Benguet Corp eyes China market

Publicly-listed mining firm Benguet Corp. is exploring the various markets for chromite, including China to improve its production output and revenue performance.

In documents filed with the Securities and Exchange Commission, Benguet said it is expecting a breakthrough export sales of refractory chromite to the People’s Republic of China. It has already submitted a proposal for an initial 5,000-metric ton order.

Apart from this, the company is actively identifying and pursuing leads on refractory chromite requirements in the World Wide Web.

Benguet is also exploring the epithermal deposits in the northeastern quadrant of the Kingking property. It has held several meetings with a group of foreign investors interested to develop the whole project. The company has already sent its foreign consultant and geologists to the site.

Tapping other opportunities for growth, Benguet has engaged the services of DCCD Engineering Corp. to prepare a feasibility study and private sector participation proposal for bulk water supply to the Baguio Water District. The company is aiming to complete the study and proposal before the end of the year. The project is considered as another major revenue-generating potential for the future.

Benguet’s performance suffered in the third quarter due to foreign exchange losses brought about by the devaluation of the peso and the lackluster market for refractory chromite. Consolidated net loss for the period July to September this year amounted to P100 million, much higher than the loss of P12 million in the same period of 2001.

The loss this quarter include non-cash accrued interest expenses of P52 million, foreign exchange loss of P46 million and depreciation and amortization of P12 million.

Benguet registered revenues of P43.9 million in the third quarter compared with P50.5 million last year.