Recently, the Philippine Senate's proposed ban on mineral raw material exports has significantly impacted the nickel market. According to Mysteel, the bill has not yet become law and requires further review by the Philippine House of Representatives and approval from the president before it takes effect. The Philippines is the world's second-largest nickel ore producer and the largest exporter, as well as a major source of nickel ore imports for China and Indonesia. The industry is closely watching changes in its nickel ore policies.
Overview of the Philippine Nickel Industry
According to data from the U.S. Geological Survey (USGS), by the end of 2024, the Philippines' proven nickel ore reserves reached 4.8 million tonnes in nickel content. While this accounts for only 3.69% of global nickel ore reserves, ranking sixth globally, the country performs exceptionally well in terms of production. In 2024, the Philippines' nickel ore production reached 330,000 tonnes in nickel content, accounting for 8.92% of global production, second only to Indonesia.
Source: Mysteel
With the continued global demand for nickel, particularly driven by the electric vehicle and stainless steel industries, the Philippines' nickel ore production has remained at high levels over the past decade.
In addition, China's dependence on Philippine nickel ore has decreased in recent years, but the Philippines still plays a crucial role in China's nickel ore imports. In 2024, China imported 34.53 million wet tonnes of nickel ore from the Philippines, accounting for 90.64% of its total nickel ore imports, based on data from the General Administration of Customs of the People's Republic of China (GACC).
Major Nickel Ore Regions in the Philippines
The Philippines' laterite nickel ore resources are widely distributed, mainly concentrated in the northern Zambales and Isabela mining areas; the central Palawan and Surigao regions (including Dinagat and Tubay); and the southern Tawi-Tawi, Davao, and Davao Oriental regions. These mining areas each have their own characteristics, providing a diverse resource base for the Philippines' nickel ore industry.
Source: Mysteel
In terms of nickel ore grades, high-grade nickel ore is primarily concentrated in the Zambales, Palawan, and Tawi-Tawi regions. Meanwhile, the Surigao mining area, located in the northeastern part of Mindanao, primarily produces low- to medium-grade nickel ore. However, the Surigao region accounts for about 60% of the Philippines' annual shipments, playing a significant role in overall production.
Major Nickel Smelting Projects in the Philippines
In the nickel smelting sector, Nickel Asia Corporation (NAC) is one of the major companies in the Philippines. The company has jointly developed two Mixed Sulfide Precipitate (MSP) wet-process intermediate projects with Sumitomo Metal Mining Co., Ltd. of Japan: Coral Bay and Taganito HPAL.
In the Coral Bay project, Sumitomo holds 84.375% and NAC holds 15.625%. In the Taganito HPAL project, Sumitomo holds 75% and NAC holds 25%. The MSP products from these two projects are primarily shipped to Japan for further processing into nickel sulfate and refined nickel.
Written by Cora Ji, jiruyan@mysteel.com
