Philippine nickel producers warned of possible shutdowns if fuel supply disruptions worsen, as the industry is likely to fall below government priority sectors during a prolonged crisis.
In a briefing Thursday, the Philippine Nickel Industry Association said fuel would be diverted first to essential services such as food and power in the event of severe shortages driven by global conflict, leaving mining operations vulnerable to stoppages.
“Is mining on the top of that list? I personally don’t think so. Naturally, a shutdown would have to occur,” said PNIA board director and DMCI Mining Corp. president and chief operating officer Tulsi Das Reyes, noting that the sector grapples with rising fuel costs and uncertainty over supply availability amid geopolitical tensions, including the Iran conflict.
Despite a strong 2025 performance, when nickel exports reached a record 63 million tons, miners said the near-term outlook is increasingly fragile.
Fuel inventories across companies typically cover only 15 to 30 days of operations, exposing the industry to disruptions beyond that window.
“We don’t know where the next 60 to 90 days of operations may come from,” Reyes said, adding that companies are now bracing for potential supply gaps.
PNIA director and Nickel Asia Corp. president and chief executive Martin Antonio Zamora said higher fuel prices — from about P70 to P115 per liter — have already increased costs by around $3 per wet metric ton. While still manageable, further increases could push some operations into unprofitability.
“If it doubles, then that’s already $6 or more. I’m not sure some mines will still be profitable at that point,” he said.
Zamora stressed that supply availability remains the bigger concern, noting that the industry requires roughly 10 million liters of fuel monthly to sustain export volumes.
Mining firms are exploring stopgap measures such as expanding fuel storage, securing alternative suppliers and coordinating with nearby operations, but these may offer only limited relief if disruptions persist.
Industry players are urging the government to consider mining in fuel allocation plans, citing its role in generating export revenues, supporting the peso and providing jobs in rural areas.
Without policy support, executives said the industry may be forced into intermittent or full shutdowns if fuel shortages deepen.
