Philippines to benefit from Indonesia’s nickel ore ban
While the Philippines could see a spike in nickel prices when it is able capitalize on Indonesia’s nickel ore ban, the government is unsure if the local sector will be able to meet the demand for high grade ore.
In an interview, Mines and Geosciences Bureau (MGB) director Wilfredo Moncano told reporters that Indonesia’s ban on nickel ore exports is an encouraging development for Philippine mining firms.
“It’s encouraging on the part of the nickel miners. I would also expect a spike or increase in the price of nickel,” he said.
Based on data from the MGB, nickel prices decreased to $12,316 per MT from $13,859 per MT in the first semester of the year.
This, however, is expected to rebound in the second half of the year.
“The positive outlook was motivated by expected economic growth and increased demand from China. The growing concern for possible disruptions in the operations of main nickel producers in the world market, coupled with the growing demand for electronic vehicles, will also push prices higher,” MGB said.
Moncano said while the Philippines is able to capitalize on the opportunity to be brought by Indonesia’s nickel ore export ban, he emphasized that the country may not be able to supply high grade nickel.
“We can capitalize on the opportunity. We have nickel. What’s worries me is if the market will insist on high grade nickel,” Moncano said.
He emphasized that most Philippine nickel output are more in the 1.3 percent to 1.4 percent nickel grade.
Read more at https://www.philstar.com/business/2019/09/19/1952992/philippines-benefit-indonesias-nickel-ore-ban#ufL4wzdJ6EIkHKSF.99