State mining firm seeks joint venture partner

The state-run Natural Resources Mining Development Corp. (NRMDC) is scouting for a joint venture partner with the financial muscle to develop nickel and chrome mine prospects on Dinagat Island in Surigao del Norte.

NRMDC president Artemio F. Disini said an open bidding will be held possibly in June for mine prospects on Dinagat Island believed to be rich in nickel and chrome deposits.

To date, two Chinese firms – Jinchuan Nonferrous Metals Corp. and Shanghai Baosteel Corp. – have expressed interest in submitting tender offers.

NRMDC is said to have established a buying station in Dinagat in anticipation of full-scale mining operations in the area in the next few years.

NRMDC is also expected to expand into larger-scale mine operations and initial estimates peg the investment requirements to reach $1 billion.

Disini cited preliminary exploration by the United Nations Development Programme (UNDP) that indicated the viability of further exploration and mine production activities in Dinagat Island.

"It’s a very interesting prospect. It was once explored by UNDP under the UN Revolving Fund Project and drilling took place from 1988 to 1993," said Disini.

On the other hand, the Mines and Geosciences Bureau confirmed that the mine prospects have large nickel and chrome concentrations as evidenced by small-scale mining operations that continue to take place in the island.

"It has high prospectivity and investment potential for chromite, nickel laterite with iron. Traces of gold have been observed in stream sediment samplings conducted by the UNDP. Small scale miners were mining chromite at 1 to 1.5 tons of lumpy ore per miner per day.

All indicators warrant a reserve. But of course a large mining venture requires a bigger deposit to warrant development," noted Disini.

Previous exploration activities were done by Krominco Inc., a Filipino-Canadian-Chinese owned company.