Rusina mulls halt to nickel mine operations
Rusina Mining N.L., which operates the Acoje nickel project, will decide this week on whether or not to suspend temporarily its nickel mining operations following a steep drop in nickel prices.
In a talk with newsmen yesterday, Isidro A. Consunji, president of DMCI Holdings, said the Rusina board is scheduled to meet this week to decide on the issue. DMCI Holdings is the parent firm of DMCI Mining Corp., the local partner of Rusina.
“Nobody is buying (nickel),” Consunji said, adding that “based on current market conditions, it is not cost effective to continue nickel mining operations.”
He said Rusina may opt to resume operations when nickel prices improve.
The last shipment made by Rusina amounted to 350,000 metric tons worth $10 million, Consunji said.
Nickel prices are now hovering at $11,000 per metric ton, down from a high of $33,000 per metric ton.
According to Consunji, a temporary suspension of nickel mining operations would not result in any substantial loss as the mining equipment could easily be moved to other mining operations for other metals such as chromite and platinum.
DMCI Mining controls 60 percent of Rusina, while 40 percent is held by the Australian Rusina Mining Ltd.
So far DMIC has spent P300 million in its joint venture with Rusina Consunji said. — Marianne Go
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