Nickel Asia Corp (NAC), a mining firm owned by businessman Manuel Zamora, is in talks with Japan’s Sumitomo Metal Mining Co. (SMM) for the sale of its stake Coral Bay Nickel Corp. (CBNC).
CBNC is a company that operates a hydrometallurgical processing plant (HPP) that uses the process of high pressure acid leaching (HPAL) in Bataraza, Palawan.
NAC said in a disclosure to the stock exchange Tuesday it is in discussions with Sumitomo for the sale of its 15.625-percent interest in CBNC. It did not disclose the value of the transaction.
“As a condition precedent for the proposed sale, NAC will engage a third party to conduct a valuation of the CBNC shares,” the mining firm said.
With the planned sale of the CBNC shares, NAC said it reclassified its investment in CBNC as available for sale and it would no longer recognize equity gains or losses from its investment in the company.
NAC increased its stake in CBNC in 2022 by acquiring 33.046 million common shares of CBNC from SMM for $25.94 million.
CBNC’s HPP plant converts low-grade nickel lateritic ores into nickel and cobalt mixed sulphide.
These intermediate products are further refined in Japan to turn into valuable components in the electronics, chemical engineering, and aerospace industries. These are also used as battery material for electric vehicles.
CBNC started operating in 2005 and now operates at a capacity of 24,000 tons of contained nickel and 2,000 tons of contained cobalt per year in the form of a mixed nickel-cobalt sulfide.
NAC owns five mines in the Philippines which are being operated by its subsidiaries. These include Rio Tuba in Palawan operated by Rio Tuba Nickel Mining Corp.; the Taganito mine operated by Taganito Mining Corp. and the Tagana-an mine operated by Hinatuan Mining Corp., both in Surigao del Norte; the Cagdianao mine in Dinagat Islands operated by Cagdianao Mining Corp.; and the Dinapigue mine in Isabela operated by Dinapigue Mining Corp.
It also has other properties in various stages of exploration for nickel, while continuing to seek opportunities in copper and gold.
