Nickel jumped the most in two months after the Philippines said it may suspend more mines as part of a nationwide audit that’s due for release this week. Glencore Plc and other mining shares also advanced.
Nickel has climbed 15 percent in 2016 as the Philippines shutters sites for failing to meet environmental standards, threatening supplies from the nation, the top supplier of the mined metal. The government could tell more mines to stop operating, Environment and Natural Resources Secretary Gina Lopez said in an interview with Bloomberg on Monday after similar comments to Reuters.
“As much as 150,000 tons of nickel, or 8 percent of global supply, could be at risk of closure,” Anton Berlin, head of analysis and market development in Moscow at GMK Norilsk Nickel PJSC, one of the two largest producers of the metal, said by e-mail on Monday.
Nickel for delivery in three months jumped 4.4 percent to settle at $10,150 a metric ton on the London Metal Exchange at 5:50 p.m. in London, marking the biggest gain since July 12. The commodity lost 6.2 percent last week, the most since November, after the Philippines postponed the announcement of its audit result.
The closure of 10 more mines is possible, Lopez said Monday. A final planning session to confirm the results of the audit and plan further action will be held Wednesday, she said.
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