SHANGHAI, Oct. 29 (SMM) - The Philippines may raise export tax on its nickel ores from 2% to 7% in 2014, which will push up prices for the Philippine material, Shanghai Metals Market understands.
Philippines' Mines and Geosciences Bureau said the possible tax change is still under discussions, as most local mining enterprises oppose the rise, SMM has learned.
The Philippines will not raise the export tariff for the foreseeable future, as first of all Indonesia has not made its final decision over its export policy yet, according to SMM’s nickel analyst Ellie Wang.
``The Philippines may follow suit to increase export tax if Indonesia decides to ban ore exports in 2014,'' she said.
Secondly, the monsoon season, which usually starts from October and lasts till February or March, is coming to the Philippines. Exports are limited during this period as heavy rains disrupt ore mining and transportation, rendering tariff change meaningless.
The seaborne nickel ore market is carved up between Indonesia, the Philippines and New Caledonia, according to Indonesian Nickel Association (INA). Indonesia remains a wild card in regard to its controversial ban on mineral exports from 2014, INA’s managing director Mag. Faisal Emzita told SMM in an interview in September.
In 2012, China imported 29.9 million tonnes of nickel ore from the Philippines, accounting for around 46% of total imports that year, according to SMM data.