BENGUET CORP., the country's oldest miner, said its subsidiary, Benguet Corp. Nickel Mines Inc. (BNMI), signed an off-take and contractor agreement with Sino Phil (Surigao) Group Ltd. and Ryanyx CGS Corp.

The deal, signed on October 28, covers ?specific areas? in Benguet Corp.?s 1,406-hectare Sta. Cruz nickel project in Zambales.

The agreement calls for the mining and sale of low grade nickel and high grade iron ores for the next three years.

Benguet Corp. corporate secretary Hermogene H. Real said in a disclosure to the Philippine Stock Exchange that the off-take deal assured BNMI a ready market for ores with low nickel content (low grade nickel) and high iron content (high grade iron).

A similar deal was recently forged with DMCI Mining Corp.

DMCI Mining is also set to explore and develop certain areas in Benguet Corp.?s Sta. Cruz nickel mine. This, after the Consunji-led miner suspended nickel and ore mining activities in the province last July due to low nickel prices in the world market.

But prices of low grade nickel and high grade iron products are expected to improve ?in the near term,? Benguet Corp. said.

As previously disclosed, the BNMI will undertake the operation of Benguet Corp.?s nickel laterite mine.

The mine is covered by an approved mineral production sharing agreement.

Benguet Corp. has appointed First Metro Investment Corp. as financial adviser for the nickel project.