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Philippines’ planned nickel ore export ban raises concerns for RI smelters
Indonesia imported over 10.47 million tonnes of nickel ore last year. Some 97 percent was procured from the Philippines.
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Nickel smelter chimneys spew a column of smoke into the air above the Indonesia Weda Bay Industrial Park in Lelilef, North Maluku, on July 7, 2024. Even though coal makes up 67 percent of Indonesia’s 2023 energy mix, the country is shifting toward cleaner sources, impacting the nickel industry, which is vital for electric vehicle batteries. (AFP/Azzam Risqullah)
T
he Philippines’ possible nickel ore export ban is “a cause for concern” for Indonesia’s smelter industry, experts have said, as they call on the government to intensify diplomacy to secure access to other sources of the commodity worldwide.
Djoko Widajatno of the mining advisory board of the Indonesian Nickel Miners Association (APNI) said Indonesia might turn to countries such as Russia, Australia and Canada if the Philippines restricted its nickel exports.
However, each country would have different logistical and trade challenges that could affect supply stability, said Djoko, who is also a former executive director of the Indonesia Mining Association (IMA).
“As one of Indonesia’s main nickel suppliers, the Philippines’ decision to ban nickel exports could raise concerns for the country’s smelter industry,” Djoko told The Jakarta Post on Thursday.
The Philippines is currently considering a raw nickel ore export ban to boost its domestic processing industry, similar to what Indonesia did years earlier.
If enacted, the ban is expected to take effect in five years to give miners the time to establish processing facilities within the country.
The Philippines’ Congress could ratify a bill banning raw mineral exports as soon as June, Senate President Francis Escudero said on Feb. 6.
