Philex Mining acquired tenements in Santa Cruz and Candelaria towns in Zambales province of the Philippines.

According to comments from Philex Mining’s president Eulalio B Austin Jr, the company recently acquired previously undeveloped tenement areas in Santa Cruz and Candelaria towns in Zambales, Philippines. At the same time, the company was reported to be in the process of working on its exploration permit for the proposed nickel mine site, which will help to replace the Padcal mine after it reaches end of life in 2027. 

The Philippines is the world’s second-largest producer of nickel ores after Indonesia and INSG data shows that it produced 150kt Ni in mined nickel ore in H1 2023, which was up 4.2% y-on-y. The country continues to consider options to incentivise investment in downstream nickel processing capacity and add value to its nickel exports by taking advantage of rising demand from the EV battery sector. Currently, the only value-added products in the Philippines are produced at Sumitomo Metal Mining’s (SMM) Coral Bay and Taganito high-pressure acid leach (HPAL) plants, which produce mixed hydroxide precipitate (MSP) used in SMM’s nickel sulphate operations in Japan. 

In August, the country’s trade secretary ruled out imposing a ban on nickel ore exports to China and other overseas markets but reaffirmed plans to consider implementing a 10% export tax on nickel ores and other minerals. The Philippines’ plea for investment appears to have been noted as Chinese battery-chemicals producer Huayou moves towards nickel production in the country by signing a memorandum of understanding with its potential partners by the end of the year.