Sumitomo Metal Mining Co said that it has bought a 16.5% stake in Nickel Asia Corporation of the Philippines for about USD 39 million as it seeks to boost its global competitiveness.

Sumitomo Metal considers the alliance to be the formalization of an existing relationship with Nickel Asia. An example of this is the provision of ore by a Nickel Asia subsidiary, Rio Tuba Nickel Miming Corporation to Sumitomo's Philippine based nickel refinery JV Coral Bay Nickel Corporation.

Under its business plan, Sumitomo aims to raise nickel production to 100,000 tonnes a year by 2013 as compared with its current capacity of about 63,000 tonnes.

(Sourced from www.dowjones.com)