BENGUET Corp. on Wednesday said its wholly owned subsidiary signed an off-take agreement with a major Chinese trading firm for the sale and delivery of nickel ore.
In a disclosure to the Philippine Stock Exchange, BC said that Benguetcorp Nickel Mines Inc. signed a deal with China’s Bright Mining & Resource Co. Ltd for the sale and delivery of some 1.8 million metric tons of nickel ore, with an estimated grade of 1.8 percent, over the next three years.
The Philippine miner said it has facilitated the transaction as a marketing agent for BNMI, which holds mining rights and operating interest in a nickel laterite mine located in Santa Cruz, Zambales.
On August 9, BC signed a five-year agreement with BNMI for the exclusive marketing of its nickel ore production.
The Santa Cruz nickel mine consists of 1,406.7 hectares covered by a mineral production sharing agreement.
Earlier, BNMI secured the Securities and Exchange Commission’s approval to raise its authorized capital to P2 billion.
The capital hike was made through the transfer of its mining permit covering the Santa Cruz nickel mine, which was valued at P1 billion.
Formed in 2009 with an initial capital of P10 million, BNMI is eyeing an initial public offering of shares this year.
BC said the capital hike and the transfer of the nickel mine will strengthen its balance sheet and is consistent with its strategy of extracting value from its various mineral properties.
Last year, BNMI shipped some 1.3 million tons of ore with grades ranging from 1.8 percent to 2.05 percent nickel through an off-take arrangement.
BNMI is considering the establishment of an intermediate processing facility to improve and maximize the value of its products.
BC shares rose to P28 each on Wednesday from P27.75 the day before.
