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Breaking News: It is imperative for the Philippines to ban nickel ore exports

Brief Comment: CHIZ: The Philippine Senate approved a ban on raw ore exports to promote the development of high-value commodities. The Philippines recently said it was discussing the implementation of a ban on raw ore exports, including nickel ore exports. According to a bill approved by the Senate for the third and final reading on Monday, February 3, 2025, the country will implement a ban on the export of mineral raw materials, paving the way for the development of local industries, the production of high-value export products and the creation of more jobs for Filipinos. Senate Speaker Francis "Chiz" G. Escudero proposed a provision to amend Senate Bill No. 2826, which prohibits the export of raw materials, and will take effect five years after it is signed into law. Under the proposal, the Philippines will ban the export of locally mined raw ore, similar to the ban implemented by Indonesia in 2020, when Indonesia banned the export of nickel ore and stopped exporting bauxite in 2022. "We are considering shifting our policy from merely exporting raw materials for other countries to produce higher value products to developing our own processing capabilities. This will add value to our mineral-related exports, provide a much-needed boost to our economy and create jobs for our people," Escudero said. He explained that the five-year period in the measure is intended to give mining operators time to set up processing plants and downstream industries. Demand for critical minerals such as nickel and copper has been increasing over the past few decades as green initiatives such as electric vehicle production have grown. "Nickel and copper are key components in the production of lithium batteries for electric vehicles, and if we can develop the potential of these minerals domestically, we can secure our place in the global supply chain, especially in the production of electric vehicle batteries and, perhaps one day, our own electric vehicles," Escudero said. Banning the export of critical minerals is not unique to Indonesia, in fact, it is a global trend, albeit to varying degrees. According to the Organization for Economic Cooperation and Development, between 2009 and 2020, about 53 countries have imposed export bans on critical minerals. Other notable countries that have imposed bans include Namibia (banning unprocessed lithium and other critical minerals) and Zimbabwe (banning chromium). Escudero said the states' motivations for adopting this policy are understandable and the economic benefits are quantifiable. Taking Indonesia as an example, data cited by the Indonesian Chamber of Commerce and Industry showed that the country's nickel ore exports will increase from US$1.1 billion before the nickel ore export ban was implemented in 2014 to US$20.9 billion in 2021. Escudero said that once the law is enacted, the government will do its best to help industry participants establish their own mineral processing plants during the transition period, which is crucial. The Philippines' move is conducive to the construction of nickel iron plants, increasing employment, increasing economic income, increasing the export of high value-added products, improving the quality of economic development, and also returning the value of nickel iron and stainless steel. Please do not reprint without permission Disclaimer: The data contained in this information is for reference only and does not constitute market operation advice

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