Philippine nickel shipments to Indonesia could rise sharply to 5 to 10 million tons this year, according to DMCI Mining president Tulsi Das Reyes, as reported by Mining.com.
The increase is being fueled by demand from Chinese-owned refineries in Indonesia affected by Jakarta’s tighter mining rules. From around 1 million tons at the end of 2023, exports from the Philippines to Indonesia are expected to expand significantly.
Part of DMCI’s projected 2 million tons of nickel ore shipments this year is also expected to go to Indonesia.
“If I were Indonesia, I’d maximize what I have internally,” Reyes said in an interview on Thursday. “I don’t think they would want more Philippine imports to be coming in” and Chinese plant owners will also likely prioritize sourcing from their partner mines in Indonesia, he added.
The Philippines is the world’s second-largest nickel ore producer after Indonesia, with an output of more than 30 million tons last year. However, it has lagged behind in building downstream processing facilities due to the intensive capital needed. A proposal to ban raw mineral exports to push miners to invest in refineries was dropped by lawmakers last month amid industry opposition.
DMCI and Nickel Asia Corporation are studying the feasibility of building a high-pressure acid leaching refinery worth about USD 1.5 billion, with talks underway with foreign firms for technical expertise and potential investment. Reyes said such a project would require around 300 million tons of a particular grade of nickel ore to sustain operations for 30 years. DMCI currently has two nickel mines and is exploring new sites.
DMCI Mining, which returned to profitability in the first quarter after losses a year earlier, expects to ship between 2.5 million and 3 million tons of ore next year, with China remaining its main buyer.
“All of our business growth depends on what happens in China,” Reyes said.
The impact of former US President Donald Trump’s so-called reciprocal tariff policy on China could pose risks for Philippine miners in the future.
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