Atlas to raise stake in Berong nickel mine

MANILA, Philippines - Listed Atlas Consolidated Mining and Development Corp. is raising its stake in the Berong Nickel project in Palawan.

Company executive vice president Adrian Ramos said Friday the company has entered into a memorandum of understanding (MOU) with another project owner, Toledo Mining Corp., for a prospective equity sale with the aim of increasing Atlas Mining’s interest in the project to 30 percent from 25.2 percent.

The MOU between Atlas and Toledo also provides for the execution of a new shareholder’s agreement between the two companies “that will define the rights and obligations of the shareholders with regard to the management and control of the project.

Ramos said the fine details of the equity sale would still be discussed.

The Berong nickel project is currently majority owned by DMCI Mining Corp. which bought into the project in 2012.

DMCI Mining is a subsidiary of DMCI Holdings that has interests in construction, power, water utility, infrastructure development, real estate, mining and coal exploration.

“While we continue to focus on our copper business, we have always believed that the Berong nickel mine is a world-class asset. We are excited that a company with the success and expertise of DMCI Mining Corp. has taken on the challenge of driving the development of the project,” said Ramos.

The Berong nickel mine, exports saprolite and limonite ores to customers in China and Japan for production of ferronickel, a component of stainless steel.

Nickel deposit in the mine is shallow, requiring only the use of basic equipment such as excavators, tractors and dump trucks. The mines’ proximity to the sea enables straightforward trucking, barging and shipping.