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.
Nickel is a metallic mineral that is used in electroplating, coinage and in the manufacture of stainless steel.
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.
Under the agreement, the parent company will act as the exclusive marketing agent of BNMI’s nickel ore output.
BNMI is the operator of a nickel laterite mine in Sta. Cruz, Zambales, under Mineral Production Sharing Agreement No. 226-2005-lll.
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.
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.