Nickel Now

Rusina, although currently concentrating on nickel operations, also has platinum and copper potential, the platinum has been explored through 2008 and the copper, which can be found in the center of Xstrata's Tampakan property, is awaiting further decisions.

Nickel laterite is also attracting interest from Canadian based companies. MRL Gold, on their Agata property, have 7 million mt of measured and inferred nickel laterite at 1.25% nickel. Direct shipping is one option, but Tony Climie, COO, explained that the company also sees the future in value added products. The challenge here is convincing investors that it is worth waiting for a processing plant, which could cost up to $2 billion before seeing a return on their investment. The example of Coral Bay and the impetus from Sumitomo in the area shows that the rewards are worth waiting for.

The focus on Mindanao for Mindoro means that their promising Gold and Copper projects have been put on the backburner. Kay Tanda already has a resource of 360,000 oz, but Mindoro is aiming for 1 million oz. Climie explained how priorities can change. "Right now there is more potential for early production from our nickel laterite project, and there is more market interest in this, but this could change with one drill hole into a new porphyry copper gold prospect," said Climie.

There are many positive stories coming from nickel mining, but not everybody is so lucky. BHP Billiton and its local company, QNI Philippines, reduced operations in the country earlier in the year due to a dispute with local company Asiaticus Management. The Pujada nickel project could bring in up to $1.5 billion of investment, but there is currently a stalemate betweeen the two companies as the courts deal with the case.

Processing Power

Coral Bay Nickel Corp. (CBNC), 54% owned by Sumitomo, is a true success story of the last 10 years. The HPAL plant on Palawan island is using low grade nickel from Rio Tuba's operations. "The [Rio Tuba] stockpile will last for 20 years," said Fuijimura. "The positive results from this operation have led CBNC to expand their operations at Coral Bay, aiming to double their output to 20,000 mt/y.

The friendly investment climate of the Philippines has also made the country a choice for another HPAL plant which will be constructed in Surigao. This is part of the long-term Sumitomo strategy. "Sumitomo would like to open a new HPAL plant in Surigao as part of its strategy reaching 100,000 mt/y, of which 40,000 will be from the Philippines," said Fujimura.

HPAL is one option for processing ore. Another option is in furnaces. Platinum Group Metals Corp., a wholly Philippine company, has acquired smelters and kilns to process their nickel. Earlier this year Sec. Atienza granted a mineral processing permit for the company to start operating its Manticao ferro-nickel plant.

"We started with a small group and now it has become a three smelter company with two existing mines," Rafael Atayde, Platinum Group Metals. "We were able to get the permits, the board of investment tax holidays and as a result the value of the company has increased." Currently both a mining and processing company, the two are to be separated to make it facilitate foreign investment on the processing side.

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