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Indonesia nickel ban is boon to Philippine producers, mines chief says

Indonesia's impending restrictions on nickel ore exports at the end of 2019 are seen as a boon to the Philippines, but Mines and Geosciences Bureau Director Wilfredo Moncano fears that a preference for higher grade ore could dampen the sector's potential.

On the sidelines of the Mining Philippines 2019 conference in Manila, Moncano said Sept. 12 that it is "encouraging" for the country's nickel sector, with the reduction in supply potentially triggering a spike in prices.

However, Moncano is cautious of the development, especially if the market dictates demand for higher grade nickel as the majority of the country's deposits host lower grade nickel.

"What worries me is if the market will insist on high grade nickel [of 1.7% nickel and higher]. Most of the supply ranges from 1.3% to 1.4% [nickel content], and if they will buy these, then it will be a big spike for nickel producers," Moncano said.

On top of potential demand for higher grade ore, the Philippines is facing a discrepancy of up to about 4 million wet tonnes of ore from mines that remain suspended in accordance with an ongoing audit.

Prior to the suspensions levied on the operations, Philippine nickel mines produced 28 million wet tonnes of ore in 2017, according to Moncano.

"There are still suspended mines, and they should try to comply to the corrective measures in order to lift the suspension," the mines director said, adding that the department will immediately support the lifting of the suspension upon the satisfaction of corrective measures.

Meanwhile, Moncano said the bureau's project to open up existing tenements to small-scale miners under its "national mine," or minahang bayan, program has grown to 29 operations across the country, with a further six operations endorsed to the environment secretary for clearance.

The minahang bayan program addresses the issue of legalizing and integrating small-scale mining into the mainstream. In 2018, Benguet Corp. said artisanal miners overran its suspended Antamok gold mine in the northern Philippine province of Benguet as several of them perished following a landslide during Typhoon Ompong.

Further, Moncano is advocating for the revision of the country's small-scale mining law, which would redefine the parameters of a small-scale miner as well as the length and extent of a small-scale operation.