The Philippine Senate has approved a bill aimed at stopping the export of raw minerals. The goal is to encourage local processing of these minerals and increase their value within the country. This legislation, put forward by Senate President Francis “Chiz” G. Escudero, includes a five-year period for mining companies to set up processing facilities before the ban starts.
Senator Escudero stated that the goal of this new policy is to help the Philippines transition from simply exporting unprocessed minerals to developing its own processing industry. He believes this will lead to higher-value exports and create more jobs. He pointed to Indonesia’s experience, where a similar ban on nickel ore exports in 2020 significantly increased the country’s export value.
However, some industry groups have raised concerns about the proposed ban. The Chamber of Mines of the Philippines and the Philippine Nickel Industry Association have warned that this policy might discourage investments in mining and could lead to mine closures, resulting in job losses and lower government revenue. They also mentioned obstacles like high energy costs, poor infrastructure, and regulatory issues that could make it difficult to set up local processing plants.
Dante Bravo, president of the Philippine Nickel Industry Association, has called on the government to rethink this plan. He suggested that attention should be directed toward creating a competitive environment that attracts investments in processing before implementing any restrictive measures. He also cautioned about potential risks in the global market, stating that an export ban could push buyers to look for other suppliers, which would harm the Philippines’ standing in the international market.
The bill will now be discussed in the House of Representatives. If it becomes law, the Philippines, a major producer of nickel ore, will join other countries that have implemented similar bans to promote domestic processing and maximize the benefits from their mineral resources.
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