Philippines nickel sector can support only two or three processors, BoI says

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Philippines nickel processors limit

Highlights

BoI Executive Director Maria Corazon Halili-Dichosa states current Philippines nickel output can only viably support two to three processing plants.
Expansion of nickel processing is conditional on the development of new mining tenements, linking downstream investment to increased nickel ore supply.
Only 3% of 9 million hectares identified as potential critical minerals areas are developed, with reforms underway to streamline mining permit approvals via digital one-stop shops.

Processing limits and investment pipeline

As reported by BusinessWorld Online, the Board of Investments is cautioning against an excessive buildout of mineral processing facilities, with BoI Executive Director Maria Corazon Halili-Dichosa saying the country’s current nickel production is enough for only two to three processing plants.

Halili-Dichosa says the industry cannot viably support more nickel processing projects unless additional nickel ore becomes available through new mining tenements and further mine development. She says the government wants processing capacity to expand when new mining areas begin operating, linking downstream investment to a broader increase in feedstock supply.

She also says copper processing remains a BoI priority, even though the Philippines currently exports copper as ore. As an example of supply-chain misalignment, she points to the Philippine Associated Smelting and Refining Corp. in Leyte, which is currently dormant after laying off its workforce in 2025, adding that domestic copper ore had continued to be exported even when the facility was operating.

Permitting reforms and industry implications

BoI is waiting for the Mines and Geosciences Bureau of the Department of Environment and Natural Resources to issue streamlined rules intended to facilitate investment in the processing industry.

The National Policy Framework for Developing the Critical Minerals Industry under Executive Order 122 identifies 9 million hectares as potentially containing critical minerals, with only 3% developed so far. The Mines and Geosciences Bureau has been directed to streamline and digitize mining permits through a virtual one-stop shop for applications.

Halili-Dichosa says the energy sector could serve as a model for faster approvals. She points to renewable energy projects that were first designated as Energy Projects of National Significance, allowing proponents to use Green Lanes and other incentives, an approach that could shape permitting support for mining and mineral processing projects.

Previously, we outlined the main factors behind Philippine bond reforms, noting that market modernization alone may not unlock broader investment.

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