The Philippine Congress is on the verge of ratifying a landmark bill that would ban the export of raw mineral ores. Senate President Francis Escudero expressed optimism that the bill could be finalized as early as June, with ratification occurring when sessions resume. This move has ignited a fierce debate, with industrialists in the country warning of widespread closures and economic disruption.

Philippines is a rich mineral source of copper, gold, nickel, zinc, and silver. The country is one of the world's most mineral-rich countries, but much of it is unexplored.

The proposed legislation will shift the Philippines from being a mere supplier of raw materials to a key player in the downstream mineral processing industry. The ban on raw ore exports has a grace period of five years and would take effect after the law is signed. Senator Escudero, the bill's author, believes this initiative will be a "game changer" for the Philippines that will allow it to capture greater value from its abundant mineral resources.

He cited Indonesia's successful strategy of banning nickel ore exports, which spurred a surge in domestic processing and a dramatic increase in export value. Escudero argues that the Philippines, despite its rich mineral deposits, has been undervaluing its resources by primarily exporting raw ore. He highlighted the fact that less than 3% of the identified mineral-rich land is currently being mined.

However, the proposed ban has met with strong opposition from the established mining industry. The Chamber of Mines of the Philippines and the Philippine Nickel Industry Association have issued a joint statement warning that the export ban will trigger widespread mine closures, leading to significant reductions in government revenue and devastating economic consequences for mining communities. They argue that the ban will disrupt existing supply chains, as many mining companies have long-term contracts and established relationships with international buyers. These companies contend that they will be unable to quickly establish processing facilities and that the ban will effectively shut down their operations.

The five-year grace period built into the bill is intended to mitigate some of these concerns, providing a window for miners to adapt. However, the industry argues that this timeframe is insufficient and that the ban will ultimately harm the Philippine economy.

As the Philippine Congress prepares to deliberate on this crucial piece of legislation, the eyes of the global mining industry are on Manila. The outcome of this debate will not only reshape the Philippines' mining sector but also have ripple effects across the international supply chain for key minerals like nickel.