MANILA, Philippines - DMCI Mining Corp. is seeking to double its exports to 1.2 million tons of nickel this year in response to the growing demand for nickel ore and iron laterite in Asian countries.
DMCI Holdings Inc. president Isidro Consunji said DMCI Mining ships to Japan and China as well as in Macedonia. “From only 600,000 last, we’re hoping to double our export this year,” he said.
DMCI’s venture into nickel mining was revived in 2010 when a mining contract with Benguet Corp. was finalized early this year. The agreement allows DMCI Mining to conduct exploration, development and mining activities for a limited portion of Benguet’s 1,406 hectares Sta. Cruz Nickel Project located in Sta. Cruz, Zambales.
The agreement also allows DMCI Mining to explore, develop, mine and sell up to 200,000 metric tons of two percent high grade nickel ore for a period of three years.
The mining venture has proved to be a good one as first quarter operations led to P7.4-million net income with contributions amounting P5.9 million this year to DMCI compared to P12.6-million loss for a negative contribution of P9.8 million last year.
Isidro said DMCI Mining is expected to grow its business even more with more mining explorations in the offing, a strong balance sheet and the current buoyant global coal industry.
Last year, DMCI suspended operations of its nickel and ore mining activities in Sta. Cruz, Zambales due to the steep drop of world nickel prices as demand from nickel users such as stainless steel plants and nickel smelter in China have slowed down after the Beijing Olympics.
DMCI and Rusina Mining had earlier considered putting up a nickel processing plant so they can produce higher quality metals instead of direct ore shipments. The plan was to invest in technology that would allow them to extract gold, nickel, and other precious metals from low grade ores to make their operations more sustainable.