Permit delay trims exports of nickel ore

TAGANA-AN, Surigao del Norte, Philippines — Hinatuan Mining Corp., a subsidiary of listed Nickel Asia Corp., is reducing its nickel ore shipments to China and Japan for this year due to delay in securing the green light from the government.

HMC is facing delay in getting the permit from the government through the Department of Environment and Natural Resources (DENR) for its tree-cutting activities.

The tree-cutting permit would have allowed the company to start its mining operations in more than 30 hectares of its mine area.

HMC resident mine manager Francisco Arañes Jr. said the delay prompted the nickel miner to “re-compute” its shipment target for the year, reducing it to 38 boatloads of shipments from 58.

“As of last week, we have already shipped out 33 vessels of nickel ore for the year. We only have five more shipments this year. For this month, we will have two shipments to Japan,” Arañes said.

The company’s new target will be lower than the 52 shipments it made last year. Every boatload of shipment of nickel ore comprises about 50,000 wet metric tons (WMT). Nickel price currently ranges around $20 to $30 per WMT.

“Our target for this year was recomputed because we have pending tree-cutting operation. Our original target is 58 shipments,” he said.

“HMC’s application for tree-cutting permit has already been recommended by Forest Management Bureau to Environment Secretary Roy Cimatu but he has not yet acted upon it,” Arañes added.

The application has been with the DENR since April.

Given the delay, the company sees revenues declining this year but did not specify any figures.

Arañes said HMC expects an increase in production and earnings next year as prices in the world market improve and stabilize.