The impact of a nickel export ban on jobs and investments

Neil Gregori Garen

26 minutes ago

The impact of a nickel export ban on jobs and investments

What happens when you suddenly cut off one of your biggest sources of income? And how does this impact your future job prospects, businesses, and the economy, especially when there’s already a global demand for what we produce?

That’s exactly what’s at stake with the Senate’s proposed five-year ban on nickel exports. The idea behind it? To push for local processing and create a stronger value-added industry. But here’s the problem: The Philippines isn’t ready for this shift yet, and forcing the industry into it too soon could do more harm than good—especially for young professionals looking to build careers in mining, engineering, logistics, and global trade.

Nickel mining is a major driver of the economy, supporting thousands of jobs in different fields. Cutting off exports could slow down industry growth, limit career opportunities, and make it harder for businesses to thrive in a highly competitive market.

Here’s why this matters to you:

Nickel mining creates thousands of jobs and supports future opportunities

Nickel mining doesn’t just impact big companies, it affects job opportunities, foreign investments, and even the price of everyday products that rely on nickel. As the world’s second-largest producer, the Philippines plays a critical role, with thousands of Filipinos, from engineers to logistics workers, depending on the industry for their livelihoods. If nickel companies suddenly can’t export, many may scale down operations or even shut down, putting jobs at risk. This would limit opportunities for young professionals who have dreamed of building careers in mining, engineering, and related industries and of using their skills to make a positive impact in their communities.

Local processing is expensive and we’re not ready yet

Indonesia successfully banned raw nickel exports in 2020, but they had massive investments, strong government support, and lower energy costs to make it work. The Philippines, on the other hand, has some of the highest electricity rates in Asia, making local nickel processing too costly. Instead of an immediate export ban, the government should first fix power costs, upgrade infrastructure, and simplify regulations so companies can actually thrive.

China is our biggest nickel buyer

In 2022, China imported $1.2 billion worth of Philippine nickel, making it the country’s largest buyer. Unlike other industries facing fluctuating demand, nickel exports to China remain strong and stable. As a neighboring country with a large market and high demand for nickel—especially for stainless steel production and manufacturing—China offers significant cost efficiencies in trading due to proximity and streamlined logistics. This makes it a reliable and cost-effective market for the Philippines. A sudden export ban could strain this valuable trade relationship and disrupt the cost advantages we gain from trading with a neighboring country, making it harder to secure long-term deals.

The US-China trade war is an opportunity

With China expanding its market worldwide and the US-China trade war reshaping global supply chains, the Philippines has a unique chance to position itself as a key nickel supplier. Instead of limiting exports, we should take advantage of China’s growing demand and strengthen our trade relationship to maximize economic benefits. Banning nickel exports now would mean missing out on investment opportunities and losing a competitive edge in the global market. By keeping exports open, the Philippines can increase trade partnerships, attract investors, and secure long-term growth for the industry.

A balanced approach will keep the industry growing

Instead of implementing an outright ban, the Philippines should focus on gradually developing its processing industry while maintaining open exports. By improving the ease of doing business, streamlining permit processes, and strengthening trade relationships—particularly with China and other key partners with favorable tariff rates—the country can help sustain mining companies, protect jobs, and attract new investments to keep the industry thriving.