Part 3: Nickel potentials and Palawan
PROVINCES AND PROSPERITY
Bienvenido S. Oplas Jr.
June 04, 2026
https://palawan-news.com/part-3-nickel-potentials-and-palawan/
Compared to several other metals, nickel has higher global price, higher than copper, zinc, aluminum, lead and iron ore. Nickel prices this decade are triple than four decades ago. That alone plus rising global demand is a good market potential for expanding nickel production in the Philippines.
Extraction of nickel in the Philippines is mostly done via high-pressure acid leach (HPAL) but some players are looking at other technologies to improve efficiency and reduce costs.
Philippines nickel deposits are of the laterite type — nickel-bearing soils derived from tropical weathering of ultramafic rock near the surface — and are extracted by open-pit, direct-shipping methods.
Both Palawan and Caraga Region in Mindanao have shared ore type of Nickeliferous Laterite — iron-rich tropical soils formed by deep weathering of serpentinized ultramafic rock (peridotite). The laterite profile has two commercially important zones:
Limonite (oxide) zone: Upper layer, lower nickel content but important source of cobalt as a by-product. Easier to ship (lower moisture). Saprolite (silicate) zone: Lower layer, higher nickel content. More commercially valuable per ton, but higher moisture makes loading and shipping more complex.
The non-common characteristics of Palawan nickel vs Caraga Region nickel are here.
Higher nickel grades in Palawan give its ore a commercial premium. Ipilan’s maiden shipments in 2022 comprised exclusively high-grade ore above 1.5% Ni, and its 2025 production plan targets a mix of medium-grade (1.4%+) and low-grade (1.3%). Caraga’s larger-volume production typically falls below 1.2% Ni, positioned primarily for Chinese blast furnace ferronickel (NPI) production rather than battery-grade applications.
Among the hindrances to nickel mining in the Philippines are opposition by activists based on their emotionalism. A recent case is the Petition for a Writ of Kalikasan filed against a subsidiary of Hinatuan Mining Corporation (HMC) in Manicani island in, Guiuan, Eastern Samar.
Good decision by the Supreme Court last May 11 to junk the “Trial by sentiment” where legitimate, complying by law and regulated mining operations are harassed by legal challenges and noisy political allegations based on “general impressions,” “bare allegations,” and “pure speculation.”
In an assessment last September 23, 2025, the US government’s International Trade Administration said that “The Philippines is among the world’s most mineralized countries and remains the world’s largest exporter of nickel ore and the second-largest producer globally. With substantial reserves of copper, nickel, cobalt, and other critical minerals, the country plays a vital role in global supply chains for clean energy, electric vehicles (EVs), and semiconductors.”
They added that “The Philippines holds an estimated $170 billion in nickel deposits, among the largest in Southeast Asia, with processing opportunities in Zambales, Surigao, Dinagat, and Palawan. The country has approximately 4.8 million metric tons (MT) of nickel reserves, though further exploration may be needed to refine these estimates. Most nickel is exported as raw ore, highlighting opportunities for U.S. firms in expanding domestic refining and downstream processing.”
There are persistent moves to prohibit exports of nickel ore by the Philippines and move towards export of processed ores only in order to optimize revenues. While the intention is good, the economics of it is not yet mature. Mineral ore processing is very capital- and energy-intensive, two resources that we have scarcity. Plus there is need for high volume of nickel ores that must be processed.
The continuing yellow-red alerts in the Visayas grid in May-June 2026, the three-days yellow-red alert in Luzon grid in late May are proof of energy scarcity in the country. Like data centers, mineral processing energy intensiveness can further starve other areas and industry of the country of additional electricity supply.
So an important prerequisite for mineral processing is huge increase in power generation in the Philippines, especially in nickel-rich areas like Palawan and Caraga region. Palawan can start having big coal power plants, have power surplus to bring down the cost of electricity without relying on subsidies from all electricity consumers nationwide via the universal charge for missionary electrification (UCME).
Having huge power supply in Palawan would attract the investors, foreign and local, to do more nickel extraction and processing. Higher efficiency and revenues for the private players and people of Palawan can be expected then.
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