Business Mirror reported that Philippine nickel mine production in 2017 fell to a six year low of 230,000 metric tonnes after the government suspended and shuttered some mining operations. Preliminary data released by the USGS indicated that the country’s total nickel mine output in 2017 declined by 33.71% from 2016’s record of 347,000 tonne.

Data from the USGS showed that this is the country’s lowest nickel mine output since 2012, when production reached 424,000 MT volume.

The USGS in its annual report, titled “Mining Commodities Summaries 2018.” said that “The largest decrease in production took place in the Philippines, owing to the continued suspension of as many as one-half of the country’s mining operations for failing to meet environmental standards.”

Despite the 33.71% cut in the output of the Philippines the world’s top nickel producer total global production in 2017 nearly remained unchanged at 2.1 million metric tonne.

The USGS report that “The decreases were offset primarily by increased production in Indonesia, which in January eased an export ban on direct-shipping ore for companies that intend to construct nickel-processing facilities.”

Indonesia’s nickel mine output last year doubled to 400,000 tonne, from the previous year’s 199,000 tonne, effectively overtaking Philippines as the top nickel mine producer in 2017.

Philippine nickel mine output has been steadily increasing in the past decade, registering a record-high of 554,000 tonne in 2015.

The country’s nickel mine production have declined since 2016 after registering a 31.4% production cut due to low prices in the international market, unfavorable weather conditions, and the suspension of mining operations, according to the Mines and Geosciences Bureau.

This was even before former Environment Secretary Regina Paz L Lopez launched an audit on all the country’s mining operations, the MGB noted in its 2016 year-end report.

In February 2017, Lopez ordered the closure and suspension of some 26 mining operations in the country due purportedly to their detrimental effects to the environment, particularly the watersheds.

Lopez’s order resulted in the further reduction of the country’s total nickel output, triggering an increase of at least 2% in the prices of nickel at the London Metal Exchange due to perceptions of possible supply gap in the global market.

The USGS said in a report published last year that “The Philippines, the world’s leading producer of nickel ore, suspended one-half of its mining operations in September [of 2016] for failing to meet environmental standards, triggering a 2% increase in LME nickel prices, helping the recovery of global nickel prices.”

However, the suspended and shuttered mining firms were allowed to resume operations after they appealed to the Department of Environment and Natural Resources and the Office of the President.

A list available at the MGB web site showed that there are about 17 operating nickel mines in the Philippines as of June 13, 2017. The list also indicated that seven nickel mines were suspended by the MGB.

Last month Environment Secretary Roy A. Cimatu said his agency will release the results of the government’s review of the mining firms’ appeals by March.