With the government projecting a robust year for the Philippine mining sector in 2024, the Chamber of Mines of the Philippines (COMP) expresses reservations due to uncertainties, including a weaker Chinese economy and competition from Indonesia’s nickel pig iron production, according to Philippine Daily Inquirer.
The Mines and Geosciences Bureau (MGB) cited a global demand surge for essential metals used in green technologies and Industry 4.0., anticipating increased demand for metals like gold, nickel, cobalt, copper, and iron. Nickel, a vital component in electric vehicle batteries and various industrial applications, stood out in the market.
And despite the MGB’s positive outlook, COMP Chair Michael Toledo voiced concerns about the unpredictable nature of the industry, especially when there’s a cheaper alternative to pure nickel in producing stainless steel.
While copper demand remained steady, doubts arose about the local copper industry’s ability to meet the rising requirements for renewable technologies. With no new copper mines expected to operate in the next five years, concerns about a supply deficit that could drive prices upward lingered.
In 2023, the mining sector witnessed an upturn, with metallic production rising by 7.28 percent to Php 189.08 billion. Nickel ore and its by-products dominated the output value, contributing 47.6 percent, followed by gold (41.07 percent), copper (9.94 percent), silver, chromite, and iron ore (1.4 percent).
Nickel, in particular, demonstrated a strong performance, with an output value of Php 53.54 billion and an increased volume of 28.9 million dry metric tons.
Meanwhile, gold output reached 22,935 kilograms, valued at Php 77.65 billion, while copper production yielded 195,533 dry metric tons, valued at Php 18.79 billion.
What contributed to the positive performance in 2023 was favorable metal prices and weather conditions, particularly in the nickel sector.
The MGB anticipated starting 12 new mining projects in the next six months, encompassing various minerals such as magnetite sand, nickel, copper, and gold.
In line with the ongoing review of laws and regulations governing the mining sector, the Department of Environment and Natural Resources plans to promote small-scale mining operations through Minahang Bayan sites to formalize these activities and integrate them into the broader mining sector.
Despite these positive indicators, industry players, including the Philippine Nickel Industry Association (PNIA), advocate for additional reforms to attract quality investments.
The PNIA proposes a streamlined one-stop shop for mining permits to expedite the approval process and make it more conducive to foreign investments.
