TWO Philippine-listed firms led by businessman and stockbroker Jerry Angping have signed an agreement with commodities giant Glencore International AG to acquire, develop and operate mining assets in the Philippines, Indonesia as well in other parts of the region.
In separate filings at the Philippine Stock Exchange on Wednesday, NiHAO Mineral Resources International Inc. and AGP Industrial Corp. said they signed agreements with Glencore on Tuesday.
The deal will pave the way for the formation of a joint-venture corporation to be based in Hong Kong and will be initially capitalized for $2 million. Half the amount will be shouldered by Glencore, with NiHAO and AGP Industrial each contributing $500,000.
The deal will allow the three companies to identify, acquire and develop operating mining claims of “economically feasible nickel deposits in the Philippines for the purpose of direct shipping/selling ore and other related nickel mining businesses.”
For its part, Glencore will be exclusive marketer of nickel ore and all materials produced by the joint venture while NiHAO and AGP will be the Philippine partner.
“The [joint venture] may also venture into mining projects in Indonesia and other Asian countries. In such case, the parties may create a new joint-venture entity with the same terms and conditions as the [previous agreement],” the disclosure added.
Glencore is a company registered in Switzerland and is one of the world’s leading integrated producers and marketers of commodities. It is involved in production, sourcing, processing and refining, transporting, financing and supply of metals and minerals, energy products and agricultural products.
“This partnership presents a great opportunity for both parties and I believe that this can be the start of something. It can pave way for further partnerships between Philippine companies and global players to jointly grow the Philippine mining industry which will contribute to our economic growth,” NiHAO chief operating officer Jose Miranda said in another statement.
NiHAO, a company with stakes in operating nickel mines in the Philippines, jumped 7.45 percent to P3.46 each on Wednesday’s trading while diversifying construction firm AGP Industrial shares also increased by 13.48 percent to P26.10 each.
