Citinickel raising output to meet demand
In view of the rising demand for nickel in the world market, Citinickel Mines and Development Corp. (CMDC) is set to increase its daily output from 10,000 wet metric tons (WMT) to 14,000 WMT within the year.
To achieve this, CMDC, the mining arm of listed firm Oriental Peninsula Resources Inc., will add 10 hectares to its current mining site in Narra, Palawan and purchase additional equipment.
“We would like to take advantage of the increase in the prevailing prices of nickel ore in the world market, now at nearly $18 per ton compared to $16 when we started doing commercial operations two years ago. We are positive we can do 14,000 WMT,” says Jainal Uy, resident manager of CMDC in Narra.
In a statement, ORE said it would be aggressive in providing financial support to CMDC for the acquisition of the necessary equipment and facility in the mines sites in Palawan, added Uy.
The expansion was estimated to cost P800 million, almost the same amount the company invested in its mining operations last year.
Citinickel operates two nickel mining projects in Palawan, located in the municipalities of Sofronio Española and Narra.
The mining area in Narra covers 768 hectares, four hectares of which have been totally mined out and undergoing rehabilitation. It ships its outputs to clients in Australia, China and Japan.
In the first six months of 2012, ORE reported a 159-percent increase in sales from P515.33 million in the same months in 2011, based on company disclosures made to the Philippine Stock Exchange (PSE). The volume of shipment increased three times last year from 2011 level.
