UPDATE: Toledo Mining Corp's Nickel Ore Shipments Resume
May 27 2009 - 5:15AM
Dow Jones News
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