PH miners face stiffer competition in world market
Date: Mar 29, 2018
The local mining sector is expecting a tougher business environment this year as the return of Indonesia to the international market is seen to pose stiff competition, said the chief of the Chamber of Mines of the Philippines (COMP).
COMP president and Nickel Asia Corp. CEO Gerard H. Brimo said that would be the biggest challenge in 2018, given that Indonesia was known to be one of the most important mining countries in the region with more than 500 mining projects nationwide.
To recall, the Indonesian government decided to impose a ban on unprocessed ore exports in 2014 to boost higher-value smelting industries, but the country’s economy faced a substantial budget deficit and missed its revenue target in 2016 by $17.6 billion.
With the resumption of shipments, the Indonesian government is hoping to help bridge the budget gap.
Brimo is banking on the “continuing strong demand for the metal, in part due to the growth taking place in the battery sector” to keep Philippine nickel exports at healthy levels.
The continuing decrease in the inventory of refined nickel in the global market also remains as an indication of the lack of supply of the metal, which Brimo said “should provide strong support to prices.”
