By Adrian H. Halili, Reporter

MINERS are expected to encounter stronger demand for major Philippine minerals like copper, nickel, and gold in 2025, industry officials said.

“We remain upbeat on nickel given that the rapid adoption of electric vehicles (EVs) and renewable energy technologies will undoubtedly drive demand in 2025 and beyond,” Michael T. Toledo, chairman of the Chamber of Mines of the Philippines (CoMP), said via Viber.

This outlook points to a recovery in nickel, after nickel ore production fell 12% year on year to 25.7 million dry metric tons (DMT). Value had also dropped 21% to P42.98 billion.

Mr. Toledo added that copper is expected to remain a catalyst for the de-carbonization effort, alongside nickel.

“(It) will demonstrate its increasing role as a vital indicator of global economic health,” he said.

According to the Mines and Geosciences Bureau, the value of metallic mineral production rose 3.17% to P195.92 billion in the first nine months of 2024.

Copper output jumped 44% to 280,718 DMT, while value increased 53% to P27.92 billion.

Nickel and copper remain top commodities for the manufacture of electric vehicles and renewable energy components.

On the other hand, Mr. Toledo said that gold prices are expected to hit $3,000 per ounce by mid-2025, citing expert forecasts.

“Given the geopolitical uncertainties posed by the US-China-Russia tensions and the Middle East conflicts, it could even reach over $5,000,” he added.

Gold production declined 4% in the nine-month period to 22,034 kilograms. On the other hand the value of gold produced rose 19% to P92.67 billion.

Mr. Toledo said that the global push towards net-zero is expected to slow with the start of US President-elect Donald J. Trump’s second term.

“We don’t know yet how the Trump presidency will affect commodity prices, particularly those of minerals needed for clean energy.  Experts, however, believe President-elect Donald Trump’s return will only slow, but not stop, the global drive towards net-zero emissions,” he added.

He said that the government also should include a “financial stability clause” in all mineral agreements to address the unstable mining business environment in the Philippines and reassure potential investors.

“This will guarantee continuity of mining operations and assure the sanctity of contracts, regardless of material adverse changes in government policy that would prevent mining contractors from performing their obligations,” he added.

Additionally, Mr. Toledo said that the potential passage of the new mining fiscal regime and the digitization of the Department of Environment and Natural Resources (DENR) application process were “welcome developments.”

The DENR has said it was planning to launch the digital application platform for mining permits this year to streamline processing.

The government is set to approve a law that will boost the government’s share of mining industry profits through a simplified five-tier royalty tax system.

Mr. Toledo said that addressing the problems faced by mining companies will “undoubtedly attract more mining investment and put us in a better position to participate in a significant way in both extraction and processing of minerals that are vital to the production of renewable energy products.”