# The Problem

<figure><img src="https://764239999-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FiO6f2h8nskM0R46qS4D9%2Fuploads%2Fl6giIsCKrYyM0VTmsja0%2F02-The-Problem.jpg?alt=media&#x26;token=84c11d58-2a22-4dd7-acaf-d07d88092f40" alt=""><figcaption></figcaption></figure>

**Limited Access to Capital for Mining Operators**\
Mining companies in the Philippines, especially small and medium-sized enterprises (SMEs), face ongoing difficulty in securing funding. Traditional financing from banks and institutional lenders often demands extensive collateral, established credit history, and high interest rates that many operators cannot meet. Based on data from the Philippine Mining and Exploration Association (PMEA), more than 60 percent of registered mining firms operate below capacity due to insufficient financing. This lack of capital stalls project development, slows production, and weakens the sector’s overall economic contribution.

**Low Exposure to Global Capital Markets**\
Most Philippine mining projects rely on local financing, with minimal access to international investors. Regulatory inconsistencies, lack of investor-friendly infrastructure, and concerns over transparency make it difficult to attract global capital. This is despite the country ranking among the world’s top five in untapped mineral resources such as magnetite, gold, copper, and nickel. The result is limited competition for funding, depressed project valuations, and slower growth for even the most promising ventures.

**Inflexibility and Illiquidity of Traditional Mining Investments**\
Mining investments are typically large, long-term, and illiquid. Investors often face limited exit options and are locked into fixed commitments with little flexibility. Compared to more dynamic asset classes, these traditional structures discourage participation from retail and institutional investors seeking diversified, accessible portfolios.

**Operational and Regulatory Complexity**\
Mining operations must comply with a wide range of regulatory requirements across different government levels, including environmental, taxation, and safety standards. This creates a fragmented and burdensome administrative process. For foreign investors, additional barriers such as KYC and AML protocols add layers of complexity, further limiting foreign participation.

Without a platform that simplifies investment access, enhances transparency, and aligns capital inflow with verified economic outputs, these challenges will continue to hinder the development and competitiveness of the Philippine mining sector.
