(REUTERS) Global Ferronickel Holdings Inc , the Philippines’ second-largest nickel producer, said on Monday it may resume shipments of higher grade ores to China in the second half of 2016 when prices are anticipated to improve further.
The company expects a “better performance” in the second half, after booking losses in the first half on lower volumes and prices, and pass an audit by the government, which has launched a crackdown on miners violating environmental rules.
The company attributed the lower sales volumes in the first half to unfavourable weather conditions that affected mining and loading operations, and its decision to withhold shipments of higher grade ore after nickel ore prices slumped to a 13-year low earlier this year.
Concerns the Philippines, the world’s top nickel ore supplier, may shutter parts of its mining industry, lifted nickel prices to a one-year high last week. The government has already suspended 10 mines accused of environmental violations, including eight nickel producers, and threatened to close more.
“I am heartened to see the nickel price has improved recently. Key economic indicators for China, which is the world’s largest consumer of nickel ore and accounts for nearly half the world’s nickel consumption, also continue to show stabilization,” said Global Ferronickel President Dante Bravo.
“With the repeat and long term demand from (Chinese) clients, we expect better performance in the second half as the company enters its peak production period,” he said in a statement.
Global Ferronickel, which operates in southern Surigao del Norte province, has received “favorable” to “excellent” feedback following the government audit of its operations early this month, Bravo said.
