June 4, 2019 | 12:04 am
DMCI Mining
Corp. recorded a 118% increase in nickel ore shipments in the first quarter of
2019.
In a disclosure on
Monday, DMCI Holdings said its mining unit more than doubled its nickel ore
shipments to 338,000 wet metric tons (WMT) in the January to March period, from
156,000 WMT shipped a year ago.
“We had a good first quarter
but we do not see this holding up for the rest of the year due to a number of
factors, such as weak market prices, peso appreciation versus the US dollar and
our dwindling nickel reserves in Berong’s active mine sites,” Cesar F.
Simbulan, Jr., president of DMCI Mining, said in a statement.
DMCI Mining said the
shipments came from Berong Nickel Corp. (BNC), which has a nickel mining site
in Barangay Berong, Palawan. Another unit Zambales Diversified Metals Corp.
(ZDMC) is still suspended by the Department of Environment and Natural
Resources (DENR).
The company noted
average nickel grade fell to 1.59% in the first quarter, from 1.70% during the
same period last year, as BNC’s shipments included middle-grade ore (1.50%). It
said that nickel prices also continue to drop, bringing the average selling
price 25% lower to $29.
DMCI Mining said that
it expects a “tough” year ahead as its inventory will soon run out given the
current situation of its Zambales plant.
BNC has an estimated
nickel reserve of around 710,000 tons in its active mining sites. In December
2018, it was the only company that passed DENR’s two-year review.
“We hope that with
BNC’s track record as a responsible miner, it will be allowed to operate in
other areas so we can continue providing livelihood and employment
opportunities in our host communities,” he said.
Shares in DMCI Holdings
inched up 0.38% to P10.62 each on Monday. — V.M.P.Galang
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