JSCO Holdings signs MOA with Philippines' nickel mining company

JSCO Holdings said on Thursday that it has signed a comprehensive memorandum of agreement (MOA) with EVE Mining & Development Corporation (EVM) of the Philippines to acquire business rights, equity shares, and sales rights for nickel ore in the Southeast Asian country.

EVM had obtained a mining license for a 15,000-hectare nickel mine in the Surigao del Sur province, Philippines.

"EVM acquired mining rights under a legitimate contract with the National Commission of Indigenous Peoples (NCIP), which in turn received the rights to develop the mines from the Department of Environment & Natural Resources (DENR) of the Philippine government," a JSCO official said. 

EVM is currently in the process of acquiring a mining license from the Mines and Geosciences Bureau.

The mine areas of Surigao del Sur have a number of nickel mines including the "Taganito" mine developed by Japan's Sumitomo and those invested by Chinese companies.

In this region, 15-20% of the world's nickel ore is mined, and the Philippines' nickel ore production and exports are increasing at a fast rate after Indonesia, the No. 1 nickel producer, banned the country's nickel ore export.

Nickel is an essential raw material for electric vehicle batteries, and its demand is rapidly increasing across the world along with the growth of the EV market. As exports from Russia, a major nickel exporter, however, have declined abruptly due to the war, prices have recently shot up.

Write to Jae-Fu Kim at hu@hankyung.com