Mindoro Nickel welcomes release of new national mining policy

Manila, Philippines -  The new National Mining Policy by President Aquino is welcomed by Mindoro Nickel as a major step towards responsible utilization of the country’s mineral resources while ensuring protection of the environment for future generations.

It also notes the fact that the new National Mining Policy emphasizes the need for more value-added mining and the development of downstream industries in the mineral sector.

Throughout the years, Mindoro Nickel has been advocating the very same principles the National Mining Policy stands for. Mindoro Nickel was designed to maximize the utilization of the mineral deposit; with an economic break-even grade of 0.4 percent Ni, below the geological cut-off, means that the entire deposit will be utilized as all ore above 0.4 percent can be extracted economically.

Mindoro Nickel says it avoids selective high-grade mining, which will potentially leave lower-grade ore behind, valueless. Mindoro Nickel also plans to process its ore in a local refinery, which produces final LME-grade nickel metal. 

The heart of the refinery is an acid plant that converts native sulphur into sulphuric acid and thereby releases steam, which in turn generates carbon-free electrical power. In fact 110 MW electrical power produced this way will exceed the project’s needs and could provide over 30 MW carbon-free energy to the island’s grid.

The refinery will produce 53,000 tpa of refined nickel; 16,000 tpa cobalt sulphate; 75,000 tpa metallurgical-grade chromite; and potentially about 200 tonnes Scandium and other rare earth elements (REE).

In addition, and to the benefit of the local economy and agriculture, a substantial annual by-production of 150,000 tons of ammonium sulphate fertilizer (21-0-0) is planned. This will exceed the nation’s current imports of this fertilizer.

Mindoro Nickel should be considered a new national industrial undertaking, rather than a traditional mining project. The metals refinery will be constructed near the sea where a pacific-size port will accommodate ocean-going vessels. 

The project is proposed as the country’s first refined nickel plant and could become a catalyst to further development of downstream industries, supported by its many valuable by-products, excess energy and international infrastructure facilities.

Regarding the mining itself, as the ore is occurring at surface or less than a meter from this, and consist of a layer, about 6-10 meters thick, it can be extracted in terraces by a simple earth-moving activity and requires no blasting or deep excavations.

The topsoil is put on the side to be returned after operations, and the area replanted. Since the mineral deposit is uniform, and also the low-grade ore can be utilized, no selective mining or excessive stockpiling is required and mined out areas therefore can be rehabilitated as soon as the operation moves on to an adjacent area. 

Mindoro Nickel is designed throughout as a new-generation nickel operation, with a full carbon-neutral footprint and independence of fossil fuels. The project’s innovative and ”green” design is such that it may re-set standards for the nickel industry globally, and provide Philippines with groundbreaking knowhow and technology for the future. 

The Philippines today is the world’s second largest nickel supplier, with over 230,000 tonnes nickel annually (March 2012), however, only about 10 percent of this amount is manufactured in the country, while 90 percent is shipped and processed abroad.

The executive order emphasized the need for establishing a larger portion of added-value generation in the country. Mindoro Nickel stands to more than triple the current national production and become the first refined-nickel plant in the Philippines. Its green, carbon-neutral footprint and numerous by-products only adds further value to the project’s upside, a potential which may entirely change the future economics of Mindoro Island by adding modern industrialization to the traditional trades.