DAVAO CITY — Mindanao’s rich mineral deposits are poised to play a crucial role in Pax Silica, a United States‑led initiative aimed at securing supply chains for semiconductors and artificial intelligence. The Mindanao Development Authority (MinDA) is exploring how the region can feed raw materials into a planned processing hub in Luzon.
A Crucial Link in the Tech Supply Chain
Pax Silica aims to build trusted networks for critical minerals used in advanced industries. The Philippines plans a massive 4,000‑hectare processing hub in New Clark City to refine these minerals. MinDA Assistant Secretary Romeo Montenegro said Mindanao is expected to be a vital supplier to that ecosystem.
The initiative represents a shift from exporting raw ores to participating in higher‑value processing. For the Philippines, it is a chance to move up the global technology value chain. Mindanao, with its vast mineral wealth, stands at the center of this strategic opportunity.
Untapped Mineral Wealth
Ninety percent of the nickel ore produced in the Philippines comes from Mindanao, according to MinDA. Currently, all of that nickel is shipped abroad for processing. The region also holds copper, gold, silica, and rare‑earth elements needed for semiconductor production.
Montenegro emphasized that these resources make Mindanao an indispensable part of the planned supply chain. The challenge is finding a way to connect these raw materials to the processing facilities in Luzon. Without infrastructure, the value from these minerals leaves the country in its rawest form.
The Power Challenge
The main obstacle to processing minerals within Mindanao is the lack of sufficient power generation. A single smelting plant would require about 20 megawatts of continuous power. Currently, the region cannot support such energy‑intensive industries locally.
This power deficit means the current plan is to ship Mindanao’s ores to the New Clark City hub for processing. The hub itself will need up to 3 gigawatts of power and 130 million liters of water daily at full scale. These infrastructure demands highlight the scale of the undertaking.
A Roadmap for Integration
MinDA is working with the Board of Investments to formalize Mindanao’s role in the Pax Silica framework. A roadshow is set for August 24 to discuss the region’s integration and opportunities for local industries. Montenegro expects Mindanao to become an integral part of the initiative.
The vision is a transformation from a raw material exporter to a key player in a high‑tech manufacturing chain. This would create higher‑paying jobs and retain more economic value within the country. For Mindanao, it is a path toward sustainable, technology‑driven economic development.
