Nickel Asia Corp. (NAC) has set aside as capital expenditure for its mining business this year P4.5 billion, up 80 percent from last year’s P2.5 billion.
This was learned from company officials conducting an earnings call on Tuesday.
NAC presently operates five mines that sold a combined 15.94 million wet metric tons (WMT) of nickel ore in 2022, an 11 percent decrease from 2021’s 17.94 million WMT.
In February, the company committed to conduct due diligence and exploration as well as sign definitive agreements with Hallmark Mining Corp. and Austral-Asia Link Mining Corp. via a letter of intent (LOI) to become sole and exclusive contractor for two properties in Davao Oriental.
Under the LOI, NAC or its wholly owned subsidiary is the contractor of Hallmark’s mineral production sharing agreement (MPSA) covering 4,999.71 hectares in Mati and San Isidro, Davao Oriental and Austral-Asia’s MPSA covering another 5,000 hectares in Mati and Gov. Generoso, Davao Oriental.
The LOI also allows the conduct of a feasibility study determining the economic and technical viability of a high-pressure acid leach plant or a mineral processing plant within the MPSA areas.
