IPVG to decide on plans for $250-M refinery project

MANILA, Philippines - Listed IPVG Corp. would decide and sign a lease agreement on the location of a planned $250-million mineral refinery by the third quarter so that it can start construction of the facility later this year, an official said.

“We have identified several locations but we cannot disclose until we have decided. We will announce the location sometime in the third quarter,” Enrique Gonzalez, IPVG president and chief executive officer said in an interview.

He said the firm also plans to start the construction of the facility this year.

In May, IPVG announced that it signed an agreement, through its affiliate, New Wave Resources, with Canadian firm REC for the construction and operation of a mineral refinery.

Under the deal, REC would build the refinery and sell majority of the finished products through long-term off-take contracts.

Once complete, the refinery would have a capacity to produce 3,000 metric tons of refined minerals per year which would be used in several industries including high technology and green technology sectors.

“All of the ore to be processed will come from overseas,” Gonzalez said.

He said the firm intends to process some seven to eight minerals, which he declined to specify.

The finished products would be exported to countries like Japan, Korea, and the United States as well as those in Europe.

Gonzalez said funding for the construction of the facility would come from a combination of equity and debt.

“We think this will be good for the country because we will be exporting to other countries. It is a facility with a large investment which will generate greater foreign currency reserves,” he said.

In March, IPVG through its affiliate Conqueror Space Ltd. entered into a memorandum of understanding with REC to build and operate a similar mineral refinery in India.

Established in 1964, IPVG was engaged initially in information technology & telecommunications, online computer games and business process outsourcing.

IPVG was granted the exclusive rights to engage in the business of refining metal ores and other minerals in February.

IPVG underwent corporate restructuring and completed the transfer of its assets to a new entity named IP Ventures, Inc. last year. IP Ventures Inc. has the same ownership structure as that of IPVG’s.

The move, IPVG said earlier, was intended to allow the firm to generate cash for shareholders and to venture into new businesses.