DMCI, Australian partner to operate Zambales mine

The Consunji-owned DMCI Holdings Inc. has signed an agreement with Asian Strategic Resources and Properties Corp., a wholly-owned unit of Australia-based Rusina Mining N.L, for mining projects in Zambales.

In a disclosure to the Philippine Stock Exchange, DMCI said it agreed to be the independent contractor to directly undertake mining operations in the towns of Sta. Cruz and Candelaria in Zambales.

The mining operation is an open pit extraction of nickel, chromite and iron laterite for direct shipping, DMCI said.

Early this year, DMCI was chosen by the National Power Corp. (Napocor) to provide power generation in the off grid area in Masbate. This project will be managed and carried out through wholly-owned subsidiary DMCI Energy Resources Unlimited Inc.

DMCI Energy was formed by the group to pursue investments in the power sector. It has an initial paid-up capital of P10 million.

The award is subject to the delivery and/or compliance with bidding procedures and transaction documents.

DMCI owns about 63 percent of Semirara Mining Corp., the country’s largest producer of coal. Semirara sells the bulk of its coal to the state-owned power firm Napocor.

DMCI was also one of the two bidders for Napocor’s 600-megawatt Calaca coal-fired power plant. The bidding, held in May, was declared a failure because the offers were below the reserve price.

The company reported a net income of P185.77 million in the third quarter of 2006 or an increase of 41 percent from the previous level, mainly due to higher revenues from its real estate unit which offset the revenue drop in its coal and construction businesses.

In the nine months ending September last year, however, DMCI’s net profit fell 60 percent to P1.03 billion from P2.57 billion a year earlier due to the lack of extraordinary gains and higher costs and income taxes. The 2005 nine-month net profit included a one-time gain from the sale of shares in coal unit Semirara Mining Corp. amounting to P2 billion.