DMCI Mining Corp. and Nickel Asia Corp. (NAC) have signed a memorandum of understanding (MOU) to explore the feasibility of developing and operating a nickel processing plant in the Philippines.
Under the agreement, NAC will contribute its expertise in nickel processing technology and exploration, while DMCI Mining will provide new assets, along with its strength in construction and engineering, the parties said in a statement on Wednesday.
The companies said, however, they are still in the process of collaborating to identify the suitable technology, select an optimal site for the plant, and secure a steady supply of nickel ore through joint exploration, subject to approval of necessary permits, over the next two to three years.
DMCI Mining and NAC also agreed to discuss the equity structure of a potential joint entity for the plant’s development and operation as it is eyed to process low-grade nickel ore that is currently not viable for export.
The parties said such move will allow the country to maximize mineral resources, generate new opportunities and boost the local nickel industry.
Martin Antonio Zamora, NAC president and chief executive officer, said the company remains optimistic about the future of nickel mining despite the current global oversupply.
Future demand
According to Zamora, future demand will be driven by the growing need for nickel ore for electric vehicles and stainless-steel markets.
“Establishing an economically viable nickel processing plant in the Philippines requires several factors to align, including clear government policy directions and regulations, but proactive preparation is crucial,” Zamora said. “With the significant nickel resources needed and complex logistical challenges to navigate, early planning is essential for long-term success.”
Meanwhile, Tulsi Das Reyes, DMCI Mining president, said the partnership with NAC is a strategic initiative that involved extensive discussions.
“This project is more than just a business — it’s a step toward creating jobs and ensuring the sustainable use of our mineral resources. By laying the groundwork early, we can help position the Philippines as a key player in the global nickel supply chain,” Reyes said.
Last month, NAC pursued the sale of all its shareholding in Coral Bay Nickel Corp. (CBNC) to Japanese firm Sumitomo Metal Mining Co. Ltd., citing the volatility in the nickel market as well as the company’s decision to focus on its upstream mining and renewable energy businesses.
CBNC operates a hydrometallurgical processing plant in Palawan that uses the process of high-pressure acid leaching to effectively and efficiently convert low grade nickel lateritic ores into nickel and cobalt mixed sulfide.
According to data available from the Mines and Geosciences Bureau, the country produced a total of 71,801 dry metric tons (DMT) of mixed nickel cobalt sulfide in 2024, down 8 percent from 77,904 DMT in 2023.
Its production of nickel direct shipping ore reached 33.43 million DMT in 2024, down 6 percent from 35.47 million DMT in 2023.
