MRC Allied sets up P1-billion firm for mining ventures

MANILA, Philippines - MRC Allied Inc., publicly-listed firm now 80 percent owned by Lucio “Bong” Tan Jr., is setting up a P1-billion company to serve as the vehicle for its foray into the highly-extensive mining business.

In a disclosure to the Philippine Stock Exchange yesterday, MRC president Benjamin Bitanga said the new company is now in the process of incorporation and will be named MRC Mining Inc.

Among the initial assets to be infused into MRC Mining include a mining agreement entered into by the company yesterday for gold and copper covering a 7,955-hectare property in Kiblawan, Davao del Sur and Columbio, Sultan Kudarat.

The subject parcel of land is adjacent to the property where Sagittarius Mines Inc.’s Tampakan copper gold project is located. The Tampakan mine is believed to have the potential to become the biggest gold mine in Asia and the fifth biggest gold project in the world once operational.

Under a new management, MRC’s thrust is to acquire operating companies or entities that will give the company immediate profitability. The company expects to be in a position of positive operating cash flow by the first quarter of 2011.

For the whole of next year, MRC is eyeing net earnings of P150 million and revenues of at least P4 billion.

MRC is planning to raise at least P500 million through a follow-on offering to fund acquisitions.

Tan Jr. was earlier reported to be close to acquiring a majority stake in Johnny Air Cargo. The transaction is expected to cost between P500 million to P800 million. Johnny Air Cargo (JAC) pioneered the industry in speedy, reliable delivery of packages between the United States and the Philippines.