DMCI Mining Corp. reported a 25% increase in its nickel ore exports for the first six months of the year to 853,197 wet metric tons (WMT) due to the resumption of the mining operations in its Zambales mine.
In a disclosure to the stock exchange on Monday, DMCI Mining said its subsidiary Zambales Diversified Metals Corp. (ZDMC) sold 101,140 WMT for the second quarter of the year.
Meanwhile, the company said the nickel ore exports for its Palawan-based subsidiary, Berong Nickel Corp. (BNC), reached 321,966 WMT in the same period.
From January to June, BNC’s exports posted a 4% decline year on year to 650,757 WMT, compared with 681,360 WMT previously.
On the other hand, ZDMC’s shipments totaled 202,440 WMT and accounted for 24% of DMCI Mining’s total shipments.
DMCI Mining President Cesar F. Simbulan said the ban imposed by Indonesia on nickel ore exports and the decision of the Philippine government to relax coronavirus disease 2019 (COVID-19) lockdown measures in May permitted the company to continue its production and shipments.
“We also benefited from shifting market demand. Nine of our 16 shipments to China were for low-grade nickel ore, which was previously unsellable,” Mr. Simbulan said.
DMCI Mining said the demand for low-grade nickel was affected by China’s continuous steel production during the first half of the year.
“In addition to the Indonesian nickel ban, the COVID-19 pandemic-induced trade restrictions pushed Chinese buyers to shift to low-grade nickel to support its raw material requirements,” DMCI Mining said.
DMCI Mining said that while nickel is commonly used for production of stainless steel, it expects nickel ore demand to climb in the future due to higher production of batteries used for electric vehicles and renewable energy storage.
On Monday, shares in DMCI Holdings Inc., the parent company of DMCI Mining, fell 0.27% or P0.01 to close at P3.69 per share. — Revin Mikhael D. Ochave
