Nickel Asia, DMCI Mining eye joint nickel processing
MANILA, Philippines — Nickel Asia Corp. and DMCI Mining Corp. plan to jointly build a nickel processing plant in the country, which could strengthen the Philippines’ position in the global market, especially given the sector’s bullish outlook.
Both parties signed a memorandum of understanding on Tuesday, officially marking their move to join forces in boosting the local market’s nickel processing capabilities, but first by looking into the feasibility of such a project.
READ: Nickel Asia completes exit from Palawan processing plant
The two firms said in a joint statement that the planned facility aims to process low-grade nickel ore that is currently not viable for export.
A joint entity may also be established to focus on the development and operation of the plant, which is envisioned to process low-grade nickel ore.
Strategic
Tulsi Das Reyes, president of DMCI Mining, said the agreement materialized “after extensive discussions.”
“We are now ready to move forward with this strategic initiative … By laying the groundwork early, we can help position the Philippines as a key player in the global nickel supply chain,” Reyes said in a disclosure on Wednesday.
Martin Antonio Zamora, president and chief executive officer of Nickel Asia, said that while there is a global surplus of nickel, the industry will continue its growth momentum.
“We remain confident in the sector’s bright future, driven by the growing demand from the electric vehicle and stainless-steel markets,” Zamora said.
“Establishing an economically viable nickel processing plant in the Philippines requires several factors to align, including clear government policy directions and regulations, but proactive preparation is crucial,” he added.
Under the deal, Nickel Asia will offer its nickel processing technology and exploration while DMCI has committed to provide new assets and extend its construction and engineering prowess.
For the next two to three years, the two groups aim to identify the right technology and location for the facility, as well as guarantee a steady supply of nickel ore via joint exploration efforts.
Nickel Asia, a diversified natural resources firm, operates five mines and two exploratory sites. DMCI, meanwhile, operates open-pit mines in Palawan and Zambales.
