Nickel Laterites

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About a tenth of the world’s nickel supply is at risk after the Philippines widened a crackdown on miners, raising the chances of prices rallying by another 25 percent through 2017, according to UBS Group AG, which had already billed the metal as one of its favored commodities.

The market is reeling after the Philippine government threatened to close another 14 mines last week, pending responses to an environmental audit. Of 41 operations reviewed — the majority of them nickel-producing — about three-quarters have been halted or told they need to come up to scratch.

That puts 55 percent of Philippine nickel output, or 11 percent of global supply, at risk of exiting the market, according to UBS. Shutdowns raise the chances of nickel reaching $6 a pound, or $13,228 a metric ton, by the end of next year, analyst Daniel Morgan said by phone from Sydney on Friday.

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The Philippines said three-quarters of its mines fell short in an audit of the top nickel producer, with 20 mines facing suspension unless they can respond to shortcomings within days, on top of the 10 already halted. Nickel went on a switchback ride, flipping from losses to a six-week high.

The mines already shut, together with those now recommended for suspension, accounted for 56 percent of nickel production by value last year, Environment Undersecretary Leo Jasareno told reporters in Manila on Tuesday. He presented the findings of the checkup at a briefing with Environment Secretary Gina Lopez, saying only 11 mines had passed. The country has 41 metallic mines, mostly nickel, together with suppliers of copper and gold, according to a revised presentation by the government.

Mines recommended for suspension will be allowed to operate as normal until a final decision in about two weeks, according to Jasareno. Lopez plans to meet on Thursday with miners that haven’t passed the test, before making a final decision on their status, as well meeting with those that did.

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MANILA – The Philippines has ordered the suspension of 20 more mines for environmental violations, as the world’s top supplier of nickel ore vowed to pursue stricter standards than in global mining centers such as Canada and Australia.

Most of the mines were nickel producers and the news sent global prices up more than 1 percent on Tuesday, helping the metal recover from earlier losses amid worries over disruption of supply to the important Chinese market.

President Rodrigo Duterte has warned that the Philippines could survive without a mining industry and 10 mines have already been shuttered as part of an audit completed last month.”I am not against mining but I am definitely against the adverse effects that may happen, that are happening in some of the situations,” Environment and Natural Resources Secretary Regina Lopez told a briefing.

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MANILA – A dozen more Philippine mines, mostly nickel projects, are in danger of being suspended in an ongoing environmental crackdown on the sector, an environment undersecretary said on Wednesday.

The Southeast Asian nation, the world’s top supplier of nickel ore, has already halted the operations of 10 mines, eight of them nickel producers, for environmental lapses since it launched an audit in July, stoking increases in global prices.

A total of 40 large-scale metal mines in the country underwent an audit launched on July 8 by Environment and Natural Resources Secretary Regina Lopez as she sought to stop what she claims is irresponsible mining from harming the environment.

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MANILA – The Philippines could suspend at least 10 more mines under an environmental crackdown on the sector, the minister in charge of mining said, in a move that threatens to halt the operations of half the mines in the world’s top supplier of nickel ore.

Global nickel prices jumped 2 percent as the country’s second-biggest nickel producer warned that more new stoppages would disrupt shipments to the crucial Chinese market and elsewhere.President Rodrigo Duterte has taken a tough line on the industry and warned the nation could survive without mining, while mineral producers have labeled a review of the sector a “demolition campaign”.

The Philippines has already halted the operations of 10 mines, eight of them nickel producers, for environmental lapses since it launched an audit on July 8.That has left 30 mines still operating, but Environment and Natural Resources Secretary Regina Lopez said others could be suspended when the agency releases the results of the mining audit on Thursday.

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MANILA – Philippine miners facing more mine suspensions under an environmental review backed by President Rodrigo Duterte have stepped up their criticism of the process, questioning the inclusion of anti-mining activists in the review teams.

The world’s top nickel ore supplier has halted operations of 10 mines, eight of them nickel, for environmental infractions, and the government has said more suspensions will be announced this week. The crackdown is aimed at enforcing stricter environmental protection measures, with Duterte warning the nation could survive without a mining industry. But miners have labeled the review a “demolition campaign”.

The Chamber of Mines of the Philippines, which groups 21 of the country’s 40 metallic miners, said it had “trouble appreciating” the inclusion in mine audit teams of groups such as Alyansa Tigil Mina (ATM), which translates to Alliance To Stop Mining.

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Shipments of nickel ore from the Philippines may shrink by as much as 30 percent this year as the world’s top supplier cracks down on errant miners and after some companies cut output in the first half due to weak prices and poor weather, according to the head of one of the biggest producers.

Volumes are expected to drop at least 20 percent compared with a year earlier, Dante Bravo, president and chief executive officer of Global Ferronickel Holdings Inc. said in an interview. The suspension of mines during an audit initiated by new President Rodrigo Duterte means that more than 100,000 metric tons of contained nickel production have been lost, Bravo said, citing a company estimate.

“This audit is a follow-through of what President Duterte said during the campaign, that he will take a look into mining,” said Bravo, adding that Global Ferronickel’s operations had been assessed and “we have complied with everything.”

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The global nickel market will discover the severity of the Philippines’ mining audit next Thursday as President Rodrigo Duterte’s government presents the findings of the checkup and announces support for communities affected by any further suspensions. Benchmark prices surged.

The audit in the world’s largest mined nickel supplier has been completed after 16 teams fanned out across the country to assess compliance with environment and welfare rules, according to Leo Jasareno, the official in charge of the examination. The results and community-support program will be presented by Environment Secretary Gina Lopez, Jasareno said in an interview in Manila.

“It’s not about money, it’s about happiness,” said Environment Undersecretary Jasareno, a former head of the mines bureau with almost four decades’ of experience in the industry. The government and Lopez “would not want to see a mine profitably operating but filled with complaints,” he said.

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LAUNCESTON, AUSTRALIA – Is nickel’s current rally sustainable or is the metal merely having a strong run because market participants are more focused on the environmental crackdown in top ore miner the Philippines, rather than on the surge in Indonesian ferronickel exports?

No doubt nickel is one of the strongest commodity performers this year, with benchmark London futures rising 13.3 percent from the end of last year to the close on Wednesday.

The bulk of that rally has come in the past three months as new Philippine President Rodrigo Duterte and his hard-line environment secretary Regina Lopez cracked down on alleged environmental abuses by the mining industry.

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