Philippine President Ferdinand Marcos Jr. is set to revitalize the country’s mining sector, particularly its nickel industry, through a proposed reform to the Philippine Mining Act of 1995. The legislation aims to streamline taxation, incorporate environmental considerations, and foster greater stakeholder involvement. These moves could position the country as a leader in the global nickel market.
Revamping Mining Laws to Boost Nickel Industry
The reform bill introduces a four-tier, margin-based royalty system, ranging from 1.5% to 5%, based on mine location. Additionally, environmental factors will play a central role in the approval process for new mines. This approach replaces the current system, which varies based on specific mining agreements and applies royalties only to mines in designated mineral reservations.
Moreover, the proposed reforms will include essential aspects of project approvals that weren’t there before, per S&P Global analyst Paul Manalo. For instance, local community and local government involvement and biodiversity.
The bill is currently awaiting Senate approval. Yet, it has received strong endorsements from government officials and industry stakeholders. Michael Toledo, chairman of the Chamber of Mines of the Philippines, expressed optimism:
“The president himself mentioned to me that he is fully aware of mining’s importance to our country’s socioeconomic growth and of the issues that hinder the industry from attaining its full potential.”
Sustainability and Innovation at the Core of New Policies
President Marcos has been a vocal advocate for responsible and sustainable mining practices since taking office in mid-2022. During the 2023 Presidential Mineral Industry Environmental Award ceremony, he emphasized the importance of clean and efficient extraction processes that restore mined lands, noting that:
“We must also foster innovation by driving research into new methods of mineral processing—methods that reduce waste and energy consumption.”
Marcos reiterated his commitment to refining mining policies to align with these priorities. The Philippines is the second-largest producer of mined nickel in 2023 as seen in the chart.
It maintained its position last year, boasting 13.4 million metric tons of reserves and resources. The country produced 387,000 metric tons of nickel last year, trailing only Indonesia, according to S&P Global Market Intelligence data.
However, the government and industry leaders are eager to boost production further and expand the value chain by processing nickel domestically.
Toledo highlighted the need for collaboration with international partners, such as South Korea, Japan, and the European Union, to access alternative smelting technologies. He further noted that mineral extraction and processing are the foundation of the clean energy supply chain. Currently, there isn’t enough ore being mined to meet the demands of facilities still in development.
Digital Transformation in Mining Permits
The Philippine government is taking steps to improve regulatory processes in the nickel and other metals industry, too. In October 2024, a digital application system for mining permits was launched in three regions, with plans for nationwide expansion. This initiative aims to reduce permitting times to two years, significantly faster than the current timeline.
Additionally, the Department of Environment and Natural Resources (DENR) is drafting an executive order to clarify conflicting interpretations of existing mining royalty laws. In the first quarter of 2024, the Philippines approved 785 mining-related permits, including the following:
- mineral production sharing agreements,
- financial or technical assistance agreements, and
- exploration permits.
Despite these approvals, 1,509 applications remain under review.
Prices and Prospects for the Nickel Market
Globally, nickel prices experienced significant volatility in late 2024. It was driven by macroeconomic and political developments following Donald Trump’s U.S. presidential election victory.
The LME three-month nickel price fell to a 4-year low, influenced by various concerns like Trump’s economic policies and rising LME inventories. Investor sentiment was further impacted by China’s fiscal stimulus package, which failed to meet expectations.
Although prices temporarily rose after Trump’s victory, they quickly declined as market concerns about higher tariffs on Chinese imports and prolonged high interest rates intensified. By late November, nickel prices rebounded due to Indonesia’s tighter mining policies and a 50-fold surge in nickel ore imports.
Amid all these, an emerging nickel player is making a huge wave in the United States – Alaska Energy Metals Corporation (AEMC). The company is advancing U.S. nickel independence. Its flagship Nikolai project in Alaska boasts substantial resources of nickel, copper, cobalt, and platinum group metals critical for renewable energy and electric vehicles (EVs).
The Canadian nickel junior prioritizes sustainability and critical mineral supply, reducing U.S. reliance on imports.
Yet, the price volatility highlights the market’s sensitivity to global economic and geopolitical events. However, despite the price challenges in 2024, the Philippine Chamber of Mines remains optimistic about nickel’s long-term prospects.
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Global nickel production is estimated to grow to more than 4 million metric tonnes in 2030.
Demand for the metal, driven by the global energy transition, is expected to remain robust. Nickel is a key component in batteries for EVs and renewable energy storage, making it indispensable for achieving net-zero emissions targets.
One factor of uncertainty is the geopolitical impact of U.S. President Donald Trump’s return to office. Trump has threatened to disrupt existing trade relationships, potentially affecting global metals trade flows.
On this note, Toledo said that while Trump’s re-election could slow the push for net zero, it won’t stop it entirely. With rich nickel reserves and strategic reforms on the horizon, the Philippines is well-positioned to strengthen its role in the global mining landscape.
The proposed legislation’s emphasis on sustainability, innovation, and efficiency could unlock new opportunities, attract international investments, and elevate the country’s status as a key supplier in the clean energy transition.
If the bill passes, the nickel mining industry could become a cornerstone of the Philippines’ economic growth in the years ahead.
- RELATED: Alaska Energy Metals Corporation Unlocks Vast Nickel and Critical Mineral Potential at Canwell Property, Nikolai Project, Alaska
- SEE MORE: A Nickel Junior Ready to Power America’s Clean Energy Revolution
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