MANILA, Philippines - Benguet Corp. will pump an additional P247 million into wholly owned unit Benguet Nickel Mines Inc. (BNMI) to help complete the development of its project in Sta. Cruz, Zambales.
The fresh capital will boost BNMI’s paid-up capital to P1.25 billion, Benguet said in a disclosure to the Philippine Stock Exchange yesterday.
The mine consists of 1,406.7 hectares covered by a mineral production sharing agreement with the government.
Formed in 2009, BNMI has been exporting high-grade nickel ore to various markets. In the second semester of the year, it signed off-take agreements for the shipment of 3.8 million tons of high-grade nickel ore over the next three years.
BNMI continues to pursue a medium-term plan that will transform the company from a simple direct ore exporter into a producer of processed nickel. Included in the plan is the adoption of an innovative low-power consuming technology that will upgrade the quality of the lower grade ore which was the subject of a recent technical team visit to China.
Last year, the company shipped some 1.3 million tons of ore with grades ranging from 1.8 percent to 2.05 percent nickel through an off-take arrangement.
BNMI is considering the establishment of an intermediate processing facility to improve and maximize the value of its products.