The Philippine Nickel Industry Association (PNIA) has strongly opposed a local ordinance imposing a 50-year moratorium on new mining operations in Palawan, citing its economic impact and conflict with national law.

The Sangguniang Panlalawigan ng Palawan on Wednesday, March 5, approved the ordinance declaring a moratorium on the issuance of endorsements for all large- and small-scale mining applications in the province.

This covers the applications for exploration permits, mineral agreements, and financial or technical agreements in Palawan. It does not impact current mining operations or pending applications.

The bishops of Palawan, who pushed the ordinance through a pastoral letter, have identified mining as the “biggest threat” to the province’s natural resources.

This followed a signature campaign led by environmental groups advocating for the protection of the province’s forests and other resources alongside indigenous communities, farmers, and fisherfolk.

PNIA, the country’s biggest group of nickel mining companies, said it is crucial to recognize that economic growth can “coexist” with environmental sustainability.

“Responsible mining practices can safeguard the environment while simultaneously fostering economic development. The nickel industry, for example, has made invaluable contributions to the local economy, creating thousands of jobs and generating substantial revenue for both local and national governments,” the group said in a statement on Friday, March 7.

“Moreover, mining projects in Palawan support key sectors such as infrastructure, logistics, and small businesses while adhering to stringent environmental standards,” it added.

According to the Mines and Geosciences Bureau (MGB) website, 10 mining firms hold approved mining tenements and contracts in the province, including mineral production sharing agreements (MPSA).

The majority of mining activities in Palawan focus on extracting nickel, one of the province’s most vital mineral resources.

PNIA told Manila Bulletin that it has three member firms in the province: Ipilan Nickel Corporation, operating in the municipality of Brooke’s Point; Rio Tuba Nickel Mining Corporation in Bataraza; and Berong Nickel Corporation in Quezon.

A 50-year moratorium, the group said, would dissuade local and international investors, further stalling economic opportunities in Palawan.

“It also weakens the Philippines’ competitiveness in the global nickel market, particularly as demand rises for nickel in renewable energy and electric vehicle manufacturing,” it said.

Moreover, PNIA asserted that the new ordinance is in conflict with national law and the 1987 Constitution, particularly on the limitations of the authority on local government units (LGUs) as it pertains to natural resources.

It noted that Palawan LGU exerted an “overreach of local police power” as it imposed restrictions beyond its jurisdiction.

Instead of imposing a moratorium, PNIA advocates for harmonizing the regulatory framework between national and local policies to ensure responsible mining operations and effective resource management.

The group added that there is a need to establish policies to encourage investment in sustainable mining technologies while strengthening the enforcement of environmental standards to protect natural resources.