Benguet explores new biz opportunities

MANILA, Philippines - With its debt problem finally out of the way, the re-energized Benguet Corp. is looking at exploring new ore veins, rehabilitating its old Acupan gold mine to extend its mine life, and possibly putting up a new nickel processing plant for unit Benguet Nickel Mining Corp. (BNMI).

This was revealed over the weekend by Renato Claravall, Benguet’s senior vice president and chief finance officer, who said two of the three projects are still being studied because of the huge costs involved.

 Initially, Claravall said Benguet would proceed with a planned P65-million blanket drilling for nickel.

Likewise, Benguet will also utilize its old tailings and convert its tailing waste into gold by the first quarter of 2013.

However, Benguet is looking at the possibility of putting up a nickel processing plant to enable the firm to sell nickel ore with a lower moisture content, he added.

A nickel processing plant, he said, would also provide employment.

Additionally, Claravall said Benguet is studying a power plant component to the nickel processing plant.

Benguet has signed a memorandum of understanding with a Chinese think-tank to undertake a study for the power plant.

Putting up a processing plant, however, could cost up to $125 million, for which Benguet would have to raise funds for Claravell said.

Decision time for the processing plant, would be in the first quarter of 2012, at which time Benguet would also likely go to the financial market to raise the funds for the processing plant, he said.

The third project, Claravall said, would involve the costly rehabilitation of flooded portions of the old Acupan mine.

Unfortunately, Claravall said the cost of rehabilitation and draining/de-watering of five flooded tunnels could cost anywhere from $40 million to $60 million.

Furthermore, Claravall said Benguet is also mulling the idea of putting up gold processing facilities that would cost $15 million.