After making its name as the largest nickel mining company in the Philippines, NAC Group is now evolving into a natural resources development firm through diversified operations from minerals development to clean energy.
The goal is to build a platform for long-term value creation that benefits stakeholders as well as the Philippines overall.
A recent message to shareholders from Martin Antonio G Zamora, President and CEO, reinforced the shift underway: “This year, we focused on transformative actions – initiatives that inspire, challenge boundaries and are driven by a sincere commitment to making a positive impact.”
It’s a strategy that is also now paying off financially. Earnings for the first quarter of 2025, for example, showed revenue from ore sales had increased by 16%, due to higher ore prices. This was more positive than last year’s financial performance, which was affected by a notable decline in average ore sale prices, also resulting in equity losses from NAC Group’s investments in high-pressure acid leaching (HPAL) operations.
The first few months of this year were better due to improved average price of saprolite ore exports and the one-time income from the sale of NAC Group’s stake in Coral Bay Nickel Corp. There is also optimism for what’s next. "If ore sale prices remain at current levels and weather conditions stay positive, the outlook for 2025 will likely be much improved from last year,” said Andre Mikael Dy, Vice President for Treasury, Investor Relations, Mining Sales at NAC Group.
There is also continued global demand for nickel, which is largely driven by the stainless steel and EV battery industries, supporting long-term opportunities for NAC Group.
Taking steps towards change
Investing in responsible mining and clean energy hasn’t only given the company greater market resilience. It is also shaping a role for NAC Group in the nation’s development agenda.
Change was necessary in the face of multi-pronged pressures. On the one hand, the global nickel market has suffered price volatility due to oversupply, especially from Indonesia and softening demand from China. At the same time, Philippine mining companies operate under a layered regulatory landscape amid a combination of strict environmental compliance, ESG disclosures and climate-related reporting, along with potential fiscal reforms in the shape of higher taxes and royalties, plus indigenous consent requirements.
In response, NAC Group’s forward-looking leadership has signalled its commitment to growth, governance and strategic foresight through transformation.
This included appointing Jose Isidro Camacho as the chairman of the Board in June 2024. As the former Department Secretary of Finance and Energy, and a seasoned banker, his arrival was an important endorsement of the firm. “Mining is not the easiest industry to be part of because it attracts issues and controversies around sustainability, the environment, indigenous people and many other things. I had to make sure that I was joining an organisation that is a good and responsible mining company,” said Camacho.
Transformation in action
NAC Group has worked hard to define its sustainability status. As part of its transition towards decarbonisation, it was the first company in the Philippines with mining assets to join the United Nations Global Compact, plus the first mining company in the country to complete a carbon emissions inventory related to land use change at its mining sites.
It has been equally active in driving operational transformation through technology upgrades and clean energy integration. Notably, by 2050, NAC Group aims to power all of its operations with 100% clean energy. Also, it acquired hybrid excavators to reduce its carbon footprint and dependency on fossil fuels.
There are several other tangible achievements from the company's efforts and vision to diversify. In particular, its renewable energy arm, Emerging Power Inc (EPI), continues to grow its portfolio and is targeting a 1 GW capacity by 2028.
Further, in March 2025, NAC Group and DMCI Mining announced a joint feasibility study for a potential nickel processing plant in the Philippines – to utilise low-grade ore that is currently uneconomical to export, in turn maximising the country’s mineral resources, to add domestic value. “The Philippines is one of the most mineral-rich nations on earth,” explained Dy.
In general, in line with stated commitments by government agencies like the Department of Environment and Natural Resources (DENR) to revitalise the domestic mining industry and drive economic growth, NAC Group’s operations continue to generate employment, improve local infrastructure and support the development of host communities.
“Our focus on running a sustainability-led business is directly aligned with the DENR’s initiative to steer the mining industry toward a green transition,” Dy added.
Positioning for the longer term
The approach by NAC Group’s leadership is a more aggressive stance on what growth means for the company. “This includes a steady exploration of potential mining acquisitions and broadening our operational scope in the renewable energy space,” explained Dy.
Over time, NAC Group is eyeing long-term demand trends in EVs, battery materials and green infrastructure through its clean energy investments.
Yet transformation efforts are designed not only to improve performance, but also to help shape the future of Philippine mining and resource development. “As we evolve, so does our impact, expanding beyond operations into energy, community development and contribution to nation-building,” said Dy.
Important to the company’s future success is balancing a complex regulatory environment and ESG-related challenges with staying profitable. It helps that NAC Group doesn’t see profitability and ESG compliance as competing priorities.
“We have embedded sustainability practices into our core operations and continue to invest in related technologies that increase our efficiencies and bottom line,” said Dy. “Overall, our commitment to ESG investments strengthens our social license to operate and reduces long-term operational risks.”
