“The presidential order is apparently intended to assure potential investors that national government mechanisms are in place to respond to Pax Silica’s mineral requirements.”

CAGAYAN DE ORO — Concerned groups expressed alarm following the issuance of an executive order establishing a policy framework for developing the critical minerals industry.

The International League of Peoples’ Struggles (ILPS) Philippines and the Legal Rights and Natural Resources Center (LRC) suspected that Executive Order (EO) No. 122 issued by President Ferdinand Marcos Jr. on August 18 is linked to the United States (U.S.)-led Pax Silica initiative that aims to establish a 1,600-hectare industrial hub in New Clark City in Tarlac.

The site is being promoted as an economic security zone that would strengthen shared supply chains in critical minerals, semiconductors, electronics, and other goods.

Arnold Padilla, ILPS Philippines secretary-general, said that the order’s issuance happened ahead of the upcoming Luzon Economic Corridor (LEC) Investors Forum in September. “The presidential order is apparently intended to assure potential investors that national government mechanisms are in place to respond to Pax Silica’s mineral requirements.”

The industrial hub under Pax Silica is set to be built within the LEC. 

Exploration

Under the EO, a national exploration and mineral reservation program is set to be implemented by the Mines and Geosciences Bureau (MGB) of the Department of the Environment and Natural Resources (DENR). The program aims to identify and evaluate new critical mineral deposits. 

Critical minerals, under the order, refers to “essential inputs for clean energy transition technologies, advanced manufacturing, digital infrastructure, national defense, and other strategic industries necessary to promote industrialization, energy security, economic resilience, and sustainable development.”

There is also a strict implementation of the “Use it or Lose it” policy, directing the DENR to enforce the timely and responsible development of critical mineral mining tenements. Those tenements that are found to be in material non-compliance without valid justification shall be subject to cancellation.

Moreover, areas covered by cancelled, expired, relinquished, surrendered, or freed-up critical mining tenements may be considered as critical mineral reservations, subject to verification and assessment.

In coordination with DENR-MGB and other concerned government agencies, the Privatization and Management Office is also directed “to accelerate the disposition and privatization of all government-owned critical mineral mining assets.”

The order also directed the reorganization of the Mining Industry Coordinating Council (MICC) and streamlining and digitalizing the mining permitting process through a virtual one-stop shop.

Suspicions

In a statement, lawyer Mai Taqueban, LRC executive director, expressed concern about the inclusion of critical minerals for advanced manufacturing, digital infrastructure, and national defense in implementing a national exploration and mineral reservation program.

“This squarely frames our critical minerals policy within the Pax Silica framework, and confirms suspicions of the intent to link domestic mining and minerals processing to the ‘war production’ value chain,” she said.

Read: ‘Pax Silica’ initiative seen as war production, environment destruction

She stressed that the EO opens up nine million hectares of potential areas having mineral deposits, as reported by the Philippine Board of Investments, to mining exploration and reservation. “This represents a potential 1,000% increase of mining land area compared to the present total hectarage of approved mining projects.”

More than 790,000 hectares of land in the country are covered by large-scale mining contracts, according to Acting Environment Secretary Juan Miguel Cuna.

On February 4, the Philippine government and the U.S. signed a memorandum of understanding (MOU) to diversify global critical mineral supply chains. The partnership reportedly provides a framework to have stable and resilient supply and value chains in critical minerals and rare earths in both countries.

ILPS Philippines maintained that the Pax Silica initiative, including the new order of Marcos Jr., only serves the interest of the U.S. and not the interest of the Filipino people. (DAA)