Industry not ready: Toledo calls for 10-year transition on raw mineral export ban amid cost, infrastructure challenges
COMP President & CEO Mike Toledo
The Chamber of Mines of the Philippines (COMP) is urging lawmakers to extend the transition period for a proposed ban on raw mineral exports, warning that the industry needs more time to develop domestic processing capacity.
COMP president and CEO Mike Toledo said mining firms face key challenges, including high power costs, limited operations, and the need for significant investments in processing plants, which can cost up to $1.6 billion.
The proposed legislation would prohibit raw mineral exports five years after its enactment, but Toledo said the timeline is insufficient and called for an extension of up to 10 years. He also recommended that the ban’s implementation remain flexible, allowing the President to adjust its timeline based on economic conditions.
The Philippines is one of the world’s top nickel producers, supplying most of its output to China and Indonesia. Toledo cautioned that restricting exports could disrupt the global supply chain and reduce demand for Philippine nickel, which is of lower grade compared to Indonesian deposits.
The mining industry, he added, remains committed to responsible practices through the Towards Sustainable Mining (TSM) initiative, which ensures compliance with environmental and social standards.
The Department of Environment and Natural Resources (DENR) has also mandated mining firms to align their social development programs with the United Nations’ Sustainable Development Goals (SDGs).
The Board of Investments has been promoting the Philippines as a hub for “green metals,” such as nickel and copper, which are essential for renewable energy, electric vehicles, and battery production. However, Toledo noted that substantial investments and infrastructure improvements are needed to support this vision.
“The Philippines has been identified as one of the most mineralized countries in the world,” Toledo said. “We have the resources, but the challenge is extracting them efficiently while ensuring sustainable development.”
Source: Bilyonaryo
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