Industry leaders DMCI Mining Corp. and Nickel Asia Corp. (NAC) plan to jointly develop a nickel processing plant to enhance the country’s nickel production amid rising demand from the electric vehicle and stainless-steel markets.

Under a Memorandum of Understanding (MOU), NAC will contribute its expertise in nickel processing and exploration, while DMCI Mining will provide new assets along with its strengths in construction and engineering.

Over the next two to three years, the companies will assess processing technologies, identify an optimal site, and secure a stable nickel ore supply through joint exploration, subject to regulatory approvals. They will also determine the equity structure of a potential joint entity to oversee the plant’s development and operations.

“After extensive discussions, we are ready to move forward with this strategic initiative. 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,” DMCI Mining president Tulsi Das Reyes said on Wednesday.

The planned facility aims to process low-grade nickel ore, which is currently unavailable for export, thereby maximizing the country’s mineral resources and generating new opportunities for the local nickel sector.

However, NAC president and CEO Martin Antonio Zamora cautioned that “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.”

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

DMCI Mining operates two mines in Santa Cruz, Zambales, and is developing new sites in Palawan. It primarily exports nickel ore to China and other markets. Nickel Asia, on the other hand, runs five mines and has two exploratory sites.