THU 15 APR 2021

Mining Sector

Mining sector outlook improves as

government lifts moratorium on new
mines

Government lifts moratorium on new mines

The government today announced that the country has lifted its moratorium on the
development of new mines. Through Executive Order No. 130 signed by the President
on April 14, the government may now enter into new mineral agreements, subject to
compliance with the Philippine Mining Act of 1995 and other applicable laws, rules, and
regulations.

The lifting of the moratorium on new mines will significantly benefit the country’s mining
industry as this will allow mining companies to expand its operation as well as extend
the life of mines and companies whose mineral reserves are near depletion. Note that
expansion plans of many mining companies in the country have been put on hold since
2012 with Executive Order No. 79 which imposed the Moratorium on new mines.

NIKL to benefit from E.O. No.130

With the lifting of the moratorium on the development of new mines, NIKL will finally be
able to jumpstart the development of several nickel mining projects that is already in the
pipeline (but previously encumbered by E.O. 79). These projects include the Dinapique
nickel project in Isabela (33Mil WMT Saprolite, 46Mil WMT Limonite), the Bulanjao
project in Palawan (16Mil WMT Saprolite, 25Mil WMT Limonite) and the Manicani Project
in Eastern Samar (34.5Mil WMT Saprolite, 13Mil WMT Limonite). These projects have
a combined mineral resource estimate of 167Mil WMT, equivalent to 9 years of NIKL’s
annual shipment volume.

George Ching
Research Analyst
george.ching@colfinancial.com

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 ALERT I MINING SECTOR: MINING SECTOR OUTLOOK IMPROVES AS GOVERNMENT LIFTS
MORATORIUM ON NEW MINES

THU 15 APR 2021

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COL RESEARCH TEAM

APRIL LYNN TAN, CFA

VP & HEAD OF RESEARCH
april.tan@colfinancial.com

CHARLES WILLIAM ANG, CFA GEORGE CHING RICHARD LAÑEDA, CFA

DEPUTY HEAD OF RESEARCH SENIOR RESEARCH MANAGER SENIOR RESEARCH MANAGER
charles.ang@colfinancial.com george.ching@colfinancial.com richard.laneda@colfinancial.com

JOHN MARTIN LUCIANO, CFA FRANCES ROLFA NICOLAS JUSTIN RICHMOND CHENG, CFA
SENIOR RESEARCH ANALYST RESEARCH ANALYST RESEARCH ANALYST
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RESEARCH ANALYST RESEARCH ANALYST
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