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Monday, February 17, 2025
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Monday, February 17, 2025

Miners oppose proposed ban on ore exports

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THE Chamber of Mines of the Philippines (COMP) and the Philippine Nickel Industry Association (PNIA) expressed their support for the fiscal provisions of Senate Bill (SB) 2826, but raised concern over the plan to impose an export ban on raw ores.

The Senate approved SB 2826 on second reading on Jan. 28, 2025.

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The bill suggests a mining tax system focused on margins and windfall profits, akin to House Bill 8937, which industry groups believe will align the Philippines with global mining standards and promote a sustainable, competitive industry.

“We support the fiscal provisions of SB 2826, understanding that a mining tax increase is inevitable. This system will help ensure a vibrant and sustainable mining industry, which is essential for the country’s long-term growth and development,” the groups said in a statement.

The groups reaffirmed their support for the government’s goal of a value-added mineral processing industry in the Philippines, but raised concerns about the proposed ban on exporting raw ores. The provision requires mining companies to build processing plants within five years or face an export ban on raw ores.

They said the ban would likely backfire and lead to unintended negative consequences. “A raw ore export ban will lead to mine closures and, consequently, to unemployment for hundreds of thousands of Filipino workers who rely on mining, directly or indirectly, for their livelihood,” the statement read.

The mining groups warned that the closures would negatively impact government revenue, reducing public funds available for infrastructure, social services and community development derived from taxes, royalties and fees collected.

They said the export ban would not only hurt the domestic economy but also disrupt global supply chains.

As the second-largest exporter of raw nickel ore globally, the Philippines plays a crucial role in the international mining trade.

The proposed export ban would interfere with long-term contracts and established supply chains, potentially leading to contractual disputes, penalties and a loss of trust in the Philippines as a reliable trade partner, the groups said.

COMP and PNIA urged a comprehensive study to assess the full economic and social impacts of the proposed ore export ban.

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