MANILA, Philippines—Publicly listed Nihao Mineral Resources International Inc. has forged an agreement with Glencore International AG and AGP Industrial Corp. for joint exploration of prospective nickel mining sites in the country.
In a disclosure to the Philippine Stock Exchange Wednesday, Nihao said the three parties agreed to “utilize their respective expertise in the mining industry for the purposes of investigating, identifying, acquiring, developing and operating mining claims of economically feasible nickel deposits in the Philippines for purposes of direct shipping or selling ore and other related nickel mining business.”
Under the heads of agreement signed, Glencore will contribute its expertise in marketing nickel ores in the world market using its network of various institutions overseas.
Nihao and AGP will take care of mining, contracting and developing the mines in the country, given their knowledge of relevant Philippine laws and issues.
The parties also agreed to form within the next two months a joint venture corporation, which will have an initial capital of $2 million. Of the amount, $1 million will come from Glencore while Nihao and AGP will contribute $500,000 each.
The proposed joint-venture firm will be governed by the laws of Hong Kong but the proprietary rights of the company over the prospective mining interests and operations in the Philippines will be governed by either Philippine or Hong Kong laws, whichever will be applicable.
Prior to the creation of the joint venture, Nihao said the parties would identify prospective mining assets in the Philippines.
The joint venture may also look into mining projects in Indonesia and other countries, for which the parties may create a new joint-venture entity that would have the same terms and conditions as provided in the heads of agreements signed on Tuesday.
The parties also agreed to execute all contracts/agreements that will give effect to their undertaking in the heads of agreement.
Glencore, a company registered in Switzerland, is one of the world’s leading integrated producers and marketers of commodities, with worldwide activities in production, sourcing, processing, refining, transporting, storage, financing and supply of metals and minerals, energy products and agricultural products.
AGP is a local publicly listed company that has interests in real estate and mining ventures.