Discussions between BHP Billiton Ltd. (BHP) and its local partner to resolve differences over a nickel project in southern Philippines are now moving forward, a senior mining official said Wednesday.

BHP and Asiaticus Management Corp. are scheduled to meet in Singapore next week, without the presence of a government representative, possibly to work out a resolution to their dispute over the stalled mining project, said Horacio Ramos, director of the Philippines' Mines and Geosciences Bureau.

"That's a good sign that they are now talking with each other even without a government representative," Ramos told reporters, noting the two parties have previously refused to engage each other in a discussion without Environment Secretary Jose Atienza, who has been brokering a resolution of their conflict.

Ramos is hopeful the negotiations will lead to a compromise.

BHP and Asiaticus have been at loggerheads over development plans for a mine in the Pujada peninsula, where ore reserves have been estimated at 150 million metric tons at 1.3% nickel.

An international arbitration panel issued a ruling in January this year that effectively gave BHP authority to manage the project. The ruling, however, has yet to be implemented.

The two companies' conflict stems from Asiaticus' desire to proceed with the project without BHP. It says the Australian miner has been too slow in developing the project and has failed to deliver on its investment promises.

In 2007, the Philippine government announced BHP would invest up to $2 billion in the country, including the construction of a nickel processing plant. Nickel prices, however, have fallen sharply since then.

-By Rhea Sandique-Carlos and Cris Larano, Dow Jones Newswires; 632-848-5051; cris.larano@dowjones.com