Philippines and European Union (EU) authorities are conducting scoping studies on critical raw materials as part of their bilateral cooperation in ensuring sustainable development of mineral resources and promote competitiveness of businesses.
During a speech at the Makati Business Club, EU Ambassador to the Philippines Massimo Santoro said the scoping studies are being undertaken in cooperation with the Philippines Department of Environment and Natural Resources.
“It’s still a work in progress, so we are together with the Philippine authorities working on this,” the EU ambassador said in a separate huddle with the press.
He said the scoping study also has an investment component as it is also intended to foster investments from the European Union side in a sustainable manner. ”It is intended to promote reciprocal investments, at the same time it is intended to do it in the right way, and hence comes the study,” he said.
He explained that the scoping studies seek to determine the best modalities of cooperation on critical minerals by exchanging experiences on the best normative framework, including the protection of the rights of those who would be somehow affected by the extraction of critical raw materials.
“There is a mutual commitment to that whenever you invest in critical raw materials in particular. We do ensure sustainability to that investment because you cannot simply go there, extract whatever, and do not take into account the specificities of the place where you are operating, specificities related to how much critical raw materials you have at your disposal, etc.,” he said.
The bilateral cooperation on critical raw materials cooperation was brought up during the meetings of EU President Ursula von der Leyen and President Marcos in Manila in July 2023.
The Philippines has been making strong pitches before global players in mining and electric vehicle (EV) given the country’s huge critical green metal resources.
With approximately nine million hectares of mineral potential, the country boasts large deposits of copper, nickel, iron, chromite, cobalt, gold, and rare earth elements.
However, 90 percent of Philippine nickel ore exports goes to China for the latter’s battery manufacturing.
More than increasing exports to the US, the plan of the Philippine Board of Investments is to attract more foreign companies to invest in mineral processing in the Philippines.
The Philippines even proposed to the U.S. to forge an agreement on green metals or be part of the Critical Minerals Agreement (CMA) the U.S. signed with Japan. On March 28, 2023, the U.S. and Japan signed a covering five key minerals related to the production of batteries for electric vehicles.
In support of investments and business growth, the government has implemented measures to create a conducive environment for industry players and emphasized its commitment to market-based promotion strategies and partnerships with international stakeholders to enhance the country’s role in the global supply chain for critical minerals.
Policy developments include lifting of the ban on new mineral agreements and on open pit mining, provision of fiscal incentives, and streamlined processes for ease of doing business, among others.
