Strong nickel demand buoys Oriental Peninsula profit

Oriental Peninsula Resources Group Inc. reported a net profit of P189.72 million in the third quarter of 2011.

The holding company attributes the strong performance to that its nickel mining firm, Citinickel Mines and Development Corp., has been posting since it started commercial operations in March this year.

In a disclosure to the Philippine Stock Exchange, ORE also reported a third quarter gross revenue from mining of P210.77 million. No revenue was posted in the same period last year since Citinickel was still in its pre-operational stage then.

ORE president Caroline Tanchay said that the company sold an aggregate of 359,468 WMT of nickel ore in the third quarter. Of the total sales, 307,301 WMT were sold to Chinese smelting firms, while 52,167 WMT were earmarked for its Australian client.

ORE has a 94 percent equity interest in Citinickel, which owns and operates two nickel mining projects in Palawan, located in the municipalities of Sofronio Española and Narra.

In another development, Citinickel said it had advanced the royalty shares of five tribal indigenous communities situated in the periphery of its mining sites. The advanced royalties were earmarked for various community development projects envisioned to provide long-term livelihood opportunities for the region’s indigenous groups.