havefun888 China’s appetite for PH ores gnaws at mining trade

NICKEL mining composite image from Inquirer file photos.

MANILA, Philippines—Rich in natural resources, the Philippines finds itself on the receiving end of China’s aggression, not only in the West Philippine Sea, but also where mining is pervasive.

In 2011, a report by the risk consultancy company Pacific Strategies and Assessments (PSA) pointed out that recent years had seen a spike in Chinese mining activities in the Philippines.

Article continues after this advertisement

READ: Chinese mining firms skirt PH laws

FEATURED STORIES NEWSINFO Class suspensions on Oct. 22 due to tropical storm Kristine NEWSINFO AFP reprimands cadet who asked for Marcos wrist watch NEWSINFO Espenido retracts drug-related allegations vs De Lima

In 2012, the Asia Sentinel said that in the Philippines, Chinese mining companies, a lot of them operating illegally, have been exporting gold, nickel and other precious minerals “out through porous coastal ports.”

“There are no customs officials and plenty of bribable officials to turn their eyes the other way,” it said, pointing out that mineral resources from the Philippines are brought to Hong Kong before most are shipped to mainland China.

Article continues after this advertisement

READ: China’s mining occupation of the Philippines

Article continues after this advertisement

Over a decade later, as China’s aggression in the West Philippine Sea intensified, with thousands of hectares of coral reefs damaged, it would be worth checking if Chinese mining in the Philippines persisted, too.

Article continues after this advertisement

INQUIRER.net reached out to the Chamber of Mines of the Philippines (CMP) and Alyansa Tigil Mina (ATM) for comment, but both said that it would be better to ask the Department of Environment and Natural Resources (DENR).

DENR, though, has yet to respond to a request for an interview or data-sharing.

Article continues after this advertisement Mineral richness

As revealed by the Mines and Geosciences Bureau (MGB), out of the 30 million hectares of land in the Philippines, 9 million hectares are said to have a high mineral potential worth $1 trillion.

However, only 764,357 hectares are covered by mining concessions, or licenses.

GRAPHIC: Ed Lustan / INQUIRER.net

Based on data from the Philippine Statistics Authority (PSA) since 2016, nickel extraction is highest in the Philippines at almost 230 million metric tons. Copper came second at 527,000 metric tons.

The Philippines is likewise rich in iron, especially in the form of magnetite, with the MGB estimating that 1.56 billion metric tons of ore containing 5.7 percent to 64.4 percent magnetite are part of the country’s resources.

As the MGB said, metallic production value in the Philippines “remained robust” in the first three quarters of 2023 from P176.24 billion to P189.08 billion, year on year, a growth of P12.84 billion or 7.28 percent.

Thirst for minerals

Both nickel and magnetite are in high demand in China, which accounts for only three percent of the world’s nickel reserve, as stated in the report “Uncovering the Features of Nickel Flows in China” that was published by Science Direct.

READ: The slow violence of mining

It said that to date, 60 percent of the global stainless steel and 70 percent of the world’s lithium-ion batteries are produced in China, both with a high nickel application.

Back in 2022, the Philippines, which accounts for 11 percent of the world’s nickel production, exported $1.2 billion worth of nickel to China, based on data from the Observatory of Economic Complexity.

Meanwhile, magnetite, or black sand, which is one of the primary minerals used in producing steel, is exported to China, too, as the Philippine Center for Investigative Journalism (PCIJ) reported.

READ: Sen. Raffy Tulfo dares DENR to stop black sand mining

It said that based on latest MGB data, 1.75 million metric tons of magnetite was produced from 2012 to 2014, all from offshore mines in Cagayan: “All the minerals mined, worth P2.263 billion, were exported to China.”

Chinese connections

Back in 2017, the DENR, then headed by the late Gina Lopez, ordered the closure of 23 metallic mines in the Philippines, while suspending five more, for serious environmental violations.

READ: DENR shuts down 23 mining areas

However, as reported by the PCIJ in 2021, out of the 28 mines, with some having stockholders with Chinese connections, nine already had their suspension or closure orders lifted, while four obtained stay orders.

The orders issued against the remaining 15 were still on appeal. Based on data from the MGB, some of the mining companies ordered closed or suspended have China as their main export market.

Only five were “allowed to resume operations,” the PCIJ said, however, as of 2021, 10 of the 28 mining companies “posted net gains […] 16 posted net losses, while two others didn’t have information available.”

“Based on available data, 14 firms mined a total of 11.85 million dry metric tons of nickel worth P15.22 billion in 2020. The country is the biggest supplier of nickel ores to China, a top metals consumer,” it said.

Indirect hand

It was stated in a report that was published by the Cambridge University Press that back in 2013, most of the 94 “small-scale mines” in Zambales issued with a desist order from the Supreme Court were dummies of Chinese companies.

The PSA said in 2011 that based on its findings, Chinese companies provide their local dummies with equipment that are usually used for large-scale mining but which the law governing small-scale mining prohibits.

This year, seven Chinese individuals illegally working as miners were arrested in Batangas, while in Misamis Oriental, five Chinese nationals were arrested for illegal mining activities last year.

READ: Mining disasters: Enough is enough

As early as 2014, the police already arrested 14 Chinese individuals in Camarines Norte who were responsible for illegal black sand mining, seizing P12 million worth of minerals, and heavy equipment.

Your subscription could not be saved. Please try again. Your subscription has been successful.

Subscribe to our daily newsletter

SIGN ME UP

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Then in 2021havefun888, a Chinese dredger for black sand mining activities was seized.

READ NEXT Kerwin Espinosa tells Bato to stop drug-tagging just to play p... Show cause order issued vs motorist in BGC drunk driving video EDITORS' PICK Kristine now a tropical storm; Signal No. 1 up in 24 areas nationwide Central Visayas’ most wanted killed in shootout in Argao, Cebu Manila Water Foundation and partners underscore benefits of handwashing PBA Finals a duel between 2 great minds steering 2 great sides UPDATES: 2025 elections precampaign stories WPS: US missile deployment to PH key for combat readiness – US general MOST READ SC issues TRO vs Comelec resolution on dismissed public officials LIVE UPDATES: Tropical Storm Kristine DOJ chief on Sara’s attack: Now we know how unstable her mind can be Sotto hits VP Sara's dire remark on ex-president Marcos Sr.'s remains View comments

• China
• PH
• For
• havefun888
• appetite