MacroAsia to sell mining assets, spin off water business

MANILA, Philippines - MacroAsia Corp., the aviation-related services company of tycoon Lucio Tan, is considering selling its mining assets and at the same time spin off its water business in order to focus its operations solely on aviation.

“Because mining is not our core business so I think we’re better off selling it or joint venturing or license it so we’re looking at any modes available. Now that’s possible, now that the policy seems to be clearing up a little bit,” MacroAsia president and COO Joseph Chua said.

Chua said the mining business, together with its water venture, “do not seem to mix well” with its aviation-related operations.

“So the water will probably be spun off and so is mining, so we will be pure aviation,” Chua said.

MacroAsia, through unit MacroAsia Mining Corp., provides outsourced exploration services to other mining companies.

The company at present continues to provide nickel exploration services in Dinagat Island and nearby areas. It also has the mining rights for the Infanta nickel project in Brooke’s Point, Palawan.

“Like other mining companies faced with uncertainty in the government’s mining policies and programs in 2016, there was still no development in our mining project in Palawan. Thus, we conservatively booked in our parent company P212.9 million as provision for probable losses pertaining to deferred mine exploration costs incurred in our mining properties in Palawan covered by mineral production sharing agreements,” Chua said.

“The recovery of the deferred mine exploration costs depends on the commercial activities or re-opening of the old Infanta nickel mine,” he said.

MacroAsia Properties Development Corp., meanwhile, serves as a vehicle for the listed firm to become one of the natural resources developers in the Philippines, focusing on water re-use, treatment, and distribution.

In December last year, the unit acquired 67 percent of a water utility provider in the island of Boracay.

With the growth of its business portfolios in food services, ground handling and maintenance, repair and overhaul (MRO), Chua said MacroAsia is looking at 2017 with optimism and continued double digit growth.

“Looking at the first quarter performance, that level of performance can be sustained,” MacroAsia chief finance officer Amador Sendin said.

Sendin said the company has earmarked P1 billion for capital expenditures this year, and may spend another P1 billion next year for its projects.