DMCI MINING Corp. expects its ore production to reach three million wet metric tons (WMT) this year, driven by the commencement of operations at two new mine sites, the company’s president said.
“We’re targeting a combined annual production capacity of three million WMT from our three mines, including Zambales Diversified Metals Corp. (ZDMC), subject to the approval of necessary permits for Long Point,” DMCI Mining President Tulsi Das C. Reyes said in a statement on Wednesday.
The company operates mines in Palawan and Zambales through its subsidiaries Berong Nickel Corp., Zambales Chromite Mining Company (ZCMC), and ZDMC. It extracts nickel ore, chromite, and iron laterite.
Nickel is among the transition minerals used for the manufacture of electric vehicle batteries and stainless steel.
In a separate interview on Monday, Mr. Reyes said that mine production last year was “low,” as there was only one operational mine shipping out ore.
“We had poor performance last year because Zambales was shipping out the only grade that we had available,” he said.
“We’ve been working on our expansion and so whatever was produced we had to sell, so we couldn’t play with the market. We’re totally inflexible,” he added.
The company has allocated about P400 million to fund additional expansion of its mining operations.
“You don’t need much to start up a nickel mine… A lot of that capex last year was really for Long Point, because it was starting from scratch and then a lot of that for this year will be for drilling,” Mr. Reyes said.
The company had previously earmarked P634 million for capital expenditures last year, which was mainly used for its expansion plans.
Mr. Reyes added that DMCI Mining anticipates better performance than last year amid the operation of its two new mine sites.
“We’re calling this year a bawi (recovery) year. But we should have all the grades available so we can go carbon steel or we go (mixed hydroxide precipitate), and we have the volume so we can be selective to the market,” he added.
The company’s mine in Santa Cruz, Zambales, operated under ZCMC, is expected to begin full operations during the first quarter.
ZCMC operates under an environmental compliance certificate, permitting an annual production limit of 1 million WMT.
Berong Nickel is also expected to restart production at its mine site in Long Point, Palawan. The company said that it is in the final stages of securing its mineral production sharing agreement.
“Our two new mines, ZCMC and BNC’s Long Point, mark a long-anticipated step forward for DMCI Mining. With increased production capacity and the Long Point port nearing completion, we are confident in delivering improved operational and financial performance this year,” Mr. Reyes said.
For the third quarter, DMCI Mining saw a net income of P48 million, a turnaround from its net loss amounting to P154 million a year ago.
Revenues surged to P565 million from P158 million in the same period last year, due to better shipments, higher selling prices, and improved nickel grade sold.
DMCI Mining is a subsidiary of the listed holding firm DMCI Holdings, Inc. — Adrian H. Halili
