Benguet Corp. unit in nickel off-take deal | Inquirer Business

Benguet Corp. unit in nickel off-take deal

Benguet Corp. disclosed Wednesday that its subsidiary, Benguetcorp Nickel Mines lnc. (BNMI), had signed an off-take agreement for nickel with a Chinese trading company.

In a disclosure to the Philippine Stock Exchange, Benguet Corp. said BNMI had partnered with Bright Mining and Resource Company Ltd. of China for the sale of a fixed nickel output over the next three years.

The off-take agreement covers delivery of 1.8 million metric tons of nickel ore with a grade of 1.8 percent nickel, Benguet Corp. said.

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Nickel is a metallic mineral that is used in electroplating, coinage and in the manufacture of stainless steel.

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The country’s oldest miner said that it had acted as BNMI’s marketing agent in the transaction.

Earlier this month, Benguet Corp. said it had signed a five-year marketing agreement with BNMI.

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Under the agreement, the parent company will act as the exclusive marketing agent of BNMI’s nickel ore output.

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BNMI is the operator of a nickel laterite mine in Sta. Cruz, Zambales, under Mineral Production Sharing Agreement No. 226-2005-lll.

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The Sta. Cruz nickel mine consists of 1,406.7 hectares covered by a mineral production sharing agreement.

BNMI, which was formed in 2009 with an initial capital of only P10 million, is eyeing an initial public offering of shares this year.

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Benguet Corp.’s subsidiary shipped last year some 1.3 million tons of ore with grades ranging from 1.8 percent to 2.05 percent nickel through an off-take arrangement.

BNMI also disclosed that it was considering the establishment of an intermediate processing facility to improve and maximize the value of its products.

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TAGS: Benguetcorp Nickel Mines, Business, China, Mining and quarrying, nickel, Philippines, Trade

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