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Nickel Asia Corp, the Philippines’ top nickel ore producer and exporter, said Wednesday that it has suspended operations at one of its four mines after an outbreak of the novel coronavirus.
Work at Nickel Asia’s Hinatuan mine in the Caraga region nickel mining hub was suspended from Tuesday to November 10 as a containment measure, it said in a statement, after 19 employees tested positive.
The Hinatuan mine in Surigao del Norte province accounted for 11% of Nickel Asia’s total ore sales volume last year.
The Philippines is an alternative source of nickel ore supply for China, which relies primarily on higher quality material from Indonesia. Indonesia, however, has temporarily banned raw mineral exports.
Ore from the Philippines is used to make nickel pig iron, the raw material for China’s huge stainless steel industry.
Nickel Asia said his unit, Hinatuan Mining Corp, had closed the entire mine site for seven days starting on October 19.
However, the municipality of Tagana-an, where the mine is located, has issued a closure order for the mine “until new orders are received.”
Hinatuan will resume essential non-mining and support activities after the 14-day suspension, while massive coronavirus testing continues at the site, Nickel Asia said.
The company did not expect a significant impact from the closure of the Hinatuan mine on its financial results because the unit was already at the end of its mining season.
Nickel mining and shipping operations in the southern Philippines are generally stopped in the last quarter of the year due to the rainy season. – Reuters
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