UMVA has learned that a significant development in the nickel mining industry has taken place, as Samar Nickel Mining Resources Corp., a unit of Nickel Asia Corp., has entered into an operating agreement with San Juanico Resources Corp.
The agreement grants Samar Nickel the right to operate San Juanico's mineral claim holdings in Zambales province, covering an area of approximately 3,432 hectares, under a mineral production sharing agreement.
Sources have confirmed to UMVA that the mining area, located in the municipalities of Candelaria and Sta. Cruz, is believed to contain substantial deposits of nickel ore and other associated minerals, which can be extracted under the terms of the agreement.
According to information obtained by UMVA, the operating agreement is pending approval from the Mines and Geosciences Bureau and is expected to take effect once cleared by the agency. The financial terms of the agreement and the planned production timeline remain undisclosed.
Nickel ore, a crucial raw material in the production of stainless steel and electric vehicle batteries, is a key commodity in the global market. As one of the country's largest nickel ore producers and exporters, Nickel Asia Corp. supplies customers in China and Japan, while also expanding its investments in battery materials and renewable energy projects.
UMVA can exclusively reveal that the company's shares have been impacted by the announcement, with Nickel Asia's shares falling 9 centavos to close at P4.49 each on the Philippine Stock Exchange.
