nickel and i thing zinc till the end of decade

China demand will keep world nickel prices up: Indonesian miner

Thursday June 7, 2007, 12:36 am


MANILA (AFP) - Strong demand for nickel, particularly in China, will keep nickel prices at high levels, a miners conference heard Wednesday.

"Most analysts feel China will continue to grow strongly. Unless China's economy significantly falters, nickel prices at least until the end of the decade, will be strong and stable," said Darma Ambiar, director of PT Aneka Tambang.

Ambiar, who was attending the 7th Asia Pacific Mining Conference in Manila, said China's strong consumption of base metals, including nickel, ensures the profitability of state-run PT Aneka Tambang.

He projected nickel prices to average 8.54 dollars per pound in the next 10 years, from an average of 3.04 dollars per pound from 2002 to 2003.

"The outlook for nickel prices is very, very positive and our company is looking for various opportunities to increase output," Ambiar said.

Aneka Tambang will keep nickel production steady at 14,500 metric tons this year, before raising it to 20,000-22,000 metric tons in 2008 when its new plant is scheduled to start running at 85 percent of its operating capacity.