Mining Towards a Sustainable Future – IMT Capstone Project

Mining Towards a Sustainable Future

Adopting Intelligent Mining Technology in the Philippine Mining Sector

Milagrosa Russelle P. Ballestar

Dianne Elizabeth M. Laurel

Gian Jordan R. Lucas

Asian Institute of Management – MIBL 2025

Project Overview

The Philippine mining sector contributes less than 0.8% to the country’s GDP despite vast mineral resources covering 30% of the nation’s land area. This capstone project explores how Intelligent Mining Technology (IMT) can transform the industry through IoT sensors, AI, automation, and data analytics to optimize operations while ensuring sustainability and worker safety.

<0.8%

Current GDP Contribution

30%

Land Area with Minerals

25%

Projected EBITDA with IMT

3.5 yrs

ROI Payback Period

The Challenge

Economic Underperformance

Only 2.52% of land area covered by mining tenements
Foreign investment restrictions (60-40 ownership rule)
Fragmented regulatory framework across multiple agencies
Lack of modern technology adoption

Occupational Safety Issues

Higher fatality rate (3.5-4.0 per 100,000) vs industry average (2.8)
Major accidents: Marcopper (1996), Semirara (2015)
Ground instability and roof falls
Explosion and blasting hazards

Environmental Challenges

Habitat destruction and biodiversity loss
Water contamination from acid mine drainage
High carbon footprint from diesel-powered operations
Inadequate mine rehabilitation post-closure

Regulatory Complexities

Overlapping mandates across agencies
Inconsistent national and local policies
Weak enforcement mechanisms
Bureaucratic inefficiencies and corruption

IMT Solution Framework

Integrated Network

5G connectivity and IoT sensors enable real-time communication between mining equipment, creating a unified operational ecosystem.

Automation & AI

Machine learning algorithms enable predictive maintenance, optimize resource extraction, and automate dangerous tasks.

Data Analytics

Advanced analytics transform operational data into actionable insights for strategic decision-making and efficiency improvements.

IMT Benefits Analysis

Operational Efficiency

35% reduction in operational costs through predictive maintenance and optimized resource allocation

Enhanced Safety

70% reduction in workplace accidents through automation and real-time hazard detection

Environmental Protection

40% reduction in carbon emissions and improved mine rehabilitation outcomes

Strategic Analysis

Strengths

Abundant mineral resources
Skilled mining workforce
Government policy reforms underway
Growing tech adoption initiatives

Weaknesses

Limited financial resources
Fragmented mining laws
Legacy system incompatibility
Infrastructure limitations

Opportunities

Global demand for rare minerals
Sustainable finance availability
Tax incentives for tech adoption
International partnerships

Threats

Social resistance to automation
High implementation costs
Regulatory uncertainties
Technological obsolescence risk

Implementation Roadmap

Phase 1: Assessment (2024)

Systems review, feasibility study, and stakeholder engagement

Phase 2: Framework Development (2025)

SRM institutionalization, data governance, pilot projects

Phase 3: Infrastructure (2026)

Network deployment, 5G implementation, training programs

Phase 4: Digitalization (2027)

Platform deployment, AI integration, data interoperability

Phase 5: Full Automation (2028)

Complete IMT rollout, continuous optimization, scaling

Capstone Q&A

1. What brought about the idea for this Capstone?

The idea emerged from observing the stark contrast between the Philippines’ vast mineral wealth (30% of land area) and its minimal GDP contribution (less than 0.8%). We recognized that while global mining leaders like Rio Tinto and China Shenhua were revolutionizing operations through intelligent technologies, the Philippine sector remained trapped in traditional, hazardous, and inefficient practices. The convergence of rising global demand for rare minerals, increasing sustainability pressures, and technological advancement presented a unique opportunity to reimagine Philippine mining.

2. What was the existing problem or opportunity?

The Philippine mining sector faces a triple crisis: economic underperformance despite rich resources, dangerous working conditions with fatality rates 40% above industry average, and severe environmental degradation from unsustainable practices. The opportunity lies in leveraging IMT to simultaneously address all three challenges—transforming mining from a problematic industry into a sustainable economic driver that can attract international investment while protecting workers and the environment.

3. How does the Capstone solve or improve the situation?

Our solution provides a comprehensive framework for IMT adoption that benefits all stakeholders: Mining companies gain 25-30% operational efficiency and access to sustainable finance; Workers experience 70% reduction in accidents through automation of dangerous tasks; Communities benefit from reduced environmental impact and enhanced FPIC compliance; The government achieves higher tax revenues and improved regulatory compliance; and Investors gain confidence through improved ESG scores and transparent operations. The framework includes practical implementation strategies, financing mechanisms, and policy recommendations tailored to Philippine conditions.

4. What do you hope for this Capstone to do moving forward?

We envision this capstone as a catalyst for transformation in Philippine mining. In the immediate term, we hope it serves as a blueprint for pilot projects in select mining sites, demonstrating IMT’s viability. Long-term, we see it establishing the Philippines as a regional leader in sustainable mining, attracting $1-2 billion in green mining investments by 2030. This work should evolve into sector-specific implementation guides for different minerals (gold, copper, nickel) and inspire policy reforms including the proposed one-stop-shop for mining permits and green mining visa program.

5. How did the MIBL program prepare you for this Capstone?

The MIBL program provided the essential multidisciplinary foundation needed for this complex project. International business law courses enabled us to navigate regulatory frameworks and propose viable policy reforms. Sustainability and ESG modules helped us align IMT with global standards like IFRS S1/S2 and GRI 14. Geopolitics and risk management training allowed us to address stakeholder concerns and design mitigation strategies. The program’s emphasis on practical application ensured our recommendations were not just theoretical but actionable, with detailed financial models, implementation roadmaps, and compliance checklists that mining companies can immediately utilize.

MIBL Pioneer Cohort – Intelligent Mining Technology Researchers

MIBL Pioneer Cohort

Master in International Business Law

Intelligent Mining Technology Capstone Team

Asian Institute of Management 2025

The Research Team

Pioneers of the MIBL Program

Atty. Gian Jordan R. Lucas

Team Leader & Industry Expert

Conceived capstone idea and formulated hypothesis
Led regulatory and legal framework research
Conducted cost-benefit and risk analyses
Led capstone defense presentation
Expertise: Sustainability, Arbitration, International Law

Team Leader Legal Expert

Ms. Milagrosa Russelle P. Ballestar

Data Analyst & Research Coordinator

Gathered critical industry data and information
Ran Python analysis and Pearson coefficients
Conducted EU Copernicus interview
Organized defense and panelist coordination
Expertise: Global Business Leadership

Data Expert Global Leader

Atty. Dianne Elizabeth M. Laurel

Document Lead & Framework Specialist

Led document compilation and coordination
Ensured paper flow and cohesiveness
Maintained scholastic requirements compliance
Developed business feasibility frameworks
Expertise: Business Law Integration

Detail Expert Framework Lead

Capstone Defense Success

Successfully Defended • November 2025

152

Pages of Research

Expert Panelists

Months of Research

Pioneer

First MIBL Cohort

“After a grueling year of balancing tasks and classes, we successfully defended our MIBL capstone. This was unique and unexpectedly more challenging – given the broad and interdisciplinary approach. As the pioneer cohort with no comparisons to earlier versions, co-writing and co-defending required a strenuous process in reaching consensus while managing schedules. But it was all worth it.”

– Gian Jordan Lucas

Prof. Raul P. Rodriguez, Ph.D

Primary Mentor
EMBA APD, AIM

Prof. Roel A. Refran

Secondary Mentor
COO, Philippine Stock Exchange

Sec. Alfredo E. Pascual

Third Panelist
Former DTI Secretary

Prof. Mario Jr. Cerilles

MIBL APD
Program Director

The Capstone Journey

From Conception to Defense

Phase 1

Conception & Research

Identified the gap between Philippines’ mineral wealth (30% of land) and GDP contribution (<0.8%). Formulated hypothesis on IMT as transformative solution.

Phase 2

Data Collection & Analysis

Gathered global case studies, conducted Python analysis, interviewed EU Copernicus, analyzed mining companies’ financial data.

Phase 3

Framework Development

Created comprehensive IMT implementation framework with SWOT analysis, cost-benefit models, and phased roadmap for Philippine context.

Phase 4

Documentation

Compiled 152-page comprehensive research document with regulatory analysis, global benchmarks, and implementation strategies.

Phase 5

Successful Defense

Presented and defended before esteemed panelists, receiving valuable insights and approval for groundbreaking work on sustainable mining.

Project Impact & Contributions

70%

Safety Improvement

40%

Carbon Reduction

25-30%

EBITDA Improvement

3.5 yrs

ROI Payback

Recognition & Partnerships

Stakeholder Acknowledgments

Acknowledgments & Support

Asian Institute of Management

Italian Chamber of Commerce

Foundation for Liberty & Prosperity

EU Copernicus Program

Philippine Energy Efficiency Alliance

StratCon International

“Being part of this powerhouse team tackling Intelligent Mining Technologies was more than just a project. It was a crash course in resilience, interdisciplinary problem-solving, and the future of responsible mineral development. Proud to showcase the pioneering cohort of the Master in International Business Law at AIM.”

– Milagrosa Russelle Ballestar

Project Contributions

Tech-driven Sustainability Policy Frameworks ESG-aligned Investments Responsible Mining International Business Law Emerging Markets