"Recently, China has been strengthening its control over resources by stockpiling large quantities of nickel, a key raw material for advanced industries such as electric vehicle batteries. As a result, companies that have secured a stable supply chain for nickel ore are expected to benefit. JASCO Holdings is poised to establish itself as a leading player in the global strategic minerals market by achieving tangible results in its Philippine nickel ore business after three years of development."
On September 22, JASCO Holdings held a corporate briefing in Yeouido, Seoul, where it presented the status of its core mineral resource development business (secondary battery materials) such as nickel, as well as its mid- to long-term growth strategy based on the growth of its existing steel business.
Han Sangmin, CEO of JASCO Holdings, stated, "As we are about to make our first export of Philippine nickel ore after three years of business development, we will be recorded as the first domestic company to achieve success in overseas resource development. By adding the results of the nickel ore development business, a core material for secondary batteries, to our existing steel business, we will pursue a portfolio diversification strategy that secures both profitability and growth, and will enter a phase of full-scale growth."
JASCO Holdings has steadily advanced its core mineral resource development business by: securing exclusive sales rights for nickel ore in the B, C, and D mining zones of the Dinagat region; establishing infrastructure for nickel ore mining and export; signing a supply contract for at least 8 million tons with Chinese state-owned enterprise Baoli Energy; and entering into a memorandum of understanding (MOU) with Hong Kong-based Pacific Infitis Resources Limited (PIRL).
Upon obtaining approval for the "Mine Development Feasibility Report (DMPF)," the final legal and administrative procedure, the first shipment is expected to take place on October 9. The company plans to mine approximately 6.3 million to 8.5 million tons of nickel ore annually in the future and is also planning to construct a nickel smelter in the Philippines. Based on technologies such as beneficiation, concentration, smelting, and refining, JASCO Holdings aims to produce and stably supply nickel intermediates.
JASCO Holdings has also established a stable revenue structure for its nickel ore business. Under an exclusive sales agreement with its local Philippine partner EVMDC (EV Mining & Development), the company will secure 5% of total sales as a commission, which will be fully recognized as operating profit. In addition, by holding more than a 10% stake in EVMDC, JASCO Holdings expects to secure an additional return of about 4% through dividends and equity-method gains. The company explained that by combining distribution margins and investment returns, it expects an annual total return of approximately 8-10%.
CEO Han stated, "China currently controls about 70% of the global nickel supply chain and is further strengthening its control over nickel resources. This is likely to play a hegemonic role in future global supply and price determination. As such, JASCO Holdings, which has secured nickel mines, is expected to emerge as a practical price setter and key beneficiary in the strategic minerals market."
The existing steel business division is also facing a structural opportunity. Due to the recent management difficulties of competitors in the mild steel wire industry, a supply gap has emerged, strengthening JASCO Holdings' market share. The company is expanding additional orders from new clients, and expects that increased production will not only reduce manufacturing costs but also significantly enhance its pricing power, thereby improving profitability.
CEO Han further explained the mid- to long-term goals, stating, "The existing steel business division is targeting a production volume of 120,000 tons, a 113% increase compared to last year. We plan to improve operating profit by focusing sales activities on selective high-margin product lines, taking advantage of market gaps to expand our client base, restore unit prices, and enhance fixed cost efficiency."
He added, "The secondary battery materials business division is a vertically integrated, high-profit model encompassing everything from nickel ore mining and sales to investment returns. This will secure not only short-term profits but also mid- to long-term profit stability and growth. We aim to grow into a key player in the global supply chain for nickel, a core raw material for advanced industries."
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