Antique Must Diversify Economy Amid Mining Dependency – ICE

By Francis Allan L. Angelo

Antique province faces an urgent need to reimagine its economy as heavy reliance on mining revenues risks long-term economic instability, according to the Iloilo-based Institute of Contemporary Economics (ICE).

Mining, primarily from the Semirara Island coal mine, has been the backbone of Antique’s economy since the mine began operations in 1984.

By 2023, mining accounted for 39.1% of the province’s GDP and contributed PHP 1.14 billion—36.1% of Antique’s total operating income.

This financial dependence, however, poses significant risks, particularly as the province looks toward a future where coal reserves are depleted.

A glimpse of the potential impact came during the COVID-19 pandemic, when mining operations were suspended in 2021.

The abrupt halt brought mining revenues to zero, slashing Antique’s overall revenues and exposing its vulnerability to fluctuations in a single sector.

Operating expenditures that year were 18% lower than in 2023, while capital investments plummeted by 80%.

“This shows how fragile Antique’s economy is,” the Institute of Contemporary Economics noted in its analysis.

“With coal eventually running out, the province must act now to mitigate a future economic downturn.”

Pandemic Lessons Highlight Economic Vulnerabilities

The reopening of Semirara’s coal mine in 2023 offered a recovery for Antique, but experts warn that the lessons of the pandemic must not be ignored.

Provincial officials relied on emergency support from the national government during the pandemic’s economic slump, but a permanent loss of mining revenues would leave Antique without similar fallback options.

ICE cautioned that the twin threats of coal depletion and a global shift to renewable energy could drastically reduce Antique’s economic base.

“Coal is a finite resource,” the institute said. “The accelerating global transition to renewables further compounds the problem, as demand for coal will eventually decline.”

Path to Economic Diversification

Experts argue that Antique still has time to address its over-reliance on mining by focusing on economic diversification.

Agriculture, the province’s second-largest sector, holds potential for growth if investments are made in infrastructure, technology, and training.

Tourism, another promising industry, could leverage Antique’s rich natural and cultural resources to create jobs and boost revenues.

The institute also suggested that Antique explore manufacturing as a long-term economic pillar, supported by infrastructure investments.

“These measures take time to bear fruit,” the institute said. “Antique must act decisively now to prepare for a future without coal.”

One innovative solution proposed is the creation of a sovereign wealth fund using mining royalties.

The fund could be directed toward sustainable investments in agriculture, tourism, and manufacturing to ensure the province’s long-term economic stability.

Local Voices Stress Urgency

While the economic recovery from the pandemic has given Antique some breathing room, experts emphasize that time is not on the province’s side.

The transition to a diversified economy will require strategic planning, significant investment, and collaboration between local and national governments.

“The window of opportunity is still open,” the Institute of Contemporary Economics stated. “But to avoid a catastrophic economic decline, Antique must start building its future today.”

The coal-rich province of Antique has benefited significantly from mining revenues for decades, but the looming depletion of coal reserves and the global push toward renewables highlight the need for urgent action.

By investing in agriculture, tourism, and manufacturing, and considering innovative financial mechanisms like a sovereign wealth fund, Antique can secure a sustainable and prosperous future.