Philippines’ Nickel Output Expected to Rebound Amid Improving Market Conditions
The Philippines' nickel production is expected to rebound next year, driven by increased demand for the metal, better weather conditions, and a more favorable policy environment with the anticipated enactment of a rationalized mining fiscal regime.
Dante Bravo, a member of the board of trustees of the Chamber of Mines of the Philippines and president of the Philippine Nickel Association Inc., indicated that nickel production this year could fall short of expectations due to several companies halting production as a result of inclement weather. Additionally, lower global nickel prices, driven by reduced demand from China and increased supply from Indonesia, have added to the industry's challenges. Bravo, who also serves as president of Global Ferronickel Holdings Inc., emphasized that companies must be resilient in navigating the volatile global nickel market. He remains optimistic that the nickel mining sector will adapt, especially as firms anticipate the new competitive mining fiscal regime in the country.
Last year, the Philippines experienced a 19% year-on-year increase in nickel direct shipping ore production, rising to 35.144 million dry metric tons (DMT) from 29.423 million DMT in 2022, according to the Mines and Geosciences Bureau (MGB). The total production value was approximately P65.845 billion ($1.18 billion), representing a 7% increase from P61.659 billion ($1.11 billion) in 2022, driven by higher production volume despite declining global prices.
However, nickel mining production has been lackluster this year amid continued declines in global nickel prices. In the first half of 2024, nickel ore production dropped by 19.4%, reaching 13.37 million DMT from 16.6 million DMT during the same period last year. In value terms, nickel output fell by 24.3% year-on-year, down to P23.99 billion ($432 million) from P31.701 billion ($571 million) in 2023.
Looking ahead, the country’s mineral output is expected to increase, buoyed by improving market conditions, favorable weather, and a more competitive mining policy landscape.
