Photo credit: Weir Minerals

As a leader in materials development and advancement, the team of material scientists at Weir Minerals are always pushing for ways to improve the capabilities of our technology for our customers.

The advanced laboratories at Weir Minerals develop a variety of materials, from natural to synthetic, to polyurethanes and composite materials. One of these materials is the Vulco® mill liner rubber.

Vulco® rubber is renowned throughout the mining industry for its exceptional wear life and reliability in mill lining systems. These abrasion- and impact-resistant rubber compounds are continuously improved and refined by Weir Minerals’ team of engineers and material scientists to keep them at the forefront of mill lining systems technology.

Having identified a need for higher-wearing rubbers for mill lining systems, the material science experts developed an industry-leading, premium-grade rubber compound with superior wear life and performance in mill lining applications.

The result: Vulco® R67 rubber – an optimum material which is manufactured with proprietary new compounds and innovative methods of processing to deliver outstanding wear life and longer uptime.

This new elastomer material was developed through extensive laboratory testing which was optimised and refined to further improve the material’s properties for aggressive mill system applications. The outcome of these improvements is a rubber compound which delivers an increased wear life of more than 20%, resulting in significant cost savings for our customers.

The Vulco® R67 rubber compound offers a high hardness, elongation, tensile and tear strength, making it suitable for lifter bars, head/shell plates and grates. When used in conjunction with metal cap mill liners, the result is a versatile, economical, and efficient product that weighs up to 50% less than steel alone. The added benefit is a lighter product that’s faster, easier and safer to install, as well as a measurable reduction in mill downtime and reduced maintenance costs.

“The Vulco R67 compound is a significant improvement to extend the wear life of mill linings.  The longer life results in lowering customer’s production costs and also allows more uptime to potentially increase throughput of the plant due to the higher annual mill availability.” – Tony Millar, Weir Minerals Director of Product Management

Produced locally in Australia, as well as North and South America and South Africa, our customers can feel assured that they have a market-leading product that is backed by decades of experience, expertise, and proven effectiveness.

Connect with our mill lining experts today: https://info.global.weir/vulcor67

Photo credit: Apex Mining

Apex Mining Co., Inc. finished the first quarter of 2022 with consolidated revenues of P2.2 billion, a growth of 46.11% yoy. The growth comes from increased milling tonnage of 23.3% and increased gold grades of 19.7%, as well as, a 7% increase in selling prices. The ramp up in production volume is part of the planned increase from 2,000 tpd to 3,000 tpd. The mine and mill operation is ahead of budget production rate of 2,250 tpd for the year and has encountered better grades than expected.

Net income for the first quarter stood at P645.5 million, a 131% increase yoy. Translated to earnings per share this is equal to P0.114 vs previous year’s number of P0.049.

Meanwhile, the Mines and Geosciences Bureau Region 11 conferred the Safety Milestone Award to Apex Mining for recording 7,549,768 man-hours without lost time accidents between 11 March 2021 and 20 March 2022. Apex Mining also earned the Compliant Tenement Holder for CY 2021. Both honors were conferred to Apex Mining at the Stakeholders Forum held at the Grand Regal Hotel in Davao de Oro on 08 April 2022. The forum’s theme was, “Harnessing Disaster Resiliency Through Responsible Mining”.

Also in March this year, Apex Mining’s fully owned subsidiary, Itogon-Suyoc Resources, Inc. (ISRI) received the Safety Seal from the Department of Labor and Employment-Cordillera Administrative Region (DOLE-CAR) — the first mining company in CAR to get the seal.

Article courtesy of the Philippine Stock Exchange 

Diversified engineering conglomerate DMCI Holdings, Inc. reported a 165-percent increase in first-quarter earnings from P4.3 billion to P11.3 billion, its highest ever for any given quarter.

Its record-setting performance was mainly driven by the robust operating results of its coal, nickel and power businesses amid rallying commodities and electricity spot prices.

Excluding a non-recurring gain of P179 million last year mainly from the deferred tax remeasurement impact of CREATE Act on Maynilad’s service concession asset and a P12 million gain on sale of land of DMCI Homes, consolidated core net income surged by 177 percent from P4.1 billion to P11.3 billion.

“Semirara exceeded our expectations while DMCI Mining and DMCI Power both grew double-digits,” said DMCI Holdings chairman and president Isidro A. Consunji.

“But our construction and real estate businesses are showing signs of slowdown because of knock-on effects of the pandemic and Russia-Ukraine war,” he added.

Net income contribution from Semirara Mining and Power Corporation (SMPC) skyrocketed by 544 percent from P1.3 billion to P8 billion on the back of record-high coal production, shipment and average selling prices, and further boosted by higher spot electricity sales at elevated prices.

DMCI Homes contributed P1.4 billion, a 7-percent decline from P1.5 billion owing to lower construction accomplishments, fewer new accounts that qualified for revenue recognition and higher sales cancellations.

Net income contribution from DMCI Mining grew 20 percent from P415 million to P499 million on higher nickel ore shipment and forex rates.

D.M. Consunji, Inc. recorded a 7-percent drop in net income contribution from P393 million to P367 million mainly due to the absence of a one-time related party transaction for a joint venture infrastructure project.

Maynilad contribution rose by 11 percent from P287 million to P319 million on lower personnel, utilities and interest expenses.

DMCI Power contributed P132 million, a 12-percent upturn from P118 million because of higher generation and sales across all its service areas.

Income from parent and others retraced by 38 percent from P13 million to P8 million on lower interest income.

Photo credit: Department of Transport

The revival and development of the Lucena-San Pablo stretch of the Philippine National Railways (PNR) continues as it is set to reopen before the end of the Duterte administration in June, the Department of Transportation (DOTr) said on Tuesday.

Construction of the Lucena-San Pablo line is ongoing with the rest of the PNR Bicol which links Metro Manila and the Southern Luzon provinces.

“As the Duterte administration nears its conclusion, Secretary (Arthur) Tugade made a covenant with the Filipino people not to waste even a single day at work. There is no time to relax even until the last day of office,” the DOTr said in a Facebook post.

Once reopened, the Lucena-San Pablo line will reduce travel time between San Pablo, Laguna and Lucena, Quezon to one hour and 30 minutes and is seen to help boost the economic corridors of both provinces and neighboring areas.

The line is part of the 560-kilometer PNR Bicol scheduled to be operational by 2027.

PNR Bicol will have 35 stations and will run from Manila through Laguna, Quezon, Camarines Sur, Albay, an extension line in Sorsogon, and a branch line in Batangas. By Raymond Carl Dela Cruz

Article courtesy of the Philippine News Agency

Nickel Asia Corporation recently announced its unaudited financial and operating results for the three-month period ended March 31, 2022 with an attributable net income (net of minority interest) of P1.05 billion, an 80% increase from P584 million net income reported during the same period last year. Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to P2.20 billion, a 30% increase compared to P1.69 billion in the prior year.

“The global nickel industry continues to labor under a record deficit – with an even larger projected deficit this year as compared to the previous year”, remarked Martin Antonio G. Zamora, President and CEO of Nickel Asia Corporation (NAC; PSE: NIKL). “Coupled with continued strong demand for stainless steel and the accelerating trend in demand in the electric vehicle market, these factors have been beneficial to our metals and mining business”, he added.

Although nickel ore sales volume decreased by 10%, from 2.65 million wet metric tons (WMT) in the first quarter last year to 2.39 million WMT in the same period this year, revenue from the sale of nickel ore increased 17% year-on-year, from P2.85 billion in 2021 to P3.32 billion in 2022, as the weighted average realized price of ore sold increased 22% from $22.21 per WMT last year to $27.03 per WMT this year.

Breaking down the ore sales, the Company exported 651 thousand WMT of saprolite and limonite ore to Japanese and Chinese customers at the weighted average price of $46.90 per WMT in the first three months of the year, compared to 845 thousand WMT at $45.60 per WMT in the same period last year. Likewise, the Company delivered 1.74 million WMT of limonite ore to the Coral Bay and Taganito HPAL plants, the prices of which are linked to the LME, and realized an average price of $11.80 per pound of payable nickel. This compares to 1.81 million WMT at $7.96 per pound of payable nickel in 2021. Expressed in US Dollar per WMT, deliveries to the two HPAL plants generated $19.58 and $11.29 in the first quarter of 2022 and 2021, respectively.

Furthermore, as a result of higher LME prices, the Company recognized gain from its equity share in its investments in the two HPAL plants in the amount of P305 million in the first quarter of 2022, a 166% increase compared to P115 million gain in the same period last year.

The realized Peso to U.S. Dollar exchange rate for ore sales was P51.51 compared to P48.38 in the prior year.

Total operating cash costs increased by 8% year-on-year to P1.67 billion from P1.55 billion in 2021. On a per WMT of ore sold basis, total operating cash costs increased to P701 per WMT compared to P583 per WMT last year.

On the Company’s foray into the renewable energy business through Emerging Power, Inc., Mr. Zamora had this to say: “We remain on track to complete Phase 3B of the Subic Solar Project, which would bring its total capacity to 100MW by May of this year, and expect to begin work on Phase 4 towards the latter part of the year, leading to a total capacity of 200MW by 2024. Further, we have made significant headway with respect to our 1,000MW renewable energy pipeline.”

Mr. Zamora added, “We continue to monitor extraneous factors such as the lockdowns in China that may affect the global supply chain and impact our businesses as well.”

Article courtesy of the Philippine Stock Exchange

Department of Transportation (DOTr) Secretary Arthur Tugade Thursday signed a contract worth PHP17.75 billion as part of the first phase of the Metro Manila Subway.

The contract package, dubbed CP104 and that was awarded to Tokyu-Tobishima Megawide Joint Venture (TTM-JV), includes the construction of two subway stations and tunnels at Ortigas North and South.

The contract was signed at an event at Edsa Shangri-La in Mandaluyong City between Tugade and executives of the TTM-JV.

During the event, right-of-way usage agreements were also signed between DOTr and partners in the private sector including Blemp Commercials of the Philippines, Megaworld Corporation, Robinsons Land Corporation, and Ortigas & Company Limited Partnership.

In a speech, Japanese Ambassador Koshikawa Kazuhiko congratulated the DOTr and the TTM-JV for the “milestone” in bringing the Metro Manila Subway closer to reality.

Koshikawa noted that Tokyu construction, head of the TTM-JV, is “well-known for their significant expertise in the construction of railways and its related developments.”

“I am confident that they certainly will apply Japan's cutting-edge technology and knowledge to the Metro Manila Subway’s best advantage,” Koshikawa said.

The Metro Manila Subway is part of the Duterte Administration’s ‘Build, Build, Build’ program and is seen to be partially operational by 2025.

Primarily funded through grants and loans from the Japanese government, the 35-kilometer subway will run from Valenzuela City to the Ninoy Aquino International Airport (NAIA) Terminal 3.

It will consist of 15 subway stations, can serve up to one million passengers daily, and is seen to reduce travel time between NAIA and Quezon City from 70 minutes to 35 minutes.

Photo credit: Bilyonaryo

OceanaGold Corporation reported its financial and operational results for the quarter ended March 31, 2022. Details of the consolidated financial statements and the Management Discussion and Analysis are available on the Company’s website.

Gerard Bond, President and CEO of OceanaGold, said “OceanaGold has started the year strongly with the first quarter safely delivering record quarterly revenue and EBITDA and significant Free Cash Flow. This strong Free Cash Flow generation allowed us to achieve a 29% reduction in net debt and reduce our leverage ratio to 0.40 times. Our stronger balance sheet puts us in a solid financial position from which we can invest in attractive growth projects to create value for our shareholders.”

“This quarter’s performance was underpinned by record quarterly gold production at our Haile operation in the United States and a very strong first quarter of full production at our Didipio operations in the Philippines. At Haile, we are continuing to see the benefits of operational and productivity improvements that began in mid2021. At Didipio, the operation achieved full underground mining rates at the end of the first quarter, ahead of schedule by nearly one quarter.”

“Though there is a lot to celebrate in the quarterly results, we also know that there is a lot of work ahead of us to fully optimise the potential of the business. At Waihi, poor grade reconciliation at Martha underground had an impact on its quarterly performance. A grade control drill programme is currently underway to deliver improved resource definition and allow for more optimal mine planning and stope sequencing, which we expect will improve the performance of this orebody and mining operation overall.”

“We also have a pipeline of organic growth projects that have the potential to create additional value for shareholders. Once we commence development of the underground mine at Haile, we believe we will begin to unlock the true upside potential of this orebody. Looking further ahead, Wharekirauponga (“WKP”) has the potential to be a significant, high-grade mine within our portfolio.”

“We remain focused on safely and responsibly delivering on our production guidance for 2022, maximising Free Cash Flow generation and progressing the attractive growth options in our portfolio.” said Mr Bond.

Operations

The Company produced 134,035 ounces of gold and 3,510 tonnes of copper in the first quarter of 2022, representing a 26% increase in gold production compared to the previous quarter and a 61% increase when compared to the first quarter of 2021. The stronger quarterly production was driven by record quarterly production at Haile and a solid quarter of production at Didipio, partially offset by decreased production at Waihi.

On a consolidated basis, the Company recorded an AISC of $1,084 per ounce on gold sales of 129,191 ounces and copper sales of 3,711 tonnes. AISC was 18% lower quarter-on-quarter with the benefits from a full quarter of operations at Didipio partially offset by increased sustaining capital investments. The Company’s AISC decreased 14% when compared to the first quarter of 2021, also due primarily to the inclusion of a full quarter of operations at Didipio.

Haile delivered 60,249 ounces of gold, representing a record quarter for production. This represents an increase of 42% quarter-on-quarter and was mainly driven by increased mill feed, higher head grade and better gold recoveries. Year-on-year, this represents a 36% increase in production, resulting from higher mill feed, grade, and recovery. The higher grades were driven by ore sourced from Ledbetter Phase 1. First quarter AISC at Haile was $1,070 and cash costs were $567 per ounce sold.

The Company expects the Supplemental Environmental Impact Statement (‘SEIS’) Final Record of Decision and receipt of subsequent operating permits to occur in the second quarter of 2022. The permits are necessary to allow underground mine development and expansion of the operating footprint to accommodate the construction of future PAG waste storage facilities and to allow increased water discharge rates. As previously guided, the ongoing delay in the receipt of the SEIS decision and associated permits continues to impact productivity at Haile, where mining rates are limited by additional material and water re-handling, reducing output and increasing costs. Upon receipt of the necessary permits, the Company expects an improvement in operational efficiencies and lower mining unit costs to be delivered progressively over a two-year period. An updated National Instrument (“NI”) 43-101 Technical Report for Haile was released 31 March 2022. The recently completed technical review assumed receipt of the necessary permits related to the SEIS by the end of the second quarter of 2022.

Didipio produced 29,446 ounces of gold and 3,510 tonnes of copper, reflecting a 98% increase in gold production and 51% increase in copper production quarter-on-quarter. This represents the first full quarter of operations since the restart of production in November 2021. The underground mine achieved full mining rates at the end of the first quarter, ahead of schedule. Didipio’s first quarter AISC and cash costs were $40 per ounce sold and $26 per ounce sold respectively. An updated NI 43-101 Technical Report for Didipio was released 31 March 2022.

Macraes produced 37,588 ounces of gold in the first quarter, a slight increase quarter-on-quarter and a 9% increase from the first quarter of 2021. Relative to the prior quarter, production increased on higher average head grade that was partially offset by lower mill feed and reduced gold recoveries. Macraes’ first quarter AISC and cash costs were $1,394 and $1,005 per ounce sold respectively.

Waihi produced 6,752 ounces of gold in the first quarter, 43% lower quarter-on-quarter and 56% higher than the first quarter of 2021. The quarter-on-quarter decrease in production was attributed to lower ore tonnes and grade mined from Martha Underground, where mining was in areas of the resource with low resource definition and under-reconciled to the resource model in both grade and tonnes of ore. The Company estimates the under reconciliation accounted for approximately half of the negative impact during the quarter, with poor ground conditions in parts of the orebody and reduced workforce availability due to COVID-19 isolations also contributing factors. Results from the accelerated grade control drill program continued to update the resource models currently being used for mine planning. Grade control drilling to support mining for the remainder of 2022 and 2023 is expected to be completed progressively across the second and third quarters of 2022. This program is expected to better inform the detailed mine planning and design process, optimise the stoping sequence, reduce ore loss and deliver improved performance.

Preparation for the lodgement of a consent application for the Waihi North Project, inclusive of WKP, continued to progress with environmental assessments nearing completion. The Company expects to lodge its formal consenting application, inclusive of stakeholder feedback, in the second quarter of 2022. The critical path for first production from the Waihi North Project remains the consenting process.

Financial

The Company reported record quarterly revenue of $285.7 million, reflecting a 37% increase quarter-on-quarter. The Company reported record quarterly EBITDA in the first quarter of $158 million, reflecting a 78% increase quarter-on-quarter on stronger gold sales volumes from Haile, Didipio and Macraes and higher average gold and copper prices received and lower unit costs, partially offset by lower sales at Waihi. First quarter 2022 EBITDA was 155% higher than the first quarter of 2021 related to resumption of operations at Didipio and increased gold prices.

First quarter 2022 adjusted earnings after tax were $81.8 million or $0.11 per share which compared to $29.3 million in the fourth quarter of 2021 and $17.3 million in the first quarter of 2021.

Cash flows from operating activities for the first quarter of $143.8 million exceeded the comparative quarters, driven by stronger EBITDA though partially offset by unfavourable working capital movements. Operating cash flow per share before working capital movements was $0.22 in the first quarter.

The Company generated $63.2 million in free cash flow during the first quarter. As at the end of the first quarter Net Debt including equipment leases was $168.4m, which was $69.5m or 29% lower than at the end of December 2021. The Company had immediately available liquidity of $224.7 million, including $194.7 million in cash.

Article courtesy of Oceanagold Corporation

Photo credit: Bilyonaryo

Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) reported another record net income of Php1.22 billion for the first quarter of 2022 compared to the net income of Php420 million for the same period in 2021. Higher production and higher metal prices sustained the strong performance of Atlas Mining.

The increase in metal prices continued in the first quarter this year where copper price increased by 16% from $3.93/lb to $4.56/lb and gold price from USD1,797/ounce to USD1,885/ounce compared to the same period last year.

Atlas Mining’s wholly-owned subsidiary, Carmen Copper Corporation, reported higher copper production and shipments in the first quarter of the year compared to the same period last year due to higher tonnes of ore milled and higher realized grades. In the first quarter of 2022, copper metal production increased by 26% from 15.93 million pounds to 20.01 million pounds, due mainly to the 8% increase in milling tonnage from 4.22 million tonnes to 4.57 million tonnes and the increase in copper grades by 12% from 0.215% to 0.241%. Gold production increased quarteron-quarter by 22% from 5,346 ounces to 6,015 ounces while gold grades decreased from 5.77 grams/dmt to 5.34 grams/dmt. Accordingly, shipments were higher by 27% from 17.02 million pounds of copper metal in 2021 to 21.69 million pounds in 2022.

Higher production and shipments supported by higher prices, pushed revenues to soar by 54% to Php5.49 billion from Ph3.57 billion.

Cash costs increased by 50% from Php1.97 billion to Php2.94 billion, due to the increase in volume of shipments and production. Earnings before interest, tax, depreciation and amortization (EBITDA) was Php2.60 billion, 55% higher compared to Php1.68 billion in the same period of 2021. Core income was Php992 million in the first quarter of 2022 compared to Php579 million, 71% higher compared to the first quarter of 2021.

Cash generated from operations enabled additional repayment of debt of US$45 million in the first quarter. With the partial repayment of certain loan, an accounting gain of Php464 million was recognized in the first quarter.

According to Atlas Mining President, Adrian Ramos, “With sustained production, Atlas Mining continues to benefit from a strong metals market. We remain focused on keeping our operations resilient and efficient to ensure sustained and optimized earnings even under emerging challenging situations.”

Article courtesy of the Philippine Stock Exchange

Integrated energy company Semirara Mining and Power Corporation (SMPC) has completed its backfilling operations in Panian, once the largest open-pit mine in the Philippines.

SMPC spent 11.5 million man-hours to fill the pit with over 452 million bank cubic meters (bcm) of earth material, which is enough to fill 217,000 Olympic-size swimming pools.

“We are mindful of our twin role as stewards and government contractor. What we accomplished in Panian is proof of that,” said SMPC president and COO Maria Cristina C. Gotianun.

Located in Semirara Island, Panian mine spans 400 hectares with topographic elevations that ranged from 300 meters below sea level (mbsl) to 30 meters above sea level (masl) during its mine life. 300 meters is roughly the height of a 90-story building.

SMPC fully covered the pit in six years, way ahead of the original 10-year mine rehabilitation plan. Mine rehabilitation refers to the repair of land that was disturbed by mining activities.

The company is now developing a science-based plan to reforest and restore the biodiversity in the area.

Panian had a mine life of 16 years and generated P12.7 billion in royalties for the government and SMPC host communities.

Of the total amount, P7.6 billion went to the national government while the Municipality of Caluya and Brgy. Semirara received P2.3 billion and P1.8 billion, respectively. P1 billion went to the Province of Antique.

In September 2021, SMPC won in the ASEAN Energy Awards (Special Submission category) for its accelerated rehabilitation of South Panian pit, which is considered as the fastest of its kind and scale in the Philippines.

SMPC completely filled North Panian with earth material last January, four months ahead of its committed date to the Department of Energy.

Photo: 

Philex Mining Corporation (the “Company” or “Philex”), one of the oldest and largest gold and copper producers in Southeast Asia, and a leader in right and principled mining, generated Php676 million Core Net Income and EBITDA of Php1.182 billion for 1Q2022 due to higher operating revenues on account of higher sustaining Gold and Copper realized prices, stable production and managed operating cost and expenses.

Production level in 1Q2022 was within plan and, coupled with higher realized prices for Gold and Copper, lifted operating revenues to Php2.720 billion, higher by 7.5% versus the same period in 2021. Blended realized Gold and Copper prices peaked in March at $1,887 per ounce and $4.59 per pound respectively, driving operating revenues in March to Php1.075 billion, the highest since January. Operating costs were almost the same level as in 1Q2021 at Php1.655 billion.

Production

Tonnage milled for 1Q2021 was 10% lower at 1.822 million tonnes from 2.025 million tonnes in 1Q2021 mainly attributed to unscheduled breakdown of mill equipment. Ore grades for Gold continue to be at the same level as in 1Q2021 while ore grades for Copper showed improvement over the same period in 1Q2021, mitigating the impact of lower tonnage in Copper production. Gold output for 1Q2022 was 9.8% lower at 12,097 ounces versus 13,413 ounces in 1Q2021. On the other hand, Copper output for 1Q2022 was 8.7% lower at 6.18 million pounds versus 6.77 million pounds in 1Q2021.

Operating expenses and ebitda

Total operating costs and expenses for 1Q2022 at Php1.655 billion were almost at the same level for the same period in 1Q2021 at Php1.647 billion. The increases in the purchase costs of materials and supplies as well as equipment parts were offset by the continued implementation of work programs in operations, leading to efficiencies in the usage of power and supplies.

EBITDA generated for 1Q2022 at Php1.182 billion was 17% higher than the Php1.011 billion in 1Q2021. The Company continue to accumulate cash surplus at a level programmed to partly finance the development of Silangan project by way of additional and fresh cash equity infusion into its wholly owned subsidiary, Silangan Mindanao Mining Co. Inc.

Outlook

The current global commodity outlook points to sustained prices of Gold and Copper in the near to medium term. These sustained metal prices provide the Company with the ability to implement exploration and studies geared towards funding additional mineral resources/reserves within the current ore body and vicinity of the Padcal Mine.

The Company continues to work with its financial advisors for the completion of the fund raising exercise to start the Silangan Project, subject to approval of relevant government and /or capital market regulators. The successful and timely conclusion of the funding exercise will pave the way for the timely development and start of commercial operations of the Silangan project by early 2025. The Company is set to actively commence the development of Silangan as soon as the funding sources would have been finalized and completed, which will be in the form of a rights offer, possibly debt and fresh capital infusion out of the cash reserves of the Company.

“The first quarter of the year bore much promise that the mining industry, like the economy, was well on its way to full recovery with the tapering off of the global threat of COVID-19 and the relaxation of stringent quarantine and lockdown guidelines,” according to Philex president and CEO Eulalio B. Austin Jr. “The country, it seemed, was back in business and Philex continued to ride on the strength of sustained production and revenue levels, and took full advantage of the wave of increase in global metal prices. However, the current situation in Ukraine and its impact on the global supply chain and commodity markets makes us tread cautiously towards the remaining months of the year. We are still hopeful that the conflict in Europe will end soon enough. We move with caution and continue to assess and re-assess our plans and our strategies.”

“We view the current global situation with guarded optimism,” according to Philex Chairman Manuel V. Pangilinan. “Though there are gains to be realized with the spike in the prices of gold, copper, and even nickel, the current tension that is unfolding in Ukraine might impact the country’s and the industry’s pursuit of recovery post-pandemic. If the conflict pushes inflation upward, it could affect the country’s economic growth.”

Article courtesy of the Philippine Stock Exchange

Mactan Island will soon become home to Cebu’s biggest power plant after the San Miguel Corporation (SMC) signified its intention to invest in a liquefied natural gas (LNG)-powered plant in the city of Lapu-Lapu, Mayor Junard Chan on Thursday said.

“Dako nakong pasalamat nga aduna na poy laing kadaugan nga makab-ot ang atong syudad nga mao ang intensyon sa San Miguel Corporation nga mo-invest og usa sa pinakadakong power plant diri sa Cebu gamit ang LNG kon liquified natural gas (I am very thankful for another victory that our city will achieve soon as the San Miguel Corporation signified to invest in one of the largest power plants here in Cebu using LNG or liquified natural gas),” Chan said in a statement posted on his social media account.

He said SMC will invest PHP60 billion in the construction of the 600-megawatt power plant.

Chan did not mention where in Lapu-Lapu City the power plant will be built but he posted a proposed site development plan for the plant.

According to the E-Connect Energy website, transforming gas into electric power is made possible through the thermodynamic process of converting the chemical energy stored in the natural gas to thermal energy through mechanical energy to electrical energy.

Chan said SMC’s entry into the power sector in Lapu-Lapu City where it intends to pour its investment for its first-ever LNG-propelled power plant, is also expected to help solve electric power supply woes which are not only experienced in Mactan Island but the entire Cebu province.

Chan said it will give jobs to the residents of Mactan Island.

“Dili na usab makasinati puhon ang mga Oponganon og problema sa kuryente lakip na ang silinganang mga dakbayan (Oponganons will no longer experience power problems, including in neighboring cities),” he said.

Oponganons refer to the residents of Mactan Island.

Chan said the city government’s effort to tap investors is bearing fruit now that the SMC, the country’s largest and most diversified conglomerates, showed interest in investing in a business venture in the city.

“Nagpasabot lang kini nga ang atong administrasyon karon duolonon gayud sa mga investors o dagkong mga mamuhonan kay dako ang ilang pagsalig sa atong pagdumala ug pagpangga sa mga katawhang Oponganon (It simply means that our current administration is really close to investors or big investors because they have a lot of confidence in our management and care for the Oponganon people),” he said.

Chan said more big businessmen informed him of their intention to invest and contribute to the economic growth in Lapu-Lapu City.

Lapu-Lapu City, including the island villages of Olango Group of Islands and the municipality of Cordova, is under the distribution franchise area of Mactan Electric Company.

It sourced its electric power distributed to the households and its industrial clients like the Mactan-Cebu International Airport and the Mactan Export Processing Zone from the Kepco-SPC in Naga City in southern Cebu.

Photo credit: 

The chair of the House Ways and Means Committee on Saturday stressed the need for the country to move towards nuclear energy generation amid "thinning power reserves" as baseload coal power plants continue to experience shutdowns.

Albay Rep. Joey Salceda said there is no fuel cleaner than nuclear, which is also a more stable energy source run by a predictable fuel supply.

Salceda said President Rodrigo Duterte is on the right path with the issuance of Executive Order 164, which aims to introduce nuclear energy into the country's energy mix, as this will address the high electricity rate and secure energy for the future.

"And I can think of the ways we can complement that with good policy,” Salceda told reporters in a Viber message, as he proposed the franchise approach to nuclear energy.

"I don’t want government spending money on it, given our fiscal issues. But we can collate a fiscal incentive package under the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Law for a nuclear power investor. That will probably exceed the USD 1 billion threshold under that law, anyway,” he added.

He described coal as the "dinosaur" of energy generation, given that it is cheap, simple, easy, but also outdated.

Salceda added that coal power plants are "not exactly in top shape", adding that they are not following the Grid Operating and Maintenance Program (GOMP) procedures of the Department of Energy.

"Over the past 30 days, half of our baseload plants have experienced shutdowns. When demand peaks, you’re going to get more of that. So, I’m definitely seeing a real possibility of rotating brownouts by May or June,” Salceda said.

Salceda presented a “five-point plan” to combat an energy crisis, which included routine maintenance checks of the country’s power plants.

He warned that “maintenance issues” could be a way for some generation firms to jack up prices.

“Honestly, it’s getting frustrating. Like speaking to a wall. We already anticipated that these things will happen. And now, I’m making a prediction again that will probably take place if we don’t take action. If DOE (Department of Energy) doesn’t take action. Rotating brownouts by summer if we neglect maintenance issues among our baseload plants,” Salceda said.

Through EO 164, the Chief Executive has recognized that nuclear power can be a reliable, cost-competitive, and environment-friendly source of energy based on the experience of highly developed countries.

“For the country to achieve its sustained growth targets, it must ensure that it has a reliable, secure, sustainable, quality and affordable electricity supply, including sufficient reserve to guarantee that there will be no disruptions in the power supply,” the policy read.

It added the use of nuclear energy will address the increasing demand for clean energy, rising by 4.4 percent annually, or an additional capacity of 68 gigawatts by 2040.

The EO still included the Bataan Nuclear Power Plant (BNPP) in the national nuclear program, but other nuclear power installations will be pursued.

House Committee on Energy chair Juan Miguel Arroyo, for his part, said the panel has identified eight priority legislative measures and nine laws to be subject to the legislative oversight function of the committee to ensure adequate and affordable power and fuel in the country while continuing to find ways to further improve the local industry and economy.

The priority legislative measures include the creation of the Philippine Energy Research and Policy Institute; establishing the Regulatory Framework for the Liquefied Petroleum Gas Industry; Electric Vehicle Industry Development; Energy Advocacy Council Office; Use of Microgrid Systems; Waste-to-Energy Technology; Downstream Natural Gas Industry Development; and Strengthening the Energy Regulatory Commission.

Article courtesy of the Philippine News Agency

Photo credit: Laag Ta Bai Facebook Page

President Rodrigo Roa Duterte led Wednesday, April 27, 2022, the inauguration of the Cebu-Cordova Link Expressway (CCLEX) project, an iconic bridge that links mainland Cebu in Cebu City to Mactan Island through Cordova.

The 8.9 kilometer CCLEX is highlighted by its iconic crosses on top of the twin pylons of the cable-stayed main bridge over the Mactan Channel befitting Cebu’s titles as “Queen City of the South”, the Philippines oldest city, and considered to be “Asia's Cradle of Christianity”.

Joining the President in the inauguration are Metro Pacific Tollways Corporation (MPTC) Chairman Manuel V. Pangilinan, Executive Secretary Salvador Medialdea, Public Works and Highways Secretary Roger G., Transportation Secretary Arthur Tugade, Finance Secretary Carlos Dominguez, and various officials from the different government agencies, local government units, and foreign dignitaries.

Also witnessing the event from DPWH are Senior Undersecretary Rafael C. Yabut; Undersecretary Maria Catalina E. Cabral; Assistant Secretaries Wilfredo S. Mallari, Eric A. Ayapana and Rolito D. Manalo; Region 7 Director Edgar B. Tabacon; and Public Private Partnership Service the taken by project developer Cebu Cordova Link Expressway Corporation (CCLEC), a subsidiary company of MPTC, through a joint venture agreement with Cebu City and the municipality of Cordova.

The cable-stayed twin single pylon main bridge has a span length of 390 meters.

Its pylon height of 145 meters and navigational vertical clearance of 52.5 meters and 260 meters horizontal clearance are sufficient for the passage of large vessels.

With a carrying capacity of two (2) lanes per direction, the expressway project also involves the construction of 1,350 meters of viaduct and 5,219 meters causeway and 603 meters low-level bridges.

The now-landmark of Cebu skyline is expected to serve around 50,000 vehicles daily. 

Article courtesy of the Department of Public Works and Highways 

The Department of Energy (DOE) has urged Singaporean businesses, as well as other foreign investors, to look into the country’s investment prospects in the energy sector, which amounts to USD153 billion.

During the 3rd Philippine-Singapore Business and Investment Summit Wednesday, DOE Undersecretary Felix William Fuentebella said these required energy investments would help the country achieve the clean energy scenario under the Philippine Energy Plan.

About 80 percent of the total investment requirements are for power, which include USD115.3 billion for new power plants and USD6.97 billion for transmission projects.

“The required investments for RE (renewable energy) alone amounts to USD94.3 billion,” Fuentebella said.

He added that about 15 percent of the needed investments are in the upstream sector composed of oil and gas exploration and development at USD10.05 billion, coal exploration and production at USD13.12 billion, and pre-development activities for renewable energy at USD510 million.

The downstream energy sector, on the other hand, will be needing USD2.94 billion investments in oil distribution depots and import terminals; USD1.78 billion for liquefied natural gas terminals; and USD2.38 billion for biofuels production.

“Given the capital-extensive nature of the energy sector, we anticipate the active participation of the private sector as well as the public-private partnerships to help us finance in bringing these critical energy infrastructure projects into fruition,” Fuentebella said.

He said the Duterte administration has spent more than five years setting up a sound and long-term plan to help in building a sustainable energy future for the Philippines.

“Whatever we invest today would have far reaching returns and benefits for the Filipino nation in the years ahead,” he added. By Kris Crismundo

Article courtesy of the Philippine News Agency

Photo credit: Department of Transport Philippines

A party-list lawmaker on Tuesday said the passage of the new Public Service Act has paved the way for the eventual revival and operation of the Panay line under the Panay Railways Inc. (PRI).

In a statement, AAMBIS-Owa Party-list Representative Sharon Garin said many railway construction projects are currently underway that will benefit from new investments, such as the Panay Railways which has had no running rail since 1985, through the new law.

Garin said Republic Act 11659, or the New Public Service Act, will definitely improve the country's public services by allowing more investors to participate in previously "closed" industries.

"I am excited to see how the railway industry will be positively affected by Foreign Direct Investments (FDI)’” Garin said. "I am sure that very soon, we will have a modernized rail system running in our home province."

Garin said the revival of this mode of transport will surely create jobs and more opportunities in the area.

She also noted that underspending and lack of capital for maintenance and expansion have always been a problem with the country’s railway system.

She said the initial PHP299 billion estimated worth of new FDIs is sure to include funds for the modernization and expansion of the country’s railway system.

“I am excited that the rehabilitation of railways will extend to my home province. There have been many interested foreign investors in the rehabilitation and construction of better railways in Panay since a Memorandum of Understanding was signed between interested foreign companies and the PRI since 2018. This includes a two-phase project that would connect Iloilo City to Barangay Caticlan in Malay, Aklan," she said.

Garin said a good transport system can bring about better movement of goods and people.

"Rapid transit is not only a dream but is soon to be a reality. From subways to commuter rails up to provincial stations, I am confident that this chain of improvement will ultimately lead to better services for our people,” Garin said. By Filane Mikee Cervantes

Article courtesy of the Philippine News Agency

Photo credit: DOE - DOE Secretary Alfonso Cusi

Department of Energy (DOE) Secretary Alfonso Cusi is urging Filipinos to continue observing energy efficiency and conservation as petroleum prices in the global market remain high.

According to its Oil Industry Management Bureau (OIMB), the risk of increasing oil prices remains as peace talks between Russia and Ukraine are on a standstill, which weakened hope for resolution to the conflict.

It also exacerbates concerns of a possible European Union (EU) embargo on Russian oil.

“Ongoing discussions on a potential Russian oil ban. While the EU has not imposed a ban on Russian oil imports, French Finance Minister Bruno Le Maire had recently mentioned that an EU-level embargo on Russian oil was possible,” it added.

The Organization of Petroleum Exporting Countries and its allies (OPEC+) also expressed that it is impossible to replace the 7 million barrels per day of Russian oil and other liquid exports that would be lost should sanctions or voluntary actions be pursued.

OIMB added that OPEC has low spare capacity of fuels as few countries could maintain capacity in reserve while increasing their production.

Iran could also infuse over 1 million barrels per day in the world market. However, this would only be possible with successful nuclear talks.

"The DOE is closely monitoring global oil supply and price movements, in coordination with our downstream oil industry players. We are working to exhaust all measures that would help uphold consumer welfare during this challenging period," Cusi said.

He added the Philippines is not spared from the impacts of the ongoing Russia and Ukraine war.

“This is why we would like to earnestly appeal to everyone to integrate energy efficiency and conservation into our daily lives to help manage costs," he added. By Kris Crismundo

Article courtesy of the Philippine Stock Exchange

Photo credit: Bilyonaryo

Megawide Construction Corporation reported consolidated revenues of P15.4 billion in 2021, 21% higher year-on-year, amid a persistent COVID-19 pandemic. The construction segment rallied the group and recorded revenues of P14.3 billion, 32% more than the previous year.

The airport and landport businesses, on the other hand, continued to be affected by restricted travel and transport as well as limited economic activities, resulting in weaker financial performances. Consolidated earnings before interest, taxes, depreciation and amortization or EBITDA amounted to P2.84 billion as airport operations generated losses.

With a more stable operating environment, the construction segment recorded a net income of P401 million and more than four times the P93 million income posted in the previous year. However, weak results from the other business segments resulted in a consolidated net loss of P893 million, with net loss attributable to equity holders of the Parent tapering to P343 million.

Driving Resiliency and Cycle-Resistance

“The past two years under the pandemic were very difficult, as our financial performance was severely affected by restricted travel and transport. In addition, the virus’ evolving variants ushered in a fresh set of lockdowns and discouraged a return to normalcy. Amid all these, we relentlessly pursued programs that will strengthen our core businesses and make them more cycle-resistant to deliver for us stable earnings year in and year out,” Edgar Saavedra, Chairman and CEO of Megawide, said.

The construction segment remained resilient but Megawide sees better days ahead as the winning bids for the big-ticket infrastructure projects, such as the Metro Manila Subway and North South Commuter Line, have yet to be officially announced.

“We are also looking forward to a better performance for our airport operations, with the national elections, the campaign period associated with it, and summer season driving domestic traffic. Hopefully, with a higher vaccination rate nationwide and managed infections this year, travel will be restored and return to pre-pandemic activities will be accelerated,” Saavedra added.

Recovery in travel and transport

The Company is already seeing initial signs of recovery in its airport asset the Mactan Cebu International Airport (MCIA), where January-February traffic showed a 170% improvement from the same period in 2021, data from the Mactan Cebu International Airport Authority (MCIAA) show.

“The International Air Transport Association (IATA) predicts that global air travel will be 80-90% of its pre-pandemic levels this year and next, with prospects of exceeding 2019 figures by 2024. That being said, this revenge travel should present a huge upside to MCIA, which currently operates at 20-30% of pre-COVID levels,” noted Louie Ferrer, Megawide’s Executive Director for Infrastructure Development and GMR-Megawide Cebu Airport Corporation’s (GMCAC’s) President.

In anticipation of the global tourism revival, MCIA has partnered with Emirates and Turkish Airlines to gain access to Europe and Middle East. Both airlines are expected to augment the predominantly Asian tourist market in Cebu as the former flies daily while the latter follows a thrice-a-week schedule.

Meanwhile, the Paranaque Integrated Terminal Exchange (PITX) is likewise optimistic for a rebound, as around 6,500 sqms of office space in Tower 2 has been signed and contracted out as of end-2021, bringing the lease rate up to 83%. This is expected to be complemented by 1,250 sqms of additional commercial space that will offer new and exciting products that will serve the growing number of passengers as well.

“We are also making a conscious effort to shift to more public and social infrastructure, which we believe will be critical in truly engineering a First-World Philippines. Outside PITX, we are exploring strategic locations where we can expand intra- and inter-island connectivity through a hub-and-spoke model, with PITX at the center,” Saavedra added.

Carbon in the works

Down south, the Carbon Market redevelopment is in full swing, with the interim market completed and now welcoming vendors. The Sto. Nino Chapel and Statue was likewise officially consecrated in a ceremony held during the celebration of Easter Sunday last April 17, 2022.

“Carbon Market will be a game-changer not only for Cebu but for public market districts around the country. Not only does this modernize and refurbish the age-old system and structure in the province, it will also refresh the neighborhood into a modern-day tourist attraction,” said Ferrer, who also serves as the President of Cebu2World Development, Inc. (C2W).

Phase 1 is scheduled to be completed by 2027, which will transform Carbon Market into a multistructure facility, having a fully-built up GLA of approximately 50,000 sqms, spread across the public market, commercial centers, and bayfront areas for vendors, business partners, trade participants, consumers, and tourists to enjoy.

Financial Management on Track

The Company likewise continued with its financial management initiatives, specifically aimed at balance sheet health and optimizing financing costs. As of end December 2021, the Parent Company improved its debt-to-equity ratio to 1.23x from 1.59x pre-pandemic in 2019 and remained well below the 2.33x covenant. The Company also completed the rebalancing of its P24.5 billion project financing at GMCAC in May 2021 and successfully issued P4.0 billion worth of Series 4 Preferred Shares to retire the original and more expensive Company Preferred Shares issued in 2014.

“We also turned inward to strengthen our financial position, tapping the capital markets to take advantage of favorable interest rates, as part of our long-term financial management roadmap,” Saavedra said.

Article courtesy of the Philippine Stock Exchange

Photo credit: Global Ferronickel Holdings, Inc.

Global Ferronickel Holdings, Inc. (FNI) is off to a strong start as Platinum Group Metals Corporation (PGMC) begins its shipment to customers in China with 53,700 WMT of low-grade nickel ore bound for Guangdong Century Tsingshan Nickel Industry Co., Ltd. (GCTNICL). PGMC is the second-largest value exporter of nickel ore in the country. It is a wholly-owned subsidiary of FNI.

“We are upbeat that our mining operations at PGMC have been running seamlessly from the get-go. Weather permitting, we might be able to exceed this year’s target of 5.5 WMT consisting of 60% low-grade ore and 40% medium-grade ore,” said FNI President Dante R. Bravo.

Around half of PGMC’s shipment target for 2022 has been slated for, and the rest will be open to other customers. PGMC has a general nickel ore supply contract with GCTNICL and Baosteel Resources International Co. Ltd. for 20 and 30 shipments, respectively. Prevailing market prices for all customers will be determined at the time of their individual order confirmation.

“We remain bullish as demand from China continues to be strong, and nickel prices have been rising in recent years. And with current global events adversely affecting oil prices, there is a greater appreciation for electric vehicles, which use nickel for their rechargeable batteries,” said Mr. Bravo.

Article courtesy of the Philippine Stock Exchange

Photo: The Caraga Mineral Testing and Research Laboratory, the only mineral testing lab in the region, is expected to be fully operational by 2024. The facility is envisioned to provide highly equipped, accessible, and affordable analytical testing for mining companies in the region. (Photo courtesy of DOST Caraga Director Noel Ajoc)

Despite being inaugurated last April 5, the Caraga Mineral Testing and Research Laboratory is not expected to be fully operational until 2024, an executive said Monday.

"We are still in the process of acquiring equipment for the facility. If we (could) get the funds for this in 2023, it will fully operate in 2024. Environment-related tests would at least start in January 2023," Department of Science and Technology (DOST) Caraga Director Noel Ajoc told the Philippine News Agency in an interview.

The equipment will be funded through the General Appropriations Act, and the requested budget for the equipment cost was PHP40 million. The PHP15-million facility was funded by the Department of Public Works and Highways-Caraga, according to Ajoc.

"Once completed, this is the only mineral testing lab in Caraga. Caraga is number one in the country's mining industry," he said, citing Philippines Statistics Authority data.

The facility, Ajoc said, will provide analytical services like metal content analysis in support of the mineral industry in Caraga. Mineral processing and metal extraction research will also be conducted in this facility.

"We will do analytical tests on nickel and cobalt content of ores, gold content processed by small miners, and environment-related tests like heavy metals content. Once the equipment are acquired, extraction of metals like nickel, cobalt, chromium, gold, and copper from ore can also be done at the lab," Ajoc said.

DOST Caraga will do the analytical services. Research and development (R&D), on the other hand, will be conducted by the DOST, higher education institutions, and student researchers.

Meanwhile, in a taped report, DOST Secretary Fortunato de la Peña said the establishment of the Caraga Mineral Testing and Research Laboratory aims to provide highly equipped, accessible, and affordable analytical testing for mining companies in the region.

"It is also envisioned to serve as a facility for the conduct of R&D related to the mining industry, including mining wastes and wastewater management," De la Peña said.

The facility is located at the DOST regional office in Ampayon, Butuan City. By Ma. Cristina Arayata

Article courtesy of the Philippine News Agency 

Photo: Negros Occidental Governor Eugenio Jose Lacson (2nd from right) and Mines and Geosciences Bureau-Western Regional Director Raul Laput (right) sign the memorandum of agreement for the transfer of functions on the processing and issuances of two mining documents to the provincial government. Witnessed by Provincial Administrator Rayfrando Diaz II (2nd from left) and Provincial Environment Management Office head Julie Ann Bedrio, the signing rites were held during the Governor’s Permit Holders Forum and Dialogue held at the Negros Residences in Bacolod City on Tuesday (April 12, 2022). (Photo courtesy of PIO Negros Occidental)

The province of Negros Occidental has entered into a memorandum of agreement (MOA) with the Department of Environment and Natural Resources (DENR) Mines and Geosciences Bureau-Western Visayas (MGB-6) for the transfer of mining documents issuance functions to the provincial government.

The signing rites, led by Governor Eugenio Jose Lacson and MGB-6 Regional Director Raul Laput, were held during the Governor’s Permit Holders Forum and Dialogue held at the Negros Residences here on Tuesday.

“To everyone present, including the national government agencies, may the good Lord give us the wisdom to find better ways on how we can work together for the furtherance of responsible mining practices,” Lacson said in his keynote message before some 170 permit holders.

The MOA provides for the transfer of functions on the processing and issuances of the certificate of environmental management and community relations record (CEMCRR) and social development and management program (SDMP), which are part of new policies affecting sand and gravel as well as quarry extraction in the province.

This is based on Executive Order 138 issued by President Rodrigo Duterte on June 21, 2021 or the “Full Devolution of Certain Functions of the Executive Branch to Local Government Units, Creation of Committee on Devolution, and for other Purposes”.

Laput said the mining industry is considered a major driving force in the country’s local and national economy.

“This is a very important meeting of our permit holders and our government agencies to share relevant information, give updates, share concerns and exchange ideas on how we can address issues affecting the industry,” he added.

The CEMCRR is issued as proof of a good record of accomplishment of a company or permit holder in terms of community relations while the SDMP is a community development tool required of permit holders to ensure that the host and neighboring communities benefit from the project in terms of livelihood, education, infrastructure, medical and other social development programs.

Both documents are part of the requirements for permit applications for quarry, small-scale mining and sand, and gravel for commercial and industrial use.

Local issuance of quarry, sand, and gravel for areas below five hectares and small-scale mining permits is a devolved function under the Local Government Code of 1991.

Lacson said he has been informed that some applicants and permittees are circumventing the law by applying multiple applications when the ordinance provides that a qualified person may only be granted one permit in any local government unit at any one time.

“I want to be forthright with you, always remember that the permit given to you is a privilege, a privilege to use our resources judiciously, not to exploit our limited natural reserves. We are not supposed to do indirectly what is prohibited directly,” he told the permit holders.

Article courtesy of the Philippine News Agency