MANILA, Feb 24: Australian resources giant BHP Billiton Ltd may invest $800m to $1.5bn in a nickel processing plant in the southern Philippines, the Environment and Natural Resources Department said on Saturday.

The company intends to start construction of the processing plant early next year in Davao Oriental province in the southern island of Mindanao, the department said in a statement.

Commercial operations in the plant are due to start by 2010, the department added.

BHP Billiton, in partnership with other firms, is exploring a potentially large nickel deposit in the Pujada Peninsula in Davao Oriental. The prospective mine area, covering close to 12,000 hectares, is estimated to have 150m tons of nickel grade ore.—AFP