Minerals

While the Philippines has abundant deposits of a few mineral and energy resources, it cannot be called rich in such resources because it lacks many of those considered essential to a modern urban and industrial society. It must import about 90 percent of the fuel it consumes. By the early 1990s this accounted for nearly 15 percent of its imports.

Unlike nearby Indonesia and Malaysia, extensive exploration for offshore oil and natural gas has not yet revealed sufficient quantities to justify commercial exploitation. It was hoped that large quantities of oil would be found in the area of the Sunda Shelf surrounding Palawan Island, but this has not yet proved to be the case. Similarly, the small amount of coal that is mined is not enough to have a significant impact on the nation's energy or manufacturing needs.

The coal that exists is generally of low quality. The Philippines does have significant amounts of hydroelectric potential. The most notable development has been built at the Maria Cristina Falls near Iligan on northern Mindanao. There is also hydroelectric power on Luzon. Geothermal generating plants have been built on Luzon and on Leyte. The Philippines is the world's second largest producer of geothermal power, after the United States, but this source still supplies a small share of the nation's total energy needs.

A variety of metal ores is abundant on the islands. The most valuable are gold, copper, nickel, and chromite, which together make up nearly all of the total mineral exports. These minerals are, of course, subject to fluctuations in world market prices, so their value to the Philippines is not consistent. In 1980, for example, these metals made up approximately one fifth of total exports, whereas in 1983 the minerals comprised less than one tenth of total exports. A sharp drop in commodity prices worldwide had occurred in the meantime.

The Philippines is the largest copper producer in Southeast Asia and is among the top ten producers in the world. Most of the copper is mined in the North Luzon Highlands and on Cebu Island, the site of Asia's largest single copper mine. Two fifths of the nation's total production comes from this central Visayan Island. Gold and silver are abundant in northern Luzon, northern Mindanao, and on several of the Visayan Islands. Benguet Province on Luzon is the top producer. The Philippines is also among the world's leading exporters of chromite. Large deposits of the mineral are found in Zambales Province on Luzon. Small amounts of zinc, manganese, iron ore, and cobalt are produced when world prices justify it. Undeveloped deposits of iron and nickel are located in Surigao, northeastern Mindanao.