DMCI Mining, Nickel Asia forge partnership for local nickel processing plant

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DMCI Mining and Nickel Asia's partnership comes after the Senate passed a measure proposing a five-year ban on raw nickel exports

MANILA, Philippines – Mining giants DMCI Mining and Nickel Asia Corporation (NAC) forged a partnership to explore the possible development and operation of a nickel processing plant in the country.

In a disclosure to the Philippine Stock Exchange on Wednesday, March 5, the Consunji-owned DMCI Mining said the facility aims to process low-grade nickel ore to maximize the country’s mineral resources.

The two mining giants will collaborate to identify the suitable technology and an optimal site for the plant, as well as secure a steady supply of nickel ore through a joint exploration. This process will take around two to three years.

NAC and DMCI Mining will also discuss the equity structure of a potential joint venture for the plant.

DMCI Mining president Tulsi Das Reyes believes the partnership is a step towards creating more jobs and ensuring the sustainable use of the country’s mineral resources.

“By laying the groundwork early, we can help position the Philippines as a key player in the global nickel supply chain,” he said.

NAC’s president and chief executive officer Martin Zamora said establishing a nickel processing plant in the Philippines will set the mining sector up for long-term success.

“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,” Zamora said.

The partnership between the Consunji-owned and Zamora-led firms came as the domestic nickel sector urged the Senate to reconsider its five-year ban on raw nickel exports.

In February, senators passed on third and final reading a bill banning the export of raw minerals to spur development in the local ore processing industry.

While the Philippine Nickel Industry Association sided with senators’ goals of boosting the processing industry, the group believed the proposal was ill-timed and would discourage further investments in the endeavor.

The Philippines is the world’s second largest producer of raw nickel ore, next to Indonesia.

Indonesia also banned exports of nickel ore in 2020, which attracted foreign investments in the processing industry caused a surge in processed nickel exports. – Rappler.com