BHP ends dispute with Philippine partner-government

MANILA, June 21 - BHP Billiton <BHP.AX> <BLT.L> and Philippine partner Asiaticus Management Corp have agreed to end a legal dispute, the Philippines environment secretary said at the weekend, clearing the way for development of a nickel mine.

Secretary Lito Atienza told reporters BHP and Asiaticus had agreed to "start with a clean slate" by withdrawing all legal cases filed against each other.

"This is a major breakthrough after one year of talking sense to each company. It's a big step," Atienza said.

"They promised to renew their good relations in a partnership that was on the throes of dissolution. I told them to immediately address their concerns and make their partnership work."

The two mining companies have been in a legal tussle since last year after unlisted Asiaticus cancelled its joint venture agreement with BHP, whom it accused moving too slowly in developing the Pujada mine in the southern Mindanao region.

Pujada is estimated to have 200 million tonnes of nickel ore reserves with 1.3 percent nickel.

In May 2008, the Philippine firm obtained a ruling from a Philippine court barring BHP from the Pujada site, prompting the foreign miner to halt exploration activities.

BHP sought help from a Singapore arbitration panel, which in December upheld the validity of the joint venture. The ruling thus voided the restraining order issued by a Philippine court.

BHP, the world's biggest miner, has committed to invest up to $2 billion in the mine, including a nickel processing plant, and has spent about $3 million so far on exploration, according to government data.