Nickel Price Uptick Boosts Optimism for DMCI Mining After Tough First Three Quarters
DMCI Mining is expecting a recovery in its nickel mining business, driven by a recent uptick in global nickel prices, according to the company’s president, Tulsi Das C. Reyes. The first three quarters of 2024 were marked by significant challenges, with prices dropping by 40% to 50%, but the last 30 to 45 days have shown signs of improvement. "Our lower-grade ore is now marketable," Reyes noted.
The average price of nickel ore fell by 23.7% to $7.94 per pound in the first half of the year, down from $10.4 per pound in 2023, as reported by the Mines and Geosciences Bureau. DMCI Mining posted a net loss of P43 million in the second quarter, a stark contrast to the P250-million net income reported in the same period last year. The loss was attributed to weak market prices, reduced shipments, and operational costs at the company's Palawan mine.
DMCI Mining operates open-pit nickel mines in Palawan and Zambales through its subsidiaries, Berong Nickel Corp. and Zambales Diversified Metals Corp. Nickel ore, chromite, and iron laterite are the primary minerals extracted. Reyes mentioned that Indonesia, one of the world’s largest nickel producers, is holding most of its resources for domestic processing, despite strong demand from China for battery-grade nickel.
Nickel, a key mineral for electric vehicle batteries and stainless steel production, is experiencing growing global demand. DMCI Mining expects to produce 1.4 million tons of nickel ore in 2024, a 17.6% drop from the 1.7 million tons reported in 2023. Total production in the second quarter fell by 37%, and first-half production declined by 30%.
