Gov’t eager to wrap up Philnico-Jinchuan deal

The government is eager to wrap up the Nonoc deal between Philippine Nickel Corp. (Philnico) and Jinchuan Group in time for the scheduled visit of Chinese Prime Minister Wen Jiabao in January next year.

Finance Secretary Margarito B. Teves said that despite the snags and delays blocking the joint venture between Philnico and Jinchuan, the Chinese nickel giant was still intent on putting its investment in Nonoc mines.

"They’re very appreciative of the efforts to make this happen," Teves said.

Philnico has delayed making its decision on the Jinchuan offer until January, prompting suggestions for Jinchuan to look for other investment opportunities in the mining sector.

According to Teves, however, Jinchuan was intent on the Nonoc mine and has not indicated interest in any other mining venture in the Philippines.

"As far as we know, they are not looking for another partner or any other resource," Teves said. "I don’t know if there are opportunities open to them."

Philnico earlier disclosed that Jinchuan had offered Philnico a 15-percent stake in the proposed joint venture, subject to the conduct of another feasibility study on the project that would be completed in May 2007.

Philnico is 55 percent owned by Hong-Kong based Compline Resources Co., about 30 percent by Australia’s Pacific Energy Ltd. and the rest by local investors.

The company bought the Nonoc mining rights from the government in 20 – but has yet to settle its arrears estimated at $300 million for the right to develop and extract nickel resources.