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Philippine lawmaker sees five-year grace period before ore export ban – by Enrico Dela Cruz (Reuters U.S. – September 9, 2014)

http://www.reuters.com/

MANILA – (Reuters) – A proposed Indonesia-style ban on exports of unprocessed metal ores from the Philippines may not be implemented for about seven years, the proponent of a bill before Congress said on Tuesday, potentially easing pressure on nickel prices.

Congressman Erlpe John Amante said a law aimed at forcing miners to process raw minerals before export could take two years to be enacted, while miners deserved a five-year grace period before mandatory domestic processing took effect.

News last week of the proposed legislation has unsettled the nickel market, which was caught off guard when Indonesia banned nickel ore exports in January. Nickel jumped 7 percent in four sessions to Monday’s close and is up 41 percent this year.

The Philippines currently supplies China with virtually all of the nickel ore that it uses to make nickel pig iron, a raw material used by steelmakers, following the Indonesian ban.

Amante said the Philippines could triple its revenue from mineral exports if his bill, which was filed in July and has been approved at the committee stage in the lower chamber of Congress, becomes law. A matching bill was filed in the upper house Senate in late August.

“We’ve started the ball rolling so I’m very hopeful with the timeline,” he said in an interview with Reuters in his office in Congress, adding that he hoped the bill would become law within two years.

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COLUMN-Proposed Philippines minerals ban spooks nickel – by Andy Home (Reuters India – September 10, 2014)

http://in.reuters.com/

The opinions expressed here are those of the author, a columnist for Reuters.

(Reuters) – News that the Philippines was preparing to follow Indonesia in banning exports of unprocessed minerals caused panic in the London nickel market last week.

The Philippines has emerged as the main supplier of nickel ore to China’s massive nickel pig iron (NPI) sector after the cessation of exports from Indonesia. The threat that this flow too would be cut off appeared to represent a dramatic acceleration of an already bullish story.

Until it emerged on Tuesday that any Philippines ban is several years away. On the London Metal Exchange (LME) benchmark three-month nickel collapsed by $1,000 per tonne to $18,925 on Tuesday, wiping out the gains notched up over the previous days.

However, the market might be overly complacent about the apparently extended time-line before any Philippines ore ban, if it’s collectively assuming that events in that country will mirror those in Indonesia.

What is less in doubt is what the recent price roller coaster says about the bullish mindset in this market, particularly its responsiveness to supply-side news.

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Nickel price rally still has a long way to go – by Frik Els (Mining.com – September 9, 2014)

http://www.mining.com/

Indonesia, supplying more than a fifth of global exports, surprised the mining world in January by putting into effect an outright ban on nickel ore exports.

Initially record warehouse inventories, massive stockpiling by Chinese pig iron producers and growing mine supply kept a lid on the price which was languishing at near five-year lows below $14,000 a tonne at the start of the year.

But the Asian nation, against expectations, stuck to its guns and the ban, in combination with fears that tensions with Russia could affect supply from top miner Norilsk, sent the price of the steelmaking ingredient above $20,000 in May.

The price subsequently pulled back from those levels, but last week saw nickel take another stab at $20,000 a tonne after the Philippines – the only other source in the region of high-grade laterite ore required by China and responsible for 9% of global mine supply – hinted that it may follow Indonesia’s playbook.

Even before suggestions of an ore export ban Philippine supply has been sketchy

Nickel was last trading at $18,750 and is up 35% in 2014, but expectations are for the price to appreciate sharply this year and next. Capital Economics, a research house, says Chinese pig iron makers are likely to have run down their stocks by the first half of next year.

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Tsingshan eyes first Indonesian nickel pig iron output in Jan – by Fergus Jensen and Melanie Burton (Reuters U.S. – September 4, 2014)

 http://www.reuters.com/

JAKARTA/SYDNEY – (Reuters) – China’s Tsingshan Group expects to start production at its Indonesian nickel pig iron smelter as soon as January, becoming the second plant to ramp up since the country’s new mineral processing laws came into force at the start of the year.

“Hopefully by October or November we will have started commissioning,” said Slamet Panggabean, finance manger of Tsingshan’s local joint venture partner Bintang Delapan Mineral, referring to the firm’s pilot smelter project in Morowali on the Indonesian island of Sulawesi.

“The plan is for production (to begin) in January or February.” As part of a strategy to reap more value from its mineral wealth, Indonesia banned ore exports in January as it pushed its nickel and copper miners to set up metal processing plants. The move has driven up London Metal Exchange nickel prices by a third so far this year.

Stocks of nickel pig iron at China’s stainless steel makers are running down, leaving them exposed to a supply gap next year and fuelling the need to build smelters in Indonesia as quickly as possible.

Tsingshan, China’s second largest stainless steel company, was one of the few firms to act when the law was enacted in 2009 and is well ahead of other nickel pig iron producers, many of which held back on hopes the ban would be rolled back.

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UPDATE 1-Philippines Senator files bill to ban mineral ore exports – by Rosemarie Francisco, Erik dela Cruz and Melanie Burton (Reuters India – September 3, 2014)

http://in.reuters.com/

(Reuters) – A Philippine senator has filed a bill urging a halt to exports of unprocessed mineral ores, similar to a ban introduced by Indonesia that led to a sharp spike in nickel prices and cut exports of other ores.

The Philippines, which has vast but largely untapped mineral resources, has been looking at ways to raise the contribution of mining to its economy.

The bill, filed in late August by Senator Paolo Benigno Aquino, a first cousin of President Benigno Aquino, would require domestic processing of all minerals extracted in the country prior to export if passed into law.

This may require nickel miners, for example, to build more smelters to process the ore before shipment. Some ores are shipped directly to China and Japan for processing.

The Philippines currently has two processing plants for nickel, both owned by the country’s top producer Nickel Asia Corp, two for gold, and one for copper, according to the Mines and Geosciences Bureau.

Paolo Benigno Aquino is one of 24 members of the upper house Senate, which is dominated by allies of the president. “This measure seeks to generate more domestic income, attract more investments, and lead to more jobs and livelihood for the Filipino people,” the bill said in its explanatory note.

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Vale, Glencore break off talks over Canada nickel deal: sources – by Silvia Antonioli (Reuters U.S. – September 2, 2014)

http://www.reuters.com/

LONDON – (Reuters) – Vale (VALE5.SA) and Glencore (GLEN.L) have broken off talks over combining their nickel assets in Canada in a deal that could have produced over $1 billion in annual cost savings, sources close to the matter said.

The discussions over linking the two companies’ neighboring nickel mining and processing facilities in the Sudbury basin in southeast Canada broke down partly due to disagreement over how to share the costs and savings and to worries about government and labor union reaction to potential job cuts and shutdowns, the sources said.

At the same time, a recovery in nickel prices has made cost rationalization less urgent, they added.

“Both sides more or less agreed on what the optimum structure of a combined Sudbury business would look like, but to enable that to be created, very difficult decisions needed to be taken, and the appetite or the ability to take those decisions was not there,” a source with knowledge of the situation said.

Glencore and Vale declined to comment. One of the sources said differences in corporate culture — with Swiss-based trader and mine operator Glencore more willing to take risk and Brazilian miner Vale more conservative — also played a role.

A combination of the nickel assets in Canada had already been attempted by their previous owners, Inco and Falconbridge, which in the mid-2000s came close to an agreement before they were acquired by Vale and Xstrata.

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Mine sleuths keen for their nickel – by Paul Garvey (The Australian – September 2, 2014)

 http://www.theaustralian.com.au/business

BILL Amann and Adrian Black have been involved in many of the key nickel discoveries in Australia’s recent history, but the pair has one major regret: not loading up with shares in the companies for which they were working.

The exploration resumes of the two geology and geophysics consultants make for impressive reading. Their consultancy, Newexco, was involved in the early stages of major nickel discoveries such as Western Areas’ Spotted Quoll and Flying Fox deposits and the barnstorming Nova nickel discovery of Sirius Resources.

Their work has helped create billions in shareholder wealth, but their exposure to those riches has generally been limited to their consulting fees.

Now the pair is backing themselves to continue their magic run of exploration success, and have opted to ease their long-held policy of not taking shares in their clients.

The Newexco founders are taking shares in little-known company Mining Projects, a minnow gearing up for a nickel exploration program east of Kalgoorlie. So far, Mining Projects has found little love beyond the ­technical boffins — it has a paltry market capitalisation of just $10 million.

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Glencore Mine in Doubt After Dominican Park Bill Passes – by Bill Faries (Bloomberg News – August 28, 2014)

http://www.bloomberg.com/

The future of Glencore Plc’s (GLEN) shuttered ferro-nickel mine in the Dominican Republic was cast into doubt after passage of legislation declaring the region surrounding the mine a national park.

The Senate approved a measure yesterday creating a protected area at Loma Miranda, home to the Falcondo mine. Glencore, led by billionaire Chief Executive Officer Ivan Glasenberg, called for “rationality” in decision-making on the mine’s future, the Baar, Switzerland-based company’s local unit said in a statement today.

The cost of permits to operate the mine will rise if the national park legislation is signed into law by President Danilo Medina. Affected landowners will be compensated, according to the bill. The mine, which Glencore acquired in 1956, contains 19.3 million tons of minerals.

“With operations at Loma Miranda, the Dominican economy would receive some $5.7 billion during the next 20 years,” according to the statement. “Where will those resources come from now?”

The Caribbean nation’s government has clashed with mining companies in recent years over royalties and environmental regulations. Dominican customs agents held up shipments from Barrick Gold Corp. (ABX)’s $4 billion Pueblo Viejo mine last year after Medina called the company’s concession “unacceptable.” Glencore temporarily shuttered the Falcondo mine last year due to low global nickel prices.

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Glencore, Jinchuan frontrunners to buy BHP’s Nickel West – by Sivia Antonioli and Polly Yam (Reuters U.S. – August 27, 2014)

http://www.reuters.com/

LONDON/HONG KONG – (Reuters) – Commodities trader and miner Glencore (GLEN.L) and Chinese nickel producer Jinchuan Group are the frontrunners to buy BHP Billiton’s (BHP.AX)(BLT.L) Australian Nickel West division, two sources close to the situation said.

BHP, the world’s largest mining company, announced plans last week to spin off businesses worth an estimated $16 billion but said that Nickel West in western Australia would not be part of the demerged group.

Chief Executive Andrew Mackenzie has said the company was in talks with potential buyers for all or part of Nickel West.

Estimates of the value of Nickel West vary greatly, with some analysts and industry sources putting it at anything up to $1 billion and others tagging negative figures to an asset they say is burning cash. “It’s a race between Glencore and Jinchuan now,” the first source said.

Jinchuan is “very interested” in Nickel West and plans to ship about 30,000 tonnes of nickel concentrate to China if it takes over the business, said the China-based second industry source, who had been briefed about the plan but declined to be named because of the sensitive nature of the matter.

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Nickel region on edge as BHP looks for exit – by Paul Garvey (The Australian – August 23, 2014)

http://www.theaustralian.com.au/business

AS a lifelong resident of the Kambalda region, shire president Mal Cullen has watched the fortunes of the town wax and wane in line with the price of the nickel that has been pulled out of the ground there for almost 50 years.

The residents of Kambalda, in Western Australia’s Goldfields, have become accustomed to the volatility of the nickel price and the impact it can have on their lives. But just as the nickel price appeared to be starting to emerge from years in the doldrums, BHP’s decision to get rid of its assets in the region has brought a new level of uncertainty to the town.

BHP surprised the market when it opted to exclude its Nickel West division from the spin-off it announced this week, with BHP chief executive Andrew Mackenzie instead saying the group would push ahead with a long-running trade sale that is yet to flush out a deal. The assets were deemed to be too mature and too marginal to be lumbered into the spin-off. The failure to find a new owner so far, coupled with their exclusion from the spin-off, leaves the assets looking like the orphan that nobody wants.

For the people of Kambalda and the smaller nickel miners that feed ore into the Nickel West concentrator and smelter, the idea the operations could be shut down ­altogether is difficult to comprehend.

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Sudbury mining deal worth $1.25 million – by Staff (Sudbury Star – August 13, 2014)

The Sudbury Star is the City of Greater Sudbury’s daily newspaper.

Sudbury Platinum Corporation has announced plans to purchase CaNickel Mining Company Limited’s 100% interest in the Aer-Kidd Project in Sudbury for $1.25 million.

“(Sudbury Platinum Corporation’s) interest in the Aer-Kidd Project has grown over a number of years as we continue to develop, pursue and evaluate (nickel, copper and platinum group metals) opportunities in the prolific Sudbury region,” company CEO Scott McLean said in a release.

“The targets that have been recently identified on the Aer-Kidd property are very compelling and have resulted in the company’s decision to purchase CaNickel’s interest.”

The Aer-Kidd property is located 20 km southwest of downtown Sudbury and covers a 1.4-km section of the Worthington Offset Dyke in an area with a rich mining history, dating back to the 1800s.

The property is close to Vale’s Totten Mine and KGHM’s Victoria Mine project. The Aer-Kidd property hosts the former producing Howland Pit, Robinson and Rosen mines, which were small deposits exposed at surface that were mined down to a maximum depth of 300 metres.

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Nickel’s 56% Rally Spurs Mine Restarts Amid Ore Ban – by Phoebe Sedgman and Ben Sharples (Bloomberg News – August 12, 2014)

http://www.businessweek.com/

Indonesia’s ban on nickel ore exports is resonating globally as prices climb to the highest since 2012, prompting companies from Avebury Nickel Mines Ltd. to Poseidon Nickel Ltd. to restart operations at idled mines.

Avebury, based in Perth, plans to reopen a deposit in Tasmania six years after it was mothballed. Poseidon is preparing to resume production at a mine in Western Australia, while Panoramic Resources Ltd. may restart mining at its Copernicus deposit in the same state. More producers globally may reactivate facilities as prices extend gains, according to OAO GMK Norilsk Nickel, the world’s largest supplier.

Nickel, used to make stainless steel, rallied as much as 56 percent this year to $21,625 a metric ton after Indonesia halted ore exports in January to compel investment in local processing plants. While the restarted mines such as Avebury’s will add to supplies, the additional production won’t be enough to prevent the global market from dropping into a deficit, with Goldman Sachs Group Inc. to BNP Paribas SA forecasting higher prices.

“Australia is certainly at the forefront of the potential for restarts,” said Stephen Briggs, a metal strategist at BNP Paribas in London, the second most-accurate nickel price forecaster in the eight quarters to June, according to rankings compiled by Bloomberg. “Nickel is one of my top picks,” he said in an Aug. 4 interview, describing $25,000 as plausible.

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Indonesia ban on nickel ore, bauxite exports to stay – officials – by Fergus Jensen (Reuters India – August 11, 2014)

http://in.reuters.com/

JAKARTA, Aug 11 (Reuters) – Indonesia has no plans to wind back a seven-month old ban on exports of unprocessed nickel ore and bauxite that has led to billions of dollars in planned investments in smelters, top government officials said.

Indonesia – previously the world’s top exporter of nickel ore and a major bauxite producer – effectively halted all but processed metal shipments in January in an effort to force miners to build smelters, winning the country bigger returns from exports of its mineral resources.

Last month the government allowed a handful of firms producing partially processed minerals such as copper concentrate, including Freeport McMoRan Inc, to resume exports.

However, Indonesia’s chief economic minister Chairul Tanjung said the same rationale does not apply to unprocessed exports of nickel ore and bauxite.

“Nickel is different because if you are smelting in Indonesia the added value is much higher than copper,” Tanjung
told Reuters in a recent interview. “Because of that it’s a separate issue.”

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Nickel Stockpiles at Record High as China Turns Exporter – by Agnieszka Troszkiewicz (Bloomberg News – August 6, 2014)

http://www.bloomberg.com/

Nickel inventories in warehouses monitored by the London Metal Exchange extended gains to a record after China, the biggest producer and consumer, shipped more metal out than it imported amid a financing scandal.

Stockpiles climbed to 317,874 metric tons, for a 21 percent increase this year, according to the LME data. Exports of refined nickel from China almost tripled in June to 16,737 tons, exceeding imports for the first time ever by 5,723 tons, customs data show. Nickel is used to make stainless steel.

“The recent build is probably attributable to the pick-up in refined nickel exports that came out of China,” Nicholas Snowdon, an analyst at Standard Chartered Plc in London, said by phone. “That is most likely related to some constraints on financing.”

Nickel has gained the most of the six main metals on the LME this year, rising as much as 56 percent after the largest miner Indonesia banned exports of unprocessed ore, a raw material used to make a lower-grade nickel substitute known as nickel-pig iron. Refined nickel production will exceed demand by 44,200 tons this year before turning into shortage of 97,100 tons in 2015, according to Morgan Stanley.

Prices have pared gains to 35 percent this year, to $18,730 a ton, on speculation that supplies are sufficient for now as stockpiles climbed to a record.

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15,000 Oregonians sign petition opposing nickel project – by Dorothy Kosich (Mineweb.com – August 6, 2014)

http://www.mineweb.com/

More than 15,000 Oregonians have signed a petition advocating the withdrawal of lands, located in SW Oregon watersheds, from mining and exploration.

RENO (MINEWEB) – More than 15,000 petition signatures, in favor of a mineral withdrawal for public lands in southwest Oregon watersheds, were delivered Tuesday to the U.S. Forest Service and the Bureau of Land Management to be presented to the U.S. Secretaries of Interior and Agriculture.

The named “critical” watersheds include the North Fork Smith River, Baldface Creek, Rough & Ready Creek, and Hunter Creek.

“These signatures build upon the request of a broad coalition of local and national conservation groups to withdraw these public lands from mining in response to proposals for nickel strip mining in the area,” said a news release published Tuesday by Washington, D.C.-based environmental NGO, Earthworks.

The petition not only calls for the immediate withdrawal of the Rough & Ready and Baldface Creek watersheds from mining under the Mining Law of 1872; it also urges the enactment of legislation “to protect them from destructive nickel strip mining and permanently preserve their unique natural values”.

Minerals withdrawals from the 1872 Mining Law of up to 20 years can be issued by the Secretary of Interior under the Federal Land Policy and Management Act (FLPMA).

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