NICKEL Asia Corp. (NAC) said its subsidiaries Taganito Mining Corp. (TMC) and Hinatuan Mining Corp. (HMC) said it has received a copy of a provincial executive order ordering the suspension of operations of mining and mineral processing plants in Surigao del Norte.
In a disclosure to the Philippine Stock Exchange, the company said Executive Order No. 20-011 issued by Governor Francisco Matugas which will take effect today, April 1, mandates, among others, the suspension of operations by mining and mineral processing plants and the entry of foreign vessels except those carrying basic goods and necessities within the province.
NAC added it expects the suspension to adversely affect the schedule of ore shipments of TMC and HMC and their revenues for the second quarter of 2020.
“The impact of the temporary suspension of the operations of TMC and HMC to NAC’s overall business will depend on the duration of the temporary suspension. In 2019, TMC and HMC accounted for 59 percent of NAC’s total nickel ore shipments,” the company said.
However, NAC assured that it is prioritizing the health and safety of its employees as it implements necessary measures in compliance with the government’s mandate and policies to respond against the coronavirus pandemic.
“NAC wishes to assure the investing public that TMC and HMC are evaluating the adjustments that need to be made regarding their operations during and after the lifting of the province-wide suspension of mining operations in Surigao del Norte to mitigate the effects of the said suspension on their operations and financial performance,” the company said.
