Nickel mining firms “anxious” over possible shutdown amid fuel supply crunch

Companies still confident in demand after record 55 million MT global export.

The country’s nickel industry is at risk of halting operations as mining firms face production and export uncertainties in the coming weeks due to the oil supply crisis.

Mining companies from the Philippine Nickel Industry Association (PNIA) said they are operating on just 15 to 30 days of fuel buffer and may be forced to temporarily suspend operations unless the government intervenes and prioritizes the mining sector for fuel subsidies.

Mining operations are highly fuel-dependent, with heavy equipment used in transporting and shipping materials nationwide.

Global demand vs. local reality

Used in producing stainless steel and EV batteries, nickel is a top national export product mined mostly in the Palawan and Caraga regions. In 2025, the Philippines accounted for 95% of global nickel ore exports, shipping around 55 million wet metric tons of the resource.

If it were not for the Middle East crisis, the PNIA said the industry was on track to expand this year as Indonesia ramped up its importation of Philippine nickel. Still, it said demand for the commodity remains strong despite current operational and logistical challenges.

Climate Rights International, a U.S.-based NGO, previously slammed nickel mining projects in the Dinagat Islands that led to deforestation and siltation of farms, rivers, and coastal areas. It also reported that people have been killed or harassed for speaking against nickel mining in the region.

 

 

Despite accounting for 95% of global nickel ore exports in 2025, Philippine mining firms warn of a total shutdown within weeks as fuel buffers run dry. Is the EV battery supply chain at risk?

 

 

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