Nickel Asia exits Coral Bay amid volatile global market

MANILA, Philippines — The volatility in the global nickel market has promted Zamora-led Nickel Asia Corp. (NAC) to divest its minority stake in a nickel processing plant as it opts to focus on its upstream mining and renewable energy businesses.

NAC said it is already discussing and negotiating with its Japanese partner, Sumitomo Metal Mining Co. (SMM), for the sale of the former’s 15.625 percent share in Coral Bay Nickel Corp. (CBNC).

The mining firm said it would engage a third party to conduct a valuation of the CBNC shares. SMM currently owns 84.375 percent of CBNC.

“With the proposed sale of the CBNC shares, NAC has reclassified its investment in CBNC shares as available for sale and will no longer recognize equity gains or losses from its investment in CBNC,” the company said in a regulatory filing yesterday.

NAC vice president for treasury and investor relations Andre Dy said the firm decided to revisit its growth strategy amid volatility in the global nickel market that negatively impacted the financial performance of CBNC.

“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 told The STAR.

“The divestment is seen to positively impact the NAC Group in furthering its ambitious growth and diversification objectives,” Dy added.