Nickel Asia eyes partnership opportunities for Pujada mine

MANILA, Philippines — Nickel Asia Corp. (NAC) is considering partnership opportunities for the construction of a mineral processing plant in the Pujada Nickel Project in Davao Oriental, following the completion of feasibility studies.

“For Pujada mine, we have yet to finalize the decision (on taking in a partner). This will be dependent on the feasibility of an ore processing plant. We will have to wait for that feasibility study,” NAC vice president for treasury, investor relations, and sales Andre Dy said.

Hallmark Mining Corp. and Austral-Asia Link Mining Corp. accepted NAC’s letter of intent (LOI) in February to be their exclusive mining service contractor for the two mine properties in Davao Oriental.

With the acceptance of the LOI, NAC was permitted to conduct a feasibility study to establish high pressure acid leach (HPAL) or equivalent mineral processing plant in the Pujada mine sites.

The operation of the Hallmark and Austral-Asia mine is contingent on the conducting of due diligence and exploration activities, as well as the execution of definitive agreements by the involved parties.

Hallmark’s mineral production sharing agreement (MPSA) covers nearly 5,000 hectares in Mati and San Isidro and Austral-Asia’s MPSA encompasses 5,000 hectares in Mati and Gov. Generoso, both in Davao Oriental.

The MPSAs of Hallmark and Austral-Asia hold control of the Pujada Nickel Project.

In total, the Pujada nickel project covers 16,000 hectares of prospective mineral lands in Davao Oriental.

In its website, Hallmark said the project was one of the 23 priority mining projects that are part of the government’s 2004 Minerals Action Plan intended to revitalize the Philippine mining industry and encourage foreign investments.

Dy said initial appraisal showed the Pujada mine has estimated resources of 750 million wet metric tons (WMT) while mineable reserves were estimated at 60 million WMT.

“We cannot share details on target commencement of operations or production sales target. But the estimated resources we have given should give you an idea of the project’s potential,” he said.

As for the fund raising for the mine’s ore production and export operations, this will be funded with NAC’s internally generated funds.

“We think the funding requirements can be accomplished with internal cash, we are not doing a fund raising activity,” Dy said.

NAC is the Philippines’ largest producer of lateritic nickel ore and one of the largest in the world. It has also established a foothold in renewable energy development.