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| | August 08, 2008
$150M IN MINING DEALS INKED IN CHINA
Publisher: Philippine Daily Inquirer
Author: Leila Salaverria Amy R. Remo
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BEIJING --- President Gloria Macapagal-Arroyo witnessed the signing Thursday of a cooperation agreement between two Philippine companies headed by her former chief of staff, Michael Defensor, and a Chinese company to explore for nickel and put up a $150-million nickel processing plant in the Philippines.
The memorandum of understanding was signed between the publicly listed Nihao Mineral Resources International and Geograce Philippines, chaired by Defensor, and China's Jiangxi Rare Earth and Rare Metals Tungsten Group Co. based in Chengdu, Sichuan province.
President Arroyo, who arrived in Chengdu early Thursday, is in China to attend the opening ceremonies of the Olympic Games in Beijing. She arrived here Thursday night.
In a disclosure to the Philippine Stock Exchange on Thursday, Nihao said it had signed the agreement with Jiangxi, one of China's major non-ferrous metals producers, to explore and develop mining holdings in Zambales province, northwest of Manila.
Under the agreement, the three companies will form a strategic partnership to explore and develop jointly the mining holdings totaling 35,496.6 hectares of land that are directly or indirectly held by Nihao and Geograce.
The agreement also provides for other arrangements, including establishment of a joint venture processing plant for nickel and cobalt in the Philippines.
Defensor said that if the exploration work proved successful, a nickel smelting plant would be put up in Zambales in three to six months.
He said the plant, by processing nickel ore and upgrading its quality, would increase the volume of nickel the Philippine could export. He said the Philippines at presented exported only raw ore.
The exploration, estimated to cost at least $5 million, will check if Zambales has enough reserves to feed the plant, he said.
Defensor noted that China was an important market for Philippine nickel and was investing in a Philippine nickel plant for the first time.
Nihao is a mineral exploration, development and production company focusing on nickel laterite projects. It has been given rights to explore more than 6,800 hectares in Botolan town in Zambales, one of the country's top five nickel-rich regions. Earlier, it signed an agreement with Geograce to explore and develop jointly the Botolan mine holdings.
Geograce, formerly the La Suerte Gold Mining Corp., has to date negotiated for exclusive access and acquisition rights over nearly 240,000 hectares of claims in nickel, gold, copper and chromite.
Defensor said the president of Geograce is Jerry Angping, a brother of Harry Angping, a special envoy for trade and investments. He added that among the shareholders of Nihao and Geograce were Rene Puno, a brother of Interior and Local Government Secretary Ronaldo Puno; Johnny Go, former president of the Australia New Zealand Bank in the Philippines; David Chua of the Philippine Stock Exchange; and David Atienza, who he said was not related to Environment and Natural Resources Secretary Joselito Atienza.
Defensor said Jiangxi Copper was also interested in exploring for copper in other areas in the Philippines, including the southern province of Agusan del Sur, but was mainly focused on Zambales at the moment.
Also with President Arroyo were House Speaker Prospero Nograles, Agriculture Secretary Arthur Yap, Trade and Industry Secretary Peter Favila and former senator Vicente "Sotto, who was recently appointed as head of the Dangerous Drugs Board. Edited by INQUIRER.net
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