Amid the global surge in electric vehicle production, the Philippines, alongside Indonesia, stands as a top supplier of nickel to China, a critical component for stainless steel and lithium-ion batteries in EVs. However, unlike Indonesia, which saw its nickel exports skyrocket to $30 billion from $3 billion within two years due to investments in refineries and smelters by Chinese companies, the Philippines largely exports raw nickel ore due to a scarcity of local processing facilities.
The administration of Philippine President Ferdinand Marcos Jr. is encouraging miners to venture into the downstream sector, aiming to position the country as a key player in the EV supply chain. Among the strategies under consideration is the adoption of an export tax on nickel ore, similar to Indonesia's approach, to attract investments in processing plants.
Supporting the government's vision, Pangilinan, a prominent figure in the Philippine mining industry, emphasizes the necessity of substantial mining operations to supply smelters or refining operations. Despite the Philippine government identifying 9 million hectares with high mineral potential, less than 3% is currently utilized for mining, highlighting a vast untapped resource.
One notable example is the Tampakan gold-copper mine in Mindanao, one of Southeast Asia's largest undeveloped mineral resources, which faced obstacles due to an open-pit mining ban leading Glencore Plc to withdraw from the project in 2015. Conversely, Philex Mining Corp., led by Pangilinan, is advancing the Silangan copper-gold mine in Mindanao, with plans for operation by 2025. Additionally, Philex is exploring potential extensions within the Padcal mine and considering the development of a new nickel mine in Zambales, Luzon.
Pangilinan projects a bright future for mining, driven by China's burgeoning EV industry's demand for nickel, copper, and lithium. He advocates for the Philippines to seize the opportunities presented by the global shift towards green technologies, emphasizing the strategic importance of participating in these emerging markets now..
