Toledo Mining has signed an agreement with Jinchuan Group for the exploration, mining, processing and sale of nickel products from its nickel interests on Palawan Island, Philippines.

According to the terms of the MoU, Jinchuan will own 30% of the project and purchase nickel ore from Toledo from 2013 for the life of the mines.

The miner will also be granted a right to co-invest in Jinchuan’s planned ferro-nickel smelter in the Guangxi province, China.

Toledo said the companies will work together on a second planned processing plant in the Philippines.