreed to take part in a US-led push in what participating countries described as a “historic opportunity and demand for energy, critical minerals, manufacturing, technological hardware, infrastructure, and new markets not yet invented.”

READ: Marcos on Pax Silica: PH minerals won’t be exploited by foreign investors

As Dimaculangan noted, Trade Undersecretary Ceferino Rodolfo had also said critical mineral processing would not be the hub’s immediate focus, but could be pursued over the medium to long term.

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In an earlier forum, the Bases Conversion and Development Authority (BCDA), the agency leading the project, said critical minerals that could support industries within the hub may come from the Visayas and Mindanao, potentially generating spillover investments in those regions.

The Mindanao Development Authority has thrown its support behind EO 122, which it sees as an opportunity to attract more mineral-related investments to the region.

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“For Mindanao, this is the opportunity to transform mineral wealth into lasting prosperity for our communities, and to become a strategic Philippine gateway to the global critical-minerals and clean-energy economy,” agency chair Leo Magno said in a statement.

Should Pax Silica eventually expand into mineral processing, Dimaculangan said EO 122 could support those plans as the order “sets a framework to expedite extraction and processing of critical minerals in the Philippines by making ease of doing business better and making investments in processing more competitive.”

Transparency sought

Even with the anticipated gains from the EO, there is also growing pushback against that directive.

The Alyansa Tigil Mina (ATM) criticized the lack of a “clear industrial policy” paired with President Marcos’ “overly optimistic view of critical minerals,” which it said would only sacrifice the country’s land.

“We reject EO 122 for shamefully promoting ‘sustainable mining’ when it has been clearly debunked as a concept,” the group said.

“The emphasis on privatization and expansion of mineral lands is a direct threat to food and water security and poses health risks to affected communities,” it added. “We completely reject the provision declaring ‘relinquished, expired and cancelled’ mining contracts to be converted into mineral lands.”

Under EO 122, Marcos directed the government to pursue the exploration, development, processing and utilization of critical minerals while encouraging investments in higher-value products used in advanced manufacturing, renewable energy, batteries and electronics.

The Department of Environment and Natural Resources (DENR), through the Mines and Geosciences Bureau, will also implement a “national exploration and mineral reservation program” to identify and evaluate “new critical mineral deposits.”

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ATM challenged Marcos and the DENR “to immediately start discussions with affected communities on how to address ongoing barricades and legal questions against destructive mining projects.” /cb