Manila Bulletin reported that the mining industry has urged government to encourage processing of mineral ore into high value added products by granting incentives but they opposed a plan to prohibit direct shipping of ore for exports.
Mr Gerard H Brimo president of Nickel Asia Corporation in an interview said that mining companies will readily support government’s program to encourage investments in industrialization of minerals without having to resort to banning DSO export.
He added that "Normally when government wants certain industries developed, they give incentives. So why should we ban it here? You have countries like Australia and Brazil, they are exporting direct shipping ore. If there are opportunities in downstream processing, businesses will find it."
He said that there appears to be plans of government to restrict export of DSO to be patterned after Indonesia’s policy. But even Indonesia’s prohibition on DSO export will not happen until the next two to three years. He added that "It's okay to encourage mineral processing, but what we keep on hearing is ban of shipment of ore. Businesses will normally gravitate to where the opportunities are. You cannot just force businesses."
CNBC operates at a capacity of 24,000 tonnes of contained nickel and 1,500 tonnes of contained cobalt per year in the form of a mixed nickel cobalt sulfide. It employs an efficient high pressure acid leach process.
NAC has also taken 22.5% equity interest in the country's second hydrometallurgical nickel processing plant under Taganito HPAL Nickel Corporation, which is under construction.
He said that "It's on schedule and will be the largest downstream nickel processing plant in the country at a capacity of 30,000 tonnes of contained nickel. We'll be on stream by mid 2013. Sumitomo metal mining will buy all of its output."
The company has 60% interest in the Rio Tuba Mine, 65% in Taganito in Surigao del Norte and 100% each in Cagdianao mine in Dinagat Island north of Mindanao and Taganaan mine in Hinatuan Island east of Surigao City.
(Sourced from Manila Bulletin)
