Nickel Asia Corp. (NAC) is expanding its footprint in the country’s nickel sector after securing rights to operate a 3,432-hectare mineral concession in Zambales, potentially opening up a new source of ore for the country’s largest nickel producer.
In a disclosure on Wednesday, NAC said its wholly owned subsidiary, Samar Nickel Mining Resources Corp. (Samar Nickel), entered into an Operating Agreement with San Juanico Resources Corp. that would allow it to operate mineral claims covered by Mineral Production Sharing Agreement (MPSA) No. 265-2008-III in the municipalities of Candelaria and Sta. Cruz.
The agreement, however, remains subject to approval by the Mines and Geosciences Bureau (MGB) before it can take effect.
“The said Operating Agreement shall be submitted with the MGB and will become effective upon approval of the MGB,” it added. “The areas covered are believed to contain nickel ore and other associated minerals that can be extracted under the MPSA.”
NAC did not provide estimates on mineral resources within the concession or indicate when development activities could begin if regulatory approval is obtained.
Last year, NAC tripled its attributable net income to P6.27 billion from P1.52 billion, driven by higher nickel ore prices and increased shipment volumes.
EBITDA rose 56 percent to P13.75 billion as mining revenues surged, with total ore revenues climbing 39 percent to P27.25 billion. Nickel ore sales reached 18.56 million wet metric tons, up 9 percent, while average prices increased 28 percent to $25.66 per WMT.
Export volumes grew 13 percent to 10.93 million WMT, with prices jumping 32 percent to $36.14 per WMT, supporting earnings growth.
