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Nickel Asia board OK’s nearly P3B more for RE unit

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LISTED mining firm Nickel Asia Corp. announced on Monday that its board of directors approved the additional investment of P2.92 billion in its subsidiary, Emerging Power, Inc. (EPI).

In its stock market disclosure, Nickel Asia said the investments will be through a subscription to more common shares of EPI, its renewable energy (RE) arm.

The company said the additional investments will fund EPI’s operations; the operating expenses of its affiliate, Biliran Geothermal Inc.; and the operating expenses of its unit, Mindoro Geothermal Power Corp.

The investments will also be used for EPI’s investments in the projects of its other subsidiaries, including the investment of EPI in Greenlight Renewables Holdings, Inc.

Greenlight Renewables is a joint venture between EPI and Shell Overseas Investments B.V.

With the additional investment, the company’s stake in EPI will increase to 95.8%.

Last year, Nickel Asia said the joint venture also aims to explore synergies with retail electricity supplier Shell Energy Philippines, Inc.

Greenlight Renewables was created to operate a capacity of around 1,000 megawatts by 2028.

Nickel Asia has an interest in mining all kinds of minerals. It also has business in the generation, transmission, distribution and supply of power.

For the nine months to September last year, Nickel Asia registered an attributable net income of P6.9 billion, up 12% from a year ago. Earnings before interest, tax, depreciation and amortization amounted to P11.1 billion or slightly higher than the earlier year’s P11.01 billion.

The company said that despite the lower ore sales volume sold during the period, revenues rose by 2% to P21.51 billion, largely due to higher nickel ore prices and favorable exchange rates.

At the local bourse on Monday, shares in Nickel Asia rose by eight centavos or 1.19% to end at P6.83 apiece. — Ashley Erika O. Jose