A unit of Nihao Mineral Resources International, Inc. has obtained the right to explore a mining tenement in Zambales province.

Nihao Mineral Resources told the bourse yesterday the Department of Environment and Natural Resources and wholly owned unit Mina Tierra Gracia, Inc. executed a mining production sharing agreement last Friday.

Mina Tierra Gracia’s contract allows it to explore, develop and utilize the nickel, cobalt, chromite and other mineral deposits of 5,081 hectares of land in Iba and Botolan, Zambales. “The agreement shall have a term of 25 years from the date of execution and can be renewed for another term not exceeding 25 years,” Nihao Mineral Resources said.

Nihao Mineral Resources and its subsidiaries temporarily suspended exploration and small-scale mining operations last year due to declining nickel prices and poor economic conditions. Nickel prices shed 63.86% to an average of $4.75 per pound in the first quarter last year from $13.15 per pound in 2008.

Nihao Mineral Resources also has small-scale nickel operations in a 20-hectare property in the town of Manticao in Misamis Oriental, owned by unit Bountiful Geomines, Inc. It is also seeking exploration permits for two nickel projects in Antique and North Cotabato held by unit Visayas One Philippines, Inc.

Last year, the mining firm generated P485 million from a stock rights offering. Shares in the company gained 2.66% or P0.10 yesterday to settle at P3.85 apiece.