Sumitomo Metal Mining Co., Ltd. (SMM) has recently decided that SMM will acquire an additional interest of 12.5 % in Taganito HPAL Nickel Corporation (THPAL, Headquarters: Surigao del Norte Province, Republic of the Philippines), its base for producing nickel/cobalt mixed sulfide in the Philippines. SMM possesses a 62.5% interest in THPAL at present.
This acquisition of an additional interest is in response to a request by Nickel Asia Corporation (NAC, Headquarters: Taguig City, Republic of the Philippines), a THPAL partner. NAC possesses a 22.5% interest in THPAL, and desired to sell an interest of 12.5% to SMM in order to commit more management resources to investment in the development and expansion of mines and renewable energy business.
The acquisition of additional interest costs a total of about USD 42M. Share Purchase Contract was recently completed and the acquisition is anticipated to be made before the end of 2016, assuming completion of procedures for official permit and other requirements. The acquisition of additional interest will have only a slight influence on SMM’s business performance. By acquiring this additional interest in THPAL from NAC, SMM will develop the relationship with NAC further. SMM will also make continuous endeavor to operate THPAL plant smoothly, so that the supply of raw material for our nickel business becomes even more secure.