Growth in PH nickel production seen boosting global supply
Global nickel production is seen to continue growing in the coming years with Indonesia and Philippines expected to increase their respective outputs, according to an international research group.
“Global nickel production will continue to hold strong in 2019 driven by the ongoing supply recovery in Indonesia and a return to positive production growth in the Philippines,” Fitch Solutions’ global nickel mining outlook said.
“We expect output in the the Philippines to begin to rise in 2019 as some of the currently suspended mines become operational,” it added.
The research unit has projected an annual average growth rate in nickel production of 3.5 percent from 2018 to 2027, with output to reach 2.9 million tons.
The Department of Environment and Natural Resources’ latest mining review saw the reopening of numerous mining companies in the country.
Fitch Solutions said mining firms SR Metals, Global Ferronickel, Nickel Asia Corp. and CTP Corp. “will account for the vast majority of nickel production in the country.”
Nickel Asia, the biggest nickel producer in the country, “will remain the driver of nickel production in the Philippines, especially as its Taganito and Cagdianao mines … have not been hit by recent closures and suspensions.”
However, due to stringent environmental regulations in the country that limits output, the Philippines will still lag behind Indonesia as the leading global producer of nickel ore.
Based on the research group’s estimates, the government’s restrictive policies resulted in a 22.7-percent decline in the country’s nickel production in 2016 to 2018.
