The Nickel Production Industry and the Pujada Mining Project

Published: October 9, 2022
The Nickel Production Industry and the Pujada Mining Project

Among the transition metals, Nickel is an important chemical component. The production of high-quality steel and batteries are its two primary applications. In 2020, with Nickel price and Nickel demand at promising levels, it was predicted that 2.5 million metric tons of Nickel would be extracted from mines around the world. Indonesia, the Philippines, Russia, and New Caledonia are among the top countries for Nickel mining. Besides being the world's top producer of Nickel, Indonesia also has the most extensive Nickel reserves of any country, ahead of even Australia and Brazil. Nickel deposits have one of the shortest remaining life years of any metal or mineral, although this is less of a concern because Nickel is so easily recycled. The Philippines produced 370,000 metric tons of Nickel in mining operations that year. When looking at the stated time period, 2015 is when Nickel production in the Southeast Asian country reached its highest point, at 554,000 metric tons. The Pujada Nickel Project is one of several Nickel businesses in the Philippines, and it can be found in the relatively easy-to-navigate Barangays of Macambol and Cabuaya, City of Mati, Davao Oriental, 175 kilometers from Davao City. The Pujada Peninsula's northeastern corner is where the construction work is taking place.

The Philippine Bureau of Mines began exploring the Pujada Nickel Project in 1950 with the hope of expanding the country's mining industry (now Mines and Geosciences Bureau).

Austral-Asia Link Mining Corporation (AALMC) and Hallmark Mining Corporation (HMC) are both local firms managed by Asiaticus Management Corporation (AMCOR) that control the Pujada Nickel Project, which is widely regarded as one of the most prominent mining enterprises in the Philippines. The government of the Republic of the Philippines issued seven (7) Mineral Production Sharing Agreements to the two businesses in June of 2004 and 2005. By December of 2015, all of these MPSAs had been rolled into a single entity. The mining firm has the right of ingress and egress over the region for twenty-five (25) years, which is renewable for the same amount of time under the terms of the MPSA.

Care for the surrounding natural area and local community is a top priority for both AALMC and HMC. In addition, the company has been recognized as the Safest Exploration in the country for a number of years and actively fosters a safe workplace for its employees. Certification International Philippines (CIP) awarded the organization with ISO 9001:2015 and ISO 14001:2015 certification during the 2nd Stage Audit conducted on September 28-30, 2021, demonstrating the company's commitment to quality and environmental responsibility.

The Pujada Peninsula, where the Nickel production project is based, is home to one of the Philippines' more challenging settings in which to carry out mining operations. Republic Act No. 9303 establishes the Mt. Hamiguitan Protected Landscape, which includes the land that has been excised for the final mining area, and the Pujada Protected Seascape, which is close to the area that may be impacted by the mining activity. The Nickel company and the Pujada Nickel Project have obtained an Environmental Compliance Certificate (ECC) and developed an Environmental Protection and Enhancement Program (EPEP) for the life-of-mine (LOM) of the mining operation to address environmental concerns that may be raised by the mining operation.

From the early exploration stages all the way up to the present day, Austral-Asia Link Mining Corporation and Hallmark Mining Corporation through its Pujada Nickel Project have been vital collaborators on a wide range of community development programs and services. In order to construct mining host and nearby communities where people may live reasonable quality lives in ways that are consistent with the concepts of people empowerment and sustainable development, the Nickel firm actively mobilized resources in conjunction with diverse stakeholders. The Department of Environment and Natural Resources (DENR) and other companies in the Philippine mining industry have praised the effort.

The Philippines government lifted its mining moratorium four years early, in 2021. Wilfredo Moncano, director of the mines and geosciences bureau, expressed optimism about the future, saying that the order will benefit nine potential mining projects and that the government could generate up to 80 billion pesos ($1.6 billion) in taxes and royalties annually once commercial operations begin. The mining sector in the Philippines has expressed its gratitude for the government's decision to abolish the ban, saying it "would enable the industry to contribute more to our country's economic recovery."

It is hoped that the Pujada Nickel project will provide a boost to the government's initiative to combat rising unemployment by making life more comfortable for the country's poor. Since this project has the potential to provide a new source of income for many people, Hallmark Mining Corporation, as a Nickel manufacturer in the Philippines, has begun working with the local government, the Mines and Geosciences Bureau, and other government agencies to develop plans to capitalize on this opportunity. The widespread distribution of income in the form of salaries, wages, and the purchase of products and services will have the beneficial side effect of stimulating commerce.

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Sources: Philippines Nickel; Statista; Hallmark Mining Company