China's Jinchuan Group Ltd is to invest in two laterite mines in the Philippines after signing agreements with two companies last week.

Jinchuan, China's top nickel producer and third-biggest copper producer, will join Zamora Group and Macroasia Group to develop two laterite mines in Palawan Island in the Philippines, a statement on the Chinese firm's website said. (www.jnmc.com)

The statement did not provide the details, including the size of the mines.

Laterite is the ore for the production of nickel-pig-iron (NPI) and ferro-nickel in China. Both NPI and ferro-nickel are used for the production of stainless steel.

China is the world's top producer of NPI, a low grade ferro-nickel with high iron content, and relies on imported laterite ores for NPI production.

Official data showed that China's nickel ore and concentrate imports surged 72 percent on the year to 21.21 million tons in the first seven months of 2011. The Philippines was China's second-largest supplier of the materials after Indonesia during the period.

The bulk of the imports are typically laterite ores used to make NPI.

Jinchuan may also invest in the Nonoc nickel mine in the southern Philippines, the company said in February.