CAR’S MINING INDUSTRY GRAPPLES WITH CHALLENGES

April 26, 2025 Headlines

BAGUIO CITY

Cordillera Region’s mineral industry recorded a 2.5 percent growth in 2024, with a production value of metallic minerals rising to P 13.8 billion, up by P 336 million from the previous year, according to Economist II Vivian T. Romero of the Mines and Geosciences Bureau-CAR. Romero and other representatives of concerned regional govt offices made separate reports on the PSA-CAR led 2024 Economic
Performance recently held at Golden Pine Hotel here. The Cordillera Administrative Region (CAR) sustained its economic growth in 2024, with a 4.8 percent increase in economic output from P 360.90 billion in 2023 to P 378.26 billion.

While this expansion marks a positive trajectory, the mining sector—an integral part of CAR’s economy—faces an array of challenges and mixed fortunes. The MGB official said “Higher metallic prices were driven by global supply and demand dynamics, geopolitical tensions, currency fluctuations, and China’s significant demand for metals, particularly base metals.” “Extreme weather events affected output, while rising costs of imported materials and tariffs strained operations. These factors contributed to the 2.1 percent contraction in
the mining and quarrying sector, continuing its downward trend from the previous year’s 1.6 percent decline.”

On other development, small-scale mining operations continue to grapple with regulatory and market access issues, exacerbating their
reliance on informal practices. Lawyer Dante Cambri, Head of the Bangko Sentral ng Pilipinas (BSP) Gold Buying Office, explained: “BSP can only purchase gold from formalized sources.” “ Without proper contracts or mining operations within designated areas, small-scale miners turn to black markets to sell their gold. This is a critical issue that requires regulatory intervention.” Cambri discussed measures to address these challenges, including encouraging LGUs to require accreditation for gold trading: “Without accreditation, business permits will not be renewed, limiting miners’ access to black markets and promoting formal trading channels. This initiative aims to streamline
operations and ensure responsible gold sourcing.”

Despite these challenges, the mining industry remains a cornerstone of CAR’s economy. Mineral exports reached P 14.6 billion in 2024, bolstered by the rising demand for precious metals like gold and silver. Employment figures for 2024 showed over 8,000 workers in the industry, with women accounting for 9% of the workforce. Taxes, fees, and royalties contributed an estimated PP 4.4 billion, while local government units (LGUs) collected P 9.8 million in extraction fees from sand and gravel operations. This revenue was distributed among provinces, municipalities, and barangays, providing vital funding for regional development.

Ruth Angeli B. Nonato – UB Intern

MAGARA TANDEM, PARA SA KINABUKASAN NG BAGUIO

April 26, 2025

April 26, 2025