Sumitomo Metal Mining to Take Full Ownership of Coral Bay Nickel Smelter

Sumitomo Metal Mining (SMM)

Sumitomo Metal Mining (SMM), a leading Japanese mining and trading conglomerate, has announced its intention to acquire the remaining 15.625% stake in Coral Bay Nickel Corporation (CBNC) from Nickel Asia Corporation (NAC). This acquisition will result in SMM holding 100% ownership of CBNC, solidifying its control over this crucial nickel processing facility. Currently, SMM holds an 84.375% share in CBNC.

CBNC: A Key Player in Nickel and Cobalt Production

CBNC, located in the Philippines, is notable for being the first hydrometallurgical metal processing plant in the country to utilize the High-Pressure Acid Leaching (HPAL) process. This advanced technology allows for the efficient extraction of nickel and cobalt from lateritic ores. The smelter boasts a production capacity of 24,000 tonnes per year of nickel and 2,500 tonnes per year of cobalt, making it a significant contributor to the global supply of these critical metals.

Strengthening SMM's Position in the Nickel Market

This strategic acquisition by SMM further expands its presence in the Philippine nickel sector. The company also holds a 75% stake in the Taganito HPAL nickel facility, another prominent HPAL plant in the Philippines. In addition to its Philippine operations, SMM maintains a strong nickel refining presence in Japan with its Niihama Nickel Refinery and Harima Refinery. The move to fully own CBNC reflects SMM's commitment to securing its nickel supply chain and strengthening its position as a key player in the global nickel market. Details regarding the transaction price and timeline have not yet been disclosed.