DMCI Mining Corporation president Tulsi Das C. Reyes is anticipating a rebound in its nickel mining operations due to a recent rise in global prices.
In a report by Business World, Reyes noted that the first three quarters of 2024 were challenging, with nickel prices dropping by as much as 40% to 50%. However, over the past month to month-and-a-half, nickel prices have improved, making the company’s lower-grade ore marketable again.
Nickel ore prices averaged USD 7.94 per pound in the first half of 2024, down from USD 10.4 per pound in the same period last year, according to data from the Mines and Geosciences Bureau.
In the second quarter, DMCI Mining reported a net loss of Php 43 million, a significant decline from the Php 250 million net income it recorded a year earlier.
The company attributed this loss to weak market conditions, fewer shipments, and operational costs at its Palawan mine.
DMCI Mining operates open-pit mines in Palawan and Zambales through its subsidiaries Berong Nickel Corporation and Zambales Diversified Metals Corporation, where it extracts nickel ore, chromite, and iron laterite.
Reyes explained that Indonesia’s control over its nickel ore resources has influenced global prices, with much of DMCI’s exports going to that country.
Indonesia remains a top producer of nickel, followed by the Philippines, and nickel is a crucial mineral used in batteries for renewable energy and electric vehicles, as well as in stainless steel production.
DMCI Mining expects to produce 1.4 million tons of nickel ore in 2024, which would represent a 17.6% decrease from the 1.7 million tons it produced in 2023.
In the second quarter, total nickel ore production fell by 37%, dropping from 523,000 wet metric tons (WMT) to 328,000 WMT.
