The Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association (PNIA) have raised concerns over the potential economic fallout of Senate Bill 2826, which seeks to ban the export of raw ore unless processing plants are built within five years. Passed on second reading Tuesday night, the bill has sparked warning calls from both groups, who argue it could deter mining investments and lead to significant job losses in the sector.
In a joint statement, COMP and PNIA criticized the bill, noting the country’s infrastructure challenges, including high energy costs and inadequate transport networks, which would make such a mandate nearly impossible to meet. The groups warned that the ban could force mine closures, leading to unemployment for thousands of Filipinos and reduced government revenue.
The Philippines is the world’s second-largest exporter of raw nickel ore, and the proposed ban could disrupt global supply chains, potentially breaching long-term contracts with international buyers. Such disruptions could harm the country’s reputation as a reliable trading partner, the groups said.
While COMP and PNIA support certain fiscal provisions of SB 2826—particularly a windfall profits-based tax scheme—they called for a more thorough study of the bill’s social and economic impact. They also acknowledged the importance of measures aimed at improving mining permitting processes and aligning fiscal policies with industry needs.
According to the Mines and Geosciences Bureau, the country’s metallic mineral production grew by 3.17 percent in 2024, suggesting the mining sector’s importance to the broader economy. However, these recent gains could be jeopardized if the export ban moves forward without addressing key industry concerns.
