NICKEL ASIA Corp. (NAC) is in talks with its Japanese partner Sumitomo Metal Mining Co., Ltd. (SMM) to sell its stake in Coral Bay Nickel Corp. (CBNC), which operates a hydrometallurgical processing plant in Palawan.
NAC is in “discussions and negotiations with SMM for the proposed sale of all of NAC’s shareholding in CBNC equivalent to 15.625% of the total outstanding and issued capital stock of CBNC,” the mining company said in a disclosure on Monday.
SMM, the majority shareholder of CBNC, currently owns the remaining stake in the company.
“As a condition precedent for the proposed sale, (Nickel Asia) will engage a third party to conduct a valuation of the CBNC shares,” it added.
The company said it has reclassified its investments in CBNC shares as available for sale and will no longer recognize equity gains or losses from its investment in Coral Bay.
CBNC operates the Coral Bay high-pressure acid leach or HPAL processing plant in Rio Tuba, Palawan which processes metals from lateritic nickel ore. The metals are converted into nickel and cobalt mixed sulfide.
The processed products are refined in Japan to become components in the electronics, chemical engineering, and aerospace industries. Refined products are also used as battery components for electric vehicles.
Nickel Asia supplies the ore for processing to the Coral Bay plant from its mining operations.
The company owns five mines: Rio Tuba in Palawan, Taganito and Tagana-an in Surigao del Norte, the Cagdianao mine in Dinagat Islands, and the Dinapigue mine in Isabela.
As of the third quarter of 2024, Nickel Asia’s attributable net income declined by 24.2% to P1.44 billion. Its revenues fell by 8.01% year on year to P7.69 billion amid lower nickel and limestone sales.
Nickel Asia shares went up 0.63% or two centavos to close at P3.21 apiece on Tuesday. — Adrian H. Halili
