Wednesday, June 21, 2017

DMCI Mining lowers nickel shipment forecast for this year



Posted on May 17, 2017

THE mining arm of DMCI Holdings, Inc. (DMCI) cut its initial projection of nickel ore shipments for 2017, citing adverse weather conditions.
DMCI Mining had earlier expected to ship 800,000 wet metric tons (WMT) of nickel ore this year, but has lowered this to 500,000 WMT as the early onset of the rainy season might hamper operations.

“(The initial projection) was considering we had output in the second quarter... But now we’re nearing the second quarter and we haven’t been able to produce yet. Then after that comes the rain, which would make it even more difficult to start production,” DMCI Mining President Cesar F. Simbulan, Jr. said in a press briefing after the firm’s annual stockholders’ meeting in Makati on Tuesday.

The Consunji-led company has so far made three shipments of nickel ore in the first quarter, amounting to 158,000 tons from stockpile in Zambales, which translates to P299 million in revenues.

Mr. Simbulan said the company has yet to produce for the second quarter, adding that the start of the rainy season next week would affect operations.

“That’s not good news for us. Even if we can operate, we are very limited because we are very vulnerable to weather, to rain, specifically,” he said, adding that the drop in global nickel prices is also weighing on the company. -- A.B. Francia

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