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Nickel Asia unit forges joint venture with Shell to raise renewable energy capacity
by Philippine Resources - July 07, 2022
Photo: (Standing L-R): Aditya Gupta, Shell Business Opportunity Manager; Sriram Madapura, Shell Head of Renewable Power Development, Asia-Pacific; Jasmine Choo, Shell Vice-President for Onshore Power, Asia; Thomas Brostrom, Shell Executive Vice-President, Renewable Generation; Martin Antonio Zamora, EPI Chairperson; Lorelie Quiambao Osial, Pilipinas Shell Petroleum Corporation, President and Chief Executive Officer; and Ronaldo Ibasco, EPI President and Chief Executive Officer. Credit: Shell Philippines
Emerging Power Inc. (EPI), the renewable energy subsidiary of natural resources development company Nickel Asia Corp. (NAC), signed an agreement with Shell Overseas Investments B.V. (Shell) to jointly develop, own, operate, and maintain onshore renewable energy projects in the Philippines.
The EPI-Shell venture is targeting 1 gigawatt (GW) by 2028 with ambitions to contribute up to 3 GW into the country’s renewable capacity by initially rolling out a series of projects in Luzon and Visayas.
The focus will be on utility scale solar photovoltaic (PV) while evaluating opportunities in onshore wind and energy storage systems. Based on industry data, a gigawatt of solar PV can supply the annual daytime consumption of over 1.2 million homes in the country. A Filipino household typically consumes 200 kilowatt-hours a month1 .
“The joint venture has the full support of EPI’s parent company, NAC. This partnership would allow both companies to boost the supply of renewable energy in the Philippines and is in line with NAC’s vision to become the premier ESG investment in the country,” NAC President and CEO Martin Antonio G. Zamora said.
“Working with partners and developing new collaborations is key to accelerate the energy transition. This Shell-EPI partnership will leverage on Shell’s technical expertise and integrated solutions as a global energy company and EPI’s strong presence in the Philippines. Together, we can power progress for the Philippines through sustainable energy for industries and homes,” said Lorelie Q. Osial, Country Chair of the Shell Companies in the Philippines.
This joint venture is an opportunity to provide integrated value to customers through exploring synergies with retail electricity supplier Shell Energy Philippines, Inc.
Article courtesy of the Philippine Stock Exchange
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Marcelle P. Villegas - September 01, 2021
The 7th PH-EITI report, industry outlook transparency for oil, gas and mineral resources (Part 1)
The PH-EITI National Conference 2021 was held last July 29 with the theme "Resiliency in Transparency". PH-EITI or Philippine Extractive Industries Transparency Initiative, is a government-led, multi-stakeholder initiative that implements EITI. The initiative started on 26 November 2013 under Executive Order No. 147, series of 2013. It is a government commitment first announced through EO No. 79, s. of 2012. The initiative aims to promote the open, accountable management and good governance of oil, gas and mineral resources industries. The three-hour webinar/conference featured various keynote speakers. “This is the second year that we are holding this meeting online due to the pandemic. This underscores the exceptional circumstance under which we have to operate into the foreseeable future. Nevertheless, I congratulate the EITI for its efforts to organize this national conference and produce an annual report despite all the challenges.” This was part of the Opening Remarks given by Hon. Carlos G. Dominguez, Secretary of Department of Finance.
Philippine Resources - September 02, 2021
Gov’t gets P1.7-B royalty payment from integrated energy firm
The government, through the Department of Energy (DOE), has received nearly PHP1.7 billion in royalty payment from integrated energy company Semirara Mining and Power Corp. (SMPC) for the second quarter of the year. In a statement Tuesday, SMPC said this is the highest quarterly royalty payment to the government after the firm recorded a revenue of PHP14.8 billion from April to June 2021. SMPC’s revenue in the second quarter of 2021 was supported by all-time high coal sales and higher average selling prices. Of the PHP1.7 billion turned over to the government, PHP1 billion will go to the national government that can be used to fund programs to fight coronavirus disease 2019 (Covid-19). Some PHP666 million will go to local government units (LGUs) that host SMPC mine sites --PHP136 million for the province of Antique, PHP300 million for the municipality of Caluya, and PHP230 million for Barangay Semirara. Under the Local Government Code of 1991, host LGUs of petroleum, coal, geothermal, hydrothermal, and wind facilities shall receive 40 percent of the royalty proceeds. “The pandemic has taken a significant toll on our country. We hope that our contribution can help boost our government’s response against Covid-19,” SMPC president and chief operating officer Maria Cristina Gotianun said. SMPC is the country’s lone power producer that mines its own fuel source --integrating its coal mining and power operations to create a local value chain. Based on its website, SMPC generates 900 megawatts of power with an additional 1,200 MW of coal-fired power in the pipeline.
Philippine Resources - August 06, 2021
Law Establishing PH Energy Research Institute Inked
President Rodrigo Duterte has signed a law establishing the Philippine Energy Research and Policy Institute to enhance the country’s capability for energy research and policy development. Republic Act 11572, signed by Duterte on July 30, establishes the institute as an independent agency attached to the University of the Philippines (UP) with a separate budget from the premier university. Under the new law, an executive director to head the institute shall be a recognized expert in energy research and policy development with at least three years experience in the energy sector and shall have a strong organizational management background. The executive director, appointed by the UP President upon recommendation of the Executive Board, shall serve in full-time capacity for a term of five years which may be renewed. The institute’s Executive Board shall be composed of seven members comprised of the UP President as the ex-officio chairperson, and at least one representative from the fields of engineering, law, science, statistics, economics, social science, and public health, either from the academe or the private sector. Four members shall come from the academe, two members shall come from the private sector, while each representative shall come from different fields. Other members of the Executive Board shall be chosen by the UP President. Each member shall have a term of three years, which can be renewed for two more terms. The first two appointees from the academe and the first appointee from the private sector shall have a term of two years, which can be renewed for two more terms. The Executive Board may invite the secretaries of various government agencies as well as legitimate consumer and advocacy groups as resource persons during its meetings and deliberations. The institute shall support further education and training for its officers and employees to include advanced degree studies, short-term programs, online courses, and participation in conferences. Research papers, data, and other resources shall be made available to the public through its website. However, proprietary or confidential data and other resources cannot be posted or disclosed unless prior consent of the source or owner of such data and resources has been obtained by the requesting party. A Special Account in the General Fund (SAGP) for energy research, which shall be maintained and managed by the Bureau of Treasury, shall be established to support the research undertaken by the institute. The SAGF for energy research shall recognize and accept grants, contributions, and donations collected for energy research. A total of PHP200 million will be appropriated out of the General Appropriations Act (GAA) for the initial operating fund of the institute. Such amounts necessary for the sustainable operations of the institute shall be appropriated from the GAA based on the annual financial plan approved by the Executive Board and submitted to the Department of Budget and Management. Government agencies concerned are authorized to include in their respective annual budgets such necessary amounts as their contribution to the funding of certain research activities in the institute. Within 90 calendar days from the effectivity of the act, the UP, in consultation with the members of the academe, and other public and private stakeholders shall promulgate the necessary implementing rules and regulations of the act subject to the approval of the UP Board of Regents.
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Philippine Resources - November 27, 2022
FNI posts higher nine-month net income of P2.13 billion
Photo credit: Global Ferronickel Holdings Global Ferronickel Holdings, Inc. (FNI), a diversified Filipino company with interests in ferronickel ore mining and processing, logistics and port operations, and cement and steel production, recorded a net income of P2.13 billion in the nine-month period that ended September compared to the P1.86 billion it posted during the same period last year. The results are driven by the Group’s flagship mining project in Surigao del Norte operated by Platinum Group Metals Corporation (PGMC). FNI's revenues on the sale of medium-grade nickel increased on the back of favorable forex rates and higher average realized price, while shipment volumes reel from inclement weather and a lower price for low-grade ore. The sale of nickel ore for the nine-month ended September 30, 2022 slides to 3.150 million wet metric tons (WMT), lower by 1.078 million WMT or 25.5%, compared to 4.228 million WMT of nickel ore in the same period last year. The Group only completed 58 nickel ore shipments against 78 shipments during the same period last year due to erratic weather conditions registering 161 rainy days to 137 last year. The resulting sales mix was 78% low-grade ore and 22% medium-grade ore in 2022 versus the previous period’s blend of 81% low-grade ore and 19% medium-grade ore. Shipments consisted of 2.450 million WMT low-grade nickel ore and 0.700 million WMT medium-grade nickel ore compared to 3.424 million WMT low-grade nickel ore and 0.804 WMT medium-grade nickel ore in the same period in 2021. The average realized nickel ore price for the period ended September 30, 2022 is USD28.89/WMT lower by USD1.89/WMT or 6.1% compared to last year’s USD30.78/WMT. Low-grade ore is USD25.49/WMT lower by USD4.30/WMT or 14.4% against last year’s USD29.79/WMT. On the other hand, medium-grade ore stands at USD40.79/WMT higher by USD5.80/WMT or 16.6% versus last year’s USD34.99/WMT. The average realized Peso over USD exchange rate for the Group’s export revenues is P54.87 compared to P49.22 in the same period last year, higher by P5.65 or 11.5%. “Overall outlook for FNI looks reassuring. With the opening of our Palawan mineral project, we expect healthier returns for our stakeholders. Although weather conditions have not been permissive, we have continued to improve our operations and pursue our expansion plans,” said FNI President Dante R. Bravo. FNI recently disclosed its 20% stake in China's Guangdong Century Tsingshan Nickel Industry Co. Ltd (GCTN) to enhance synergies between FNI with its nickel ore mines and GCTN as an ore processor and provide a steady value-adding enterprise for the Group. As a testament to its growth and core policy to strengthen systems and processes, PGMC has received ISO certifications for its Quality Management System (ISO 9001:2015), Occupational Health and Safety Management System (ISO 45001:2018), and Environmental Management System (ISO 14001:2015) as an Integrated Management System (IMS). The certification applies to all activities in the mining operations of nickeliferous laterite ore and other associated minerals from planning to ore production, hauling, loading and port operations.
Philippine Resources - November 27, 2022
DMCI Mining nets P1.2 billion in 9M
Photo Credit: dmcihouse.net DMCI Mining Corporation saw its net income decline by 17 percent from P1.41 billion to P1.17 billion during the first nine months of the year owing to lower nickel ore shipments and average nickel grade sold. “We expected a severe profit decline because of the depletion of our Berong mine late last year. Fortunately, the bullish nickel market allowed us to ship even the low-grade inventory of Berong,” said DMCI Mining president Tulsi Das C. Reyes. “Strong nickel prices and local currency weakness also moderated the impact of lower shipments on our bottom line,” he added. For the third quarter alone, net income tumbled by 56 percent from P181 million to P80 million due to the combined effect of lower shipment (-50%), flattish nickel grade sold (-1%), higher selling prices (+31%) and favorable average foreign exchange rates (+10%). Total shipments declined at a slower pace from January to September as the Berong mine did better than expected in the first half. Consequently, nickel ore shipments only fell by 25 percent from 1.45 million wet metric tons (WMT) to 1.09 million WMT. Despite a 4-percent decrease in average nickel grade sold from 1.38% to 1.33%, DMCI Mining posted a 16- percent improvement in nine-month average selling price from US$43 to US$50. Magnifying the impact of higher selling prices was a 10-percent increase in foreign exchange rates from US$ 1:Php 49 to US$ 1:Php 53. At the end of September, total inventory plummeted by 76 percent from 450,000 WMT to 109,000 WMT, mostly (81%) coming from Zambales. Article courtesy of the Philippine Stock Exchange
Philippine Resources - November 27, 2022
E-vehicle boom opens new opportunities for PH mining
Developing the electric vehicle (EV) industry is opening new opportunities for the Philippine mining sector, a company executive said Wednesday. In a media roundtable, DMCI Mining president Tulsi Das Reyes said the e-vehicle sector has provided new opportunities for the mining industry and his company is keen to take part in this development. He described that mining became a "sunset business" before the growth of the e-vehicle industry. "Prior to the EV boom, stainless steel was going nuts, and they don't have capacity already for the stainless steel market. And China is the only growth for stainless steel, all other countries in the world (are) slowing down," Reyes said. He said the growing demand for e-vehicles globally has offered a "fresh light" for the mining business. Nickel is a component for e-vehicle batteries. "Without EVs (e-vehicles), we would (have) ended so many other niche market(s). So it was a huge impact," Reyes added. In the recent foreign business missions of the Department of Trade and Industry (DTI) in the United States, South Korea and Japan, companies from these countries expressed their interest in the Philippine e-vehicle industry, including manufacturing batteries for electric cars. Part of the DTI's Make It Happen in the Philippines campaign is to attract investments for integrated mineral processing to have value-added activities in the mining industry instead of exporting minerals as raw materials. Reyes said DMCI Mining is in talks with possible foreign partners to explore opportunities for integrated mineral processing here, including Indonesian and Chinese partners, but this will require adequate infrastructure in place and support from the government. Meanwhile, DMCI Mining net income in January to September this year declined by 17 percent to PHP1.17 billion from PHP1.41 billion in the same period last year. The lower profit for the first nine months of 2022 was mainly due to decline in shipment. "Strong nickel prices and local currency weakness also moderated the impact of lower shipments on our bottom line," Reyes said. Article courtesy of the Philippine News Agency
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