Nickel Asia completes exit from Palawan processing plant
Zamora family-led natural resources company Nickel Asia Corp. (NAC) formalized the sale of its minority stake in Coral Bay Nickel Corp. (CBNC), a nickel processing operator in Palawan.
In a stock exchange disclosure on Monday, NAC announced the signing of a share purchase agreement with Japanese partner Sumitomo Metal Mining Co., Ltd. involving its 15.625 percent stake in CBNC.
Last month, NAC disclosed its plan to divest its entire shareholding in CBNC, which operates a high-pressure acid leach (HPAL) mineral processing plant in Bataraza, due to unfavorable market conditions.
NAC vice president for treasury and investor relations Andre Mikael Dy had said the firm decided to focus instead on upstream mining and renewable energy businesses due to the recent volatility in the nickel market.
“Over the last three years, the financial performance of CBNC was negatively impacted by increasing operating costs and weakening LME (London Metal Exchange) price,” Dy said.
“The divestment is seen to positively impact the NAC Group in furthering its ambitious growth and diversification objectives,” he added.
Since starting its operations in 2005, CBNC has produced 24,000 tons of contained nickel and 2,000 tons of contained cobalt annually in the form of a mixed nickel-cobalt sulfide.
CBNC’s plant is “the world’s most efficient facility using the HPAL process,” according to NAC.
Minerals are refined and used as valuable components in special steel, electric materials and battery materials for electric vehicles, contributing to the global goal of achieving a low-carbon future.
NAC still owns a 10 percent stake in Taganito HPAL Nickel Corp., HPAL operator in Surigao del Norte, along with Sumitomo (75 percent) and Mitsui & Co., Ltd. (15 percent).
The company currently operates five mines across the country and, through its subsidiary Emerging Power Inc., has ventured into renewable energy.
