SHANGHAI, Jan 31 (SMM) - The Philippines, the world's second-largest supplier of nickel ore, intends to follow Indonesia's example and considers imposing taxes on nickel exports after seeing Indonesia's success in banning nickel ore exports. The Philippines hopes that the to-be-implemented taxes will encourage miners to invest in the processing industry in the country rather than just purchasing local raw materials.
Indonesia banned exports of metal ore since 2020 and restricted exports of refined products. This move has prodded many Chinese enterprises to build refineries and smelters there, and boosted the revenue created by nickel exports from $3 billion to $30 billion in the past two years. Inspired by Indonesia's success, Alfredo Pascual, the Minister of Trade and Industry of the Philippines said the ministry was wavering between a tax on primary nickel exports and a entire ban on ore exports.
According to Bloomberg, the Philippine authorities are seeking ways to fuel the economic growth through the boom of local mining industry, especially by having more influence in the nickel industry chain rather than being a mere supplier.
Last year, the Philippine economy posted its strongest growth in nearly 50 years. The mineral reserves in the Philippines stand as high as 9 million hectares with huge potential as less than 3% of the land has been exploited.
At present, there are 55 metal mines and seven beneficiation plants in the Philippines, including two nickel ore mines run by Nickel Asia Corp. owned by Japan's Sumitomo Metal. The latest data showed the nickel production of the Philippines fell 17% to 22.5 million dmt during the January-September last year. But it is estimated that the nickel ore shipments will improve this year in view of the huge demand on nickel.
