TKC Steel set to acquire control of Mindoro project

MANILA, Philippines - TKC Steel Corp. is in the process of acquiring a controlling interest in a mineral production sharing agreement that will allow large-scale mining operations in Mamburao, Occidental Mindoro.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, TKC said it shall form a joint venture with Dayap-mines Inc., the current holder of the MPSA, to develop the mining area. The joint venture company shall be 70 percent owned by TKC while the remaining 30 percent will be held by DayapMines.

TKC widened its net loss to P380 million in the quarter ending Sept. 30, 2011 from only P276 million the previous level. This was due to lower sales volumes of Treasure Steelworks and higher revenues of ZZ Stronghold.

Operating costs rose 5.3 percent due to the non-recurring income recognized on the lease transaction of ZZS.

As of end-September last year, the group’s financial condition remains stable with total assets rising 3.5 percent to P6.35 billion due to higher investment in property/plant/equipment which is consistent with the capital expansion and development projects both in Iligan and China.

Treasure Steelworks manufactures steel billets which in turn become the raw materials of downstream steel products such as bars, wire rods and section.

ZZS, on the other hand, manufactures ERW and spiral welded pipes for general construction, water tansmission and structural uses.