Stable gov't policy sought for nickel industry
Published Apr 11, 2023 06:50 am
The domestic nickel industry said the government should first provide a stable policy environment for the mining industry, primarily on nickel, to be able to attract more foreign investors and participate in the electric vehicle (EV) global value chain.
Dante Bravo, president of FNI and Philippine Nickel Industry Association (Photo credit to PNIA)
Dante Bravo, president of one of the country’s biggest nickel mining firms Ferro Nickel Inc. (FNI) and president of the Philippine Nickel Industry Association (PNIA), said that while there are potential investors in downstream nickel processing in the country, Bravo said that interests also hinge on how abundant the country’s “reserves to support it and have a stable and predictable policy on mining.”
The interest in the nickel industry in the country is also buoyed by the push by the government to promote mining as part of the economic recovery, said Bravo. "But that will only materialize if we will see a stable and predictable policy on mining,” he reiterated.
“But we are bullish about the nickel industry given the China recovery post pandemic, as well as the fast-growing EV sector using battery grade nickel materials,” Bravo told the Manila Bulletin.
On EV battery manufacturing investment, he said this will depend on two things: one is improvement in policy perception as to attract quality investments in the sector, the other is availability of technology appropriate for the mineral resources we have in the country.
In the case of FNI, it has recently announced new ore supply contract with Baosteel, one of China’s leading integrated steel company.
FNI intends to expand our current shipment from 6.5 million wet metric tons to 8 million wet metric tons in the next two years.
With that, Bravo said “We have plans towards that direction so we are focusing on exploration and nickel resource banking, and we are continuously studying at different technologies that can be economically viable in the Philippines.”
Already, the president of the local nickel industry association, said they are opposed to the planned imposition of export tax on nickel or banning its exports.
Trade and Industry Secretary Alfredo E. Pascual earlier said that the Board of Investments is studying whether or not to ban the export of nickel or impose an export tax of this green metal to support the government’s push for more investors to undertake further local nickel processing.
The DTI is looking at the Indonesian model, which bans export of nickel. Indonesia said it has attracted investments in downstream nickel processing. Indonesia's 2020 decision to halt the export of nickel ore is a continuation of its industrial policy to produce downstream materials. Indonesia aims to strengthen domestic processing facilities, bring back the added value of nickel's supply chain to the Indonesian economy and spur job creation and economic development.
Nickel is crucial material in the production of EV battery cathodes, which are necessary for the green energy transition. Estimates placed EV battery demand consumes around seven percent of global production, but demand is expected to exponentially increase as more car companies are securing nickel for their EV batteries as a top priority.
Bravo explained that the local mining industry is heavily taxed in the first place. “If we ban export of nickel ore, then, we kill the industry,” he said.
Implementation of these regulatory measures, he said, will not also encourage investments in local nickel processing because killing the industry will not incentivize investments in value added processing. “You promote investments in value added processing by promoting mining investments first - with a stable and predictable policy. If we cannot show protection of mining investments, how can we show protection of investments in value added processing,” he noted.
Dante Bravo, president of FNI and Philippine Nickel Industry Association (Photo credit to PNIA)
Dante Bravo, president of one of the country’s biggest nickel mining firms Ferro Nickel Inc. (FNI) and president of the Philippine Nickel Industry Association (PNIA), said that while there are potential investors in downstream nickel processing in the country, Bravo said that interests also hinge on how abundant the country’s “reserves to support it and have a stable and predictable policy on mining.”
The interest in the nickel industry in the country is also buoyed by the push by the government to promote mining as part of the economic recovery, said Bravo. "But that will only materialize if we will see a stable and predictable policy on mining,” he reiterated.
“But we are bullish about the nickel industry given the China recovery post pandemic, as well as the fast-growing EV sector using battery grade nickel materials,” Bravo told the Manila Bulletin.
On EV battery manufacturing investment, he said this will depend on two things: one is improvement in policy perception as to attract quality investments in the sector, the other is availability of technology appropriate for the mineral resources we have in the country.
In the case of FNI, it has recently announced new ore supply contract with Baosteel, one of China’s leading integrated steel company.
FNI intends to expand our current shipment from 6.5 million wet metric tons to 8 million wet metric tons in the next two years.
With that, Bravo said “We have plans towards that direction so we are focusing on exploration and nickel resource banking, and we are continuously studying at different technologies that can be economically viable in the Philippines.”
Already, the president of the local nickel industry association, said they are opposed to the planned imposition of export tax on nickel or banning its exports.
Trade and Industry Secretary Alfredo E. Pascual earlier said that the Board of Investments is studying whether or not to ban the export of nickel or impose an export tax of this green metal to support the government’s push for more investors to undertake further local nickel processing.
The DTI is looking at the Indonesian model, which bans export of nickel. Indonesia said it has attracted investments in downstream nickel processing. Indonesia's 2020 decision to halt the export of nickel ore is a continuation of its industrial policy to produce downstream materials. Indonesia aims to strengthen domestic processing facilities, bring back the added value of nickel's supply chain to the Indonesian economy and spur job creation and economic development.
Nickel is crucial material in the production of EV battery cathodes, which are necessary for the green energy transition. Estimates placed EV battery demand consumes around seven percent of global production, but demand is expected to exponentially increase as more car companies are securing nickel for their EV batteries as a top priority.
Bravo explained that the local mining industry is heavily taxed in the first place. “If we ban export of nickel ore, then, we kill the industry,” he said.
Implementation of these regulatory measures, he said, will not also encourage investments in local nickel processing because killing the industry will not incentivize investments in value added processing. “You promote investments in value added processing by promoting mining investments first - with a stable and predictable policy. If we cannot show protection of mining investments, how can we show protection of investments in value added processing,” he noted.