Manila: Senate President Francis Escudero on Thursday announced that the joint venture between Nickel Asia Corporation and DMCI Mining Corporation to develop a nickel processing plant in the Philippines represents a 'monumental stride' in enhancing the country's mineral value chain.

According to Philippines News Agency, Escudero emphasized that the initiative is a pivotal step in advancing the local mineral processing industry, which is expected to create jobs and strengthen the country's position as a global player in the sector. He remarked that the partnership aligns perfectly with the vision of reducing raw mineral exports while paving the way for economic growth and job generation.

This announcement comes on the heels of last month's Senate approval of Senate Bill No. 2826, or the Enhanced Fiscal Regime for Large-Scale Metallic Mining bill. The bill aims to prohibit the export of locally extracted raw minerals five years after its enactment. Escudero, who played a crucial role in amending the bill, stated that the legislation's goal is to reshape the regulatory framework of the mining industry, ensuring more value is added to locally sourced minerals.

Escudero expressed optimism that the Nickel Asia-DMCI Mining partnership would align with the bill's objectives, showcasing the industry's readiness to invest in local mineral processing. He noted that such initiatives are key to responsibly and sustainably harnessing natural resources while unlocking immense potential for the Filipino people and the local economy.

The collaboration between the two companies was formalized on March 4 with a memorandum of understanding to explore the feasibility of developing a nickel processing plant in the Philippines. The companies aim to leverage Nickel Asia's expertise in nickel processing and exploration alongside DMCI Mining's construction and engineering strengths. They have agreed to select the plant's technology, site location, and secure a stable nickel ore supply through joint exploration over the next two to three years, pending permit approvals. Additionally, discussions are planned regarding the equity structure for a potential joint entity to develop and operate the facility.