Issue link: http://resourceworld.uberflip.com/i/912601
32 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 8 trading above the $11,000/tonne level – a direct result of actions taken by the envi- ronmental minister in the Philippines who put just about every single nickel miner in the country on notice of closure, threaten- ing the removal of around 8% of global supply and a termination of the flow of ore to China's giant nickel pig iron sector. Philippine nickel production fell by 36% in the first quarter 2017, according to the International Nickel Study Group (INSG). It was Indonesia's ban on the export of unprocessed ores at the start of 2014 that had caused Philippine nickel supply to surge in compensation. But in January this year, the Indonesian government reversed its ban on nickel exports and further clarification by the government on the permissible quantities of ore that might leave Indonesia, as well as the issue of the first export licenses, sent prices down to $9,000/tonne by early May. In October this year, the govern- ment in the Philippines adopted a more conciliatory stance, replacing their envi- ronmental minister, and latest comments from the Filipino government are now more pro-mining. According to Wood Makenzie, based on these factors i.e. surging Indonesian exports, sustained Filipino exports plus increased nickel pig iron production in China, lower prices will prevail, averaging $9,890/tonne into 2018. MOLYBDENUM Molybdenum (moly) is mainly used in high-strength alloys production and the iron and steel industry is the main con- sumer. South America overtook China to become the biggest producer of molybde- num in the second quarter 2017, although China remains the biggest user. About half of global moly output is as a by-product of mining copper and the share is projected to increase. World moly production and demand are foreseen to show moderate growth rates. RARE EARTHS In their annual report on Global Markets, published in November 2017, Roskill said that the rare-earth industry has experi- enced significant changes in 2017, causing prices for many rare earth elements to increase and spark renewed interest from project developers and existing produc- ers alike. China remains the major power in the rare earths industry, accounting for more than 80% of supply, and over 66% of global demand in 2017. Rare earths supply in China has tight- ened in 2017 amidst environmental inspections, government stockpiling, increased trading activity and demand growth for many rare earths products. The price reaction has led to efforts by Chinese government to control price increases, to avoid a damaging price spike last experi- enced in 2011. Tighter supply in China and increasing prices has led to the accel- eration of developments at non-Chinese rare earths projects, with projects in