Platinum Group eyes $200M in export sales

The Platinum Group Metals Corp. (PGMC) is projecting an initial export revenue this year of $200 million from an initial production of 10 million pounds of nickel ore per annum from its two ferro-nickel smelting plants in Manticao, Misamis Oriental and in Iligan City, Davao (del Norte).

It’s major buyers are Australia’s BHP Billiton, China’s Dong Da Smelting Group and Japan’s Toyota Tshuho/Nippon Yakin.

However, PGMC is confidently projecting its export revenue to hit P1.2 billion by 2009.

PGMC is set to inaugurate on April 17 the Philippines’ first ferro-nickel smelter plant, according to PGMC chairman Ramon R. Atayde and PGMC president Rafael M. Atayde.

They have asked President Arroyo to grace the inauguration of the Iligan plant.

In an interview with The STAR, PGMC chairman Atayde disclosed that PGMC spent close to $50 million for its ferro-nickel plants in Manticao and Iligan City.

PGMC’s Iligan plant was formerly the Maria Cristina Chemicals Inc. (MCCI) calcium carbide plant. PGMC acquired the MCCI plant from the Guevarra Family in December 2006 and converted it into a ferro-nickel smelting plant whose vertical kilns have been operational since March 3 this year.

PGMC’s Manticao plant, on the other hand, has been converted from a ferro-chrome plant to a ferro-nickel smelting plant.

The Manticao plant is slated to start calcining operation by April 9 this year.

According to the two Ataydes, PGMC’s ferro-nickel smelters would add value to the mining industry by giving even small miners a ready market for their nickel ore even at low production volume.

They explained that because of the plant’s location in Mindanao, even small mines in Indonesia could be suppliers of ore to their plant because of the proximity of PGMC’s smelters in Mindanao.