The proposed free trade agreement (FTA) between Manila and Ottawa could position the domestic nickel mining sector as a key alternative in the global critical minerals supply chain, according to the Philippine Nickel Industry Association (PNIA).

PNIA President Dante Bravo noted that the government’s efforts to strengthen ties with Canada through the FTA will attract fresh investments and secure a reliable market for local nickel producers.

“Canada is one of the world’s most credible voices on responsible critical minerals sourcing, and it is actively seeking to diversify its supply partnerships in the Indo-Pacific,” Bravo said in a statement.

He added that the FTA comes at an opportune time as the Philippines looks to solidify its status as a viable sourcing option for global manufacturers, reducing the market’s over-reliance on Indonesia.

While the Philippines is the world’s second-largest nickel producer—accounting for roughly 10 percent of global output—the vast majority of global demand is met by Indonesia, which controls over 60 percent of the supply.

Consequently, shifts in Indonesian mining policies heavily dictate global price and supply expectations. Currently, the local mining sector is awaiting Jakarta's decision on its annual nickel mining quotas.

“Indonesia's annual quota decisions are a reminder of a simple fact: global nickel supply cannot responsibly rest on a single country's policy calendar,” Bravo said.

This volatility stands in contrast to the Philippines, which has consistently proven to be a reliable supplier despite local policy shifts and weather disruptions.

“That consistency is not an accident,” Bravo added. “It is the foundation the Philippines now offers the region as it builds a more resilient, diversified critical minerals supply chain.”

However, the PNIA emphasized that it views Indonesia as a strategic partner rather than a mere competitor in elevating Southeast Asia's role in the global nickel value chain.

Earlier this year, PNIA signed a cooperation agreement with the Indonesian Nickel Miners Association (Asosiasi Penambang Nikel Indonesia or APNI) to strengthen regional supply chain integration.

“The Philippines intends to be a central part of that diversification—alongside Indonesia, not instead of it,” Bravo clarified.

Bravo noted that both the proposed bilateral FTA and the broader trade pact between Canada and the Association of Southeast Asian Nations (ASEAN) represent giant leaps toward this goal.

“A concluded Philippines–Canada FTA, alongside a broader ASEAN–Canada agreement, would give global manufacturers and battery producers a genuine, rules-based alternative,” Bravo said. “It would be an option grounded in ASEAN supply, rather than one concentrated in a single nation.”

“The goal is not to replace one dominant supplier with another,” he concluded. “The goal is a genuinely balanced, multi-country, multi-market supply chain for the energy transition—one where the Philippines, Indonesia, and our ASEAN neighbors each play a durable role.”