News

Mining

Philippine Resources - January 13, 2022

Summary of Mineable Reserves Estimate for the Silangan Copper-Gold Project under the In-Phase Mine Plan

Photo credit: Philex Mining Philex Mining Corporation is pleased to announce the completion of the In-Phase Mine Plan feasibility study and an updated mineable reserve estimate for the Boyongan deposit in accordance with the 2012 Philippine Mineral Reporting Code (“PMRC”). A feasibility study for a 4 Million tonnes per year sub-level cave mining plan for the Boyongan copper porphyry deposit was previously completed and disclosed in 2019 and was used as the basis for the In-Phase Mine Plan feasibility study. The in-phase plan consists of a starter sub-level cave mine that has an annual ore production of 700 thousand tonnes or 2,000 tonnes per day. Mining will commence at the East sub-level cave because it has the highest grade ore. A new decline will be developed to access the East sub-level cave while the existing exploration decline will be rehabilitated to serve as an alternative mine access and a ventilation exhaust for mine air. Ore coming from the starter mine will be hauled using mine trucks from the underground to the process plant at the surface, where it will be crushed and ground to required sizes. Copper, gold and silver will be recovered using copper leaching and gold leaching processes because the ore at this point consists of predominantly oxide minerals. The processing plant will produce a London Metal Exchange (LME) grade (99.999%) copper cathode and gold-silver dore. Tailings from the processing plant will be piped to the Tailings Storage Facility which is 5 Kilometers to the northwest of the Boyongan ore body. The initial capital cost to develop the starter mine is estimated to be US$ 224 Million, which will be spent within the 2.5 years development period. The 2,000 tonnes per day starter mine will last for 5 years, after which on the sixth year of production, mining and processing rate will increase to 4,000 tonnes per day or 1.3 Million tonnes per year. By the ninth year, ore production and processing rates will again increase to 8,000 tonnes per day or 2.7 Million tonnes per year. On this year as well, a copper flotation circuit will be added to the process plant as the ore mined now consists of oxide and sulfide minerals. Copper flotation will produce copper concentrates with gold and silver. The final ramp up will occur on the twelfth year. Ore production rate starting this year up to when the mineable ore will be exhausted will be 12,000 tonnes per day or 4 Million tonnes per year. The life of mine for Phase 1 Boyongan is 28 years. The resulting updated mineable reserve estimate below is the culmination of the In-PhaseMine Plan feasibility study undertaken. After incorporating standard mining factors to the mineral resource, the competent person for this report has delineated 81 Million tonnes as mineable reserve.   Article courtesy of the Philippine Stock Exchange

Industry

Philippine Resources - January 12, 2022

PH economy seen growing 6-7% in 2022

The Philippine economy is expected to return to its 6 to 7-percent growth trajectory in 2022 after nearly two years of grappling with the pandemic despite the threat of the Omicron variant, according to the investment banking arm of the Metrobank Group. First Metro Investment Corporation (FMIC) said this year’s economic growth will be driven by sustained domestic demand, easing inflation, election expenditures, and accelerated government spending on infrastructure projects. “Notwithstanding the ongoing pandemic, and Omicron sparking the third wave of infections, we are still optimistic that Philippine growth will further accelerate and get back on its trajectory of 6-7 percent in 2022,” FMIC president Jose Patricio Dumlao said in a virtual briefing Tuesday. Dumlao said the economy registered a 4.9-percent growth in the first three quarters of 2021 and the growth momentum likely spilled over in the fourth quarter given further economic reopening and easing mobility restrictions. He added business and consumer confidence are also cautiously positive given wider availability of vaccines and relaxation of lockdowns, quarantine measures, and mobility restrictions. University of Asia and the Pacific (UA&P) economist Dr. Victor Abola said the 6 to 7 percent gross domestic product (GDP) projection this year will be led by the industry sector --both construction and manufacturing. Abola said services will still be the lagging sector as the pandemic measures hit hotels and restaurants. “The Philippine situation is that there is recovery but still on the way to reach the pre-pandemic levels,” he said. The country’s GDP posted a -9.5 percent full-year growth rate in 2020 compared to its 5.9 percent pre-pandemic performance in 2019. Abola said the business process outsourcing (BPO) is a major contributor to the resiliency of the economy amid the pandemic. “And it’s not the same as usual call centers, etc. You can see there are new, emerging segments and that is what companies are focusing on,” he said, citing insurance, life sciences, healthcare, and data analytics, among others. Aside from BPO revenues, FMIC chairman Francisco Sebastian said the overseas Filipino workers (OFW) remittances are boosting the economy. “These two things are not as sexy as other things like technology and telecoms… This is what is holding us up. OFW remittances continue to grow,” he said. By Leslie Gatpolintan   Article courtesy of the Philippine News Agency

Construction

Philippine Resources - January 10, 2022

SECRETARY MERCADO INSPECTS CEBU’S FIRST TOLL EXPRESSWAY PROJECT

Photo credit: Cebu Cordova Link Expressway Corp. Department of Public Works and Highways (DPWH) Secretary Roger G. Mercado declared that the Cebu-Cordova Link Expressway or CCLEX will soon strengthen the carrying capacity of the road network of Cebu Province. In his inspection at the project over Mactan channel, Secretary Mercado commended the efforts of the local government units of Cebu City and Municipality of Cordova which entered into Public-Private Partnership through an agreement with Metro Pacific Tollways Corporation to build the toll road that will drastically cut travel time to the Mactan Cebu International Airport from Cebu City and those coming from the south of Cebu Province Secretary Mercado said that the benefits of the project will be realized soonest with the expressway, the first outside Luzon, now on its last stage of completion. Joining Secretary Mercado in the project visit in coordination with CCLEX Corporation President and General Manager Allan Alfon are DPWH Senior Undersecretary Rafael C. Yabut, Undersecretaries Maria Catalina E. Cabral and Eugenio R. Pipo Jr., Assistant Secretary Ador G. Canlas, Region 7 Director Edgar Tabacon, and District Engineer Daisy Toledo. The approximately 8.9 kilometer CCLEX and sometimes referred as the Cebu - Cordova Bridge is a cable-stayed twin single pylon main bridge with span length of 390 meters. The bridge project has a pylon height of 145 meters and navigational vertical clearance of 52.5 meters and 260 meters horizontal clearance. With a carrying capacity of two (2) lanes per direction, the expressway project also involves the construction of 1,350 meters of viaduct and 5,219 meters causeway and 603 meters low-level bridges.   Article courtesy of the Department of Public Works and Highways

Industry

Philippine Resources - January 07, 2022

Ensure stable power supply amid Indonesia coal export ban: solon

Photo credit: Dimas Ardian/Bloomberg A lawmaker on Thursday called on the government to ensure that the country's power supply derived from the consumption of coal would not be adversely affected following Indonesia's decision to ban the export of coal to secure its local supply. In a statement, Senator Sherwin Gatchalian, chair of the Senate Energy Committee, called on the Department of Energy (DOE) to prepare for contingency measures on the country’s supply of coal for power plants which, if insufficient, could lead to widespread blackouts. “Part of the contingency measures should be to ensure the adherence of coal-fired power plants to the 30-day minimum inventory requirement,” Gatchalian said. While the country is slowly attempting to promote alternative and sustainable sources of energy, the Philippines still derived 57.17 percent of power generation from coal as of 2020. Aside from Indonesia's ban on coal exports, the global demand for coal has surged following higher consumption in countries that experience cold winter months. Among the countries severely affected by Indonesia's move are Japan, China, India, and South Korea, which imported 73 percent of Indonesian coal last year. “The government should also consider looking for other suppliers, especially in the coming weeks, given the possible decline in stockpiles coming from Indonesia, which could result in soaring coal prices,” Gatchalian added. In October 2021, the Philippines acquired 96.88 percent of its imported coal supply from Indonesia, the world's top exporter of thermal coal. “This could be a wake-up call as well. The government should probably start rethinking and be more committed to reducing the share of coal by further diversifying our generation mix,” Gatchalian said. By Benjamin Pulta   Article courtesy of the Philippine News Agency 

Mining

Philippine Resources - January 05, 2022

OCEANAGOLD ANNOUNCES START OF PROCESSING AT DIDIPIO

Back in November, OceanaGold Corporation announced the commencement of processing at the Didipio Gold-Copper Mine.  Scott Sullivan, Chief Operating Officer & Acting CEO of OceanaGold said, “This is a major milestone for OceanaGold, the Didipio Mine and host communities. Following the confirmation of the Didipio Mine Financial or Technical Assistance Agreement renewal, Didipio is producing gold and copper again, which will be an important source of free cash flow generation for the Company and a significant contributor of socio-economic benefits for the region and country.” “The start of milling is two weeks ahead of schedule, following the completion of plant upgrades and maintenance activities and the start of mining activities was one month ahead of schedule. It marks a new beginning for the operation and the predominately Filipino workforce who are leading and operating a first quartile gold and copper producer.” “As the underground mining operations continue to ramp up over the course of the next eight to nine months, the primary ore feed will be sourced from low-grade stockpiles, of which the Company has approximately 23 million tonnes of ore on surface. With underground ore progressively being delivered to the ROM pad, the operation will increase the proportion of higher-grade ore feed to supplement the mill.” The Didipio process plant is expected to ramp up to its throughput rate of 3.5 million tonnes per annum over the course of the next few weeks. For the remainder of the year, the Company expects to produce between 7,000 and 12,000 ounces of gold and 1,000 tonnes of copper at an All-In Sustaining Costs between US$100 and US$150 per ounce sold on a by-product basis. The Company will continue to manage the risks associated with COVID-19 as it continues to ramp up operations to full production rates of 10,000 ounces of gold and 1,000 tonnes of copper a month. Mr Sullivan went on to add, “We are grateful for the support and cooperation from our workforce, government and regulators who are working with us as we ramp up Didipio to full production. In parallel with the ramp-up, Didipio has recommenced social and development projects and continues to support COVID-19 vaccination and community health programs in partnership with local authorities.”   Article courtesy of OceanaGold

Mining

Philippine Resources - January 04, 2022

DOF backs DENR move to lift ban on open-pit mining

The Department of Finance (DOF) has expressed its support behind the recent decision of the Department of Environment and Natural Resources (DENR) to lift the ban on open-pit mining as it voiced full confidence in the government’s capability to strictly regulate mining operations to address and minimize the impact posed by these extractive activities on the environment.  In backing the DENR’s decision, Finance  Secretary Carlos Dominguez III said Republic Act (RA) No. 7942 or the Philippine Mining Act of 1995 does not prohibit open-pit mining as there are economic, safety, and environmental considerations for employing this method. “As co-chair of the Mining Industry Coordinating Council (MICC), I support DENR Secretary Roy Cimatu's decision to lift the ban on open-pit mining. The matter was extensively discussed in the MICC and with advice and guidance from experts, the recommendation was to lift the ban,” he said. Dominguez said adequate safeguards can be implemented to ensure the safety of this mining method.  “Strict monitoring and enforcement to ensure compliance with environmental standards shall be undertaken to prevent any abuse in the implementation of this type of mining activity,” he said. “I am confident that the DENR is fully capable of regulating mining operations in the country so that mining activities are conducted safely with due regard to the protection of the environment.”  As the official representative of the President to the Climate Change Commission (CCC), Dominguez said he is mindful of the impact of mining activities on the environment and the country’s goal to significantly reduce its carbon footprint.  “The protection of the environment is non-negotiable. We have to strike a careful balance between preserving and protecting the environment and pursuing our economic development objectives,” he said.  With the lifting of the ban, Dominguez said the mining industry can become a key contributor to the nation’s economic recovery as the DENR has projected that open-pit mining will lead to the immediate development of 11 pending projects that are expected to generate about PHP11 billion combined in yearly government revenue, increase annual exports by PHP36 billion, and provide employment to 22,880 people living in remote municipalities.  “Clearly, it will revive an industry that will create jobs and spur economic growth in the countryside,” he said.  “More importantly, the lifting of the ban on open-pit mining will help revitalize the economy as we begin to recover from the pandemic by generating additional revenues, royalty fees,  export value, and even more jobs in related industries. These economic prospects can still be realized while we continuously implement strategies to manage and avoid the negative impacts of the open-pit mining method,” he added.  Dominguez said tight monitoring and enforcement to ensure that mines strictly comply with laws and regulations can be done as proven by the operations of thousands of mines worldwide that effectively and safely use the open-pit mining method.  These include open-pit mines in Australia, Canada, China, and the United States (US). Open-pit mining is a globally accepted method that is considered to be the most feasible option for mining near-surface or shallow one deposits.  As observed by the DENR, major issues concerning mining operations, including open-pit mining,  cannot be attributed to the use of the method itself, but rather to accidents involving wastes and tailings confinements, which can be prevented through strict monitoring and regulation of such mining activities.

Mining

Philippine Resources - January 04, 2022

Lifting of open pit ban to boost mining

Photo credit: OceanaGold via Twitter - OceanaGold's mine at Didipio The government said it expects to revitalize not only the mining sector but also the entire economy, with the lifting of the ban on open pit mining. Environment Secretary Roy Cimatu signed a memorandum order on Dec. 23 that effectively reinstates the use of open pit mining method by mining firms. The memo was issued to revitalize the mining industry and create significant economic benefits by providing raw materials for construction and development of other industries; and establish the parameters and criteria on the types of surface mining methods under the Declaration of Mining Project Feasibility. The parameters are expected to address the environmental and safety issues of surface mining methods, particularly with open pit mining. The DENR said the continued restriction on open pit ban might result in grave economic loss for the country. Through the memo, all mining tenement holders will be required to conduct baseline information gathering and evaluation and incorporate them in the mining project feasibility study, for final assessment by the DENR.   Article courtesy of Manila Standard 

Company

Philippine Resources - January 04, 2022

The Accumin™ automatic lubrication system helps customers get the most out of their critical assets

Photo credit: Weir Minerals - Accumin™ automatic lubricators being installed at a customer’s site in Australia The Accumin™ lubrication system has proven itself an efficient way of preventing expensive bearing assembly failures, reducing maintenance downtime and promoting safety by decreasing the amount of manual interface to keep equipment performing. Accumin™ lubricators automatically deliver even, measured lubricant to the vital points of your Warman® pump. This results in enhanced availability and durability. “At Weir Minerals, we make the market leading slurry pump for mining applications, but we can’t always control what happens when it gets to site. Between dust, overflow and gland seal leaks, lubrication is a vital tool in the constant battle to keep machinery going. Having an Accumin lubrication system fitted prevents over and under greasing, protects equipment from bearing failures and frees up man hours for more critical tasks,” says Tony Millar, Director, Product Management, Weir Minerals. “When we offer Weir Minerals equipment with an Accumin lubrication system installed, what we’re really doing is giving that equipment its best shot at a long and productive working life.” The Accumin™ lubricators are suitable for most grease-lubricated rotating equipment such as Multiflo®, Hazleton®, Lewis® and GEHO® pumps and Aspir™ centrifuges. And also available for use on valves, including Isogate® knifegate valves.

Construction

Philippine Resources - January 04, 2022

BBB CHIEF IMPLEMENTER REPORTS DEVELOPMENT OF FLAGSHIP PROJECTS

Department of Public Works and Highways (DPWH) Undersecretary Emil K. Sadain, President Rodrigo Roa Duterte’s designated Chief Implementer of flagship projects under the Build Build Build (BBB) Program, has promoted collaborative engagements among oversight and implementing agencies to accelerate the preparation, implementation, and completion of various infrastructure flagship projects (IFPs) under the Build Build Build (BBB) Program. Undersecretary Sadain said that the project teams of DPWH under the leadership of Secretary Roger G. Mercado and the Department of Budget and Management, National Economic and Development Authority, Department of Finance, Department of Transportation, Department of Health, National Irrigation Administration, Metropolitan Waterworks Sewerage System, Local Water Utilities Administration, Department of the Interior and Local Govt., Department of Information Communication Technology, Toll Regulatory Board, and Philippine Statistics Authority are working across sectoral boundaries to achieve overarching goals of completing their respective marquee projects by overcoming bottlenecks and delays. The BBB Chief Implementer organized the successful holding of the 1st Inter-Agency Forum on December 14-15 which provided the opportunity to thresh out and recommend solutions on actual issues on the ground which most of the time are not reported on usual accomplishment reports of agencies in the past. In his 4th quarter report to the Office of the President thru Executive Secretary Salvador C. Medialdea, Undersecretary Sadain disclosed the completion of eight projects worth ₱94.64 Billion in 2021 despite being affected by the pandemic crisis. Moving forward, we are hoping that the next administration will continue President Duterte’s legacy of infrastructure development thru the BBB Program for recovery, growth and sustainability as highlighted by the President during the recent signing of 2022 General Appropriations Act or national budget to increase the Philippines growth potential and give the Filipinos a better life, added Undersecretary Sadain. Both DPWH and the Department of Transportation (DOTr) have completed four (4) flagship projects each in 2021. Completed under DPWH fortfolio are projects mostly implemented by DPWH Unified Project Management Office (UPMO) Operarions headed by Undersecretary Sadain to include the BGC-Ortigas Center Link Road Project, Estrella Pantaleon Bridge, and Marawi Transcentral Road Phase 1. BGC-Ortigas Center Link Road Project and Estrella Pantaleon Bridge are new alternative linkages between major thoroughfares constructed to increase the number of usable roadways that would decongest traffic in EDSA and other major roads in Metro Manila. The BGC-Ortigas Center Link Road Project shortened to 12 minutes the travel time between Bonifacio Global City and Ortigas Central Business District while Estrella Pantaleon Bridge is a modern bridge connecting cities of Mandaluyong and Makati within five (5) minutes that has not only improved mobility but also enhanced the resilience against natural disasters. The 18.97-kilometer Marawi Transcentral Road Phase 1 funded by a grant from Japan fulfilled the government’s promise to build back better Marawi City with a peaceful road to recovery from the suffering due to the siege four (4) years ago. A fourth project completed and inaugurated by President Duterte funded under the Public-Private Partnership Program is the 18-kilometer Metro Manila Skyway Stage 3 from Buendia, Makati City to Balintawak, Quezon City that connected North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX). DOTr implemented and completed projects in 2021 are the LTO Central Command Center, LRT-2 East Extension, GenSan Airport Development Project, and Bicol International Airport. A total of 77 IFPs projects worth ₱3.51 trillion are on-going while 27 projects are currently in the pipeline worth ₱1.09 trillion. Considered pipeline projects are those that may start construction within the present administration but will be part of the continuity pipeline of the succeeding administrations. In terms of completion, 18 projects will be completed within the administration’s term while eight projects will be delivered to completion in the second semester of 2022 and 86 projects in 2023 onwards. Other than providing the much-needed infrastructure for Filipinos, investment in the IFPs under BBB Program has the biggest multiplier in terms of created jobs. Based on preliminary estimates of the National Economic and Development Authority, it is projected that about 580,000 employment in 2021 and about 620,000 employment in 2022 will be generated from the implementation of the IFPs.

Construction

Philippine Resources - December 20, 2021

CONSTRUCTION OF NEW ICONIC BRIDGE IN MANILA NOW 88% COMPLETE

Photo credit: Department of Public Works and Highways The Department of Public Works and Highways (DPWH) has started with the massive installation of prefabricated girders for abutments and ramps of the iconic Binondo - Intramuros Bridge Project in Manila. In his report to DPWH Acting Secretary Roger "Oging" Mercado, Undersecretary and Build Build Build(BBB) Chief Implementer Emil K. Sadain said that already lifted on piers were steel box girder components for the up-ramp at Intramuros side with a total length of 191 meters and between pier 5 to near pier 8 for the viaduct structure over Estero de Binondo and corresponding ramp at Binondo side. Undersecretary Sadain, in-charge of DPWH Unified Project Management Office (UPMO) Operations, said that the overall progress of the bridge project implemented by UPMO - Roads Management Cluster 1 (UPMO-RMC 1) is now at 88.63 percent. Simultaneously, manpower and equipment resources are also doing the lifting of pre-fab girders for the 298 meters up-ramp at Muelle dela Industria side. “We are expecting a lot of dramatic changes for this project, with all the needed materials and high-performance launching equipment available on the construction site”, Undersecretary Sadain told contractor China Road and Bridge Corporation following his inspection with UPMO RMC 1 Project Director Benjamin A. Bautista, Project Manager Melchor Kabiling, and Project Engineer Joey Doria. The Binondo-Intramuros Bridge Project involves the construction of 680 linear meter bridge connecting historic district of Intramuros at Solana Street and Riverside Drive with the bustling district of Binondo at Rentas Street/Plaza del Conde Street and Muelle dela Industria. With an already completed basket-handle tied steel arch main bridge over Pasig River, DPWH is targetting to finish the project by the first half of 2022. Initially, the new bridge would be completed by end of 2021. However, DPWH had to push back the project timeframe to relocate public and private services and utilities in the area as well as to wait on the pre-fabricated steel materials to come in from China. The project was also affected by work suspension at the height of COVID-19 pandemic. The ₱3.39-Billion bridge project is financed by a grant aid rom the People’s Republic of China. Considered one (1) of the flagship infrastructure projects of DPWH under the Build, Build, Build Program, the bridge project is expected to not only cut travel time between the two busy districts of Intramuros and Binondo in Manila but also benefit approximately 30,000 vehicles daily.   Article courtesy of The Department of Public Works and Highways

Mining

Philippine Resources - December 18, 2021

TVIRD Concludes Acquisition of Siana Gold Project from Red 5 Limited

Photo credit: Mining Journal TVIRD acquires 100% of outstanding GRC shares for a total consideration of US$19 million Red 5 will retain a 3.25% NSR payable on gold sales from succeeding operations at Siana GRC assets include a state-of-the-art processing facility with a throughput capacity of 1.10 million tons per year as well as key infrastructures in the Siana, Mapawa and Ferrer tenements TVI Resource Development Philippines Inc. (TVIRD), local affiliate company of Canada’s TVI Pacific Inc. and majority shareholder Prime Asset Ventures Inc., earlier signed a binding agreement with Australia-based listed gold company Red 5 Limited. The agreement pertains to TVIRD’s acquisition of 100 percent of Red 5’s outstanding equity in its Philippine affiliated company, Greenstone Resources Corporation (GRC), which is the owner and operator of the Siana Gold and Mapawa Projects in Tubod, Surigao del Norte Province. The agreement was signed by TVIRD President Engr. Yulo E. Perez and Red 5 Managing Director Mark Williams in July this year. The inked agreement is a landmark deal that underscores the restored investor confidence in the Philippine mining and extractives sector. As of September 20, the company has completed the acquisition of 100 percent of the outstanding equity of GRC. “The acquisition of Greenstone, particularly the Siana Gold Project, dovetails with our group’s long-term growth strategy that is hinged on building a robust mining portfolio staggered across multiple commodities,” according to Perez. Investment agreement “We are likewise encouraged by the current market performance of precious metals as well as the overall positive investment climate for mineral and resource development in the country,” he said. Further to the agreement, TVIRD invested US$19 million in cash to Red 5 to obtain 100 percent of GRC shares. The company also confirmed that the cash portion of the purchase price was funded from internal resources. Parallel to this, Red 5 is entitled to a 3.25 percent net smelter royalty (NSR) to be paid from the sale of up to 619,000 oz. of gold produced from Siana. The recognized NSR value is US$35 million based on a gold price of US$1,750/oz. Project status While the Siana project is currently on voluntary care and maintenance, it holds all the necessary government permits to restart operations, including an Environmental Compliance Certificate and an approved Declaration of Mining Project Feasibility. “The company is currently developing plans to bring Siana back on-stream,” said Perez, citing TVIRD’s plan is to restart operations at Siana as soon as possible. The project site is located in a 3,289-hectare Mineral Production Sharing Agreement area and includes a modern 1.1 million tonne per annum Outotec mill, gravity and Carbon-in-Leach (CIL) mill facility commissioned in 2012 at a capital cost of US$54 million that includes a single stage SAG mill and six CIL tanks. Prior to signing the agreement, Red 5 confirmed that GRC spent over US$200 million in the development of Siana, which has the only modern gold plant in the region. Resources and expansion plans In its 2020 annual report, Red 5 cited a combined historical Indicated JORC12 mineral resource estimate for the Siana open pit and underground mine of 4.3 million tonnes @ 4.6 grams per tonne of gold and 6.8 grams per tonne of silver. It also cited a combined Inferred JORC12 mineral resource estimate of 0.5 million tonnes @ 8.9 grams per tonne of gold and 10.6 grams per ton of silver. In addition to Siana, the agreement also covers the 1,482-hectare Mapawa MPSA and the 595-hectare Ferrer APSA claim. All assets and properties have obtained government approvals and relationships with key stakeholders. The plant receives Grid power with a back-up 8MW diesel fired power station while the project has the necessary infrastructures in place: an administration building, warehouse, mess hall, camp facilities and accommodation, an engineering building and maintenance facilities With the necessary technology, equipment and facilities, there also lies the potential to establish Siana as a processing center for other nearby prospects and gold deposits. TVIRD key officers believe that the Siana and Mapawa tenements hold the potential for exploration. Meantime, Mapawa and Ferrer are in the early stages of exploration. "This represents a strategic acquisition for TVIRD", said TVI Pacific Inc. Chairman and CEO Clifford M. James. "Management and the directors of TVIRD are excited about the acquisition, which coincides with the start-up at Balabag and positive changes in the Philippines Government and financial community attitudes towards mining projects.”

Mining

Philippine Resources - December 17, 2021

790 Million Income Surge for Marcventures Holdings Inc.

Photo credit: Marcventures Marcventures Holdings Inc. (MHI) consolidated income surged to P790.31M with a robust third quarter performance of Marcventures Mining and Development Corp (MMDC). Amid the unstable weather conditions on the first half of the year coupled with the difficulties brought by the pandemic, MHI’s net income rose to P790.31M on the third quarter. With a 30% increase amounting to P183.02M, this brings a solid growth of P627.13M, a 384% rise compared to last year’s income of P163.79M from the same period. MMDC’s YTD Revenue of P2,851.32M is 7% lower than the P3,054.29M target, but shows a major growth of P1,088.57M or 62% increase, side by side with last year’s revenue of P1,762.75M. With significant changes in operations and management and the support of the LGUs and leading government agencies, MMDC completed 25 shipments in the 3rd quarter bringing the year-to-date total to 30. It missed the target of 31 but surpassed last year’s 22 boatloads. The total ore shipment of 1.601M WMT is 6% lower than the target of 1.705M WMT, but 35% higher than last year’s 1,189M WMT shipment. The mining company’s P1,317.56M YTD Cost of Sales posed a 15% dip from its P1,541.30M budget while the increased volume brought about by the efficient sales and production resulted in a 36% increase from last year’s P969.64M. MMDC’s YTD Net Income of P875.73M, posed a 17% rise from the P746.74M target. More importantly, it tripled 2020’s P282.21M a distinct P593.52M increase or 210% year-on-year growth. MMDC’s solid financial standing signifies its commitment to preserve the environment and support its host communities. The company continues to provide livelihood opportunities, educational and health assistance to all 42 communities in the municipalities Cantillan, Carrascal and Madrid, in Surigao del Sur.   Article courtesy of the Philippine Stock Exchange

Mining

Philippine Resources - December 17, 2021

Global Ferronickel Holdings, Inc.’s net income in the first 3 quarters up 19.4% to P1.86 billion

Photo credit: Global Ferronickel Holdings Global Ferronickel Holdings, Inc. (FNI), the country’s second-largest nickel ore producer, recorded Q3 net income of P1.22B in 2021 against the P1.36B it posted during the same period last year. This brought total earnings for the first three quarters of the year to P1.86 billion, up 19.4% from the P1.56 billion it posted during the same period last year. Revenues for the first nine months of the year are up 15.3% to P6.41 billion compared to the P5.55 billion during the same period in 2020 buoyed by the higher prices of nickel ore. The sale of nickel ore for the nine months ended September 30, 2021 was 4.228 million WMT, lower by 0.151 million WMT or 3.4%, compared to 4.379 million WMT of nickel ore in the nine months ended September 30, 2020. This is mainly due to bad weather conditions, which allowed the Group to only ship 78 vessels of nickel ore against the 80 vessels during the same period last year. The resulting sales mix was 81% low-grade ore and 19% medium-grade ore in 2021 versus the previous period’s mix of 59% low-grade ore and 41% medium-grade ore. These were exported 100% to China and consisted of 3.424 million WMT low-grade nickel ore and 0.804 million WMT medium-grade nickel ore compared to 2.588 million WMT low-grade nickel ore and 1.791 WMT medium-grade nickel ore for the same period in 2020. “We are happy with the results. Despite the heavy rains hampering operations and more expensive fuel prices, the continued rise of nickel ore prices driven by the strong demand from China will augur well for the industry,” said FNI President Dante R. Bravo. The overall average realized nickel ore price for the period ended 30 September 2021 was US$30.78/WMT compared to US$25.56/WMT for the period ended 30 September 2020, higher by US$5.22/WMT or 20.4%. The price of low-grade ore went up by 35.4% to US$29.79/WMT in 2021 against the 2020 price of US$22.01/ WMT. Medium-grade ore, on the other hand, was US$34.99/WMT or 14.0% higher than the 2020 price of US$30.69/WMT.   Article courtesy of the Philippine Stock Exchange

Mining

Philippine Resources - December 17, 2021

APEX MINING REPORTS HIGHER NINE MONTHS REVENUE WINS BIG AT THE SAFEST MINES AWARDS

Photo credit: Apex Mining Apex Mining Co., Inc (APX) wins three top awards in 2021’s edition of the prestigious Safest Mines Awards of the Presidential Mineral Industry Environmental Award: Safest Underground Mining Operation; Most Improved Safety Performance; and, Safety Exploration (Category A). Select employees of APX also garnered Best Personality Awards: Ronnie N. Rojo, Best Underground Safety Inspector; Johary S. Unggel, Best Underground Mine Supervisor; and, Marvin A. Badayos, Best Underground Miner. The PMIEA is part of this year’s 67th Annual Mine Safety and Environment Conference (ANMSEC) and is spearheaded by the Mines and Geosciences Bureau (MGB) of the Department of Environment and Natural Resources (DENR). APX prides itself in institutionalizing safety as a way of life, with safety best practices deeply ingrained in its operations. In fact, its Maco Mine was cited by MGB-RXI with the Safety Milestone Award for recording over 2.1 million man-hours without lost time accidents (LTAs) between 11 March and 30 June 2021. For the first half of 2021, the company’s Safety Department initiated 24 training sessions for around 477 participants, furthering its commitment to safety. APX finished the third quarter of 2021 with consolidated revenues of P5.0 billion for the first nine months of 2021, 9% higher than the consolidated revenues of P4.6 billion for the same period in 2020. Parent company likewise posted revenues of P4.7 billion, a 2% increase from P4.6 billion revenues in the same period of 2020. Parent Company’s milling throughput is higher at 514,008 tonnes (averaging at 2,107 tonnes per day) as compared to 491,269 tonnes (averaging at 1,921 tonnes per day) as of September 30, 2020. Gold recovery is at 87.06%, almost the same level compared to last year’s 87.29% recovery. Silver recovery slightly improved to 78.54% against last year’s 76.55% recovery rate. Itogon-Suyoc Resources, Inc., milled a total of 44,140 tonnes during the year (averaging 185 tonnes per day). The higher throughput and average realized gold price of $1,786/oz during the year (versus $1,779/oz last year), neutralized the impact in revenue from the drop in ore grades which averaged 3.45 grams of gold and 19.80 grams of silver per tonne during the period compared to 3.59 grams of gold and 22.38 grams of silver per tonne in the same period last year. The third quarter average ore grade per tonne was higher at 3.93 grams of gold but lower at 20.97 grams of silver, as compared to 3.79 grams of gold and 23.61 grams of silver in the third quarter of 2020. Recovery rate for the quarter slightly declined to 87.85% for gold and 76.50% for silver from 88.77% and 80.37%, respectively. Average realized gold price this quarter was 6% lower at $1,791/oz. as compared to $1,902/oz. in the same quarter in 2020. Silver price also tallied lower at $23.71/oz. from $24.34/oz. previously. Gold and silver sold this quarter was lower at 19,959 ounces and 87,791 ounces compared to 26,031 ounces and 140,240 ounces, respectively, in 2020. The big numbers from the third quarter last year can be explained by inventories affected by the quarantine restrictions and flight cancellations due to the COVID-19 pandemic during the first and second quarter of 2020 being subsequently shipped during the third quarter last year. During the period, the Group recognized a provision for impairment of some subsidiary companies’ assets amounting to P1.1 billion as a result of the latest management assessment on the recoverability of property and equipment, intangible assets and deferred mining exploration costs of foreign projects in West Africa and Mongolia, and local projects in Camarines Norte and in Metro Manila. The Gori Hills project located in the Republic of Sierra Leone in West Africa is owned through Monte Oro Mining Co., Ltd. (MOMCL) which holds the tenements for the project. It received word that its tenement license was revoked by the National Mineral Agency. MOMCL will work to question that revocation and for the reinstatement of that license. The Khar At Uui Gold Project, registered under the joint venture company Erdeneminas LLC, which is owned 51% by indirect subsidiary Minas de Oro Mongol LLC (Minas), and 49% by Erdenejas LLC, a Mongolian exploration company, is currently under continued care and maintenance. APX, through Monte Oro Resources & Energy Inc. (MORE), owns Paracale Gold Limited (PGL), an Isles of Man company, which wholly owns Coral Resources Philippines, Inc. (CRPI) and has a 40% interest in Bulawan Mineral Resources Corporation (BMRC). Their mine project is located in Jose Panganiban, Camarines Norte. BMRC handles all tenement applications while CRPI is the owner/operator of a mineral processing plant. BMRC tenement applications were adversely affected by the freeze on issuance of new mining licenses by the government. The CRPI mineral processing plant remains under continued care and maintenance. APX, through MORE, owns 52% of International Cleanvironment Systems, Inc. (ICSI) which has a Build-Operate-Transfer contract with the Philippine government through the DENR to manage, rehabilitate and introduce ecologically friendly technologies for waste disposal, and recycling of municipal waste in Metro Manila. This BOT agreement is yet to be implemented. APX Management deems it prudent to provide for the impairment of these non-moving subsidiary companies’ assets during this pandemic year. The implementation, redevelopment or sale of these impaired assets in the future will provide upside opportunities to the Company going forward. While the recognition of provision for impairment of these subsidiary companies’ assets did not affect the cash flows of the Group, it brought the nine-month period bottom line to a net loss of P136 million from P991.3 million net income in the similar period in 2020. Parent Company, on the other hand, posted a net income of P994.5 million during the period, 5% lower than the P1.0 billion net income reported in the first three-quarters of 2020.   Article courtesy of the Philippine Stock Exchange

Construction

Philippine Resources - December 17, 2021

DPWH, BBB AGENCIES HOLD FIRST FORUM ON INFRASTRUCTURE FLAGSHIP PROJECTS

Photo credit: Department of Public Works and Highways Government agencies under the Build Build Build (BBB) program commit to push forward the implementation of high-impact infrastructure flagship projects (IFPs) that will bring long-term benefits to the Filipino people. Department of Public Works and Highways (DPWH) Acting Secretary Roger "Oging" Mercado, in his message during the 1st BBB Inter Agency Forum organized by Undersecretary Emil K. Sadain, expressed confidence towards sustainability and continuity of priority flagship projects which will be the foundation of economic recovery from COVID-19 pandemic. As the designated Chief Implementer of Flagship Projects under BBB Program by President Rodrigo Duterte, Undersecretary Sadain spearheaded the review on the progress of various IFPs in order to ensure the expeditious execution and timely completion of flagship projects implemented by the Department of Transportation, Department of Health, National Irrigation Administration, Metropolitan Waterworks Sewerage System, Local Water Utilities Administration, Department of the Interior and Local Govt., Department of Information Communication Technology, Toll Regulatory Board, and Philippine Statistics Authority. As we gear up for a better approach in sustaining the implementation of infrastructure flagship projects, we seek to identify and address implementation and capacity gaps particularly in challenging environments as these holds the key to realizing the great vision of President Duterte for the BBB Program, said Undersecretary Sadain. In order to establish proper coordination and practical collaboration among agencies, the forum held on December 14-15, 2021 was also participated by Department of Budget and Management (DBM) Undersecretary Rolando U. Toledo; National Economic and Development Authority (NEDA) Assistant Secretary Roderick M. Planta with his staff; DPWH Undersecretary Emerson L. Benitez; and DPWH Project Directors Benjamin A. Bautista, Sharif Masdmo H. Hasim, Rodrigo Delos Reyes, Ramon P. Arriola III and Johnson Domingo. The forum was a significant step for the designated BBB Chief Implementer to come up with a comprehensive report of the accomplishments for IFPs under BBB as well as the scale-up plans on infrastructure development for the remainder of the term of President Duterte and forward looking in 2022 to the upcoming change of administration. The event is also a very fitting opportunity for every agency to share its best practices and implementation journey, key issues/concerns and challenges, and provide plans and resolutions that can be applied to pipeline projects. Other than the COVID-19 pandemic and adverse weather condition as among the drawbacks in project implementation, other bumps identified/mentioned/discussed at the forum include regulatory environment issues, delayed procurement, difficulty in acquiring right of way, insufficient funds, and delayed financing approval.   Article courtesy of Department of Public Works and Highways

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