SHANGHAI, Feb. 9 (SMM) – The Department of Environment and Natural Resources (DENR) of the Philippines announced February 2 the final mining audit results and decided to close 29 mining firms, including 20 nickel ore producers. Among the 20 nickel ore producers, 18 producers, with 3 of them reporting no sales in 2016, are required to shut down, and the rest 2 are asked for suspending operations. SMM expects ore shipments by the 20 nickel ore producers on the list of closures or suspension to reach about 19.85 million mt in 2016, or 141,900-149,200 mt in Ni content. 

According to Philippines’ two audit results in 2016 and 2017 compiled by SMM, 15 mining firms were recommended for suspension during the first audit result released in June 2016, 5 passed initial audit and 7 were required to suspend operation. On the list of 15 firms which were recommended for suspension in 2016, only three producers, namely, Century Peak, Agata and SR ‬Metals, passed the inspections in 2017. PGMC’s mine project in Surigao del Norte, 1 of the 5 producers which passed initial audit in 2016, was required to shut down in 2017 due to violation of environmental laws. Pacific Nickel Philippines Inc., passing the audit, reported no ore shipments in 2016. Among the 7 firms on the list of production suspension in 2016, all were requested to shut down, except Berong Nickel and Citinickel, which were under suspension.  

This shows that environmental protection inspections in the Philippines are stricter in 2017. 

Mines and Geosciences Bureau (MGB) of the Philippines has not released its nickel ore shipments for 2016. According to 2015 data released by MGB, ore shipments by the 20 nickel ore producers on the list of closures or suspension totaled 18.19 million DMT, accounting for 56.30 percent of total shipments, or 226,700 tonnes in Ni conent, accounting for 54.58 percent of the total. 

Ore shipments by the 20 producers are expected to reach 19.85 million WMT in 2016 or 141,900-149,200 tonnes in Ni content, based on SMM estimation on Philippine ore shipments over the year. This means that nickel ore shipments from the Philippines will likely fall by about 145,000 tonnes (Ni content) in 2017. 

In other news, the Philippines is also reviewing environmental permits being issued to mining firms, and so far environmental compliance certificate (ECCs) of four nickel mining projects have been revoked, including Intex Resources’s Mindoro project, Ipilan Nickel and Lebach Mining’s nickel mines both in western Palawan province, and Austral-Asia’s nickel project in Davao Oriental. 

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