Experts weigh in on Pax Silica opportunities, costs

MANILA, Philippines — Experts from the University of the Philippines shared their perspectives on the proposed Pax Silica initiative, examining its potential implications for the Philippines to better understand what it could mean for the country.

In a forum entitled, “PAX SILICA: Progress for Whom?” UP School of Economics Professor Cielo Magno examined Pax Silica in the context of global competition over critical minerals.

She noted the country’s position in the global nickel industry, noting that the Philippines and Indonesia together account for more than 70 percent of global nickel production.

However, much of the nickel produced in both countries goes to China for processing.

“Of the 20 critical minerals needed for the energy transition, China controls the processing of 19. Against this backdrop, we can better understand the United States’ interest in the Philippines,” Magno said.

She said that although the memorandum has not yet been made public, she said she learned from contacts at the Department of Environment and Natural Resources that the agreement would reportedly give the US first access to mining areas in the Philippines.

“I have been discussing mining for over a decade and the conversation about downstream processing has gained momentum. How do we maximize this opportunity, and how will we, as a country, benefit?” Magno said.

For her part, Jelaine Gan of the UP Diliman Institute of Biology explained that, under the Pax Silica initiative, the Philippines’ strengths lie in its critical minerals, talent and strategic location.

“The proposed site for Pax Silica covers approximately 3.3 times the area of UP Diliman. Allocating land for one purpose means displacing other uses. This land is used for agriculture by Indigenous communities,” Gan said.

She noted that according to the Bases Conversion and Development Authority, the proposed site would require 65 to 90 million liters of water per day, noting that this is equivalent to approximately 26 to 36 Olympic-sized swimming pools daily. — EJ Macababbad, Alexis Romero