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Indonesia’s ore export curbs, which started in January, have led to a Philippines mining boom.
Indonesia’s ore export curbs, which started in January, have led to a Philippines mining boom. The ban initially led to a two-year high in nickel prices in May, before larger-than expected Philippine exports and slowing Chinese growth reversed the rally.
As quoted in the market news:
Nickel Asia Corp (NIKL), the Philippines’s biggest producer, is among those gaining from the ban. Ore sales rose 38 percent in the first nine months, boosting profit more than fourfold to a record. Shares of the company have tripled this year as the Philippine Stock Exchange Index climbed 21 percent.
More companies are seeking permits, said Leo Jasareno, director of the Manila-based Mines & Geosciences Bureau. The office authorized two more nickel mines this year, including one for TVI Pacific Inc. pending for about 15 years, he said.
Michael Defensor, chairman of Pax Libera Mining Inc. and Philippines environment secretary from 2004 to 2006, stated:
Indonesia’s ban affected us positively. We will maximize this window and ship as much as we can.