NEWS

 By Dexter A. See | November 2, 2026

BAGUIO CITY — Mining contributed to the Cordillera’s development by transforming mineral deposits into economic activity, supporting employment, generating government revenues and financing community services, although its lasting value depends on how operators and regulators protect people, land and water.

Across established mining communities, particularly in Benguet, the industry connects underground resources with a wider network of workers, suppliers, schools, health facilities and local enterprises. Its contributions extend beyond mineral sales, reaching households and communities that depend on mining-related income and investments.

The Mines and Geosciences Bureau–Cordillera reported that regional mineral production reached approximately P13.8 billion in 2024. The figure measures production value, rather than the industry’s net contribution to the regional economy, but demonstrates the commercial importance of the Cordillera’s mineral resources.

The Philippine Extractive Industries Transparency Initiative identified Benguet Corporation, Itogon Suyoc Resources, Lepanto Consolidated Mining Company and Philex Mining Corporation among the region’s established operators. Gold, copper and silver underpin their operations and connect Cordillera communities with national and international mineral markets.

Mining develops mineral resources through exploration, geological assessment, engineering, extraction and processing. These activities require substantial investment before an operator can recover commercially valuable metals. They also create demand for geologists, engineers, equipment operators, electricians, mechanics, laboratory personnel and environmental specialists.

Philex’s Padcal operations illustrate this technical contribution. The company reports that its exploration and development work involves an internal team supported by consultants, engineers and drilling contractors. Technical studies also supported its December 2024 decision to extend Padcal’s operating life through December 2028.

Such work builds knowledge about mineral deposits and develops specialized capabilities. Workers can carry some of these skills into construction, equipment maintenance and other industries, potentially widening the benefits of mining employment beyond the operating life of an individual project.

Mining’s economic influence also reaches businesses that provide transport, food, supplies, repairs and other services. Employee spending supports surrounding commerce, although the strength of these benefits depends on local hiring, procurement practices and the availability of competitive community enterprises.

Government collections provide another channel through which mineral extraction can support development. PH-EITI’s fiscal year 2024 Cordillera factsheet reports more than P1.075 billion in combined national government revenues from participating metallic mining operators. Transparent reporting helps communities examine these payments and follow their public benefit.

Community development programs provide more direct assistance. In January 2023, Philex signed a P371.925-million, five-year Social Development and Management Program agreement covering 2023–2027 with two host and three neighboring communities, according to MGB-Cordillera. The agreement included health services, emergency response training, and livelihood capacity development.

Company-reported accomplishments offer concrete examples. In its 2024 sustainability report, Philex said 2,654 students received scholarships and education subsidies, while its programs supported classroom construction and improvements. It also reported medical assistance for 3,329 patients and support for community livelihood organizations.

The same report listed 3.2 kilometers of paved farm-to-market roads and nine water systems constructed or improved. These investments show how mining-funded infrastructure can serve households and agricultural communities alongside the mine, provided communities can maintain and continue using the facilities.

MGB-Cordillera has also highlighted the integration of United Nations Sustainable Development Goals into mining companies’ social development programs. This approach links community spending with broader objectives, including education, health, livelihoods and sustainable communities, rather than treating individual projects as isolated assistance.

Mining nevertheless operates within a diversified regional economy. The Philippine Statistics Authority reported that mining and quarrying accounted for 10 percent of the Cordillera’s industry sector in 2025. The combined mining and quarrying sector contracted by 2.5 percent that year, underscoring that mineral activity does not guarantee continuous growth.

That fluctuation strengthens the case for using mining income to build other economic opportunities. Education, technical training, viable enterprises and productive infrastructure can help families prepare for changing mineral prices, declining reserves, or eventual mine closure. Development gains become more durable when communities retain useful assets and independent livelihoods.

Environmental protection remains equally central to that objective. MGB-Cordillera’s development outlook emphasizes stronger environmental and social safeguards, transparent governance, and greater community benefits. These priorities recognize that production figures alone cannot establish whether mineral development improves people’s welfare over the long term.

For the Cordillera, mining’s overall contribution therefore rests on more than the metals it produces. Its strongest legacy will emerge where mineral wealth supports capable workers, accountable institutions, accessible services and resilient communities, while sound environmental management preserves the resources that future generations will also need.

Source: Baguio Herald Express