Michael T. Toledo, Chairman of the Chamber of Mines of the Philippines, cautioned against implementing an Indonesia-style ban on ore exports in the Philippines, stressing that such a ban would have adverse effects on the mining industry, which is already grappling with prolonged policy uncertainties.
Several challenges were faced by the industry, including policy roadblocks, environmental compliance inspections, and delays in mining permit issuances due to ongoing government deliberations on taxation frameworks, he added.
According to BusinessWorld, Toledo also stressed the differences between the Philippines and Indonesia, particularly in terms of nickel reserves and ore quality, with the country predominantly possessing limonite-type nickel resources, which are smaller and of lower ore grades compared to Indonesia.
Indonesia enforced a ban on nickel ore exports in 2020 under the outgoing president, Joko Widodo, aiming to enhance domestic ore processing and value-added activities. However, the continuity of this policy under Widodo’s successor remains uncertain.
Toledo said that attracting investment to the Philippine mining sector hinges on addressing critical issues such as power supply stability and cost-effectiveness. He pointed out that the country’s industrial electricity rates rank among the highest in the region, deterring potential investors.
To address these issues, Toledo suggested that the government incentivize renewable energy developers to expand power generation.
He emphasized the importance of encouraging developers of renewable energy facilities, including hybrid and cogeneration systems, through both fiscal and non-fiscal incentives.
