Report: Critical Minerals Value Chains in ASEAN Exclude Origin Countries
A Fair Finance Asia report calls for improved governance and benefit-sharing in critical minerals trade and finance across ASEAN. The study highlights how resource-rich countries are often excluded from the value generated by their own minerals.
Fair Finance Asia (FFA) and its research partner Profundo have released a report critiquing the operations of critical minerals value chains within the Association of Southeast Asian Nations (ASEAN). The report indicates that many ASEAN member states are excluded from the value chains derived from minerals extracted within their own territories, despite being the source countries.
The report, titled "Extraction to Equity," analyzes trade agreements and financing related to the region's strategic minerals. It specifically examines agreements involving Cambodia, Indonesia, the Philippines, and Thailand, assessing their impact on environmental, social, and governance (ESG) standards. The research, based on publicly available information up to December 2025, found that clauses concerning local benefits, sustainability standards, and equitable value sharing are consistently absent from these agreements.
This leads to a situation where raw minerals are exported from these countries, while their processing and value addition occur elsewhere. The report also questions the extent to which demand for critical minerals is driven by the defense sector rather than renewable energy, and which needs are being prioritized.
FFA and Profundo urge ASEAN member states and financial regulators to promote alternatives to "extractivism" and to adopt the UN Principles for a Just Energy Transition concerning critical minerals. The report emphasizes that agreements must go beyond mere market access and include enforceable guarantees for local value creation, fair pricing, and civil society participation.
Organizations such as Oxfam and The PRAKARSA, along with researchers, stress the importance of countries and banks prioritizing community rights, environmental protection, transparent benefit-sharing, and respect for human rights before large-scale extraction begins or is financed. The aim is to ensure that mineral resources benefit local communities and contribute to sustainable development, without harm to ecosystems or people.