In an effort to strengthen its trajectory and expand its targets, Nickel Asia Corporation (NAC) will divest its minority stake in a nickel processing plant, allowing the firm to shift its focus to its upstream mining and renewable energy initiatives.
Philippine Star detailed in a report that NAC is currently in discussions with its Japanese partner, Sumitomo Metal Mining Company (SMM), regarding the sale of its 15.625% stake in Coral Bay Nickel Corporation (CBNC).
SMM currently owns 84.375% of CBNC.
The company also mentioned that it would hire a third party to evaluate the CBNC shares.
NAC Vice President for Treasury and Investor Relations, Andre Dy, explained the decision, stating that the company is reassessing its growth strategy in light of the global nickel market’s volatility, which has affected the financial performance of CBNC.
Dy explained that over the past three years, CBNC’s financial performance has suffered due to rising operating costs and a decline in prices on the London Metal Exchange (LME).
NAC highlights its commitment to sustainability, emphasizing the pivotal role of nickel and renewable energy in achieving a greener future. The company has set ambitious goals this year, aiming to be the country’s leading ESG investment and rank among the top 25 firms on the PSE by market capitalization by 2025.
