By Mikhail Flores and Karen Lema
MANILA (Reuters) -The Philippines said on Friday it plans to add three more processing plants in the effort to develop a downstream industry for its abundant nickel resources, after countries including China and the United States expressed interest in the mining sector.
The Southeast Asian nation aims to follow the example of neighboring Indonesia, which attracted major investment in processing plants for its huge nickel ore deposits after banning unprocessed exports in 2020.
Environment Minister Maria Antonia Yulo-Loyzaga, whose agency also regulates mining, said the Philippines should increase its capacity to process nickel, a key component in EV battery production.
Australia, Britain, Canada and European Union countries have also shown interest in the Philippines, she said.
“We would like to be part of the value chain, not just the supply chain,” Loyzaga said in a briefing.
“We want to be able to foster an environment that encourages investment in processing, ensuring we are able to facilitate exploration and extraction responsibly.”
Ceferino Rodolfo, undersecretary of commerce, said the Philippines is targeting three more processing plants to increase its capacity and add value to its nickel production. He did not elaborate, however.
The country now has two nickel processing plants, both partially owned by the largest ore producer, Nickel Asia Corp.
Processing its nickel ore production would be an ideal scenario for the Philippines, said Economic Planning Secretary Arsenio Balisacan, and it was the right time as it seeks to add value to its mineral production.
“This issue of energy transition has made our critical minerals not only an economic value proposition, but it also has implications for energy security and national security,” Balisacan told journalists on the sidelines of a mining forum.
With its large unexplored mineral deposits, the Philippines is studying possible incentives for mining companies, he added.
The latest government figures show that the Philippines, a key supplier of nickel ore to top metals consumer China, produced 35.14 million dry metric tons last year, up 19% year on year.
(Reporting by Mikhail Flores and Karen Lema; Editing by Clarence Fernandez)
