Nihao unit gets right to mine for nickel in Zambales

A subsidiary of Nihao Mineral Resources International Inc. has executed an operating agreement with another local mining firm for the exclusive right to develop a nickel mine in Botolan, Zambales, northwest of Manila, Nihao said.

Companhia Nube Minerale Inc.¡ªwhich Nihao controls through its wholly owned subsidiary Mina Tierra Gracia Inc.¡ªhas acquired from Concorde International Mining Corp. ¡°the exclusive right to develop and operate, for the extraction of nickel, the 2,564-hectare¡± property in Botolan, Nihao said in a disclosure to the stock exchange.

Concorde holds the rights to the mining area under Exploration Permit application AEP-III-26-07, it said.

The agreement is for five years and may be renewed for another five, it added.

Nihao said Nube Minerale agreed to pay Concorde a ¡°royalty fee per metric ton of nickel shipped, based on the average current nickel price, with escalation in the event of increase in nickel prices.¡±

Nube Minerale will also be given first priority in the event Concorde decides to enter into another joint venture to develop other mineral resources in the Concorde AEP area, Nihao added.

Last month, Nihao signed an agreement with Jiangxi Rare Earth and Rare Metals Tungsten Group Co., one of China¡¯s major nonferrous metals producers, on exploration and development of mine sites in Zambales.

Under the agreement, Jiangxi, Nihao and Geograce Resources Philippines Inc., will form a partnership to explore and develop Zambales mining holdings totaling 35,496.6 hectares that are either directly or indirectly held by the two local firms.

The agreement also provides for other arrangements, including establishment of a joint venture processing plant for nickel and cobalt in the Philippines.

If the exploration work proves successful, a nickel smelting plant will e put up in Zambales in three to six months.

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