Huayou seeks $2.7 billion for Ford-backed Indonesia nickel plant
The fundraising comes as benchmark nickel prices trade near a four-year low amid weaker demand from the stainless steel market.
The Philippines has toughened up its already hard-core stance on mining by banning open-pit mining in the country to allegedly reduce the environmental damage caused by the industry.
Natural Resources Secretary Regina Lopez, a well-known environmentalist, said her decision aimed to preserve the “economic potential” of the country, as she believes open pits are “a financial liability for government for life,” Reuters reported.
Ban only affects planned mines, not the ones currently in operations, but it will take effect immediately.
Lopez, who began auditing all mining operations in the country last year and has already shut more than half them, faces a confirmation hearing in Congress that could lead to her removal as minister due to mounting complaints from pro-mining groups.
But her stance on mining is backed by President Rodrigo Duterte, who — since taken power last year— has made it clear that he wants his country to pursue stricter mining standards. If doing so implies shutting down all operations, Duterte has said he’s willing to do so.
The new ban only affects planned mines, not the ones currently in operations, but it will take effect immediately.
The Southeast Asian nation is the world’s top nickel ore supplier, so the months-long crackdown on its mining sector caused prices of the metal to spike, but they have been in decline since February, with concerns over demand from China keeping the metal at a 10-month low this week. They hit a fresh low of to $9,215 a tonne on Thursday, the weakest since June last year.
Comments
kumon cens
The mining industry shares the blame of this misguided and short sighted policy. The past policies and even the most recent one was not that bad; it is the implementation of the policy. Past and current government regulators are ill-trained, ill-equipped and under-funded to go about implementing environmental and mining regulations plus corruption. For example, Mt Diwalwal is riddled with illegal miners financed by the NPA, corrupt military and police and government honchos. Numerous deaths were caused by mine accidents, murder and illicit use of mercury and cyanide for gold extraction use. For sure the nearby rivers and the soil are tainted with these chemicals. Once this area’s gold is depleted who is going to pay the clean up? There is no legal mining operations in Diwalwal. The government receives no income out of it and turns a blind eye to the shenanigans happening there. Thus this current administration’s act is dripping with hypocrisy. Gina Lopez perhaps well intentioned, is too rich and ignorant about the ramifications of the well-being of the mining industry. Large mining projects are typically long term; for gold a mine, the capital investment is at least US$500 M and at least 5 years before a return begins. Likewise, a copper deposit needs at least US$1 billion and a minimum of 10 years before a profit is realized. So it is a mine investor’s best interest to operate ethically and within the law if the government regulators do their job. Likewise these are the kind of investments that happen in the far flung places which has an immediate impact to the poor.