Mining market in the Philippines
Export Development Canada's position
Global exploration share
World Bank Ease of Doing Business score
Nickel, cobalt, copper and gold
lead the Philippines' mining sector
Can $895 million
The Philippines rank 27th overall in Canadian mining assets abroad
Canadian companies operating in the Philippines
5-year compound annual growth rate of industry
5-year production compound annual rate of change
US $7.4 billion
National mining revenues
The Philippines is strategically located in the western Pacific next to its main market for its mining outputs, China. It is also situated in one of the busiest trade routes in the world, catering to an inflow of commodities such as crude oil from the Middle East as well as an outflow of manufactured goods from east Asian countries. The Philippines has rich deposits of copper, gold, nickel and other minerals still waiting to be tapped and 55 operating metallic mines and seven processing plants.
Key opportunities for Canadian mining suppliers
The Philippines has seven privately owned mineral processing plants. Four of these plants process gold, two plants process nickel and one smelts and refines copper. In general, plant operations are constrained by high power costs, especially those located in off-grid areas, and increasing costs of chemicals and other consumables, such as steel balls. Some of these companies have shown interest in generating power by tapping renewable energy sources, opening the opportunity for Canadian mining supply and services (MSS) companies offering these types of solutions.
Health and safety
Mining companies invest in training and development to ensure their people have the right skills and knowledge needed to perform their job safely. They also subject themselves to periodic rigorous internal and external audits to ensure their systems and processes are continuously improving and on par with international standards. These companies, based on their pandemic experience, are now open to various online training and methodologies such as those using association rules, which Canadian MSS companies with training expertise should explore.
Mine site construction
New mines are arising from the 2021 lifting of the moratorium on new mining agreements and on open-pit ban. Companies are undertaking the permitting and/or investment generation process; details on potential opportunities for Canadian MSS companies should be known later this year. Slated to open are the three big-ticket projects:
- Tampakan Copper-Gold Project, which is expected to be the country's largest copper mine
- Silangan copper and gold mine
- King-king Copper-Gold mine
Notable challenges for Canadian mining suppliers in the Philippines
- Local mining companies' strong preference for cheaper mining-related equipment and supplies, which are now readily available from Chinese suppliers
- Large mining companies' preference for suppliers with reliable after-sales service
- Inconsistent mining rules and regulation between national government and local government units, such as those on open-pit mining that stalled and is delaying the opening of Tampakan mine
Philippine business landscape
- Enactment in 2021 of the Corporate Recovery and Tax Incentives for Enterprises lowered corporate income taxes and rationalized fiscal incentives to better attract local and foreign investments in various sectors of the economy, including mining.
- The Association of Southeast Asian Nations, of which the Philippines is a member, and Canada agreed to launch free trade agreement negotiations that could increase country's primary exports, including such metals.
- The May 9, 2022, national election will usher in a new administration.
- The Philippines is an English-speaking country, with strong people-to-people ties with Canada, and has been mining for decades.
Request a meeting
To learn more about the mining industry in the Philippines, contact Ramon Yazon (Ramon.Yazon@international.gc.ca), Trade Commissioner, at the Embassy of Canada to the Philippines.
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