LOWER NICKEL OUTPUT, HIGHER PRICES SEEN

Miners are expecting lower nickel output this year as weather disturbances and the shortage of vessels for transporting ore are projected to trim production by roughly 10 percent.

Philippine Nickel Industry Association president Dante Bravo, who is also the CEO of the country’s second-largest nickel ore producer Ferronickel Holdings Inc. (FNI), said these two factors would likely drive nickel output down despite a favorable performance in the first semester.

Between January and June, nickel accounted for 53.44 percent of the country’s metallic mineral production worth P36.68 billion. The second half of the year may not be as rosy.

“There has been a lot of rain this year. [This is the] first time we’ve seen it in our operations. We’re down by 10 percent of our target and we will not be able to meet it this year,” said Bravo.

The state weather bureau said the La Niña phenomenon would develop in the last quarter of the year and persist until early next year. Just weeks ago, Severe Tropical Storm “Maring” registered a record-high amount of rainfall in Northern Luzon.

The shortage of vessels is another factor that has been hampering the transport of nickel overseas, he added. From an average of 100 vessels deployed yearly, Bravo said FNI might only reach 90 vessels this year.

“Because most mining companies that produce nickel for export within the region share the same weather pattern, production will be down overall. Every year is about 25 to 30 million dry metric tons or about 40 million DMT. It’s going to be slightly down in terms of volume,” Bravo added.