The Opportunity

Unlocking Offshore Magnetite Resources in Cagayan Valley

Untapped Mineral Wealth in the Philippines

The Philippines ranks among the world’s most resource-rich nations, with estimated untapped mineral reserves valued at over one trillion US dollars. These reserves include significant deposits of gold, nickel, copper, zinc, silver, and magnetite iron ore, the latter being a key input for global steel production. Despite this immense resource base, only eight percent of mineral resources have been explored, and merely three percent are currently under active mining contracts. This gap highlights a substantial opportunity for economic development and responsible resource utilization.

Favorable Policy Environment and Sector Growth

Recent policy reforms under the Marcos Jr. Administration have created a more investment-friendly landscape for the mining sector. These reforms have helped revitalize the industry, encouraging both domestic and foreign engagement in mineral development projects. As a result, metal production surged by thirty-two percent in 2022, reflecting growing global demand and increased operational activity.

From 2020 to 2022, the Philippines generated 18.7 billion US dollars in mining exports, contributing to over eight percent of total national export revenue. The country’s status as the second-largest global producer of mined nickel further highlights its strategic role in the international metals supply chain, with nickel production reaching 387,000 metric tons in 2024.

Market Projections and Expansion Potential

The Philippine base metal mining sector is expected to maintain steady growth, expanding from 11.78 billion US dollars in 2023 to 13.75 billion US dollars by 2030, with a compound annual growth rate (CAGR) of 2.2 percent. According to the Mines and Geosciences Bureau (MGB), approximately 190 new mining projects are anticipated to commence within the next four years. These initiatives are projected to significantly increase mineral output, positioning the country as a regional hub for resource extraction and development.

Persistent Financing Gap Despite Sector Potential

Despite favorable market conditions and strong growth indicators, the mining industry continues to face critical challenges in securing project financing. Access to adequate and flexible capital remains limited, especially for emerging and mid-sized mining enterprises. Without innovative funding mechanisms and broader capital market access, many high-potential projects may remain undeveloped, leaving substantial economic value unrealized.