Huayou is widely reported to be planning one of the projects and is in “exploratory talks” with potential partners 

The Philippines Board of Investments (BOI) has stated that it expects two nickel processing projects to be developed in the country with a combined investment of US$10Bn. These projects would produce mixed hydroxide precipitate (MHP) that would supply the EV battery sector, although no details have been released on their capacity.

China’s Huayou Cobalt is widely reported to be one of the companies constructing a plant based on high-pressure acid leach (HPAL), according to industry sources. The successful development of both projects would represent the third and fourth nickel plants in the country with Sumitomo Metal Mining (SMM) already operating the Coral Bay and Taganito plants, which produce mixed sulphide precipitate (MSP) as feedstock for SMM’s nickel sulphate production in Japan.

The Philippines is the world’s second-largest nickel ore producer after Indonesia, accounting for 10% of the total global total in 2022. In an attempt to push miners to invest in local nickel processing, earlier in the year, the Filipino government was reported to be contemplating a 10% export tax on nickel ores. It hopes to add value to its nickel wealth in a similar way to Indonesia without resorting to tough ore export trade policies that the latter has successfully adopted. It appears the country’s plea for investment in downstream processing capacity has been noted and Huayou will move towards signing a memorandum of understanding with its potential partners by the end of the year.

Huayou has already invested heavily in nickel processing capacity in nearby Indonesia where it currently operates the PT Huayue plant at the Indonesia Morowali Investment Park (IMIP). PT Huayue was commissioned in early 2022 and ramped up quickly to nameplate capacity of 60ktpy Ni-in-MHP. It also has a further four HPALs in the pipeline in the country. The company’s experience in hydrometallurgical processing technology in Indonesia means that upon commencement of construction, the proposed plant in the Philippines could be up and running within 24 months.