Philippines says 9 suspended mines can resume if conditions met

By Kitco News / November 16, 2018 / www.kitco.com / Article Link


* Three mines ordered shut for environmental violations
* Philippines is world's No. 2 nickel ore exporter


By Manolo Serapio Jr


MANILA, Nov 16 (Reuters) - The Philippines' environmentministry said nine suspended mines will be allowed to resumeoperations if they rectify previous violations of environmentalregulations, a move that could boost nickel output in the majorsupplier of the metal.


The nine mines were ordered permanently closed in Februarylast year as part of an environmental clampdown on the sector.They appealed the decision, along with four other mines, andafter a review, Environment and Natural Resources Secretary RoyCimatu changed closure of the mines to a suspension.


Any re-opening of the nine mines - six of which are nickel - could improve the nation's output of ore going forward, afterthe disruptions caused by the crackdown that began in 2016. ThePhilippines is the world's second-biggest nickel ore producerafter Indonesia.


"On top of the payment of the fines and penalties, thesecompanies were directed to undertake corrective measures withina timetable," Cimatu said in a statement on Friday.


Failure to do so will mean a reinstatement of the closureorder on the mines, he said.


"The sooner they complete the corrective measures, thesooner their suspension will be lifted," EnvironmentUndersecretary Analiza Teh told Reuters in a text message.


The corrective measures include hiring of safety engineersand permit applications for mine discharge, said Teh, and itshould take the mines an average of six months to complete them.


Cimatu also ordered the permanent closure of two nickelmines and an iron ore producer and the resumption of operationsat suspended nickel producer, Berong Nickel Corp, a unit ofdiversified conglomerate DMCI Holdings Inc .


Shares of DMCI jumped 2.3 percent.


The three mines ordered shut for good can file appeals withPresident Rodrigo Duterte's office, Cimatu said.


Many of the 13 mines stopped operating since being suspendedlast year, said Wilfredo Moncano, head of the government's Minesand Geosciences Bureau.


The Philippines has 48 metallic mines, with 30 digging fornickel ore, most of which is shipped to top market China, whereit is used to produce stainless steel.


Philippine nickel ore output fell 10 percent in the firsthalf of 2018 from a year earlier to 9.43 million tonnes,government data showed. (Reporting by Manolo Serapio Jr.Additional reporting by Enrico dela Cruz)

manolo.serapio.thomsonreuters.com@reuters.net Twitter:@MannySerapio)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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