The Senate approved a bill banning the export of raw minerals, aiming to develop local industries, create higher-value goods, and generate more jobs.
Senate President Francis Escudero introduced the amendment to Senate Bill 2826, which prohibits the export of unprocessed minerals. If signed into law, the measure will take effect five years after its enactment.
“What we are looking at is to shift our policy from merely exporting raw minerals that will be utilized by other countries to produce higher value products, to developing our own processing capabilities,” Escudero said.
“This will result in added value for our minerals-related exports, provide a much-needed boost to our economy, and generate employment for our people,” he added.
The proposed ban aligns with global trends, such as Indonesia’s prohibition on nickel ore exports in 2020 and bauxite in 2022, policies proven successful in boosting domestic industries.
The five-year implementation period is designed to give mining companies time to build processing plants and establish downstream industries. According to the Senate President, this timeline is critical for ensuring a smooth transition.
Demand for critical minerals, including nickel and copper, has surged globally due to the rise of green technologies like electric vehicles (EVs). These minerals are essential components in lithium batteries used in EV production.
“If we can harness the potential of these minerals here in the country, we can secure our place in the global supply chain, particularly in the production of EV batteries and maybe someday, our very own EV,” Escudero said.
The Philippines is one of the world’s largest producers of nickel ore, with 35.14 million metric tons mined in 2023. However, most of these resources are exported in raw form, limiting economic gains.
Escudero stressed that government support will be essential during the transition period to help industry players establish mineral processing facilities. He also urged stakeholders to work together for long-term economic growth.