DMCI nickel shipments drop as mines remained suspended

By BusinessMirror - August 16, 2017
http://www.businessmirror.com.ph/dmci-nickel-shipments-drop-as-mines-remained-suspended/

DMCI Mining Corp., a unit of DMCI Holdings Inc., said it saw a drastic drop in nickel shipments during the first half of the year, as its two operating subsidiaries remained suspended during the period.

The combined nickel shipments of Berong Nickel Corp. in Palawan and Zambales Diversified Metals Corp. fell 71 percent to 257,120 wet metric tons (WMT), from last year’s 873,371 WMT.

The shipped nickel ore came from stockpiles of the two firms as these have yet to start mining operations.

The Department of Environment and Natural Resources (DENR) has allowed suspended mining companies to ship out their stockpiles to limit the possible accumulation of silt in nearby bodies of water.

At the start of the year, Zambales Diversified had around 360,465 tons of ore stockpile, while Berong Nickel had 939,088 tons.

Average selling price of nickel ore during the first semester rose 27 percent, from $28 per WMT to $35 per WMT due to the shrinking stockpile in China coupled with the significant growth in stainless-steel production.

“We have 1,042,433 tons more in our stockpile but the rainy season and large sea swells will make it very difficult for us to make any further shipments,” DMCI Mining President Cesar F. Simbulan Jr. said. “Hopefully, our pending appeals will be resolved when the weather conditions improve.”

Both DMCI’s nickel mining firms were issued suspension and closure orders by the DENR mid-2016 and both have pending appeals to reopen with the Office of the President.

The DENR is also conducting a review of the mining audits that recommended the suspension or closure of several mining companies.