Unlocking the Philippines' golden secrets: Where to find the nation’s glittering treasure

Masbate, Philippines: The winding, decrepit two-way road to the mining town of Aroroy feels like a secret path leading treasure hunters straight to a hidden sparkle — gold. 

It’s like the road itself whispers, “Follow me to the golden pot.”

Don't take it from me.

Take from experts who noted that the country hosts "world-class epithermal lode gold deposits found throughout the archipelago" (Mitchell and Leach, 1991; Malihan et al., 2015).

Aroroy hosts the Masbate Gold Project (MGP) jointly operated by Filminera Resources Corporation (FRC) and Phil. Gold Processing and Refining Corp (PGPRC). 

The project is located about 360km southeast of Manila. 

En route, a visitor can only behold the rolling hills and vast cattle ranches on the drive from Masbate City, accessible by plane or ferry, towards the port towns of Milagros and Mandaon.

At a fork, a right turn takes the visitor to Aroroy (from the Spanish "Al Oro", i.e. "to gold"). Its twisty road reveals a glimpse of the open-pit mine, containment and processing facilities.

Pot of gold

Masbate (land area: 4,152 km²) literally sits on a pot of gold, though the contrast is palpable: the province had a 25.6% poverty incidence, vs the 15.5% national average (as per 2023 Philippine Statistics Authority data).

It’s just one of the many gold mining operations in the highly-mineralised Asian nation.

Ancient treasure troves

Gold is woven deeply into the fabric of the Philippines from ancient treasure troves to vibrant modern mines. 

Whether through archaeological finds or massive industry operations, the story of Philippine gold is a rich blend of heritage and opportunity.

"It creates jobs... sometimes people go bankrupt, but sometimes they also hit the jackpot," Jeboy, a local tricycle driver, told Gulf News.

He was referring to local people involved in small-scale mining he knew who struck gold or had to give up their fruitless search for the yellow metal.

MGP, is no small-scale; it's the country’s largest operating gold mine.

The Philippines is made up of 7,640+ islands, and is known not just for its beautiful beaches but also for its rich deposits of the yellow metal.

The country actually holds vast mineral potential (9 million hectares, with only 12% under mining tenements as of mid-2024).

In 2024, the country produced an equivalent of ₱252.9 billion worth of metallic mineral products.

Still, investments (both foreign and local) lags due to regulatory complexity and uncertainty. The industry is crying for reforms.

Ancient to modern times

From ancient times to modern mining operations, gold has played a shimmering role in the history, culture, and economy of the nation. 

Gold has been treasured in the Philippine islands since pre-colonial times, with archaeological evidence showing exquisite gold artifacts dating as far back as 400 to 250 BC.

These artefacts — ornate jewellery, ceremonial pieces, and even raw gold — have been found throughout the archipelago, in places today known as the Luzon, the Visayas, and Mindanao (the three main island groups). 

One of the earliest documented discoveries was made in the 1880s on the island of Marinduque, where gold ornaments were recovered from burial jars and wooden coffins.

Gold as currency

Historically, the pre-colonial Filipinos valued gold not just for adornment but as symbols of power and status, and it was often used as currency. 

Apart from ornaments, gold-smelting tools and smelting sites found in today’s Butuan province and neighbouring areas tell stories of early gold production and trade that flourished along ancient trade routes.

Key gold-rich areas

Gold deposits in the Philippines are scattered primarily in mountainous regions and along river valleys, often found alongside copper and other minerals. 

Some legendary and current gold-rich provinces include:

• Cordillera Mountain Range (Northern Luzon)

  Known as the "Philippine Klondike," this mountainous region, especially around Benguet and the Baguio district, has been a hotspot for gold mining for over a century. Historically, gold was transported via trade routes from mining sites in the mountains down to coastal trade centers.

• Masbate Island (Bicol region)

  This volcanic island hosts the Masbate Gold Project, a major operational gold mine with extensive deposits located in mineralized volcanic blocks.

• Nueva Vizcaya (Northern Luzon)

  Home to the Runruno Gold Project, rich in gold and molybdenum, this area has been mined since the 1960s and continues to be explored for gold resources.

• Camarines Norte (Bicol region)

  Known for various gold exploration projects, including in the Paracale mining town, focused on high-grade deposits.

• Rapu-Rapu (Bicol region)

  Rapu-Rapu Island is known to have polymetallic deposits also containing copper, zinc, and silver. The island holds significant gold resources tied to volcanogenic massive sulphide deposits. Mining operations have had environmental issues but remain an important source of gold production in the region.

• Catanduanes (Bicol Region)

  Gold in Catanduanes is indicated by promising primary deposits identified through geochemical surveys. The island has notable gold mineral potential, though residents are cautious toward large-scale mining development, gold mining remains on a smaller artisanal scale.

• Agusan del Sur and Surigao del Sur (Mindanao)

  These provinces have several gold prospects and mining tenements, with active exploration and small-scale mining communities working the mineral-rich lands.

• Butuan-Surigao area (Mindanao)

  The Butuan-Surigao area in the Philippines is historically significant for its gold mining and trade, with evidence of extensive goldworking dating back to pre-colonial times. Archaeological finds, including elaborate gold ornaments and evidence of gold-smithing, confirm the importance of gold in the region's culture and economy. 

• Agoo and Aringay, La Union (Luzon coast)

  Historically important gold-producing zones deeply connected with early trade networks.

Today, gold mining remains an important industry in the Philippines.

Both small and large-scales projects combine copper, silver, molybdenum and gold mining.

Artisanal mining and small-scale operations are also vital to local economies though sometimes face regulatory challenges.

Takeaways

• Wealth: Throughout the archipelago, mountainous terrains and volcanic landscapes hide sparkling veins of precious and industrial metals, capturing imaginations and fuel economies. By definition, resources in this mineral-rich country are owned by the people, but many are poor, marginalised.

• Oversight: While the lack of channels for these God-given resources (+record of environmental damage from mining) to benefit the people is sad, there's hope the new batch of Filipino legislators would update the Mining Act (enacted in 1995).

• Reforms: Recent reforms, like the Philippine Ecosystem and Natural Capital Accounting System (PENCAS) Act of 2024, aim to address this by factoring ecological impacts into revenue calculations, but the Mining Act itself needs updating to align with these standards.

• Fairness: A streamlined fiscal regime, as proposed in Senate Bill No. 2826 and House Bill No. 8937, could attract investors while ensuring fair government shares.

• The ideal set-up: Use revenues from the country's mineral resources to boost the country's sovereign wealth fund (Maharlika Investment Corp, MIC), to be reinvested and make money for the people, not just in the present time, but preserve it for future generations.

• Model for building generational wealth: The Philippines could adopt the Norway model, whose mineral wealth has created the world's biggest wealth fund. Norway uses its oil revenues to secure long-term prosperity.

• Sharing the wealth through policy direction: The Philippines currently lacks a mechanism to channel mineral revenues into a sovereign wealth fund for future generations. The MIC/Maharlika Investment Fund, created in 2023, offers a potential vehicle for this, but its integration with mining revenues needs clearer policy direction.

• Treasure island: If you ever get the chance to explore these gold-rich spots, you’ll be walking through lands of legend, where history and treasure intertwine beneath the tropical sun, where most people are excluded, but where hope springs eternal.