Value addition crucial to dev't of mining sector - study

MANILA, Philippines - The Philippines must conduct a full-blown value-chain analysis for the mining sector and its subsectors in a bid to promote value addition in mining through downstream processing and manufacturing activities.

This recommendation was made by Danilo C. Israel, a senior research fellow at the Philippine Institute for Development Studies (PIDS) in a study titled “Value addition: the way of the future for Philippine mining”.

Israel said the promotion of downstream and manufacturing activities can address the various economic, social and even environmental problems the sector is experiencing.

“The limited options in the mining sector of the Philippines for value addition and the sector’s status as a mere supplier of raw materials to industrialized countries have been well recognized by decision makers in the sector,” he stressed.

Some of the activities provided for in the Minerals Action Plan (MAP), including the promotion of downstream processing and manufacturing activities, have not been fully implemented yet. 

Limiting factor cited is the lack of information on which particular downstream processing and manufacturing activities to promote.

To address this, Israel said the conduct of such value chain analysis is thus important for the development of mining and other related activities.

The approach has been already used not only at the firm but also at the industry, national and even global levels.

“Because of the social importance of small-scale mining, particularly in terms of poverty alleviation, this subsector should be afforded priority in the conduct of a value chain analysis. This is especially true --but should not be limited to-gold,” he noted.

But even as the study recognized the significant economic contribution of the mining sector, it cited the need to address various social and environmental problems the sector is facing. 

“Although value addition by itself may help alleviate some of these problems, much more clearly needs to be done by all concerned for mining to grow beyond just being economically gainful to being also a socially and environmentally desirable sector,” it said.

Moreover, Israel proposed for presentation to the different mining stakeholders of whatever results the situational analysis conducted has for validation and improvement.