NAC foregoes mining plans in Davao

Nickel Asia Corp. (NCA), the Philippines’ largest nickel ore producer, has decided to forego its mining endeavors in Davao Oriental.

In a stock exchange filing, NCA disclosed that its previously declared letter of intent (LOI) to serve as the sole and exclusive mining service contractor for Hallmark Mining Corp. and Austral-Asia Link Mining Corp. has been terminated after the involved parties failed to reach an agreement on commercial terms concerning the mineral production and sharing agreements (MPSAs).

NCA first reported that Hallmark and Austral-Asia accepted its LOI to be the sole and exclusive mining service contractor for the two companies’ MPSA in February 2023. Hallmark’s MPSA covered 4,999.71 hectares (ha) of land in Mati and San Isidro, Davao Oriental while Austral-Asia’s MPSA covered another 5,000 ha in Mati and Gov. Generoso, Davao Oriental.

NCA also planned to conduct a feasibility study to assess the economic and technical viability of establishing a high-pressure acid leach (HPAL) ore, or equivalent mineral, processing plant within the said MPSA areas.

Despite the terminated plans, NAC has assured that this development will not adversely affect its existing and upcoming projects. The mining company is currently gearing up for mining initiatives in Bulanjao, Palawan, and Manicani, an island in Leyte Gulf. NAC’s annual production targets include approximately 4 million wet metric tons (WMT) from Bulanjao and around 2 million WMT from Manicani.