DMCI Mining Corporation (DMCI Mining) has entered into an agreement with Benguet Corporation (BC) to conduct exploration, development and mining activities for a limited portion of the 1,406 hectares Sta. Cruz Nickel Project located in Sta. Cruz, Zambales.

In a disclosure to the Philippine Stock Exchange, DMCI said the agreement also covers the mining and sale of 2.0 percent high grade nickel ore of up to 200,000 metric tons per year for a period of three years.

BC said in a separate disclosure that it has already made two shipments of nickel ore for metallurgical testing to Europe and China.

The firm said it is currently conducting a feasibility study on tank leaching of middle-grade nickel ore and on pelletizing nickel ore in order to add value by processing the ore.

The LME price of nickel has recovered in recent months, said BC noting that they will earn a reasonable return on their investment and mining cost. The off-take agreement assures Benguet of a ready market for its high-grade nickel product.

Benguet operates the nickel laterite mine with total area of 1,406 hectares under an approved mineral product sharing agreement denominated as MPSA 226-2005-III.