DMCI, Nickel Asia join forces for planned nickel processing

MANILA, Philippines — DMCI Mining Corp. of the Consunji Group and leading nickel producer Nickel Asia Corp. (NAC) would explore together the feasibility of putting up and operating a nickel processing plant in the country.

In a landmark partnership, the two mining firms signed a memorandum of understanding (MOU) to leverage each party’s expertise and resources on nickel mining.

The two companies would collaborate to identify the suitable technology, select an optimal site for the plant and secure a steady supply of nickel ore through joint exploration, subject to approval of necessary permits, over the next two to three years.

The collaboration combines the resources, technical expertise and mining assets of both companies to strengthen the country’s nickel processing capabilities, the firms said.

Under the MOU, NAC would contribute its expertise in nickel processing technology and exploration while DMCI Mining would provide new assets along with its strength in construction and engineering.

The mining firms also agreed to discuss the equity structure of a potential joint entity for the plant’s development and operation.

The planned downstream facility aims to process low-grade nickel ore that is currently not viable for export, thus maximizing the country’s mineral resources and generating new opportunities and boosting the local nickel industry.

“This project is more than just a business – it’s a step toward creating jobs and ensuring the sustainable use of our mineral resources. By laying the groundwork early, we can help position the Philippines as a key player in the global nickel supply chain,” said Tulsi Das Reyes, president of DMCI Mining.

Martin Antonio Zamora, president and CEO of NAC, said they remain “confident” in the nickel industry’s “bright” future because of the growing demand for nickel from electric vehicles and stainless-steel markets despite a current oversupply of the green metal in the world market.

“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.

“With the significant nickel resources needed and complex logistical challenges to navigate, early planning is essential for long-term success,” Zamora added.

DMCI operates two mines in Zambales and one in Palawan while Nickel Asia operates five mines (one in Palawan, two in Surigao del Norte, one in Dinagat Islands and another in Isabela).