Sumitomo Metal Mining Gets 16.5% Share in Philippine Nickel Major

Sumitomo Metal Mining announced on Wednesday the firm purchases 16.5% share in Nickel Asia Corporation (NAC), which is the largest nickel producer in Philippines, for US$ 39 million. Sumitomo Metal Mining tries to seek growth in nickel business through strategic partnership with NAC.

NAC controls Rio Tuba Nickel Mining and Taganito Mining. Sumitomo Metal Mining operates a joint venture, Coral Bay Nickel with Rio Tuba Mining, which supplies ore for the joint venture, while Sumitomo Metal Mining conducts feasibility study for new nickel project with high pressure acid leach (HPAL) technology with Taganito Mining, which is expected to supply ore for the project.

Sumitomo Metal Mining tries to become world nonferrous metal mineral major. The firm expands the nickel business through new Taganito project and expansion of Niihama nickel plant.

NAC sold 3.5 million tonnes of ore in 2008 with 5.6 billion pesos of sales. The firm operates major nickel mines and provides ore for Coral Bay Nickel project and Japanese ferronickel major, Pacific Metals.