Mining shutdown looms as Middle East war stalls fuel supply

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March 27, 2026 | 12:00am

MANILA, Philippines — The country’s mining industry faces the risk of shutdown if no additional fuel supplies are secured amid the escalating Middle East war, the Philippine Nickel Industry Association warned.

PNIA director Tulsidas Reyes said mining operations could grind to a halt if the Philippines runs short of fuel, which is vital for the industry.

“If that were to happen, is mining on the top of that (priority) list? I personally don’t think so. So naturally, a shutdown would have to occur. There’s no other choice,” he told reporters yesterday.

Reyes, also president of Consunji-led DMCI Mining Corp., said the limited fuel stockpiles have sparked uncertainties for mining firms, adding that the shortage is beyond their control.

“We’re just anticipating, forecasting and analyzing what we can control. There’s nothing we can do right now,” he stressed.

As of March 20, the country’s oil stocks were sufficient for just 45 days, latest Department of Energy data showed.

DOE Secretary Sharon Garin said the Philippines is rushing to secure new fuel stocks amid tightening supplies in international markets, particularly in the Middle East.

Iran continues to block shipments in the Strait of Hormuz, a major trade route for around 20 percent of the world’s oil and gas supplies.

Martin Antonio Zamora, PNIA director and Nickel Asia Corp. president and CEO, said rising fuel prices could hit both mining operations and profit margins.

“I’m not sure that some of the mines will be profitable at that point. But I think the bigger issue is not the (fuel) price but the availability,” Zamora said.

He noted that most mining companies rely solely on major local oil firms for their fuel supplies.

“We don’t have a contingency plan (beyond) 30 days,” Zamora said.

In the Philippines, miners rely heavily on fuel to power the machinery and equipment vital to their operations such as drilling.

Given this, PNIA president Dante Bravo is hoping the government will include mining among the “priority” industries amid the Middle East crisis, highlighting its benefits to local communities and the economy.

“We are an export business. We are going to play an important role in stabilizing foreign exchange rates and generating jobs in remote areas,” he said.

Currently, the Philippines ranks sixth globally in nickel reserves and remains a key supplier to global markets.

In 2025, PNIA member companies produced a total of 25.9 million dry metric tons of nickel ore, accounting for around 69 percent of the national output.