Sumitomo Begins Development Of $1.3 Bln Philippine Nickel Refinery

MANILA, Sep. 4 -- Sumitomo Metal Mining Co. (5713.TO) has begun developing a $1.3 billion nickel refinery in the southern Philippines, an executive at the Japanese company's local unit said Tuesday.

The facility, which will have an output capacity of 30,000 metric tons a year and be located in Surigao del Norte province, is projected to begin commercial operation by August 2013, according to Arturo Manto, vice president for environment of Coral Nickel Corp., a local unit of Sumitomo that already operates a nickel refinery in the Philippines.

Manto said on the sidelines of a mining conference that the decision to develop the new refinery was prompted by improving demand for nickel as the global economy recovers.