MGB sees ‘minimal effect’ of copper tariff on Philippines

MANILA, Philippines — The imposition of a 50 percent tariff on copper by the US may force local producers to find alternative markets to offset potential losses and adjust to anticipated global price volatility, the Mines and Geosciences Bureau (MGB) said.

The MGB said the impact of the new US tariffs, which will take effect on Aug. 1, will be “modest” in the short term given the Western economy’s “small” share in the country’s copper exports.

Nonetheless, movements in the global copper market caused by the tariffs will still have an impact on local copper miners, the MGB added.

“The tariff may lead to copper price volatility, which could affect the revenue of Philippine producers,” the MGB added.

The three-month copper futures on the London Metal Exchange fell to $9,645 per metric ton on July 11 from $10,015 per MT on July 3 following Trump’s copper tariff announcement.

The US tariffs may encourage the local copper industry to focus on value-added activities like refining and downstream investments to improve the country’s overall competitiveness in the long-term, the MGB said, citing the Chamber of Mines of the Philippines.

“Philippine copper producers may need to adjust their production strategies to remain competitive in the global market,” the MGB, an attached agency of the Department of Environment and Natural Resources, said.

The MGB said it is committed to the sustainable development of the country’s copper industry, recognizing the metal’s “crucial” role in the global transition to clean energy. It added that it will continue to monitor the global copper market situation and work with industry stakeholders to ensure long-term viability and sustainability of the mining sector.

The MGB noted that there are three copper mines operating in the country today - OceanaGold Philippines Inc., Philex Mining Corp. and Carmen Copper Corp. - all of which are or part of publicly listed companies.

In 2024, the three mines produced 256,769 dry metric tons (DMT) of copper with an estimated value of P27.24 billion, according to MGB.

The country exported 262,657 DMT of copper last year worth P26.9 billion to China, South Korea, India and Japan, which are the country’s top markets, MGB added.

MGB noted that copper ores and concentrates accounted for one percent of the country’s total exports last year.

Global copper prices last year rose by 7.73 percent year-on-year to $4.11 per pound driven by higher demand for the metal caused by the global transition to clean energy, persistent supply constraints and speculative interests, according to MGB.