Domestic mining activities this year are looking sanguine, including those for nickel which is closely tied to how China, which is the mineral’s main market, eventually performs, according to Nickel Asia Corp. (NAC).
“The mining industry outlook in the Philippines is positive as the government has taken a more supportive stance for the industry. The nickel industry specifically, is highly dependent on China, on its recovery story. So, if China recovery pans out as expected, then there will be support for nickel specifically, for the stainless-steel industry,” said Martin Antonio Zamora, NAC president and chief executive officer, at the company’s earnings call last week.
Zamora said the electric vehicle (EV) industry continues to be a major source of demand for nickel and ruled out any slowdown in the take up of EVs in the years forward.
“At least in the medium term, we do not expect any slowdown in the take up. I think overall, we’re quite positive versus last year for the industry,” Zamora further said.
Last year, the country’s metallic mineral production value rose 31.73 percent to P238.05 billion from P180.71 billion in 2021, according to the Mines and Geosciences Bureau (MGB).
MGB said this was achieved despite the lingering impact of the pandemic as well as the protracted Russia and Ukraine war that has slowed global economic activities and disrupted supply chains.
Nickel ore and its nickel by-products, mixed nickel-cobalt sulfide and scandium oxalate, accounted for the largest share worth P117.58 billion or 49.39 percent.
However, in terms of production, direct shipping nickel ore proved the only component whose production fell 11 percent to only 29.27 million dry metric tons from 32.93 million dmt.
Earlier, the MGB bared optimism the Philippines will produce and export more minerals this year given the boosted level of mineral ore demand coming mostly from China.
The MGB said in the list of priority projects, 33 are expected to start within the next six months of which 14 are for metallic minerals.
