Restarting operations at the Nonoc mine and refinery will allow the Philippines to take advantage of record high prices that should translate into significant foreign exchange revenues from exports.

With the reported delays in two major nickel mining projects – the Ravensthrope in Western Australia and the Goro project in New Caledonia – speculation on tight supply has pushed nickel prices to record highs this year. Current prices hover in the range of US$ 34,500 per metric ton, more than double the US$ 13,500 quote for cash buyers at the start of 2006.

The current prevailing prices are the highest over the past two decades.

Before the recent movement in nickel prices, the Nonoc nickel mine was conservatively estimated to bring in annual export revenues of US$ 300 million. Prices having more than doubled since then, the potential contribution of nickel to total mineral exports becomes significant.

Latest data available from the National Statistics Office show that total Philippine mineral exports for the period January-September 2006 had an FOB value of US$ 191.99 million compared to US$ 57.4 million for the same period in 2005. These exports were principally copper metal, copper concentrates, gold, iron ore and chromium ore, among others.

Nickel exports this year were negligible at only US$ 8,000 for the nine-month period and hardly any for the comparable period in 2005.

With the prospective rehabilitation and redevelopment of the Nonoc mine, nickel exports will thus impact positively and in a major way not only on the country’s mineral exports but also on the overall forex bottomline.

Jinchuan of the People’s Republic of China is currently in talks with the National Government for a significant equity investment in Philnico Industrial Corporation, a mining company that has been taken over by the Asset Privatization Trust after it failed to settle outstanding debts to government financial institutions.