Nickel miners have expressed concern over renewed calls to ban ore exports as part of the mining fiscal regime reforms, saying such a policy may not address the real challenges faced by the industry in developing value-added processing in the Philippines.
The Philippine Nickel Association Inc. (PNIA), the country’s largest group of nickel mining companies, appealed to the Marcos administration to reconsider its plan on imposing prematurely an ore export ban and stressed that the government must first create a competitive environment to attract investments in value-added processing or VAP before implementing restrictive policies.
Dante Bravo, president of PNIA, said implementing a ban on ore exports will further add to the uncertainty from potential investors, along with ease of doing business, long permitting processes, and harmonization of national and local policies.
Instead, he called for swift action to seize global nickel opportunities, highlighting that the country risks falling behind as competitors like Indonesia, Brazil, and Australia ramp up production and attract foreign investments.
Meanwhile, in a statement sent to the media via e-mail, he also warned of geopolitical and market risks, cautioning that an export ban could drive buyers to alternative suppliers and undermine the Philippines’ competitiveness amid evolving trade policies and shifting demand for nickel.
“We support the government’s aspirations for a more developed nickel industry, however, it is our position that an export ban is not a timely policy at the moment,” said Bravo, who also urged that the focus should be on creating the right environment to attract the right investments and enable value-added processing in the Philippines.
The Philippines is the second largest nickel ore exporter to China, next to Indonesia.
“A proposal like the ore export ban is appealing; however, if implemented at this time, it overlooks the regulatory and business challenges that make value-added processing in the Philippines difficult to implement.”
The proposal to ban ore exports aims to encourage value-added processing. However the difficulties in establishing and sustaining VAP facilities in the Philippines have to be addressed, first and foremost, according to Bravo.
“Without holistic government support, addressing inconsistent policies, and regulatory burdens, forcing value-added processing will lead to mine closures and job losses. The government needs to create a more conducive business environment before pushing for policies that might disrupt the industry’s progress.”
Citing the experience of Indonesia, which implemented an ore export ban, Bravo said Indonesia prepared a conducive investment climate for value-added processing.
Unlike the Philippines, Indonesia enjoys several advantages, including policy implementation, infrastructure, and strong government support, noted Bravo.
Besides these advantages, the ore ban was only implemented after the country had secured a substantial number of investors committed to its mining industry growth.
“Indonesia has been able to attract foreign investments, build infrastructure, and offer very attractive fiscal incentives that have allowed it to quickly scale up processing capacity driven by strong government support,” Bravo said.
He noted that the Philippines lacks the same environment for investors. For instance, he said it takes over 10 years just to approve mining permits, which could force investors to look for a more attractive regulatory environment in other countries.
“Value-added processing requires more than just government support and building facilities; first and foremost, we need to conduct a strategic and in-depth mapping of resources to identify quality of nickel and quantity of nickel as not all ore is good for value-added processing, additionally, we have to begin upskilling our mining engineers to prepare them for processing activities.”
Bravo also said the proposed ore export ban becomes increasingly complex when considering shifting geopolitical dynamics and ongoing trade tensions.
“The growing uncertainty in global trade, particularly regarding potential trade tariffs, places the competitiveness of Philippine nickel exports at risk. It’s important that we maintain the competitiveness of the industry, particularly as geopolitical factors continue to evolve.”
Data from PNIA Market Analysts estimated that global nickel production is projected to grow by 3.8 percent in 2025, while consumption is expected to rise by 5 percent to 3.514 million tons, driven primarily by demand in stainless steel and renewable energy.
“While global demand remains strong, the oversupply from Indonesia and shifts in technology will continue to put downward pressure on prices.”
Nickel prices, recently hitting a four-year low, are forecast to average $16,750 per ton in 2025, with potential spikes to $20,000 early in the year.
originally published in BusinessMirror