DMCI Mining Corp. on Monday said it is on track to surpass its 2022 nickel ore production and shipments, eyeing to open two new mines as part of the company's expansion plans.

In a statement, DMCI Mining said production already doubled to 1.12 million wet metric tons (WMT) in the first half of 2023 from 567,000 WMT during the same period last year.

The production also surpassed the recorded 2022 full-year output of 1.03 million WMT.

Total shipments in the first half of the year, meanwhile, reached 1.06 million WMT, which accounted for about 73 percent of the 1.45 million WMT total sales volume in 2022.

“We attribute our strong performance to improved operational efficiency and permit timing,” DMCI Mining president Tulsi Das Reyes said.

“Shortly after Zambales Diversified Metals Corporation (ZDMC) was granted an ECC (environmental compliance certificate) amendment, we worked on securing the auxiliary permits, local manpower and heavy equipment needed to boost our production capacity,” he said.

Earlier this year, ZDMC was granted an amended ECC which allowed the company to raise its annual production to a maximum of 2.7 million dry metric tons.

“To sustain our growth momentum and offset the impact of our Berong mine depletion, we are looking to open new mines in Zambales,” Reyes said.

Reyes said one mine will be operational by December this year and another is set to open by the second quarter of 2024.

In an interview in Baguio over the weekend, Reyes said they will spend roughly PHP250 million to develop the nickel mine which will be located inside its existing mine site in Zambales currently being operated by ZDMC.

The new mine, which is expected to produce 20 million metric tons, will be operated by its another unit, Zambales Chromite Mining Co. (ZCMC).

"[It's] Zambales Chromite, but it’s not a chromite mine, it’s a nickel mine. When we bought it from the UK (United Kingdom), that's already the name and we haven't really rebranded or reshaped the company yet because those are the companies we used to apply for the permit," Reyes said.

He said they are currently securing permits for the new mine.

"I strongly believe that we have a very good chance to get this permit before year-end, but please note we have to get a tree cutting permit afterwards. Once we get the tree cutting permit, we can now mine," he said.

"So we will possibly... I'm confident we'll get the permit, shovels in the ground, depending on the timeline of our suppliers, the way the regulators approve our permit. But I'm very confident it’ll happen within the proper time frame plus minus one month," he added.

While Reyes did not disclose the location of the second mine, he said it can produce about 70 million tons of high-grade ore. By Anna Leah Gonzales

Article courtesy of the Philippine News Agency

Stakeholders signed a memorandum of agreement (MOA) Wednesday in Surigao City for the establishment of a mining-tourism circuit in Surigao del Norte's three mineral-rich towns.

“This partnership will strengthen the advocacy for the development of mining sites in said municipalities into ecotourism destinations,” Department of Tourism-13 Director Ivonnie Dumadag said in a phone interview on Thursday.

Dumadag was referring to the MOA signed between DOT-13 together with gold miner Greenstone Resources Corporation (GRC), and the towns of Alegria, Mainit, and Tubod.

Dumadag said the development of mined-out and rehabilitated areas for ecotourism purposes will provide livelihood opportunities to towns’ residents.

It also reaffirms the government's stance that responsible mining and tourism can coexist to bring economic benefits for mineral-rich but economically underdeveloped areas, she noted.

She said mining and tourism are considered main economic drivers of Caraga, home to several large-scale miners and world-class tourism destinations such as Siargao Island.

As part of the MOA, she said a series of capacity-building development training and activities will be implemented by the last quarter of the year.

“During the Caraga Mining Resiliency Summit last month, where I was invited as a speaker, I challenged the mining companies in the region to include tourism initiatives in their priority programs in support of tourism development in mining communities,” Dumadag said.

She also noted the GRC is among the companies that have positively responded to the call through the creation of the mining tourism circuit in the three towns in neighboring Agusan del Norte.

The Department of Environment and Natural Resources (DENR) raised the need to have at least one more nickel processing plant in the Philippines to maximize the value of the country's mineral resources.

"Our benchmark is Indonesia, how much they can process. They are processing all their [nickel] laterite ores," said DENR Undersecretary for Integrated Environmental Science Carlos Primo David in an interview at the sidelines of Mining Philippines 2023 International Conference and Exhibition organized by the Chamber of Mines of the Philippines (COMP) at the Edsa Shangri-la in Mandaluyong City on Tuesday.

At present, the Philippines only has two nickel processing plants.

Raw nickel ore is a critical component of electric vehicle batteries. It is also processed to create stainless steel, which is used in the development of megacities and renewable energy technology.

According to David, the largest deposits of nickel in the country are found in Zambales, Caraga, and Palawan.

"We have a rough timeline. Definitely, within this administration, we should add more to the two that we have for nickel. There are two existing. We should add at least one hopefully in Zambales," he said.

David, however, said “I think, there should be one more in Caraga region as a whole. Then Zambales and another one in Palawan.”

Government-led exploration

He said DENR is also looking at embarking on more focused government-led exploration targeting critical minerals needed to transition to renewable energy.

David, who represented DENR Secretary Maria Antonia Yulo-Loyzaga during the event, expressed DENR’s support to the mining industry in terms of governance and regulation, citing the potential of the country’s minerals development sector to be an important player in the global renewable energy transition market.

“The government has a budget of PHP60 million for minerals exploration. But it’s like a shotgun exploration. What we want to do is to focus on certain areas,” he said.

“We wanted to focus that small budget and revive exploration by government. Hopefully, when we do the initial exploration, there is enough information for the private sector to get interested and continue the exploration,” he pointed out.

The DENR executive said the government-led exploration aims to identify minerals and declare more mineralized areas.

“We wanted to help the industry with this critical step. Before you develop, mining starts with exploration. It should be government-initiated,” he stressed.

Digitization

The DENR meanwhile said it is investing in the digitization of all mining-related information and the processing of applications and permits.

Yulo-Loyzaga, in the speech read by David, said the department has “substantially completed migrating all data onto a single platform, with the exception of data from one last division in the Mines and Geosciences Bureau (MGB).”

She said digitization will help make DENR procedures more efficient, leading to shorter and more transparent processing of permits and applications.

In his welcome remarks, COMP Chairman Michael Toledo said among the notable positive changes are the lifting of the moratorium on new mining projects and of the ban on open pit mining. By Anna Leah Gonzales

Article courtesy of the Philippine News Agency

St. Augustine Gold and Copper Ltd. chief operating officer Michael Regino has said they are currently in talks with possible foreign investors to secure funding for the King-king Copper-Gold Project in Davao de Oro.

In an interview at the sidelines of the 2023 Mining Philippines International Conference and Exhibition at the Edsa Shangri-la in Mandaluyong City on Tuesday, Regino said the initial investment needed for the project was initially estimated at USD2 billion.

This is, however, based on the preliminary feasibility study (PFS) released, he said.

"What we're doing right now is we are having the 2013 PFS updated and hopefully it will be ready by early of next year. The ones we contracted to update the PFS said it might be ready by January so hopefully with that we will be able to see the revised figures and based on current prices, revenues, and cost," said Regino.

Regino said the foreign investors "are just waiting for the PFS to be completed."

"For projects of this size, you will definitely need big money so you will need a partner, you need a big investor," he said.

According to Regino, King-king's estimated production over its 23-year mine life is 3.1 billion pounds of copper, 5 million ounces of gold and most probably nearly 10 million ounces of silver.

He said the updated PFS will provide the company a better view of the updated prices, cost, and the viability of the entire project.

Regino added that he does not expect a huge increase in the needed investments.

"In the USD2 billion dollar project we were supposed to put up a USD300 million coal power plant. Because when we did a study back in 2013, there's a deficit of power in Mindanao," he said adding that local power providers could easily provide the requirement.

"So there's no need to put up one. But there might be increases in some other expenses. The project study will be more accurate," he said.

Regino said once investments are secured, it would take up to four years before commercial operations start.

Businessman Manuel V. Pangilinan said mining enables green technology to flourish, offer jobs brings and revenues, hence presenting additional economic benefits that uplifts the lives and promote the welfare of the people, particularly in far-flung areas.

The Chamber of Mines fo the Philippines (COMP) welcomes ‘positive changes’ as it kicks off the 2023 Mining Philippines International Conference and Exhibition at the Edsa Shangri-la in Mandaluyong City on Tuesday.

In his welcome remarks, Michael Toledo, COMP Chairman, said among the notable positive changes are the the lifting of the moratorium on new mining projects and of the ban on open pit mining.
“It took a global contagion before these decade-long policy roadblocks were removed and the importance of mining was recognized,” Toledo said.  

The Tampakan Copper Mine Project is one of the world’s largest underdeveloped copper and gold mining project located in the southernmost part of Mindanao. It is held under an FTAA agreement by Sagittarius Mines Inc. The project obtained an FTAA that expires in 2038, and renewable for another 25 years.

Mr Roy Deveraturda is a retired Lieutenant General in the Armed Forces of the Philippines (AFP) and is currently the President & CEO of Sagittarius Mines, Inc. – the FTAA holder of the Tampakan Copper-Gold Project.

The Tampakan Copper-Gold Project covers about 10,000 hectares located between the towns of Tampakan in South Cotabato and Kiblawan in Davao del Sur. Commercial operations are expected to begin by 2026.

As keynote speaker at the Philippine Mining Club Luncheon last August 4, 2023, he discussed the factors affecting the project and a discourse on improving their way ahead in the mining industry.

“A project of this size has the potential to be a key driver in economic prosperity, industrial growth and social development not only in its host communities, but more so for the entire island of Mindanao, and the country as a whole,” he said.

“It will create thousands of jobs, build roads and other life sustaining infrastructures. It will also bring basic utilities like clean water and low-cost electricity to the communities. It could provide solutions to poverty, ignorance, hunger, and disease.”

Mr Deveraturda explained that a mining project can achieve these through Environmental, Social, and Governance (ESG). He further discussed this last November 2022 as keynote speaker at the Philippine Mining and Exploration Association meeting in Makati where he said, “The company is committed to responsible and sustainable development with ESG at the core of managing the project. The project is a national priority considering that the mining industry is acknowledged by the government's economic team as an indispensable contributor to Philippine economic growth -- the greatest potential to be the key driver in economic recovery and long-term goals. At the moment, all regulatory approvals have been completed.” [1]

The Tampakan project has been earlier opposed by several anti-mining groups due to their apprehension towards its effects on the environment. However, Mr Deveraturda assures that the company will apply modern technology to also protect the environment and the people in the communities covered by the project.

He also mentioned that in the near future, they will release a timeline of the project.

Many people often ask how is his military training is related or helpful in his current role in the mining industry. He explained that in the military, one is trained to become a leader and how to solve problems, and not to complain when things are difficult -- to develop a strong mind, resilience, and discipline when in a difficult mission.

Mr Deveraturda is one the most decorated officers of the AFP. During his career in the Philippine Air Force, he had more than 50 combat missions. He held the highest aircrew qualifications as Test Pilot, Flight Commander, Instructor Pilot, and Flight Examiner. 

In August 17, 2014, he retired as a Lieutenant General in Philippine Air Force after having commanded the AFP's entire Visayas area and then the Western Philippine Area, including the West Philippine Sea. He was in charge of the humanitarian assistance and disaster relief for the Bohol earthquake and Typhoon Yolanda in 2013. He was the Department of National Defense Assistant Secretary for the Plans and Programs in 2015.

He joined the mining industry in 2018 when he was recruited to be the President of Carmen Copper Corp. “My job was to ensure that the company will pass the extracting audit procedures being undertaken by the then Secretary of DENR, the late Gina Lopez.” [1]

From there he now moved and have been appointed in May 2022 as President of Sagittarius Mines Inc. to bring the Tampakan Copper-Gold Project towards construction and development at the soonest possible time.

On the second half of the industry forum, Jose Daniel “Gino” Belgira discussed “Accelerating Last Mile Digitalization with Innovative Satellite Technology”. As the National Partnership Manager of Kacific Broadband Satellites Group, Mr Gino oversees the distribution channel operations, cultivates local partnerships and resellers to connect communities across the country.

Kacific Broadband Satellite, Inc. (or Kacific) was founded in 2013. The company is next-generation satellite operator that aims to provide affordable, reliable, high-speed broadband services across Asia and the Pacific. What is special about Kacific’s technology is that they use advanced Ka-band space and ground communications technologies to provide innovative services to their clients, include mining companies.

Business Excellence Awards in Singapore named Kacific as “Satellite Company of the Year 2023”. Their product called “CommsBox” was also named “Achievement in Product Innovation” for effectively solving problems in disaster-prone locations.

Locally, in the International Finance 11th Annual Awards 2023, Kacific was also awarded as the Best Broadband Satellite Operator in the Philippines. Additionally, in the International Business Magazine Awards 2023, the company was honored as the “Best Satellite Company in the Philippines 2023”.  

Later in the afternoon, a Panel Discussion was held, moderated by Atty Patricia A. O. Bunye who was also the emcee of the Luncheon. She is Senior Partner and Deputy Managing Partner of Cruz Marcelo & Tenefrancia Law Firm. The discussion featured Mr Roy Deveraturda and Mr Ferdinand Simbulan (Sales Director of Kacific Broadband Satellites Group).

Kacific Broadband Satellites Group and Satnet are the Event Partners for this month’s PMC Luncheon.

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The Philippine Mining Club (PMC) is a regular professional networking forum that brings industries together and creates opportunities. Their events aim to lift the profile of the Philippine minerals industry and highlight its contribution to growth and employment in the Philippine economy.

Philippine Mining Club is affiliated with the Melbourne Mining Club.

For more information on PMC’s future events, please visit their website at https://www.philippineminingclub.com/ .

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Reference:

[1] Villegas, Marcelle (March 14, 2023). “Gen. Deveraturda’s Update on the Tampakan Project”. Philippine Resources Journal. Retrieved from -

https://www.philippine-resources.com/articles/2023/3/general-deveraturda

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Photos: by Marcelle P. Villegas for Philippine Resources Journal

Environment Secretary Antonia Loyzaga urged mining companies to empower women to lead and provide a platform that can harness their unique perspectives, knowledge and skills. In her address before non-government organization Diwata (Women in Resource Development), Loyzaga said women are typically characterized as the most vulnerable to changes, and their multiple social roles can even lead to the intersectionality of their vulnerabilities.

“Mining companies are urged to enhance women participation in their conservation and restoration projects, acknowledging the indigenous women’s and other women’s invaluable knowledge of local ecosystems. The mining industry can mainstream gender-responsive policies in their corporate strategies, not only to ensure that practices do not inadvertently harm women, but that they also build corporate resilience,” Loyzaga said.

Diwata advocates for the responsible development of the Philippines’ natural resources, principally extractive industries such as mining, oil and gas quarrying.

Loyzaga said gender-responsive approaches to community assessments, consultation and benefit-sharing are all vital to increase the success of the mining industry’s climate mitigation and adaptation strategies.

“Let us harness our collective powers and unlock our potential and continue to chart the future of the Philippine mining industry where women stand shoulder to shoulder with men,” she added.

Loyzaga further stated that it is crucial to safeguard the rights of women in crafting environmental policies, social development and in decision-making through their inclusion in national and local level discourse on mining, climate, human security, and the environment.

The Department of Environment and Natural Resources, under the leadership of Loyzaga, has been working closely with stakeholders in the environment sector to advance the promotion of gender equality in the workplace.

The Philippines has the capacity to supply over 40 million tons of nickel ore to the global market but changes must be made in the permitting process to accelerate growth of the mining industry, a top official of the Philippine Nickel Industry Association (PNIA) said on Tuesday.

"We have a potential to supply beyond 40 million tons, probably even more because the take-up of nickel right now in the battery sector is increasing year in, year out," PNIA president Dante Bravo said during the Nickel Initiative at Makati Diamond Residences.

Bravo said nickel demand is expected to further increase as nickel ore is a critical component of electric vehicle (EV) batteries.

"We have a chance to grow the supply here in the Philippines. That opportunity will come as we see the price becoming more stable and becoming more viable to access these other areas which we will probably discover later in this country when we push for more nickel development in this country," he said.

Data from the PNIA earlier showed that the production in 2022 reached 29.2 million dry metric tons.

Bravo said production for this year is projected to be about the same as last year.

However, he cited the need to promote predictability in regulations and ease of doing business to help the mining industry grow.

Bravo said this is the common sentiment based on feedback from the Nickel Initiative stakeholder roundtable sessions and business conference of the PNIA.

To fast-track the approval of mining permits, PNIA is discussing with the government if a “one-stop shop” program, similar to what was provided to support growth sectors such as energy, can be implemented in the mining sector.

Bravo said streamlining the one-stop shop program would help cut the permitting process to six months to one year from the current five to 10 years.

“Mining is capital intensive in every stage of the operation’s life cycle from exploration to extraction, to value added processing. While there is a lot of interest in the Philippines as a mining investment destination, we need to convince investors that the business environment is ready and conducive for their entry to the Philippines,” he said.

Bravo said other areas for reform that were flagged in the Nickel Initiative consultations include streamlining of fiscal regime, harmonization of national and local mining regulations, and monitoring and evaluation of environmental protection laws.

Developing PH mining industry

Meanwhile, the government said a resilient and sustainable mining industry can support the country's economic and social development.

"The mining industry can advance multiple development pathways. President Ferdinand Marcos Jr. stated that those who extract our natural resources must follow the law. The DENR is guided by this directive, and we affirm our commitment towards responsible mining through the implementation of pro people, pro environment and science-based policies and programs," Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo-Loyzaga.

Loyzaga said that starting next year, the DENR will implement two priority programs to develop the mining industry.

She said the DENR-Mines and Geosciences Bureau (MGB) and the Office for Integrated Environmental Science will start an extensive government-led exploration of critical minerals.

"We are directing MGB to concentrate efforts on mineral exploration in the coming year. This effort will be augmented by technical support coming from our foreign development partners, including the Australian government and the US Geological Survey," she added.

Loyzaga said the DENR also intends to promote an enabled mineral processing.

"Both strategies aim to maximize the value of our mineral resources that the Philippines is endowed with and utilize these tools towards our own energy transition and economic development," she said.

The consolidated gross revenues of Apex Mining Co., Inc. and its subsidiaries in the first half of 2023 reached P5.7 billion —19% higher than the P4.8 billion it reported for the same period in 2022. Meanwhile, the consolidated net income in 1H 2023 was P1.4 billion (P168 million lower versus 1H of 2022).

For 1H 2023, Apex Mining’s Maco Mine operations milled a total of 378,564 tonnes — 3.0% lower than the same period in 2022. Quarter on quarter, the tonnes milled in the second quarter of 2023 is 7% higher. The second quarter’s ounces of gold produced is also 11% higher than the first quarter. Moreover, 2Q Au and Ag ounces sold are 17% and 19% higher, respectively, versus Q1.

In Q1 2023, the company encountered many challenges, including an earthquake swarm as well as prolonged and heavy rainfall and landslides, that led to intermittent work stoppages for risk assessments and safety checks. All these disruptions totaled 5.74 workdays.

Despite these disruptions, gold recovery was at 87.34% — practically the same in the same period in 2022 (87.78%). Silver recovery rate was slightly lower at 72.14% against last year’s 75.77%. The higher average realized gold price of $1,953/oz during the year (versus $1,901/oz in 2022) pushed the revenues up by 19% in 1H of 2023. Ore gold grades averaged 1% lower at 3.93 grams per tonne compared to the 1H of 2022 at 3.95 grams of gold per tonne.

Based on the Mine Reserves and Resource Certifications of 2021, Apex Mining’s Maco Mine has enough reserves and resources to continue at the targeted production rate of 3,000 tonnes per day until 2032. The ongoing exploration program for MPSA 225 and the acquisition of the Asia-Alliance Mining Resources Corp. assures Apex Mining of future gold resources as the extensions of existing mining veins in Maco Mine spill over to the tenements of AAMRC.

Apex Mining continues to strategically manage its projects, both in the Philippines and abroad, to maximize the potential benefits that may be derived from them. A recent coordination with the partners and stakeholders of its joint venture project in Mongolia, coupled with the increasing metal prices and positive progress in the mining environment, resulted to the company deciding to revisit its exploration and development plans for the said project.

Meanwhile, Apex Mining’s fully owned subsidiary, Itogon-Suyoc Resources, Inc. (ISRI) milled a total of 71,275 tonnes in the 1H 2023 compared to 53,092 tonnes in the same period in 2022 — a big jump of 34%.

August 9, 2023 – Global Ferronickel Holdings, Inc. (PSE: FNI) reported consolidated revenues of ₱3.1 billion for the first six months of 2023, up 41.2% from ₱2.2 billion in the prior-year period. Strong volumes and higher-grade ores at Palawan mine were the main drivers of growth, partially offset by weaker prices and lower-than-average volumes at Surigao mine.

Total sold volume was 1.459 million wet metric tons (WMT), 41.0% higher than in the first half of 2022, comprising 52% medium-grade and 48% low-grade nickel ore. The Palawan mine maintained solid momentum in the second quarter, while activities at Surigao mine reflected constraints in the operating environment stemming from heavy rains which prevented stronger production and shipment.

“There are risk factors which we cannot predict or control but could adversely affect our business. Weather events such as changes in rainfall patterns that we experienced in Surigao is one of them,” said Dante R. Bravo, President. “We continue to assess and monitor such factors. Additionally, our ongoing diversification aims to respond to such risk and ultimately improve FNI’s portfolio quality and performance. The Palawan mine benefits from milder weather and a wet season that is not very pronounced thereby allowing year-round operations. It also adds greater scale to our resources and reserves and points to long-term business volume. As we step up efforts to further diversify, the combined strength of the Surigao and Palawan mines enable us to better navigate the short-term challenges ahead.”

The average realized nickel ore price was US$38.37/WMT, down 2% compared to US$39.21/WMT a year ago, due to available product mix and lower selling prices in the second quarter, which were affected by expanded market supply from capacity additions in Indonesia and muted demand in China following a tepid postpandemic reopening.

The average realized exchange rate was ₱55.34 to the U.S. dollar as against ₱52.60 in the previous year.

Consolidated net income of ₱625.3 million grew 49.8% versus last year. After deducting net income attributable to non-controlling interests, net income attributable to FNI shareholders was ₱349.5 million, down 19.4% year-on-year, with the share in the net income of an associate of ₱54.0 million cushioning some of the impact. Earnings per share of ₱0.0676 decreased 18.9% following the lower net income, partially offset by an approximate 0.6% reduction in average shares outstanding resulting from the company’s share buyback program.

“Looking forward, we remain committed to our capital management strategy that is balanced between investing in growth initiatives, providing returns to shareholders, while maintaining a strong balance sheet,” Bravo added.

During the first half, capital expenditures amounted to₱145.0million or4.7% of revenues. Dividends paid were ₱524.2 million or ₱0.10 per share, representing 27% of the prior year’s net income attributable to equity holders which is higher than the dividend policy of 20%. FNI also returned ₱48.0 million to shareholders through share buyback. Overall, the company has repurchased shares worth ₱2.5 billion since the buyback program was launched in 2016, equivalent to 18% of outstanding shares.

The company responsible for delivering 3,500 wet metric tons of dolomite to Manila Bay in 2020 has lost its mining production sharing agreement (MPSA).

Gov. Gwendolyn Garcia announced Wednesday that she ordered the revocation of the MPSA of Dolomite Mining Corp. (DMC), a mining firm producing dolomite sand in Alcoy, some 101 kilometers south of this capital city.

The governor, along with the provincial legal officer and provincial treasurer, met the executives and a lawyer of DMC, pointing out the company’s alleged act of disregarding the ordinance stopping the operations by continuing to supply raw materials to the Philippine Mining Service Corporation (PMSC).

DMC, a Filipino-Japanese-owned firm and mining leaseholder in Alcoy, has an agreement with the provincial government to mine dolomite for 25 years or until 2030 in Cebu, known to be rich in mineable deposits of dolomite.

In October 2020, Garcia issued an order stopping PMSC’s operation in Barangay Pugalo following the firm’s failure to pay taxes to the provincial government based on an ordinance.

Although DMC was able to settle its taxes covering 15 years, the governor questioned its continued supply to PMSC.

Garcia cited PMSC’s defiance to pay its dues while mining local resources, saying that such has been disadvantageous to Cebu province.

In February this year, the governor issued an order reiterating its prior call for PMSC to stop processing, selling and transporting dolomite, associated mineral deposits and other quarry resources, citing the company’s unpaid tax and environmental violations.

The statement from the capitol said that based on data from the Mines and Geosciences Bureau, PMSC defied the order and bought 2.5 metric tons of mineral resources extracted by DMC from September 2020 to December 2022.

DMC and PMSC have yet to issue their respective statements regarding the governor’s decision. By John Rey Saavedra

Article courtesy of the Philippine News Agency