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UPDATE 1-Philippine nickel miners to restart coronavirus-shuttered sites

Published 04/28/2020, 03:30 PM
Updated 04/28/2020, 03:40 PM
FNI
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NIKL
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* Miners expect coronavirus restrictions to ease after April
30
* Mine shutdowns have disrupted Philippines' ore supply to
China
* Mine exec says difficult to forecast Philippines 2020 ore
output

(Adds quotes, other detail, background)
By Enrico Dela Cruz
MANILA, April 28 (Reuters) - The Philippines' top two nickel
miners said on Tuesday they expect to gradually resume mining
and shipping operations in the country's main ore-producing
region starting on May 1, following shutdowns to prevent the
spread of the coronavirus.
Nickel Asia Corp NIKL.PS and Global Ferronickel Holdings
Inc FNI.PS are preparing to restart operations in Surigao del
Norte in the southern Caraga region, where the restrictions are
expected to be eased after April 30, senior company officials
told Reuters.
Nickel Asia's Taganito and Hinatuan tenements and Global
Ferronickel's Cagdianao project are among several nickel mines
in Caraga that have stopped operations, disrupting supply and
boosting prices of the stainless steel-making raw material in
top buyer China. "Our two Surigao mines will start operating gradually,
initially under skeletal workforce starting on May 1," said
Emmanuel Samson, Nickel Asia's chief financial officer and
senior vice president.
Other nickel mines in Surigao del Norte and the entire
Caraga region may also resume operations next month, Samson
said.
"We are working it out to resume operations in May because
our area is just considered under GCQ starting May 1," said
Global Ferronickel President Dante Bravo.
He was referring to the less-restrictive General Community
Quarantine declaration by the government last week covering some
provinces outside the Philippine capital Manila.
The Philippines is poised to become the top supplier of
nickel ore to China this year after Indonesia stopped ore
exports in January, but mining executives are refraining from
making any output and shipment estimates.
"It's difficult to make a forecast at this point because
everything is uncertain," said Bravo, who is also president of
the Philippine Nickel Industry Association.
Nickel ore output last year in the Philippines, which has 31
operating mines, rose by 1% to 26.2 million dry metric tonnes.
Thirteen reported zero production in 2019 because they were
under maintenance or suspended due to environmental violations.


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