Bilyonaryo.com | September 3, 2026 3:31pm

(PHOTO: BILYONARYO.COM)

Philippine nickel stocks surged Thursday, Sept. 3, after a report that Indonesia’s biggest nickel processing complex could slash output by as much as 40% because of a worsening water shortage.

Philippine nickel stocks surged Thursday, Sept. 3, after a report that Indonesia’s biggest nickel processing complex could slash output by as much as 40% because of a worsening water shortage.

Bloomberg reported that Indonesia Morowali Industrial Park in Sulawesi may cut production by 30% to 40% unless it secures new water sources, as an El Niño-driven drought squeezes supplies to its smelters.

The news sent investors rushing into Philippine nickel plays.

East Coast Vulcan Mining Corp. soared 41.8% to ₱0.39 on 6.14 million shares traded, while NiHAO Mineral Resources International jumped 20.8% to ₱0.64 on volume of 3.32 million shares.

Nickel Asia Corp., the country’s biggest nickel producer, climbed 13.8% to ₱4.55. The move came on much heavier trading, with 17.66 million shares worth ₱77.85 million changing hands.

Marcventures Holdings gained 6.3% to ₱0.84, while Global Ferronickel Holdings advanced 6.3% to ₱2.21.

The rally puts the spotlight on the Philippines’ position as the world’s No. 2 nickel producer behind Indonesia.

Indonesia produced an estimated 2.6 million metric tons of nickel in 2025, accounting for roughly 67% of global mine production, according to U.S. Geological Survey estimates. The Philippines produced about 270,000 tons, or around 7%.

That dominance has made developments in Indonesia increasingly important to Philippine miners.

A surge in Indonesian production has helped swamp the global market and depress nickel prices. Bloomberg said nickel on the London Metal Exchange has fallen about 17% from its early-May high, putting pressure on producers and prompting some Chinese-controlled Indonesian smelters to consider coordinated output cuts.

The potential disruption at Morowali adds another supply risk.

IMIP is majority owned by China’s Tsingshan Holding Group, the world’s biggest nickel producer, and houses numerous metal-processing plants.

A 30% to 40% cut at Morowali would not mean an equivalent reduction in Indonesia’s overall nickel production. But with Indonesia supplying roughly two-thirds of the world’s mined nickel, signs that output growth could slow were enough to give battered nickel producers, including those in the Philippines, a lift.

Source: Bilyonaryo.com