X-ray diffraction (XRD) is the only laboratory technique that reveals structural information, such as chemical composition, crystal structure, crystallite size, strain, preferred orientation and layer thickness. Materials researchers, therefore, use XRD to analyze a wide range of materials, from powder X-ray diffraction (XRPD) to solids, thin films and nanomaterials. Mining by using XRD has been critical for ores exploration, path-finding minerals, process optimization and final product. One of the application is geometallurgy became more and more important during the separation of ore and waste material to cope with changes in raw material composition and to run the process under optimal conditions. Therefore, mineralogical analysis and the direct monitoring of process parameters (such as the acid consumption) became an essential method to monitor process conditions.

Ultimately, the goal is to obtain a good XRD pattern result with clear, sharp peaks with low background noise. Good data collection is so critical towards the next phase, which is data analysis and interpretation. These impact how you draw implications and determine your next steps in terms of your materials research and also process monitoring whether in pharmaceuticals, mining geology, catalysts or specialty chemicals. Earlier, our senior application specialist, Dr. Uwe Konig, Mining and Metals Business Development Manager, discussed the basics to powder X-ray diffraction and its application in mining topics. During the webinar, he covered the basics:

Interview to Uwe Konig, Business Development in Mining and Metals.

Introduction to Powder XRD

Could you please summarize the meaning of the peak intensity and peak position in the XRD pattern?

Uwe: Peak position refers to the maxima of intensity around the theoretical Bragg angle and value of this maxima is referred to as peak intensity.

XRD patterns: how do they vary from crystal structures

Uwe: Difference in crystal structure affect position of diffraction peaks. Hence two substances having different crystal structures will produce different sets of XRD scans.

XRD Software

How can I quantify the different phases or different composition? Please shed some more light on this.

Uwe: A position of the peak comes from the dimension of unit cell, an intensity coming from how many electrons are present and where they are. So, everything can be easily calculated in software. So, once we found out what phases are present in the sample (mixture), because we already know the positions of the peaks, we just need to minimize a difference between observed intensities and calculated intensities by cycling fitting procedures until we get a reliable results.

What if we cannot find the crystal structure in ICDD?

Uwe: It means that nobody has published that material yet. So, you need to solve the structure by yourselves. And publish it!

Is there any software to adjust the peak ­?

Uwe: HighScore and HighScore Plus is the software by Malvern Panalytical. It can be used to analyze XRD patterns from other brands of X-ray diffractometers.

XRD Technique

In the diffractogram of amorphous materials, such as SiO2, it is common to see an amorphous halo between 20º and 30º. Will this also be observed for example in a nanostructured SiO2 matrix coating?

Uwe: Yes, it does. But, as you said the thickness of SiO2 is in nanoscale, this would not be seen when you use normal Bragg Brentano geometry. I recommend you use parallel geometry which keeps the incident angle at 1~2 degrees and scan only 2 theta(detector). So, you can effectively observe the diffractogram from the surface(skin) of the film.

­Does destructive interference caused by element position reduce only the intensity or cause peak shift­?

Uwe: Only reduces the intensity. A peak shift can be caused by the size of unit cell.

How to remove the substrate peaks while measuring?

Uwe: If you used a single crystalline material as substrate, you could tilt your sample a little bit (around 1 ~ 2 deg) during the sample prep. Then you will not see any peaks from the single crystal substrate.

If we use composite materials like brake pad applications, do we need to use spinning method for better accuracy results? your view please? ­

Uwe: It depends on how small your particle is. But I would say that spinning is always beneficial on polycrystalline material!

How does soller slit affect Inorganic crystalline nanomaterials?

Uwe: When smaller soller slit are used, we achieve better resolution at the cost of intensity.

Sample Preparation

­Regarding on sample preparation for powder samples. You mentioned about smearing a sample, how do you do that? ­

Uwe: You can prepare some plate having a rough surface like sandpaper. Then you can put the plate onto the sample and slide a little bit to smear the pressed powder.

Talking about materials such as soil cuttings, what could be the impact of chemicals that would have encapsulated/absorbed onto the structure? ­

Uwe: I am not sure what is the detailed situation, but in any cases, materials can be encapsulated or absorbed onto the surface of the matter under high temperature or pressure. Probably, some triggers were there to make secondary phases on the surface.

What’s the optimum particle size of the sample for getting accurate results? ­

Uwe: Theoretically 1-micron meter is the best. But I could say below 20 um is good enough if you spin the sample!

See below review for Aeris XRD;

How XRD improved mineral analysis for lithium ores?

Uwe: This Lithium ores are easy to quantify by XRD. All types of Sample such as petalite, lepidolite etc mostly XRD can do.

Interested to improve in your XRD data analysis and applications? Join our free series of webinars:

1. Introduction to powder X-ray diffraction. View on-demand
2. Studying battery cathode materials using X-ray diffraction View on demand
3. Expand your powder XRD applications for materials characterization research View on-demand
4. Knowing the difference between good and bad data: XRD data analysis – View on-demand
5. Improving your phase search mapping by defining your elemental range: introduction to elemental analysis using X-ray fluorescence. View on-demand
6. Range of XRD instruments to aid materials characterization research. View on-demand

Know More: https://bit.ly/3KdEBzh

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Photo: Department of Energy (DOE) Secretary Raphael Lotilla announces that the agency has formed a law and energy advisory panel that will iron out policies in the country's energy sector. Lotilla made the announcement on Thursday (Aug. 25, 2022). (Screenshot during the DOE virtual press conference)

Department of Energy (DOE) Secretary Raphael Lotilla announced Thursday that the agency has formed a law and energy advisory panel that will address the challenges and bottlenecks in the regulatory framework in the energy sector.

In a virtual press conference, Lotilla said DOE has pooled senior legal advisers, which include retired Chief Justices Artemio Panganiban and Reynato Puno who will serve as private citizens and will not assume any public office.

Legal advisors from the private sector are also joining the advisory group, he added.

“The functions of the law and energy advisory panel include advising the department on various energy-related reform initiatives and legal matters, including promotion of indigenous as well as low-carbon sources,” the DOE chief said.

Lotilla said for the initial discussions of the panel, the legal advisors will tackle legal matters in the upstream oil and gas sector in general and the Malampaya-Camago project.

“The advisory panel will also advise the DOE on the objectives, content, and overall substance of the energy sector’s legislative agenda that covered alternative and new technology,” he added.

Earlier, Lotilla said President Ferdinand “Bongbong” Marcos Jr. directed the agency to ensure a certain, stable, and clear regulatory framework to address uncertainties in the legal environment for investments in the upstream industry and also to create a better investment climate.

“In order to attract sufficient investment for that, we need to be able to clearly indicate what are the policies of the government… These are the things that have motivated the department, particularly myself, to benefit from the wisdom and experience of our senior legal advisers. Because whatever we are going to propose to the President and Congress will have fundamental effects on the lives of our people not only (in) the present but also in future generations,” he said. By Kris Crismundo

Article courtesy of the Philippine News Agency

Photo credit: The Chamber of Mines of the Philippines

The Chamber of Mines of the Philippines (CoMP) expressed concern over a proposed tax measure that may push back recent gains of the mining sector and deter prospective investments to the sector.

The bill passed by the House committee on ways and means proposes the imposition of a royalty tax of 5 percent on gross output of large-scale mining operations, while increasing the share of the government to 60 percent of net revenues.

The proposed legislation will also place a 10-percent export tax on mineral ore exports, to encourage domestic processing of mineral products.

CoMP said that while the proposed measure runs contrary to pronouncements of the new administration, there were no consultations with the industry stakeholders to refute the onerous provisions of the bill.

“We also maintain that figures shown during the Committee hearing that purported to show the industry’s effective tax rate at 38 percent was woefully out of date as such report was done in the year 2000, prior to the doubling of the excise tax on mineral products under TRAIN 1,” CoMP said in a statement.

Once passed into law, the bill will render the Philippine mining industry as one of the highest taxed mining countries in the world. 

It will also jeopardize the sector’s contribution to economic development in host communities that may result in a substantial reduction of exports and tax revenues and a considerable amount of social expenses.

In addition, a number of large-scale operations run the risk of closure, resulting in massive unemployment in their areas of operations. 

CoMP noted that bill will once again put into question the stability of mining policies, which is most detrimental to attracting foreign investments in such a capital-intensive industry. 

“Foreign investors will simply look elsewhere, we are not the only country blessed with mineral resources. If further tax increases are unavoidable, the tax structure should not be onerous as to stop investments from coming in,” the group said.

This will sustain existing mines and encourage quality investments in the hugely untapped Philippine minerals sector, ultimately expanding considerably the tax base and providing far larger tax revenues to government. 

“We thus call on Congress to revisit the bill recently approved by the Committee on Ways and Means and allow for full and meaningful consultations with stakeholders,”CoMP said.

A House of Representatives panel on Wednesday approved a new fiscal regime for the mining sector, which is expected to generate PHP37.5 billion in its first full year of implementation.

The House ways and means committee approved a bill proposing a rationalized and single fiscal regime applicable to all existing and prospective large-scale metallic mines, regardless of location.

The committee adopted the version of the Department of Finance, which would “bring the country’s effective tax rate on mining (considering all taxes) to 51 percent, up from 38 percent under the current system.

Albay Rep. Joey Salceda, committee chair, said this would bring the Philippines "closer to the middle of the pack" among major mining countries, instead of near the bottom of the list.

"51 percent is a good number, because it brings us closer to Australia’s effective tax rate, at around 51 percent as well, counting royalties. Among major countries, only Chile and South Africa have lower effective tax rates than us. This proposal brings us closer to Australia and Indonesia, which are our regional comparatives. China is at a very high 71 percent effective tax rate for gold mines,” Salceda said.

He said the proposal would fulfill the panel's commitment to President Ferdinand "Bongbong" Marcos Jr. and the Department of Finance to raise revenues to fund the administration's priority programs.

“With this measure, we are fulfilling our commitment to the President and to the DOF to raise revenues to fund PBBM’s priority programs,” Salceda said.

Salceda explained that under Marcos’s Medium Term Fiscal Framework, the revenue program assumes a tax-to-gross domestic product (GDP) growth of 0.3 percent annually.

“The mining tax reform takes care of half of that assumption already. So, if enacted, it will be very good for President BBM’s bigger ambitions for infrastructure, agricultural revolution, and a solid Filipino middle class," he said.

The bill proposes the imposition of a royalty tax of 5 percent on the market value of gross output of large-scale mining operations.

It also states that a minimum government share of 60 percent of net mining revenues, including all government taxes, fees, and charges, will be imposed on mining operations.

A 10-percent export tax will also be levied on the market value of mineral ore exports, to encourage domestic processing of mineral products.

“Mining GVA has been declining, but exports value has been increasing, indicating that most exports are ores without domestic value-added. I hope to continue engaging stakeholders on how we can use such a charge to improve the domestic mining value-chain,” Salceda said.

Each mining project will also be treated as a separate tax entity, which would help curb the practice of tax avoidance by allocating costs among related projects within the same company, he noted.

“It reduces room for transfer pricing, or the manipulation of expenses of a company with various subsidiaries or related parties in order to avoid taxes," he said.

To institutionalize transparency standards, the government will implement a mechanism for the public disclosure and scrutiny of all mining tax and revenue data in the extractives value chain.

Salceda pointed out that such standards could help mining companies access cheaper and more foreign funds and technologies to make mining more efficient.

Photo credit: Bilyonaryo

DMCI Mining Corporation posted an 8-percent upturn in standalone second-quarter core net income from P502 million to P542 million as higher selling prices and stronger US dollar offset the combined impact of lower shipments and higher fuel costs.

Including the impact of CREATE law last year, its standalone net income for the period contracted by 28 percent from P749 million to P542 million.

“We are seeing some topline weakness because the depletion of Berong mine but with elevated nickel prices and steady production of our other mining asset, we think we can end the year strong,” said DMCI Mining president Tulsi Das C. Reyes.

For the second quarter alone, DMCI Mining revenues declined by 20 percent from P1.5 billion to P1.2 billion.

Average selling prices of nickel ore surged by 50 percent from US$42 to US$63 owing to global supply disruptions and strong China demand while the US dollar appreciated by ten percent against the local currency.

From April to June, shipments plunged by 51 percent from 746,000 wet metric tons (WMT) to 367,000 WMT after production from sole operating asset Zambales Diversified Metals Corporation contracted by 24 percent from 328,000 WMT to 248,000 WMT.

Consequently, DMCI Mining standalone topline for the first semester was flat at P2.6 billion while core net income rose by 11 percent from P979 million to P1.1 billion. Meanwhile, net income slipped by 11 percent from P1.2 billion to P1.1 billion with the adjustments made in 2021 relative to the CREATE law.

Article courtesy of the Philippine Stock Exchange

Photo credit: Global Ferronickel Holdings

Global Ferronickel Holdings, Inc. (FNI) recorded a consolidated net income of ₱417.4 million for the period ended June 30, 2022. The results are driven by the April to June mining operations of Platinum Group Metals Corporation (PGMC) in Surigao del Norte, with incremental contributions from PGMC International Limited (PIL), a wholly-owned subsidiary established to facilitate relations with Chinese customers for the trading of mineral products. PGMC is the second-largest value exporter of nickel ore in the country. It is a wholly-owned subsidiary of FNI.

Net income for H12022 is down 34.9% compared to the ₱640.8 million in the same period last year. Revenues also slid 15% to ₱2.21 billion for the period ended June 30, 2022 compared to the ₱2.61 billion posted during the same period last year due to lower volume of ore shipped. The Group encountered more rainy days this period totaling 128 rainy days compared to 105 rainy days during the same period in 2021. The Group only managed to complete 19 shipments of nickel ore totaling 1.035 million wet metric tons (WMT) during the six-month period ended June 30, 2022, compared to 32 shipments totaling 1.740 WMT during the same period last year.

“We are hoping for better weather in Q3, during the peak of PGMC’s mining season that normally delivers more than 60% of FNI’s revenues for the year,” said FNI President Dante R. Bravo.

Despite the fewer volume sold for the period ended June 2022, the Group benefited from the higher average realized foreign exchange rate this year at ₱52.60 compared to the prior period’s ₱48.24, augmenting revenues by a total of ₱177.1 million. Nickel ore prices are also higher this year with an overall average realized nickel ore price at US$39.21 per WMT, compared to last year’s period at US$31.10 per WMT, topping up revenues by ₱405.0 million.

The resulting sales mix was 79% low-grade ore and 21% medium-grade ore in 2022 in contrast to the previous period’s mix of 84% low-grade ore and 16% medium-grade ore. These shipments comprise 0.816 million WMT low-grade nickel ore and 0.219 million WMT medium-grade nickel ore compared to 1.465 million WMT low-grade nickel ore and 0.275 WMT medium-grade nickel ore of the same period in 2021.

“We have adjusted our 2022 shipment target to 4.0 million WMT but we still look forward to a productive and remarkable season due to the strong demand from China and favorable market conditions,” said Mr. Bravo.

Article courtesy of the Philippine Stock Exchange

In a boon for mining in the Philippines, Finance Secretary Benjamin Diokno has earmarked the sector as a source for long-term economic growth amid the pandemic.

As reported in business publication, Rappler, Mr. Diokno said: “The mining industry holds the greatest potential to be a key driver in our economic recovery and long-term growth, especially now that world metal prices are high.”

“The Philippines, after all, is one of the world’s most richly endowed countries in terms of mineral resources,” Diokno said.

The Philippines mining industry had laid dormant for years as areas were closed to mining, and a comprehensive review was undertaken.

This changed during Rodrigo Duterte’s last few months of presidency, however, as the country sought to reinvigorate its economy following reported missed growth targets.

The Philippine Government’s renewed focus on mining was welcomed by Makilala Mining’s President, Mr. Julito Sarmiento.

“We are thrilled with the government’s decision to again support mining in the Philippines,” he said.

“Our flagship copper-gold projects in the Philippines, including MCB and Sagay, have the potential to create thousands of jobs and support local communities, whilst employing best practice mining techniques to protect the environment.”

In a positive signal for renewed mining support in the Philippines, recently listed miner Philex will push ahead with its Silangan copper-gold mine which includes the development and construction of a mill plant, plus support facilities.

The Department of Finance estimates that the project can generate Php8.5 billion in excise taxes alone for Silangan’s entire mine life.

Mr Diokno lent his support to the project saying the mine will create jobs, reinvigorate local economies and provide additional revenues to government programs.

He called on the mining sector to strike a balance between the local communities, the environment and the government’s economic agenda.

Article courtesy of Celsius Resources

Photo credit: Apex Mining

Apex Mining’s total revenue for the second quarter of 2022 reached PHP2.537 billion, 65% higher year over year (YoY). This pegs the resulting consolidated net income after tax of the company at PHP917.6 million, a 337% increase YoY.

“This consolidated quarter net income is an an all-time high for Apex Mining,” says Apex Mining’s president and CEO, Luis R. Sarmiento, ASEAN Eng. “We consistently look at maximizing revenue through increased production output and minimizing cost through prudent spending.”

Aside from earning big, the company also gave back in a big way with a P2M donation to the GMA Kapuso Foundation to build 2 classrooms in Baybayin Elementary School in Siargao Island (Surigao del Norte), following the devastation wrought by by Typhoon Odette in December 2021. The Kapuso Foundation and Apex Mining formalized their collaboration through a MOA signing in April of this year.

Sarmiento says supporting the classroom-building efforts of the Kapuso Foundation is a good way to bring Apex Mining’s spirit of malasakit outside of its tenements in Davao de Oro. “Apex Mining’s mission to promote the wellbeing of our stakeholders is not limited to our host communities and impact barangays,” says Sarmiento.

The second quarter also saw the company break ground for the construction of its accommodation facility for its employees in Barangay Nueva Visayas in Mawab (Davao de Oro). “Our employees are our greatest resource and we continue to prioritize their wellbeing. This new accommodation facility will provide better amenities for our hardworking miners.” Collaboration between the LGU and Apex Mining can also benefit the community of Barangay Nueva Visayas.

The second quarter’s Maco mine production was higher YoY with total gold production reaching 23,715 ozs (14% higher YoY) and silver 99,645 ozs(29% higher YoY). Total tonnes milled in the second quarter were 197,891, 15% higher YoY. Daily mill throughput was 2,261 tpd, up 13% YoY. Mill feed grades were 4.14 grams per tonne for gold (Au) and 21.43 gpt for silver (Ag), higher by 26% and 12% YoY, respectively. In the second quarter, metal prices were higher by 3% for gold but lower by 17% for silver, averaging U$1,858/oz for Au and U$22/oz for Ag. The peso was also weaker at PHP53.43/U$1. According to Sarmiento, “Our sound fundamentals protect us from shocks.”

In the second quarter, consolidated ounces sold were 48% and 8% higher YoY, respectively, with gold at 24,083 ozs and silver at and 94,234 ozs. Apex Mining’s total revenue for the 1st half of 2022 stood at PHP4.766 billion, 54% higher YoY, which is also an all-time high. The resulting unconsolidated net income after tax for the 1st half of 2022 stood at PHP1.565 billion, higher by 220% YoY and also an all-time high.

Article courtesy of the Philippine Stock Exchange

Transport Secretary Jaime Bautista and Chinese Ambassador Huang Xilian restart “negotiations for major transport projects” in a formal meeting at the Chinese Embassy in Makati City on Aug. 11, 2022. They also tackled three China-funded railway projects -- the PNR South Long Haul Project (North-South Commuter Railway), Subic-Clark Railway and Mindanao Railway (Tagum-Davao-Digos) that were terminated after China reportedly failed to act on the funding requests by the previous administration. (DOTr photo).

The Philippines has resumed talks with China to renegotiate China-funded transport projects in the country, the Department of Transportation (DOTr) announced Sunday.

In a press statement, the DOTr said Transportation Secretary Jaime Bautista and Chinese Ambassador Huang Xilian met in a formal meeting at the Chinese Embassy in Makati City on Thursday to “restart negotiations for major transport projects”.

“The two officials discussed the resumption of talks for the major China-funded railway projects such as the PNR South Long Haul Project (North-South Commuter Railway), Subic-Clark Railway and Mindanao Railway (Tagum-Davao-Digos),” the DOTr said.

To recall, these transport projects were earlier deemed “withdrawn” due to China’s inaction on funding requests by the previous administration.

The DOTr said the Chinese government’s funding support for these projects will “strengthen bilateral relations and enhance the partnership between the Philippines and China.”

In a separate statement, Huang described his meeting with Bautista as “constructive” and expressed hope that the two countries would accomplish more infrastructure projects in the railway sector.

“[I] hope that China-Philippines cooperation in infrastructure and railway would achieve more tangible fruits and bring about more benefits to the Filipino at an early date,” he said.

He also said China is committed to helping Southeast Asian countries in railway development.

“China is also devoted to promoting the connectivity of the Southeast Asian countries by sharing its experience and introducing the cut-edging technology of railway construction and rolling stock manufacturing,” he added.

China earlier said it has helped the Philippines complete 17 projects while more than 20 projects are under implementation or in progress.

Meanwhile, Bautista and Huang also discussed several China-Philippines Maritime Cooperation Projects, particularly the hotline communication and legal affairs cooperation arrangements between the Philippine Coast Guard (PCG) and the China Coast Guard.

Also discussed was a possible collaboration on Maritime Traffic Safety, Ferry Safety; a Memorandum of Understanding on Maritime Search and Rescue; as well as the capacity building for maritime governance, safety supervision, and vessels safety inspection.

Article courtesy of the Philippine News Agency

Photo Credit: Arrow Creatives

Nickel Asia Corporation, the Philippines’ largest producer of lateritic nickel ore, reported a 41-percent increase in attributable net income for the first semester this year.

Based on unaudited financial and operating results for the six-month period ended June 30, 2022, attributable net income increased to P3.83 billion from P2.73 billion while earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 19 percent to P6.33 billion from P5.32 billion the year prior.

Despite lower ore volume sold during the period, revenues increased by 7 percent to P11.78 billion from P11.01 billion last year, owed largely to higher nickel ore prices and favorable exchange rates.

NAC’s four operating mines sold a combined 6.95 million wet metric tons (WMT) of nickel ore during the first half of the year, down 16 percent from 8.30 million WMT in the same period last year.

The drop in sales volume was almost in direct proportion to unrealized workable days caused by inclement weather that adversely affected the Company’s mining operations during the period.

The weighted average nickel ore sales price over the first half of year 2022 rose by 18 percent to $30.03 per WMT against $25.54 per WMT in the same period last year. The Company also realized P52.56 per US dollar from these nickel ore sales, a 9-percent increase from P48.25 last year.

Breaking down the ore sales, the Company exported 3.12 million WMT of saprolite and limonite ore at the average price of $42.05 per WMT during the six-month period compared to 4.55 million WMT at $37.62 per WMT in the same period last year.

Likewise, the Company delivered 3.83 million WMT of limonite ore to the Coral Bay and Taganito high-pressure acid leach (HPAL) plants, the prices of which are linked to the London Metal Exchange (LME) and realized an average price of $12.52 per pound of payable nickel. This compares to 3.74 million WMT at $7.92 per pound of payable nickel in 2021. Expressed in US dollar per WMT, the average price for the deliveries to the HPAL plants were $20.23 and $10.85 in the first half of 2022 and 2021, respectively.

“The first half of 2022 was not without its challenges especially for our mining operations, brought about by weather conditions at our mine sites, particularly in Surigao, and continuing lockdowns in China, our major market,” said Martin Antonio G. Zamora, President and CEO. "However, the higher LME nickel price and stronger US dollar tempered the impact on our revenues.”

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 P1.09 billion against P244.1 million year-on-year.

The stronger US dollar further enabled NAC to log a 353-percent hike in net foreign exchange gains from its foreign currency-denominated net financial assets to P863.5 million from P190.6 million the year prior.

Total operating cash costs decreased by 2 percent year-on-year to P5.19 billion from P5.32 billion last year. On a per-WMT sold basis, total operating cash costs increased to P747 per WMT compared to P641 per WMT in 2021.

For the Company’s renewable energy business, its subsidiary, Emerging Power, Inc. (EPI) energized in June 2022 another 38-megawatt (MW) solar farm in Subic, Zambales, bringing total capacity on this site to 100MW. For 2022, the Subic plant has been operating at an 18- 19% plant efficiency factor with 90% of generation contracted under power sales agreements. EPI has realized an average tariff of P4.65 per kilowatt hour. EPI has another 100MW service contract for the Subic site and will commence construction of a 68-MW farm in August. Completion is expected by the third quarter of next year.

EPI was also chosen by Shell Overseas Investments B.V. to be its exclusive local partner in a solar, onshore wind, and battery storage joint venture that aims to contribute up to 3GW into the Philippines’ renewable capacity. NAC is evaluating a range of financing alternatives including accessing global debt capital markets to raise EPI’s share of the equity required for an initial 1GW target by 2028, among other uses. The Company’s strong financial position will allow it to be opportunistic in evaluating funding options that meet the primary objective of maintaining a flexible low-cost capital structure.

“We remain confident that our mining and renewable energy businesses provide a solid foundation on which to realize the OneNAC Vision’s twin objectives, which is to become the premier ESG investment in the country and to be counted among the Top 25 PSE-listed companies in terms of market capitalization by 2025,” said Zamora.

Article courtesy of the Philippine Stock Exchange

Photo credit: PNA - Finance Secretary Benjamin Diokno

Finance Secretary Benjamin Diokno said the mining industry is a potential source of sustained economic growth as he underscored the benefit of mobilizing investments for mine development.

“The mining industry holds the greatest potential to be a key driver in our economic recovery and long-term growth, especially now that world metal prices are high. The Philippines, after all, is one of the world’s most richly endowed countries in terms of mineral resources,” he said Wednesday at the listing of Philex Mining Corporation’s (Philex) common shares in the Philippine Stock Exchange (PSE).

Philex is mobilizing investments for the development of its Silangan underground copper-gold mine in Surigao del Norte.

In a disclosure to the PSE, the company said it is offering a maximum of 842 million common shares at the rate of one offer share for every 5.8674 shares owned for PHP3.15 each to raise a total of PHP2.652 billion new equity.

The stocks rights offering (SRO) period started on July 12, 2022 and ended July 25, 2022.

The Silangan project, considered one of the biggest copper-gold mines in the country, is planned to be mined in two phases. The first phase has a mineable ore reserve of 81 million metric tonnes which will be mined for 22 years at a rate of 4 million tonnes per year.

The mine is targeted to commence commercial operations in the first quarter of 2025.

Diokno said Philex’ SRO listing demonstrates the mining industry’s confidence in the country’s promising economic growth prospects.  

He said the offering means more jobs will be created, local economies will be reinvigorated, and additional revenues will be contributed to the government. 

The Department of Finance (DOF) estimates that the project will generate around PHP8.5 billion in excise taxes alone for its entire mine life.

Diokno said the listing sends a strong signal to the mining industry that the country's capital markets are viable instruments for fast tracking the development of large mining projects.  

He said the Marcos administration is committed to continue creating an enabling environment for mining activities to flourish in the country as he looks forward to similar listings in the future.

“We recognize that apart from boosting local development, mining is a strong magnet for investments that can propel our economy into a higher growth trajectory,” he added.

Diokno said the government expects the mining industry to strictly adhere to responsible and sustainable mining practices. 

He said the mining industry should strike a balance between protecting the environment, uplifting local communities, and supporting the government’s socioeconomic agenda.

“This is a non-negotiable condition so we can guarantee the sustainability of the industry and the strong economic growth of its host communities,” he said. 

Article courtesy of the Philippine News Agency

Photo credit: PH Stocks

Integrated energy company Semirara Mining and Power Corporation (SMPC) posted P10.8 billion in second-quarter net income, 171 percent better than the P4 billion reported last year.

All-time high coal selling prices coupled with higher spot electricity sales volume at elevated prices accounted for the upsurge.

From January to June, SMPC’s bottom line more than quadrupled (311%) from P6.3 billion to P25.8 billion, its highest for any given semester.

“As expected, we had a weaker performance quarter over quarter because of the China lockdowns but compared to last year, we did very well,” said SMPC president and COO Maria Cristina C. Gotianun.

“We maintain our view that the second semester will be anemic because of market volatility and unfavorable weather conditions,” she added.

For the second quarter alone, contributions from the coal segment grew by 195 percent from P3 billion to P9 billion while SEM-Calaca Power Corporation (SCPC) accounted for P1 billion, up 81 percent from P581 million. Southwest Luzon Power Generation Corporation (SLPGC) contributed P742 million, a 107-percent increase from P359 million.

Coal Operating Results

Total shipments from April to June dropped by 24 percent from 4.9 million metric tons (MMT) to 3.7 MMT as China imposed COVID-19 lockdowns and shifted to Russian coal.

Export sales plunged by 44 percent from 3.2 MMT to 1.8 MMT while domestic sales grew by 12 percent from 1.7 MMT to 1.9 MMT.

Buffering the impact of lower shipments was the 126-percent increase in average selling prices from P2,393 to P5,399, the highest for any given quarter.

Heavy rainfall and higher stripping activities curbed coal production, dropping 21 percent from 4.3 MMT to 3.4 MMT. This, together with lower sales volume, raised high-grade coal inventory by 50 percent from 1.0 MMT to 1.5 MMT.

Power Operating Results

Overall gross generation in the second quarter was mostly flat at 984 GWh as SCPC Unit 2 remained on forced outage because of a defective generator stator.

Total electricity sales declined by 9 percent from 987 GWh to 900 GWh, most (56%) of which was sold to the spot market. The rest (393 GWh) was sold through bilateral contracts.

High uncontracted capacity allowed SMPC to boost spot electricity sales by 188 percent from 176 gigawatt-hour (GWh) to 507 GWh. Average spot selling prices remained elevated at P6.91 versus P6.87 last year.

Total spot purchases declined by 60% from P617 million to P245 million on higher plant availability, which improved by 8 percent from 60% to 65%.

Article courtesy of the Philippine Stock Exchange

Photo: Group photo of the participants after the MGB Management approved the Capstone Project (CP) for implementation during CP Orientation on July 12, 2022

With the start of online transactions, the Mines and Geosciences Bureau (MGB) is currently developing a system that will serve as a digital platform for the submission of the compliances by the mining companies and stakeholders with the terms and conditions of the Contracts/Permits/other similar Mining Tenements, and other pertinent laws, rules, and regulations.

The project is the approved Capstone Project (CP) of Mr. Jeffrey S. Ledesma, a scholar of the Development Academy of the Philippines under the Public Management Development Program. His CP entitled, “Strengthening Mining Monitoring Method by Enhancing Mining Compliance Procedures Through Process Automation: Development of an Electronic Mining Compliance and Monitoring System (eMCMS)” was conceptualized through the guidance of his Institutional Partners, Engr. Nonita S. Caguioa, Department of Environment and Natural Resources Assistant Secretary for Finance, Information Systems, and Mining Concerns and Engr. Teodorico A. Sandoval, Chief of the MGB Planning, Policy, and International Affairs Division (PPIAD). The project was approved for implementation by the MGB Management on July 12, 2022, during the CP Orientation.

The project targeted the internal and external stakeholders as the beneficiaries. It is designed in three phases based on its scope and coverage in terms of mining scale, mineral type, and policy requirements. The Phase I will serve as the pilot phase which aims to use the system by the selected mining companies who will initially be engaged in the design, development, and implementation. Phases II and III will commence after the successful pilot testing and integration of provisions in the mining-related policies which will serve as the legal basis for its implementation. Phase I is expected to be completed at the end of September 2022.

The eMCMS development is an in-house system development through the collaborative effort of the eMCMS Technical Working Group created on July 28, 2022.

The success of this project will improve the organizational productivity of the MGB and mining companies’ technical personnel conducting the monitoring activities and mining compliance respectively. Likewise, it will provide an efficient and effective way of delivering services to its stakeholders because of the conversion of manual to electronic and digital transactions. It is also expected that related information will easily be generated and shared to the public.

This initiative will ensure the integration of other government policies such as the ease of doing business, e-commerce law, and the Data Privacy Act among others.

Article courtesy of the MGB

San Miguel Corp. (SMC), one of the country’s largest and most diversified conglomerates, is set to open a USD500 million electric car battery plant in Dinagat Islands province, Governor Nilo Demerey Jr. said Thursday.

Demerey confirmed the company’s decision to establish the plant in Dinagat Islands after his meeting with SMC president and chief executive officer Ramon S. Ang on Wednesday.

“The establishment of the electric car battery plant will commence in September this year,” Demerey said in an interview.

The plant will be constructed within the company’s 25,000 mining claim in the province, he added.

“This is part of our efforts to industrialize Dinagat Islands and create more job opportunities, increase the income of the province, and uplift the lives of our people,” Demerey said.

He said the construction and full operation of the electric car battery plant would generate about 10,000 jobs.

“The components for the manufacture of electric car batteries are already present on the island,” Demerey said.

The SMC has mining interests in the towns of Cagdianao, San Jose, and Basilisa. Its mining claims are reportedly rich in minerals, such as nickel, manganese, chromite, and iron that are needed for the manufacture of the batteries.

“We are now working on the necessary documents and pertinent papers for the start of the construction of the plant in September,” Demerey said.

He thanked President Ferdinand Marcos Jr. for supporting the initiatives of the local officials of the Dinagat Islands for industrialization.

“President Marcos is instrumental in this endeavor, especially in the setting up of this battery plant in the Dinagat Islands,” Demerey said.

Other matters between the provincial government and the SMC about the construction of the plant, such as tax holidays, are still being finalized, the governor said.

Article courtesy of the Philippine News Agency

Philippine Ambassador to South Korea Ma. Theresa Dizon-De Vega met with Korea Hydro and Nuclear Power Co. Ltd (KHNP) executives last July 19 to discuss future Philippines-Republic of Korea (ROK) cooperation on nuclear technology and renewable energy.

The KHNP executives include Project and Overseas Nuclear Business Division Executive Vice President Nam Yoh-Shik, Overseas Nuclear Business Section Vice President Kim Yongsoo and Overseas Nuclear Business Section Senior Manager Choi Younghwan.

During the call, De Vega affirmed the Philippines’ interest in focusing on a viable and sustainable energy plan and informed ROK that President Ferdinand R. Marcos Jr. himself expressed interest in pursuing nuclear technology and other energy cooperation platforms with South Korea.

KHNP is the largest power generator in Korea, producing one-third or around 28 percent of Korea’s domestic demand for power through a combination of nuclear power, hydropower, pumped-storage power, and new and renewable energy.

It is also an energy partner of 29 countries for the global power supply.

KHNP is a long-time partner of the Philippines on energy-related activities, having led the feasibility studies for the safe use of the Bataan nuclear power plant and the Cagayan Eco Zone.

The KNHP likewise shared they are trying to support more experts in the nuclear energy sector and was pleased to share that Korea Electric Power Corporation (KEPCO) International School has a student engineer from the Philippines.

The officials looked forward to further strengthening PH-ROK energy cooperation in the future.

Article courtesy of the Philippine News Agency

Photo credit:

A subsidiary of Enrique Razon Jr.-led company has signed a share purchase agreement to formalize the acquisition of stakes in Malampaya gas field from Dennis Uy’s firm.

In a statement Friday, Prime Infrastructure Capital, Inc. bared that its unit, Prime Exploration Pte. Ltd., sealed the share purchase deal with MEXP Holding Pte. Ltd., a subsidiary of Udenna Corp.

Prime Infra added the transaction is still subject to the consent of the Philippine National Oil Company Exploration Corp. (PNOC EC) and the Department of Energy (DOE).

To recall, MEXP acquired 45-percent share of Shell Philippines Exploration B.V. (SPEX) in Malampaya deep-water gas-to-power project. SPEX is also the operator of the natural gas field.

MEXP’s buyout of SPEX’s share in Malampaya was a subject of Senate inquiries in 2021.

Senator Sherwin Gatchalian then urged the DOE to carefully assess the financial health of Udenna’s subsidiary.

Prime Infra said its acquisition of shares in Malampaya will inject investments to expand Malampaya operations, adding it supports the administration’s goal of energy security.

“We believe that gas is an important transition fuel in the near-term, reducing the need for baseload fossil fuels like coal. Hence, we intend to accelerate investments on the Malampaya gas field to improve the output of existing wells and, if possible, develop new wells in the area once the license extension is secured from the government,” Prime Infra chairperson Enrique Razon Jr. said.

Razon added that Prime Infra, Shell, and Udenna are working closely to ensure the smooth transition of Malampaya operations from SPEX to Prime Exploration. By Kris Crismundo

Article courtesy of the Philippine News Agency

Photo credit: IHS Markit

Senate President Juan Miguel Zubiri said Tuesday he will fully support the plan of President Ferdinand Marcos Jr. to explore the country’s potentials on nuclear energy as a cheap and reliable source.

Marcos said in his first State of the Nation Address (SONA) on Monday that if the country wants to attract investors, both local and foreign, energy-level production must be increased.

"Why not? We are one of the few countries that have not looked at the nuclear option in Southeast Asia. The countries that are developing nuclear power in Asia -- Indonesia, Thailand, Vietnam, Malaysia, even Singapore, are looking at the nuclear option, smaller nuclear power plants, and even Myanmar. We're already left behind," Zubiri said in an interview with a news channel.

Despite being a renewable energy advocate, as evidenced by the Renewable Energy Act which he authored, Zubiri admitted that there are not enough efforts to produce the energy requirement the country needs over the next six years.

"If you want to have an 8-percent GDP (Gross Domestic Product) growth rate, we better have an energy sector that is robust, that can deliver the power the different industries need to be able to power other programs and projects," he said.

A nuclear power plant, Zubiri said, might take six years to develop starting from its infancy, but can deliver thousands of megawatts from a single plant.

He said the facility must be built right, strong enough to withstand calamities, and away from earthquake faults.

Senate President Pro Tempore Loren Legarda, a known environmentalist, said she is open to exploring the possibility of nuclear energy but it must be considered "clean energy".

"I may not be an expert in nuclear energy. I am open to hearing discussions and consultations with various stakeholders and experts in science on nuclear energy. I have read that nuclear energy is said to be clean. However, what about the nuclear waste? I am interested to know how it will be handled. At the same time, the safety measures," she said.

Senator Francis Tolentino is likewise in favor of nuclear energy, which he learned has zero emission.

"President Marcos’ notion is that nuclear energy will provide greater means of support in uplifting the lives of our countrymen," he said.

Senator Sherwin Gatchalian, meanwhile, asked the Department of Energy (DOE) to brief legislators on whether nuclear energy must be injected in the country’s energy mix, especially in light of climate change.

“We should request the Department of Energy to brief us, because that is a large sum of money to study the possibility, the risk, and the opportunities, the benefits to consumers and we have not seen the report of that study. To support the scientific-based approach, that study should be scientific and should be in the hands of the legislators because that would be a guiding document for us,” Gatchalian said, referring to the million-peso budget spent for studies.

In his SONA, Marcos said he believes it is time to reexamine the country's strategy toward building nuclear power plants.

He said it should be compliant with the regulations of the International Atomic Agency Regulations for Nuclear Power Plants which has been strengthened after the Fukushima Daiichi incident in Japan in 2011.

Following a major earthquake, a 15-meter tsunami disabled the power supply and cooling of three reactors.

According to the World Nuclear Association, there have been no deaths or cases of radiation sickness from the nuclear accident but over 100,000 people were evacuated as a preventative measure.

Official figures showed 2,313 disaster-related deaths among evacuees, in addition to the about 19,500 that were killed by the earthquake or tsunami. 

Article courtesy of the Philippine News Agency

Photo credit: Embassy of France to the Philippines and Micronesia - French Ambassador Michèle Boccoz

The French government is keen to help the Philippines develop its nuclear power program as the Marcos administration looks for other reliable sources of energy.

French Ambassador Michèle Boccoz said the embassy has met with some of the Cabinet members and nuclear power was listed among the key areas Paris and Manila could cooperate on.

"(T)here's obviously an interest. As I said, we have an experience and expertise in many different sectors of renewable energy, including the nuclear sector," Boccoz said at a reception in Makati City on Tuesday.

She said working on small modular reactors is "probably much more realistic" than reviving the Bataan Nuclear Power Plant.

"I think that this is a thing of the past because the technologies have evolved so much that it wouldn't really make sense to work to build this kind of project and it's probably too big and it probably needs too much of the grid to be operational," she added.

"So having a sort of more modular systems is probably much more realistic and also in terms of the terrain here and the systemic risks and others. These are much smaller units that can be much more easily protected."

Boccoz, meanwhile, clarified that talks are still in the "very early stages" as Manila has to put in place a framework first.

In his first State of the Nation Address on July 25, President Ferdinand Marcos Jr. sought to re-examine the country's strategy towards building nuclear power plants in the Philippines.

"We will comply of course with the International Atomic Energy Agency regulations for nuclear power plants as they have been strengthened after Fukushima. In the area of nuclear power, there have been new technologies developed that allow smaller-scale modular nuclear plants and other derivations thereof," he said.

"Once again, PPPs (public-private partnerships) will play a part in support as funding in this period is limited."

France generates about 70 percent of its electricity from nuclear power plants but plans to reduce this to 50 percent by 2035 as its shifts to more renewables, such as solar and wind.

Besides nuclear, Boccoz said, France is also beginning to have discussions on hydrogen and other renewable energy sources with the new administration. By Joyce Ann L. Rocamora

Article courtesy of the Philippine News Agency

Photo credit: Embassy of the People's Republic of China in the Republic of the Philippines - Chinese Ambassador Huang Xilian

China is ready to restart talks on oil and gas exploration with the Philippines as soon as the latter gives the go signal, Chinese Ambassador Huang Xilian said Wednesday.

"In the field of energy, we hope that we will continue to work on oil and gas cooperation. (W)e hope we start that negotiation and find some solution for the benefits of our two peoples to meet the need or the demand of energy of this country and China," he told reporters in Pasay City.

"I think with the new administration in place, we are ready to restart our negotiation anytime."

At the same time, Huang said Beijing is open to working with Manila as it shifts to renewables.

The two countries signed a memorandum of understanding (MOU) on joint oil and gas development in the West Philippines Sea in November 2018.

After three years of negotiations, the Philippines terminated the talks, citing possible issues with the Constitution just before former president Rodrigo Duterte stepped down from office.

In addition, the envoy said the two nations must also "work harder" on developing clean energy as a means of addressing the climate crisis.

"Last year, the export of electric vehicles of China accounts for more than half of the world's. We are one of the leading players in terms of clean energy and so we are ready to work with this country to share our technology, share our expertise to move forward hand-in-hand," he said. By Joyce Ann L. Rocamora

Article courtesy of the Philippine News Agency

Photo credit: Rappler - Binondo-Intramuros Bridge, Manila

The government will build several bridges in Metro Manila to further improve mobility, the Department of Public Works and Highways (DPWH) said Tuesday.

Secretary Manuel Bonoan said construction and development in the National Capital Region (NCR) will include “I think, five or six bridges, across the Pasig River.”

“As far as the infrastructure program is concerned, we will continue with the construction of more bridges across Pasig River and Marikina River so that the mobility will be enhanced from north to south sectors because there are just but a few bridges connecting north and south sector,” he said at the post-SONA (State of the Nation Address) Economic Briefing held at the Philippine International Convention Center in Pasay City.

Apart from bridges, the government is also looking at constructing more expressways “that would be leading toward the other areas of Metro Manila.”

“Right now, I think there are several expressway projects that are in line. There’s an expressway that is going to be developed in the eastern corridor of Metro Manila that will go through, Pasig, Cainta, and all the way to Bulacan,” Bonoan said.

He said the extension of the South Luzon Expressway going to Lucena City and the Cavite-Laguna Expressway to Tagaytay City are underway.

Bonoan said President Ferdinand Marcos Jr. announced in his inaugural State of the Nation Address (SONA) on Monday that the “Build, Build, Build” (BBB) programs initiated by the Duterte administration will continue.

“I reiterate today (Tuesday) the marching order of the President during his SONA that under his administration, the infrastructure development program will be pursued relentlessly. We will continue what has been started under the BBB program of the past administration and must not only continued but whenever possible, be expanded,” he said.

“As the President said, the infrastructure program will be very vital to support national government efforts to push for the revival of the economy which has slumped due to the Covid-19 pandemic. This is the foundation that we will build upon as the President pronounced we must keep the momentum and aspire to build better more and faster,” he added.

Article courtesy of the Philippine News Agency