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Philippine Ore Booms as Indonesia Curbs Nickel Output
13 Feb
Summary
- Philippine nickel ore exports to Indonesia could double to 30 million tons annually.
- Indonesia's production curbs aim to revive nickel prices, creating export opportunities.
- Philippine mines face challenges with aging infrastructure, needing faster government approvals.
Philippine nickel ore producers anticipate a significant increase in exports to Indonesia, potentially doubling to 30 million tons this year. This surge is a direct result of Indonesia's recent drastic production curbs aimed at reviving global nickel prices. Industry leaders suggest that any shortfall in Indonesian domestic supply will likely be met by international sources, including the Philippines.
While the Philippines is positioned to benefit, several factors may influence the pace of output growth. The country's mining sector faces challenges with over half of its 37 operating nickel mines being aged, and expansion approvals have been slow. Industry representatives stress that expediting government approvals is key to seizing this market opportunity.
Nickel Asia Corp., the Philippines' top producer, has expressed readiness to increase supply from its Manicani mine as demand dictates. However, overall production growth may be constrained by the aging infrastructure and the time required for mine expansions. The nation primarily ships raw nickel ore, unlike Indonesia, which has developed a more substantial downstream industry.
