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February 12, 2025 | 12:00am
PNIA argued that the proposed five-year raw ore export ban contained in Senate Bill 2826 is not the solution to encourage miners to put up value-added processing (VAP) facilities in the country.
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MANILA, Philippines — The Philippine Nickel Industry Association (PNIA) has warned that several mine operations nationwide would shut down, resulting in job displacements, if the proposed ban on ore exports would be imposed by the government under a proposed legislation.
PNIA argued that the proposed five-year raw ore export ban contained in Senate Bill 2826 is not the solution to encourage miners to put up value-added processing (VAP) facilities in the country.
The group pointed out that the “right environment” to attract investments and enable VAP development is currently what the industry needs instead of an export ban.
“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,” PNIA president Dante Bravo said.
“Without holistic government support, addressing inconsistent policies and regulatory burdens, forcing value-added processing will lead to mine closures and job losses,” Bravo added.
The mining sector employs over 200,000 workers as of end-2023, according to the Mines and Geosciences Bureau.
Bravo cited Indonesia as having one of the model business climate to encourage miners to undertake VAP. Bravo noted Indonesia has the proper infrastructure such as energy costs, policy environment and government support, including fiscal incentives.
“From our experience, the Philippines lacks the same environment for investors, for instance, 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 where they can get attractive return on investments,” he said.
The government needs to conduct a strategic and in-depth mapping of the country’s resources to identify the quality and quantity of nickel since not all ore is good for VAP, Bravo said.
The industry also needs to start upskilling the country’s mining engineers to prepare them for metal processing activities, Bravo added.
“Without addressing these key issues, imposing an ore export ban at this time would slow progress and risk industry failure,” he said.
Bravo also emphasized that the proposed export ban comes at a worse time since global geopolitical dynamics are shifting while trade tensions are persisting, threatening the competitiveness of the country’s nickel exports.
“The growing uncertainty in global trade, particularly regarding potential trade tariffs, places the competitiveness of Philippine nickel exports at risk,” he said.
“It’s important that we maintain the competitiveness of the industry, particularly as geopolitical factors continue to evolve,” he added.
Bravo noted that the country’s key trade-partners may shift to other nickel suppliers like Australia and Brazil, which are ramping up their production, if an export ban is imposed on the country’s exports.
