Nickel price news from the Philippines as the top nickel producer now has three-quarters of its mines reeling from an audit with 20 mines facing suspension and 10 already in suspension, according to a recent report from Bloomberg.
The mines under fire account for 56% of nickel production by value last year, Leo Jasareno, environment undersecretary, told reporters this week, according to Bloomberg.
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“They have to get their act together,” Gina Lopez, environment secretary told the news source. “We cannot allow any mining company to operate and make millions while the people is suffering. That’s against the law.”
Meanwhile, nickel climbed as much as 2% this week on the London Metal Exchange, its peak since Aug. 12.
“The impact, or the potential impact, warrants a premium,” Daniel Hynes, senior commodities strategist at Australia & New Zealand Banking Group Ltd., told the news source, regarding the Philippine mines audit.
Crackdown Boosts Nickel-Ore Prices
In addition to the boost in nickel prices, the Philippine mine shutdowns also highlight worries of how to secure dependable sources of key industrial ores used to make metals, notably in Asia.
“I have no beef against mining, but I am vehemently against what is happening,” Lopez said at a news conference, according to The Wall Street Journal. “There are mining companies that have passed…it can be done.”
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