Nickel Asia sees higher sales, gold drilling in ’11

Nickel Asia Corp. expects sales to grow by about a fifth this year from 2010, with strong nickel prices supporting growth.

The company also aims to start drilling at its gold-rich property in northern Luzon later this year.

The company’s ore contracts add up to about 9.8 million tons this year, almost 20 percent higher than the 8.3 million tons sold in 2010, president and CEO Gerard H. Brimo said over the weekend.

Brimo added that some 4 million tons will be shipped this year to Japan and to Coral Bay Nickel Corp. in Palawan.

The rest are slated to go to China.

“We note as well continuing strong nickel prices so far this year,” Brimo said.

Nickel Asia, Brimo said, was also looking forward to the start of drilling for gold in its Manmanok property in Apayao, through subsidiary Cordillera Exploration Co. Inc. (Cexci).

Brimo said drilling in Apayao could start toward the end of 2011.

“It is certainly our intention to grow our core nickel business, but we would be remiss if we did not take advantage of the prospects of other metals in our country as opportunities arise,” he said.

Earlier this month, Brimo said Sumitomo Metal Mining Co. Ltd. of Japan was expected to push through with an investment in Cexci.

Under the terms of their agreement, Sumitomo will invest $1.5 million in Cexci in return for 25 percent equity.

Once funds are exhausted, Sumitomo has the option to invest $2.8 million for an additional 15 percent equity, which would bring its total equity in Cexci to 40 percent.

The funds will be used for exploration work on Cexci’s properties in northern Luzon.

Nickel Asia acquired Cexci in November 2010 from Anglo American Exploration Philippines following the latter’s decision to exit the Philippines.