Philippine miner halts nickel project on weak prices
MANILA, July 2 (Reuters) - The Philippines' Semirara Mining Corp (SCC.PS) said on Thursday its 50-percent-held unit has suspended operations at a nickel project north of the capital due to low prices of the metal.
The nickel mine in Sta. Cruz town in Zambales province began commercial operations last year and is expected to produce 1 million tonnes of direct shipping ore annually, according to the Mines and Geosciences Bureau.
"The depressed nickel market situation ... still persists and our hope of resurgence, even if only slightly, seems far from occurring," DMCI Mining Corp said in a letter to its partner which parent Semirara submitted to the stock exchange.
"After close consultation with our board of directors, it was unanimously decided that the best course of action under the circumstances is a complete suspension of operations at the mine sites, until further notice," it added.
Prices of nickel MNI3, used in making steel, have fallen around 70 percent to over $16,000 a tonne on the London Metal Exchange from a record $51,800 hit on May 2007 as demand from stainless steel producers had slumped due to the global downturn.
The International Nickel Study Group expects the global nickel market to post a surplus of 80,000 tonnes this year as falling demand continues to outpace cutbacks by producers. [ID:nLR228783] (Reporting by Manolo Serapio Jr.; Editing by Rosemarie Francisco)
