The Philippines has ordered the suspension of operations at two nickel ore mines for environmental violations and halted the issuance of exploration permits as a nationwide crackdown led by a new mining minister begins.
The move could curb nickel ore shipments from the Southeast Asian country, the top supplier to No. 1 market China, and push up global prices further.
News last week that the Philippine government would review all mining operations in the country lifted the price of nickel by 8 percent in two days.
It hit an eight-month high of $10,410 a tonne on Monday.
The two nickel mines to be suspended are operated by BenguetCorp Nickel Mines and Zambales Diversified Metals in Zambales province, north of the capital Manila, Leo Jasareno, director of the Mines and Geosciences Bureau, told Reuters on Thursday.
The suspensions followed "various complaints of environmental degradation," Jasareno said, adding they would be in effect until the companies complied with conditions set by the agency.