THE PHILIPPINES needs to move up the copper value chain by investing in higher-value downstream activities rather than simply mining ore, a PwC official said on Tuesday.
Angelo Estrera, Asia-Pacific leader for Business Model Reinvention at PwC, said in a presentation at the 23rd Management Association of the Philippines International Chief Executive Officer Conference: “We’re literally just digging it out and shipping it. We are not putting any value at it. The opportunities (lie in moving) to processing, refining, manufacturing — you will capture millions downstream.”
He noted the strong prospects for copper, which currently accounts for less than 1% of gross domestic product (GDP).
“We’re sitting on $1 trillion worth of copper, gold, and nickel, zinc, and silver reserves. (These will be key commodities) for the energy transition and yet 5% has only been explored,” he said.
Mr. Estrera said a “copper corridor” can drive future growth but will require the development of proper regulation, infrastructure, and investment, innovation, talent, and technology.
“The Philippines has the fourth-largest reserves; however, 94% is very low-grade copper,” he said, noting that exports generated $3.1 billion in 2024.
Mr. Estrera cited the case of Australia, which generated $2.4 trillion in resource export revenue over the past decade, accounting for about 12.2% of its GDP. Australian resource companies employed 1.2 million workers and $143 billion in corporate taxes during the period.
Separately, Mr. Estrera noted that the business process outsourcing (BPO) industry faces significant risks and significant upside as well.
The industry accounts for 9% of GDP, employs 1.8 million and generates $38 billion in revenue, he said.
“A lot of analyst reports will say anywhere between 40% to 80% of the BPO industry can be disrupted. Let’s even just say 50% (to use a) round number. What does that mean? 5% of GDP gone, 1 million unemployed. It’s a pillar of our economy right now,” he said.
However, Mr. Estrera also cited a Singapore Economic Development Board estimate that AI can make up 12% of Philippine GDP. — Aubrey Rose A. Inosante