Nickel Asia Plans to Sell Stake in Processing Plant to Sumitomo
Nickel Asia is negotiating to sell its stake in a processing plant to Sumitomo, focusing on mining and renewable energy.
Nickel Asia, Sumitomo, Coral Bay, Philippines, Mining, Electric Vehicles
Manila: So, Nickel Asia Corp. is looking to sell its minority stake in a processing plant to Japan’s Sumitomo Metal Mining Co. They’re shifting their focus more towards mining and renewable energy.
They want to sell their 15.625% stake in Coral Bay Nickel Corp. and are bringing in a third party to figure out how much those shares are worth. It’s a big deal since Coral Bay is one of their main processing plants for nickel, which is super important for making stainless steel and electric vehicle batteries.
Nickel Asia will still hold onto its 10% stake in another plant, the Taganito HPAL plant. The Philippines is a major player in the nickel market, being the second-largest supplier to China. This move is part of a bigger push for miners in the country to invest in processing rather than just exporting raw materials.
Coral Bay has had a rough time financially lately, with rising costs and falling nickel prices. Nickel Asia’s losses from Coral Bay were pretty significant, and they think selling this stake could help them grow and diversify better.
Analysts believe that by selling, Nickel Asia could free up some cash to invest in more promising projects. It’s a smart move considering the ongoing nickel surplus that’s putting pressure on prices.
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