PN 6, Part 2: Nickel potentials and Palawan

Part 2: Nickel potentials and Palawan

Bienvenido S. Oplas Jr.

May 10, 2026

https://palawan-news.com/part-2-nickel-potentials-and-palawan/

 

Nickel prices have increased recently, from $15,390/ton in end-May 2025 to $16,750 in end-December 2025 and $19,635/ton last May 5. The all-time high price of nickel was $48,226 on March 07, 2022 mainly because of the Russian invasion of Ukraine, and the latter is a major producer of high-grade nickel.

 

As discussed in Part 1 of this column, the Philippines is the second largest producer of nickel ore in the world after Indonesia, with an output of 330,000 tons in 2024. The country’s estimated nickel reserves is 4.8 million tons, so the reserves/production (R/P) ratio is only 15 years for the Philippines, 25 years for Indonesia, and 38 years for the worldwide average.

 

Prices of nickel sulfate in 2024 were back to 2019 prices at more than $17,000/ton, while cobalt prices have declined in 2024. Cobalt, lithium, and nickel are among the important materials in the production of electric vehicles; cobalt and nickel are for stainless steel and other industrial products.

 

While Caraga region in Mindanao has clear policy and geological

advantages in nickel production, Palawan has its own advantages too but the

policy environment is not friendly to new nickel mining projects.

 

I summarize the policy gap between the two here. This is an extension of

Table 2 in Part 1 of this column.

Both Palawan and Caraga face weather-related production limitations. Palawan’s southwest-facing coast makes it susceptible to the southwest monsoon (June–October), limiting the mining season to approximately November–July. Caraga facing the Pacific Ocean is exposed to typhoons and northeast monsoon conditions from October–March. In 2025, prolonged rains constrained operating days at both FNI’s Palawan and Surigao sites, reducing 9-month sales volume by 14.2% year-on-year.

 

From April 2020 to December 2024, 92% of Caraga’s nickel ore went to China. Palawan’s Ipilan mine are shipped exclusively to Guangdong Century Tsingshan Nickel Industry (GCTN) in China. There is high dependency in exports to China of Philippines nickel ore.

 

The 50-years new mining moratorium is not good for Palawan’s push for higher economic growth. It is good that the Philippine Nickel Industry Association (PNIA) has pointed out that the provincial moratorium is in conflict with the national Mining Act of 1995.

 

The Supreme Court has earlier struck down a 25-year mining moratorium imposed by Occidental Mindoro on the same grounds, citing the limited police powers of local government units over national resources. That precedent can apply to Palawan when the Provincial Ordinance is challenged before the courts. 

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See also:

PN 3, Coal plants in Luzon and Palawan, May 04, 2026

PN 4, Coal plants in Visayas-Mindanao and Palawan, May 16, 2026

PN 5, Part 1: Nickel potentials and Palawan, May 17, 2026