Toledo Mining Corp. PLC (TMC.LN) said Wednesday it resumed shipping nickel laterite ore to BHP Billiton Ltd. (BHP.AU) this week from its stockpiles and is considering restarting mining operations later in the year.

Analysts said the shipment restart is an indication that nickel demand is improving.

Toledo said it shipped 47,757 wet metric tons of nickel laterite ore from its Berong nickel mine on Palawan Island, Philippines on May 25 and a second shipment is scheduled for mid-June.

The shipment came from its 300,000 ton stockpile while the mine remains on care and maintenance.

"Although the Berong mine remains on care and maintenance, the resumption of shipments to BHP, industry reports of significant reductions in ore inventories at Chinese ports and a gradually improving trend in the nickel price, offer some encouragement for a resumption of mining operations in the longer term," the company said.

BHP Billiton told Toledo it wants 400,000 tons of nickel laterite ore from Berong this year for its Yabulu refinery in Australia. Analysts at Ambrian said around 150,000 tons of the 300,000 ton stockpile meets the BHP quality specifications.

"The new shipments are good news in that they reflect improved market conditions," Ambrian said, adding it continues to recommend Toledo as a speculative buy.

-By Devon Maylie, Dow Jones Newswires; +44 (0)20 7842 9483; devon.maylie@dowjones.com