P10-B Japanese metal processing plant in Palawan nears completion

One of the country’s most technologically advanced and environment-friendly metal processing plant is nearing completion ahead of schedule after starting construction two years ago in Palawan.

The P10-billion hydometallurgical processing plant (HPP) of Coral Bay Nickel Corp. is set to be completed by yearend and operational in early 2004.

The project, a joint venture project of three major Japanese firms – Mitsui Co, Nissho Iwai Corp. and Sumitomo Metal Mining Co. Ltd with Filipino-owned Rio Tuba Nickel Mining Corp. (RTNMC) will be the biggest single major investment project in Palawan and the country for the mining sector.

By early next year the plant shall start operations and is expected to generate P4.6 billion for the country in terms of foreign exchange earnings over the next 20 years. It shall employ some 300 regular plant workers, a large number of which will be from Palawan. During its 30-month construction, the project employed more than 1,500 local employees with around 70 percent of the workers coming from the province.

In a letter to President Arroyo dated Nov. 7, 2003, CBNC president Takanori Fujimura said that the project is 80 percent complete and already in the final piping stage, with $144 million having been spent already to put in place the autoclave, boiler and heavy equipment and machineries.

By yearend, Fujimura said the project, which will process low-grade nickel ore accumulated in 20 years of mining operations in Brgy. Rio Tuba, Bataraza, Palawan will be 94 percent complete.

"The government will reap not only taxes but foreign exchange earnings amounting to $85 million per year, based on the present nickel prie of $5 per pound. Even before the start of operations, the total project cost of $180 million represents a substantial foreign direct investment. This, by itself, is an expression of trust and confidence in the Philippine leadership," Fujimura stated.

The CBNC president further stated that HPP has complied with all the environmental standards and regulations enforced by the country, especially by the DENR, and extensive public consultations and discussions were held for two years prior to the submission and approval of the project’s ECC in July 2002.

Fujimura further said that the HPP has been a safe and feasible technology that has been applied in other countries such as Cuba and Australia.