Nickel Asia shipments up 70% in first half

Nickel Asia Corp. reported on Tuesday that the total estimated value of its nickel ore shipments rose 70 percent to P5.1 billion in the six months ending June 30 from P3 billion in the same period last year due to continuing good demand, particularly from China, and much-improved nickel prices.

It said the average exchange rate during the first half of 2011 was P43.52 to a dollar.

Nickel Asia operates four lateritic mines, which sold a combined 4.2 million wet metric tons (WMT) of nickel ore in the first half as compared with 3.4 million WMT in the same period last year, or an increase of 24 percent. The company’s Rio Tuba mine and Taganito mine accounted for 74 percent of total shipment during the first half of the year.

The company’s two other mines, Hinatuan and Cagdianao, both located at northeastern Mindanao, commenced shipments in the second quarter. Despite some operational disruptions brought by heavy volume of rainfall over an extended period, Hinatuan mine managed to ship 989 thousand WMT of limonite, while the Cagdianao mine shipped 103,000 WMT of saprolite. Weather conditions at the two mines have now improved in time for peak production period, which typically runs from July to November, the firm said.

In terms of price, the estimated realized nickel price applicable to 2.3 million WMT of ore shipped in the first half was at an average of $11.42 a pound of payable nickel as against $9.18 during the same period last year.