MANILA, Jun. 22 -- Marcventures Mining and Development Corp. is investing P474 million for a nickel mining project in Cantilan, Surigao del Sur.

The project was recently granted tax holidays, duty free importation, and exemption from local government taxes by the Board of Investments.

Marcventures said that its open pit mining operations will produce up to 800,000 wet metric tons of nickel annually.

The mining company is planning to export nickel in July.

The open pit mining project covers an area of 4,799 hectares under a mineral production sharing agreement with the government.

Marcventures is majority owned by Mario G. Vijungco and Dy Chi Hing, who are both prominent traders in various businesses in Mindanao.

Ramon Recto, its current president, used to head one of the largest mining companies, Lepanto Mining.

Recto is also currently the chairman of Ivanhoe Philippines, a subsidiary of Ivanhoe Mines Ltd., an international mining firm.

Marcventures has tapped Japan's Hanwa Co. Ltd. for the exclusive distribution of its nickel ore to countries such as Japan, South Korea, China, India, United States and European countries.

Nickel is commonly used in producing stainless steel, super alloys, electroplating, batteries, coinage, magnets and other industrial and commercial materials.

Under the 2009 Investments Priorities Program of the BOI, companies establishing their businesses in the country's 30 poorest provinces, including Surigao del Sur, are given incentives such as tax breaks to make their businesses more viable.