AUSTRALIAN MINING giant BHP Billiton is finalizing talks with its local partner to move forward with the exploration of a nickel mine in southern Mindanao, the head of the Environment department said yesterday.

“We had a very good meeting, but the agreement has yet to be formalized… [it is] under review,” Environment Secretary Jose L. Atienza, Jr., told reporters. “[The talks] are now in the process of [being formalized],” he added.

The Pujada mine in southern Mindanao could become one of the country’s largest nickel projects at full capacity. — www.BHPbilliton.com BHP and local partner Asiaticus Management Corp. met with Mr. Atienza last Wednesday to firm up deals and continue exploring the $2-billion Pujada nickel project in Mati City, Davao Oriental.

In 2007, Asiaticus rescinded the joint venture partnership with BHP Billiton, impatient at the rate of BHP Billiton’s mineral exploration activities.

However, an arbitration panel in Singapore upheld the validity of the joint venture early this year. In May, the Court of Appeals nullified the writ of preliminary injunction issued by a regional court last year, which ordered BHP Billiton to stop exploring the mine.

“I do not want to pre-empt the formal announcement but I am very encouraged because the two parties agreed on very big issues,” Mr. Atienza said.

BHP Billiton and Asiaticus officials were unavailable for comment.

The 16,000-hectare property is one of the priority mining projects of the government and could become one of the country’s largest nickel projects at full capacity.

The area has an estimated nickel reserve capacity of 150 million metric tons at 1.3% nickel concentration, while the nickel processing plant is expected to have an annual capacity of 50,000 metric tons. — Neil Jerome C. Morales