Nickel Asia unit signs agreement to operate mining area in Zambales

NICKEL ASIA CORP. said its unit Samar Nickel Mining Resources Corp. has signed an operating agreement with San Juanico Resources Corp. covering nickel mining claims in Zambales.

In a disclosure to the Securities and Exchange Commission on Tuesday, Nickel Asia said the deal gives Samar Nickel the right to operate San Juanico’s mineral claim holdings under a mineral production sharing agreement.

The mining area covers about 3,432 hectares located in the municipalities of Candelaria and Sta. Cruz, Zambales province.

“The areas covered are believed to contain nickel ore and other associated minerals that can be extracted under the mineral production sharing agreement,” Nickel Asia said.

The operating agreement will be submitted to the Mines and Geosciences Bureau for approval and will take effect once cleared by the agency.

The company did not disclose the financial terms of the agreement or the planned production timeline.

Nickel ore is a key raw material used in stainless steel production and electric vehicle battery manufacturing.

Nickel Asia is among the country’s biggest nickel ore producers and exporters, supplying customers in China and Japan while expanding investments in battery material and renewable energy projects.

Shares of Nickel Asia fell 9 centavos to close at P4.49 each on the Philippine Stock Exchange. — MJFM