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Philippine Resources - January 09, 2023
New agreement sees MCB Project move a step closer to development
Photo credit: Celsius Resources Makilala Mining Company, Inc. (MMCI) and PDEP, Inc., two wholly owned Philippine subsidiaries, have entered into a partnership with Sodor Inc. and PMR Holding Corp. to develop the MCB Project. The partnership will be formalized through the signing of a binding agreement. The two companies have also signed a Non-Binding Term Sheet outlining their common goal of obtaining a Mineral Production Sharing Agreement (MPSA) from the Philippine government. Under the Philippine Mining Act of 1995, companies applying for the exploration, development, and utilization of natural resources under an MPSA must be at least 60% Filipino-owned. MMCI will hold the MPSA as a 60:40 joint venture, with 40% ownership by CLA and 60% by Sodor, Inc. MMCI will also be the owner and holder of the mining rights, interests, and licenses. Celsius Chairman and MMCI Chairman and President Atty. Julito R. Sarmiento expressed excitement about the partnership and the potential for the MCB Project. He said, "We are very pleased to have Sodor Inc. and PMR Holding Corp. as our local partners for the development of the MCB Project. Their combined investment, which is based on a proven track record of profitability, operational efficiency, and a commitment to Environmental, Social and Governance (ESG) principles, will be invaluable in the success of the MCB Project and the revival of the Philippine mining industry."
Philippine Resources - December 02, 2022
RECENT DRILLING AT MANILA MINING NTINA DEEPS INTERSECTS HIGHGRADE GOLD-COPPER PORPHYRY TYPE MINERALIZATION
Photo credit: Bilyonaryo Mr. Felipe U. Yap, Chairman and CEO of Manila Mining Corporation (“MMC”), is pleased to announce the exciting and economically significant gold and copper exploration drilling results from four well-controlled, deep diamond core holes completed below MMC’s historical Ntina open pit gold mine. The drilling programme has been designed to (i) refine the shape and dimensions of the previously intercepted copper-gold mineralized zones; (ii improve the understanding of mineralization controls, and (iii) allow the formulation of an efficiently targeted, definitive resource definition drilling programme. The completed four drill holes have an aggregate depth of 6,061.7 meters and identified a large, highly gold-copper mineralized porphyry system that has been named Ntina Deeps. Drilling of the fifth and sixth holes is ongoing. As the inevitable global copper demand-supply gap widens exponentially in the coming decades, the Philippines is perfectly positioned to become a major world copper producer. The Philippines has several large deposits that can be brought online within five years and a very long pipeline for new mines within the next 20 years. Deposits such as the Ntina Deeps have high gold credits and there exists the potential for low capex and selective underground mining methods. The timing for MMC to explore and develop gold-copper porphyries within its Placer tenements could not be better. Article courtesy of the Philippine Stock Exchange
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.
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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
Philippine Resources - November 27, 2022
Surigao Norte mining firms bag nat'l environment awards
Two Surigao del Norte-based affiliates of Nickel Asia Corp. (NAC) have been awardees of the prestigious Presidential Mineral Industry Environmental Award (PMIEA) for this year. In a statement Tuesday, NAC said Hinatuan Mining Corporation (HMC) in Taganaan town and Taganito Mining Corporation (TMC) in Claver town received the PMIEA at the 68th Annual National Mine Safety and Environment Conference (MSEC) in Baguio City over the weekend. Awarded in the name of the country's chief executive, the PMIEA is considered as the pinnacle of all industry awards in the field of environment and safety. “At NAC, we align profit with purpose amidst the challenges of climate change and these honors only demonstrate that caring for the environment goes hand in hand with good business performance,” said Jose Bayani Baylon, NAC chief sustainability officer and senior vice president for public affairs and communications. TMC also won this year’s Best Mining Forest Award and the Most Improved Safety Performance under the Safest Mines Award. Artemio Valeroso, TMC resident mine manager, said the company has persevered and worked hard to clinch the presidential award. Meanwhile, Francis Arañes, HMC resident mine manager, said the award will continue to remind the company to remain steadfast and focus on the goals of good business and responsible mining. Two more NAC subsidiaries, the Cagdianao Mining Corp. (CMC) and Rio Tuba Nickel (RTN), also received recognitions. CMC, which operates in Dinagat Islands, bagged the Platinum Achievement Awardee for Surface Mining Operation Category, while the RTN, which operates in Palawan, was named Platinum Awardee for its nickel operations and Titanium Awardee for its limestone project. NAC also reported gaining more than PHP21 billion in gross revenues and PHP6.9 billion in attributable net income from January to September this year. The MSEC is an annual event led by the Philippine Mine Safety and Environment Association in coordination with the Department of Environment and Natural Resources-Mines and Geosciences Bureau, the Chamber of Mines of the Philippines, and the Philippine Society of Mining Engineers. Article courtesy of the Philippine News Agency
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Philippine Resources - November 27, 2022
Marcos to DENR: Make mining firms comply with safety policies
Photo: President Ferdinand R. Marcos Jr. meets with Department of Environment and Natural Resources officials at Malacañan Palace on Tuesday (Nov. 22, 2022). Marcos directed the department to require small and large-scale mining firms to comply with policies that ensure safe working conditions for miners. (Photo courtesy of Malacañang) President Ferdinand R. Marcos Jr. on Tuesday directed the Department of Environment and Natural Resources (DENR) to require small and large-scale mining firms to comply with policies that ensure safe working conditions for mining workers. In a meeting with DENR officials at Malacañan Palace on Tuesday, Marcos lamented the failure of mining firms, particularly those involved in illegal activities, to provide adequate safety measures inside the mines. "Ang kawawa diyan ‘yung mga miners. They have no safety. Ang daming namamatay (The miners are victims here. They have no safety. A lot of them die)," he said. Marcos said there is a need to enhance social protection and security for workers in the mining industry. "We might be able to access financing, they might be able to access social protection," he added. He also urged the DENR to address bottlenecks to regulate the small-scale mining industry. “Gusto natin ma-legalize ang mga small-scale mining firms kasi marami sa kanila illegal, kaya walang protection ang mga minero (We want to legalize the small-scale mining firms because many of them are illegal, so the miners have no protection),” Marcos said. “Gusto nating palakasin ang regulatory framework para maka-operate sila ng legal, upang mabigyan ang ating minero ng assistance at protection para sa ligtas nilang pagtatrabaho (We want to strengthen the regulatory framework so they can operate legally, to give our miners assistance and protection for their safe work),” he added. Reducing carbon emissions Meanwhile, Marcos also underscored the need for the seafaring industry to create habits to help with carbon emission reduction. He raised the need to “upskill and reskill” the seafaring workforce to address the scheduled shift of ocean-going vessels to green hydrogen as a fuel source from 2030 to 2040. He said seafarers would need “additional training” to be able to handle alternative fuels to meet global decarbonization objectives. During the recently-concluded 27th Conference of the Parties of the United Nations Framework Convention on Climate Change (COP27) in Egypt, leading organizations across the shipping value chain and producers of green hydrogen signed a joint statement committing to the rapid production and use of low-carbon fuels based on green hydrogen to accelerate decarbonization of global shipping. The shipping sector currently accounts for 3 percent of global greenhouse gas emissions but is expected to grow to 50 percent by 2050 without intervention. Marcos has repeatedly pushed for the development of renewable energy sources to address the problem of high power costs in the country. In his attendance at the 29th Asia-Pacific Economic Cooperation (APEC) Summit in Bangkok last week, he said the Philippines is currently focused on using renewable energy sources such as hydropower, geothermal power, solar and other low-emission energy sources. He said his administration is particularly setting a target of a 35 percent share of renewable energy in the power generation mix by 2030 and 50 percent by 2040. Marcos earlier called for the amendment of the Republic Act (RA) 7076 or the People's Small-Scale Mining Act of 1991 to incentivize small-scale mining and provide social assistance and labor protection for all small-scale miners. Under the law, small-scale mining refers to a mining activity that relies heavily on manual labor using simple implementations and methods. RA 7076 also pertains to small-scale mining as an activity that "does not use explosives or heavy mining equipment." The DENR expressed commitment to review mining laws, including small-scale mining, to ensure that standards are updated and that the provision of the implementing rules and regulations takes full advantage of remote sensing and innovation in artificial intelligence. Mining accounts for less than 1 percent of the country’s gross domestic product (GDP), although the Marcos administration is eyeing the industry to be one of the major contributors to the country’s economic development. It has been estimated that 70 to 80 percent of small-scale miners in the Philippines operate illegally.
Philippine Resources - November 27, 2022
Vice President Harris Launches USTDA Critical Minerals Processing Project in the Philippines
Photo credit: The US Trade and Development Agency During her recent travel to Manila, U.S. Vice President Kamala Harris launched a U.S. Trade and Development Agency grant to Eramen Minerals, Inc. (EMI), a Filipino mining company, for a feasibility study to advance the development of an environmentally sustainable nickel processing facility in the Philippines. This project will advance the clean energy transition by producing critical minerals that are key elements in the supply chain for batteries and energy storage systems. “This partnership is important to the shared clean energy and national security goals of the Philippines and the United States,” said Enoh T. Ebong, USTDA’s Director. “Through this grant, we are supporting high-quality technical and environmental standards for mineral processing in the Philippines, while also creating valuable commercial opportunities for U.S. companies.” USTDA’s study will evaluate the technical and economic viability of developing a nickel processing facility at the site of EMI’s mine in Zambales Province. The plant is expected to use EMI’s nickel ore to produce refined nickel and cobalt products for sale as battery precursor materials. The study will help define the technical specifications for the facility and promote alignment with high environmental, social, and governance standards. “EMI seeks to contribute to the green energy transition and energy security through the supply of critical materials from our nickel mining operations for energy storage systems. The company likewise supports the encouragement of the Philippine government for mineral value-adding. The USTDA grant contributes to the accomplishment of such objectives through the determination of the optimal process for our ore to produce battery-grade precursor materials,” said Enrique C. Fernandez, EMI President/CEO. This project advances the goals of the Biden-Harris Administration’s Partnership for Global Infrastructure and Investment and the Indo-Pacific Economic Framework, through the development of clean energy supply chains including the responsible mining of metals and critical minerals. Article courtesy of The US Trade and Development Agency
Philippine Resources - November 15, 2022
Celsius obtains Social License to operate for the MCB Project
Photo credit: Celsius Resources Limited Celsius Resources Limited is pleased to announce that one of its Philippine subsidiaries, Makilala Mining Company, Inc. (“MMCI”) has obtained the consent of the Balatoc Indigenous Cultural Community (ICC) for the development of the Company’s MaalinaoCaigutan-Biyog (MCB) Copper-Gold Project (“MCB” or “the Project”). After a series of consultations and negotiations, a Memorandum of Agreement (MOA) between MMCI, the Balatoc ICC, and the National Commission on Indigenous Peoples (NCIP) was officially signed on 14 November 2022. The MOA represents the collective decision of the Balatoc ICC for MMCI to carry out exploration, development, production, and operation activities at the MCB Project area. It also outlines the commitments and obligations of all parties to the agreement as well as the economic, social, environmental, and cultural benefits of the Project to the Balatoc ICC during the life of the mine. Pasil Municipal Mayor Alfredo B. Malannag, Jr. was elated with the outcome and expressed: “This is a historical moment as it reflects the aspirations of the community for the future of the Balatoc Tribe. With MMCI at the forefront of development, our dreams of harnessing our natural resources without sacrificing our future and the environment will soon be realised. We have partnered with MMCI since their first exploration in the area in 2006 and the community has established a very good relationship with them.” Kalinga Provincial Governor James S. Edduba shared the same sentiment: “This is a happy occasion, and I am excited with the many possibilities that will happen to this community with the signing of the MOA. Growing up in the place, I can personally attest to life with and without a mining company. I was the Mayor of Pasil when Makilala Mining started their exploration. We have gone a long way and MMCI has been instrumental in the development of the community. I believe that this partnership will help develop the community further as this is such a big investment in terms of business and employment opportunities, overall progress and other benefits.” The Company considers obtaining the consent of the Balatoc ICC to be a crucial aspect for the development of the MCB Project, as it represents a social license to operate which is anchored on legitimacy, credibility, and trust. MMCI President Atty. Julito R. Sarmiento expressed: “The signing of the agreement signifies the commitment of the Company to do right by the Balatoc ICC. We have always ensured that we abide and respect the customary laws and traditions of the community in all aspects of our engagements, to demonstrate our strict adherence to Environmental, Social and Governance (ESG) principles and best practices consistent with our firm commitment to Transformative Mining.” Article courtesy of Celsius Resources
Philippine Resources - November 15, 2022
Apex Mining’s 3Q2022 RESULTS UP 277% YoY
Photo credit: Apex Mining Apex Mining Co., Inc. is enjoying the fruits of its continuous expansion program with both the 3Q2022 and 9mo2022 results at an all-time high. Production for the 3Q2022 stood at 26,962 oz for gold and 100,899 oz for silver. The volume was 35% and 15% higher, respectively, than previous year’s production. The Maco mine milled 209,585 tonnes, 14% higher YoY with daily mill throughput of 2,334 tpd with mill grades of 4.02 gpt for gold and 18.72 gpt for silver. In the 3 rd quarter, the foreign exchange rate averaged P56.62 vs P50.30 from 3Q2021 or an increase of 13%. The resulting gross revenues for the third quarter was P2.743 billion, an increase of 43.8% YoY. Consolidated net income for 3Q2022 amounted to P897.95 million vs net loss of P624.35 million for 3Q2021, a 244% increase YoY. During the 3Q2021, the Company recognized P1.1 Billion provision for impairment of property and equipment and deferred exploration costs of non-operational local and foreign subsidiaries of Monte Oro Resources & Energy, Inc, a wholly owned subsidiary of Apex. For the 9mo2022, total production was 73,219 oz gold and 291,333 oz silver or an increase of 36% and 12% respectively. Realized prices were $1,817/oz for gold and $21.62/oz for silver, a change of +2% and -13% respectively. Milling throughput for the Maco Mine Site was 601,730 tonnes or 2, 299 tpd for the 9mo2022, as compared to 514,008 tonnes or 2,017 tpd for the same period in 2021. The weighted average foreign exchange rate during the comparative period was P53.85 and P49.03 to one USD, a gap of 10%. The resulting gross revenues for the three quarters of 2022 was higher at P7.51 billion compared to the same period in 2021 at P4.99 billion. The net income (loss) for the three quarters of 2022 and 2021 was P2.46 billion and (P135.73) million. Net income grew 1,913% YoY. Disaster relief is among the cornerstones of Apex Mining’s corporate citizenship initiatives. As the third quarter was drawing to a close in September, typhoon Karding battered Luzon. In tandem with the Philippine Mine Safety and Environment Association (PMSEA), though Pusong Minero, Apex Mining’s president and CEO, Luis R. Sarmiento, ASEAN Eng., who is also the president of PMSEA, condoled with the families of the five Bulacan PDRRMO rescuers who perished while conducting rescue activities during the said tropical depression. At the Luksang Parangal of the Bulacan Provincial Advisory Group for Police Transformation and Development, the families of the late rescuers received cash assistance. Earlier, in August, the four classrooms built by the GMA Kapuso Foundation, in part through a P2M donation by the company, was turned over to the students and teachers of the Baybay Elementary School in the island of Siargao (Siargao, including Baybay Elementary School, was badly hit by typhoon Odette in December 2021). Apex Mining found itself displaying its unique brand of malaskit yet again as the final quarter of 2022 opened with typhoon Paeng wreaking havoc in regions 5, 6, 8, 12 and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). Still under the Pusong Minero program of the PMSEA, the company, together with concerned local governments, immediately deployed much needed supplies like drinking water, sleeping mats and sacks of rice to select areas badly hit by Paeng. The distribution of sleeping mats is a joint effort with the province of Davao de Oro, where Apex Mining’s Maco Mine is located. Article courtesy of Apex Mining
Philippine Resources - November 11, 2022
DENR to strengthen mining sector for PH economic growth
Photo credit: DENR The Department of Environment and Natural Resources (DENR) said it shall boost the potential of the mining sector to support the country’s economic growth and development under the Marcos administration. In the 48th Philippine Business Conference and Expo hosted by the Philippine Chamber of Commerce and Industry held on October 19 in Manila, DENR Undersecretary for Policy, Planning and International Affairs Atty. Jonas R. Leones, in a speech delivered on behalf of Secretary Maria Antonia Yulo Loyzaga, bared the Department’s plans for the mining industry. Leones said the DENR’s Mines and Geosciences Bureau (MGB) has initially identified approximately 9 (nine) million hectares as potential mineral areas, although he said “it will not just be a business-as-usual scenario as it was in the pre-moratorium times but rather, it will be better business.” He highlighted that out of the nine million hectares of potential mineral areas, only less than 3% are awarded as mining contracts. “Since we are among the most highly mineralized country in the world, our priority is to build both a strategic and responsible industry,” Leones pointed out. “The MGB will vigorously promote the development of mineral processing and value-adding enterprises while at the same time intensifying the enforcement of environmental safeguards and targeting social development components in mining operations to address vulnerabilities.” He said the DENR will be reviewing mining laws, including small scale mining, to ensure that standards are updated and that the provision of the implementing rules and regulations take full advantage of remote sensing and innovation in artificial intelligence. Under the Mineral Investment Promotion Program, Leones said the DENR will address illegal mining, particularly small scale mining operations through the assessment and declaration of the “Minahang Bayan” areas where small-scale mining will be confined and regulated. He said the DENR will also undertake geological survey and mapping to populate the geoscientific and mineral information database, as well as rehabilitation and remediation of the remaining 11 abandoned mines to address the persistent misinformation that has stigmatized the mining industry. Leones said the other policy directions in the mining sector include the design of mineral extraction models with minimal environmental footprints; identification of new mineral reserves and the use of technological support for decision making; bidding out of national government mining assets such as those under the Philippine Mining Development Corporation; development and expansion of roads, power and other infrastructure support to mineralized areas through the Department of Public Works and Highways; construction of modular mineral processing plants such as those for steel and nickel; conduct of studies of mine rehabilitation; reuse of mining waste and tailings and acid mine grain management; and integration of small scale mining sector into the industry. He said the agency will also ensure that mining firms will strictly implement their respective Safety and Health program, Environmental Protection and Enhancement program, Final Mine Rehabilitation and Decommissioning Plan, and Social Development Management. “We plan to adopt a strong system base on the established mitigation hierarchy of avoidance, mitigation, rehabilitation and compensatory actions,” he added. Leones said that the Department intends to pursue its strategic plans and programs by strengthening partnership with the different government offices, civil society organizations and advocates, industries, and the academe to develop acceptable, science-based and risk-informed strategies to conserve and protect the environment and natural resources. Article courtesy of the DENR
Philippine Resources - November 11, 2022
NICKEL ASIA CORPORATION ANNOUNCES P6.9 BILLION NET INCOME FOR 9M 2022
Nickel Asia Corporation recently announced its unaudited financial and operating results for the nine-month period ended September 30, 2022, with an attributable net income (net of minority interest) of P6.90 billion, up 12 percent from the P6.17 billion reported during the same period last year. Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to P11.10 billion against P11.01 billion in the prior year. Despite the lower ore sales volume sold during the period, revenues rose by 2 percent to P21.51 billion from P21.03 billion last year, owed largely to higher nickel ore prices and favorable exchange rates. The Company’s five operating mines sold a combined 12.44 million wet metric tons (WMT) of nickel ore during the first nine months of the year, a decrease of 14 percent from 14.44 million WMT in the same period last year. The drop in sales volume was almost in direct proportion to unrealized workable days caused by unfavorable weather that adversely affected the Company’s mining operations during the period. The weighted average nickel ore sales price during the period increased by 5 percent to $29.46 per WMT against $28.05 per WMT in the same period last year. The company realized P54.22 per US dollar from these nickel ore sales, a 10-percent increase from P49.17 last year. Breaking down the ore sales, the Company exported 6.68 million WMT of saprolite and limonite ore at the average price of $38.87 per WMT during the nine-month period from 8.72 million WMT at $38.88 per WMT in the same period last year. Likewise, the Company delivered 5.76 million WMT of limonite ore to the Coral Bay and Taganito highpressure acid leach (HPAL) plants, the prices of which are linked to the London Metal Exchange (LME) and realized an average price of $11.66 per pound of payable nickel. This compares to 5.72 million WMT at $8.20 per pound of payable nickel in 2021. Expressed in US dollar per WMT, the average price for the deliveries to the HPAL plants were $18.55 and $11.54 in the first three quarters of 2022 and 2021, respectively. “Despite the challenges in our mining operations due to adverse weather conditions at our mine sites, the favorable LME nickel price and strong US dollar helped drive revenues up by 2 percent from the prior year,” said Martin Antonio G. Zamora, President and CEO. Owing to the higher LME nickel price during the period, NAC also recognized gains from its equity share in investments in the two HPAL plants in the combined amount of P1.02 billion against P340.4 million the prior year. The strong US dollar further enabled NAC to log a 162-percent hike in net foreign exchange gains from its foreign currency denominated net financial assets to P1.54 billion from P587.2 million the year prior. Total operating cash costs increased by 8 percent year-on-year to P9.54 billion from P8.86 billion last year. On a per WMT sold basis, total operating cash costs increased to P767 compared to P614 in 2021. Renewable Energy NAC’s renewable energy arm, Emerging Power Inc. (EPI), on a consolidated basis, registered a 60-percent increase in revenues to P393.67 million and a 51-percent increase in EBITDA of P239.50 million. This was primarily due to a 56-percent year-on-year increase in the generation capacity of its operating arm Jobin-SQM Inc. (JSI) to 79,022-megawatt hours after the completion of its 38-MW expansion last June, bringing its total capacity to 100 MW. Between January and September of this year, 70 percent of the power from JSI’s Sta. Rita plant were sold to retail electricity suppliers through power supply agreements while the remaining 30 percent were sold to the Wholesale Electricity Spot Market (WESM). Overall, power sales were done at an average realized tariff of P4.98 per kilowatt-hour. JSI logged a net income of P72.83 million, allowing EPI to trim its losses to P133 million from the same period last year, a 53-percent reduction thanks to higher economies of scale and improved market conditions. EPI also began the development and construction of an additional 68 MW in the Subic site last September, set to go online by the fourth quarter of 2023. In terms of the Forecast Accuracy Standards for variable renewable energy sources in the WESM, the Sta. Rita solar power plant also ranked first out of 29 solar plants in Luzon and third out of 41 solar plants across the country in terms of performance, based on the latest report of the Philippine Electricity Market Corporation in May. Forging ahead, EPI also recently entered into a joint venture agreement with Shell Overseas Investments B.V. for the establishment of a platform to develop, own, operate, and maintain utility-scale onshore solar and wind power generations projects as well as battery energy storage systems in the Philippines. The venture, with an equity ownership of 60-percent EPI and 40-percent Shell under a newly formed company Greenlight Renewables Holdings, Inc., aims to have an aggregate operating capacity of 1,000 MW by 2028. “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,” said Zamora. Lorelie Q. Osial, country chair of the Shell Companies in the Philippines, also echoed the same sentiment: “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.” Ultimately, the joint venture is an opportunity to provide integrated value to customers through exploring synergies with retail electricity supplier Shell Energy Philippines, Inc. Special Cash Dividend The Company’s Board of Directors approved the declaration of a special cash dividend of P0.23 per share of common stock, payable on Dec. 9, 2022, to shareholders of record on Nov. 24, 2022. Article courtesy of the Philippine Stock Exchange
Philippine Resources - November 11, 2022
Data-informed governance of extractive industries crucial: Diokno
Finance Secretary Benjamin Diokno has cited the importance of improving the inclusive and data-informed management of the extractive industries in driving long-term economic expansion as he cited its PHP363-billion contribution to government revenues from 2012 to 2019. “With the Marcos administration banking on the potential of the extractive sector to drive long-term economic expansion, the inclusive and data-informed governance of the extractive industries becomes more critical than ever,” said Finance Secretary Diokno at the FORGE PH: Philippine Extractive Industries Transparency Initiative (PH-EITI) National Conference on Tuesday. FORGE PH is the annual assembly of the extractive sector that updates stakeholders on progress in achieving greater transparency and accountability in the extractive industries. This year, the national conference focused on how the PH-EITI can respond to concerns on climate change and energy transition, which is in line with the initiative to incorporate sustainability concerns in the global reporting standard. “We call on our participants to actively and constructively engage one another and develop concrete actions to improve the management of this very important sector,” Diokno said, as he advocated the PH-EITI as a platform for data transparency and multi-stakeholder participation in extractives governance. The government will take necessary steps to strengthen and broaden the space for inclusive multi-sectoral engagement. As such, local government capacity to govern extractive activities, specifically small-scale mining sectors, will be improved through the subnational implementation of EITI. Moreover, the EITI platform will be used to ensure equitable government revenue share from resource utilization, which is demonstrated in PH-EITI’s contribution to the crafting of a new fiscal regime for mining. EITI data will be utilized to inform the public and stakeholders of initiatives towards climate change mitigation and adaptation, and the transition to low-carbon energy. With this, Diokno urged stakeholders to continue using PH-EITI data in their research work and policy advocacy. “As we close in on our first decade of being an EITI-implementing country, we commit to making implementation more inclusive, more meaningful, and responsive to the needs of our stakeholders,” he said. The EITI International, led by its chair, former New Zealand Prime Minister Helen Clark, has been supporting the Philippines in maintaining a high level of transparency and stakeholder engagement in its extractive industries. The PH-EITI is a government-led, multi-stakeholder initiative implementing EITI, the global standard that promotes the open, accountable management, and good governance of oil, gas, and mineral resources. It was created on Nov. 26, 2013 through EO No. 147, series of 2013.
Philippine Resources - November 07, 2022
Maiden Mineral Resource for Celsius’ Sagay Cu-Au Project
Photo credit: Celsius Resources Celsius Resources Limited is pleased to declare a maiden JORC compliant Mineral Resource for the Sagay (SGY) Copper-Gold Project (“Project”), held under its Philippine Subsidiary Company, Tambuli Mining Co., Inc (TMCI) and located at the Island of Negros in the Philippines. The latest results suggest that the SGY Project hosts a large-scale porphyry copper-gold mineralisation. The Global Mineral Resource estimate comprises 302 million tonnes of 0.41% copper, and 0.11g/t gold, at a lower cutoff grade of 0.2% copper. The maiden Mineral Resource Estimate (MRE) is located at Nabiga-a Hill, within the broader SGY Project area. At Nabiga-a, the MRE has been defined by a total of 32 diamond drill holes which are very broadly spaced and have shown copper mineralisation over an extensive area from the surface down to 1.2km in depth. Celsius Resources Executive Director Peter Hume said: “The copper mineralisation at Sagay is truly large scale, with potential to develop into another significant copper deposit in the Philippines.” “We have only drilled a modest number of holes into this deposit but the large intersections have already defined 1.2Mt of copper. With open intersection at multiple positions and in multiple directions, we anticipate that further drilling will lead to substantial growth in the known copper mineralisation.” “We also have some evidence that higher-grade zones could exist within the huge lower-grade copper envelop. We look forward to the next phase of exploration which will also focus on investigating the possible extensions of these higher-grade positions closer to the surface.” Celsius Resources is still in the process of finding a suitable partner to develop the Sagay Project. Article courtesy of Celsius Resources
Philippine Resources - November 07, 2022
Celsius Resources hits 65m @ 1.73%Cu & 0.37g/t Au from MCB-041
Photo credit: Celsius Resources Celsius Resources is pleased to announce they have received further shallow and high-grade copper assay results from the ongoing drilling program at their flagship MCB copper-gold project, owned by its Philippine subsidiary Makilala Mining Company, Inc. (“MMCI”). The results continue to extend the envelope of the near surface mineralisation which complement previous drilling results from holes completed at MCB from 2021 to 2022 and validate the historical drilling information completed by Freeport-McMoRan. The results from MCB-041 are particularly significant as they have allowed the near surface higher-grade copper mineralisation envelope to extend further to the east. This location in general was previously only supported by one drill hole (MCB-010A – see Figure 1). MCB-041 has significantly expanded the footprint of the near surface, higher-grade copper mineralisation at MCB. Country Operations Director Mr. Peter Hume said: “Our drilling strategy was modified in 2022 to shift the focus from deep targets to the recently identified near surface higher-grade targets and it is starting to significantly pay off with better-than-expected results.” “We had previously interpreted that the high-grade targets were mostly at depth, but an analysis of the recent results, particularly from MCB-036* which intersected 59m @ 1.29% copper and 0.27g/t gold, MCB-037** which intersected 28.95m @ 1.12% copper and 0.06g/t gold, and now MCB-041, have confirmed the presence of a more extensive shallow copper mineralisation than previously understood.” “We expect these combined results will make a solid positive enhancement to the feasibility study which will commence in early 2023.” Article courtesy of Celsius Resources