Wellex Mining Corp., a member of the Wellex Group of the Gatchalian family, has signed an agreement with Vista Buena Corp. to develop and operate a 3,700-hectare mine site in Dinagat Island, Surigao, estimated to cost around P100 million.
Wellex Mining president and chief executive officer Weslie T. Gatchalian said the group is aiming for a large-scale operation of the site which is covered by a mineral production sharing agreement (MPSA).
Initial studies show that the property, located in the Surigao mineral reservation, contains substantial quantities of quality nickel and chromite.
The move is line with the new thrusts of Wellex Industries Inc. to diversify into the highly lucrative mining and oil exploration sectors.
Gatchalian earlier said the company is targeting sites that are covered by MPSAs in the Palawan province and Caraga region which includes Agusan Del Norte, Agusan Del Sur, Dinagat Islands, Surigao Del Norte and Surigao Del Sur.
Wellex Mining, through sister firm Wellex Petroleum, has applications for exloration of nickel and chromite in a 5,700- hectare property in Bataraza, Palawan. It is also seeking permits to explore for coal in a 10,000-hectare site in Eastern and Western Samar.
These properties are scheduled for exploration within the year.
The group is planning to export nickel and chromite to China, the world’s largest user of steel.
Funding for the group’s mining exploration activities will come from internally-generated cash or borrowings.
As for its oil exploration venture, the group is looking at investing in companies which already have interests in the South china area.