Wellex earmarks P100M for mining, oil exploration
Gatchalian-owned Wellex Industries Inc. is budgeting around P100 million to jumpstart its divestment into mining and oil exploration from manufacturing and warehousing.
Weslie Gatchalian, president of Wellex, said the company has filed with the Securities and Exchange Commission a plan to amend its primary purpose although he emphasized that Wellex would continue its original business of leasing warehouse facilities.
“We’re just going back to our roots. We acquired Wellex in 1994 when it was still primarily engaged in the business of mining and oil exploration then under the name of Republic Resources and Development Corp. (Redeco),” Gatchalian said.
He said the company is scouting for sites that are covered by MPSAs (mineral production sharing agreements) in
He said the company is looking at mining nickel and chromite which it plans to export to
Gatchalian said Wellex expects to start exploration activities on at least one mine site within the second or third quarter this year.
Funding for its planned projects will come from internally-generated cash or borrowings. The company may also forge joint ventures with other firms to help finance its projects, Gatchalian said.
He said plans may also include the establishment of a smelting plant in partnership with another company, local or foreign.
“We’re open to forging partnerships with other companies but if we can do it on our own then we would do it,” he said. As for its oil exploration venture, Wellex is keen on investing in companies which already have interests in the
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