CAGAYAN DE ORO CITY (PIA) — The National Economic and Development Authority (NEDA)-X convened a policy forum on December 11, bringing together key stakeholders from across Northern Mindanao to assess the feasibility of establishing an Integrated Steel Mill (ISM) in the region.
The forum aimed to evaluate the potential benefits and challenges of developing a domestic steel industry in Northern Mindanao, a critical step in advancing regional economic growth and industrial development.
With the tagline “Building the Future,” the event was attended by local government leaders, industry experts, and business representatives. It highlighted the region’s rich natural resources, robust infrastructure, and strategic access to key markets — factors that position it as an ideal hub for the steel industry.
NEDA-X Regional Director Mylah Faye Aurora Cariño emphasized the critical role of steel in modern economies, highlighting its strength, versatility, and affordability. She noted that despite its widespread use across various sectors, the Philippines now lacks a domestic steel-making industry, a significant gap that has persisted for decades.
Cariño, who also serves as the vice-chairperson of the Regional Development Council (RDC)-X, said the inclusion of the ISM in the Northern Mindanao Regional Development Plan (RDP) 2023-2028 has renewed interest in creating a local steel sector. The initiative has support from various sectors, particularly the business community, as a potential driver for economic growth.
According to her, the proposed ISM aligns with both the RDP and the Philippine Development Plan 2023-2028, specifically in areas such as promoting trade and investment, revitalizing the steel industry, and increasing income-earning potential.
“The ISM will significantly reduce our dependence on imported steel which is crucial for various sectors, and will provide high-quality steel to meet local demand. This is very important given that our main objective is to improve our resilience. Furthermore, attracting both foreign and domestic investments will position Northern Mindanao as an industrial hub creating significant employment opportunities and stimulating economic growth through lower construction costs and improved infrastructure accessibility,” she said.
Cariño also discussed two studies led by NEDA-X to assess the feasibility of the ISM. The 2020 Competitiveness Analysis of Northern Mindanao explored the region’s potential as a site for the ISM, identifying challenges such as securing raw materials like coking coal. This study led to the identification of Nippon Steel in Japan and Posco Holdings in South Korea as benchmark countries for the conduct of a follow-up 2022 study to assess the economic benefits of locating an ISM in the region.
Iligan City Mayor Frederick W. Siao, who chairs the RDC-X Economic Development Committee, said the insights shared during the forum underscored the potential of establishing an integrated steel mill in the region not just as a catalyst for industrial growth but as a transformative initiative that will build stronger communities, provide quality jobs, create impactful livelihoods, foster innovation and uphold environmental stewardship.
Siao also outlined the next steps for advancing the initiative. He emphasized that this initiative will require more than just financial resources and policies. It will necessitate a collective effort, involving collaboration among national and local governments, the private sector, stakeholders, and local communities. “It will also necessitate strong leadership, innovative strategies, and steadfast commitment to balancing economic progress with environmental sustainability,” he added.
The RDC-X recently approved the creation of an AdHoc Advisory Group for the ISM, which will refine policy recommendations from the studies and inputs gathered from the forum. The advisory group will include industry experts, economic analysts, policy specialists, environmental experts, and academic representatives. The group will continue its work until the study is finalized and endorsed by RDC-X Full Council. (APB/PIA-10)
