The project marks Omico’s first foray into housing development.
In a disclosure to the Philippine Stock Exchange (PSE), Omico said the project covers 14 hectares of land and will consist of 1,071 housing units with a mixture of single-detached, single attached, duplex and row houses.
A company official said Omico is expected to generate between P120 million and P150 million from the sale of housing units.
The move is in line with the mining firm’s objective of rearranging its asset structure and converting its real estate investments into cash while considering opportunities outside of the property sector.
Last year, Omico inked an agreement with real estate developers Sta. Lucia Realty & Development Inc., Asian Pacific Estates Development Corp. and Asian Empire Corp. to develop its 23.25-hectare property in Urdaneta, Pangasinan into a residential and/or commercial subdivision.
Omico expects to receive a 45 percent share in the profits to be generated from the proposed venture.
The remaining 55 percent will go to Sta. Lucia and its co-developers.
Profits to be generated from the venture will be used by Omico to pursue its mining ventures especially with the renewed interest in the sector following a ruling issued by the Supreme Court allowing foreigners to own up to 100 percent of local mining projects.
Omico is expected to sign similar agreements with other real estate developers in the future. The company has real estate properties in Baguio, Tagaytay, Cabanatuan, Makati and Nueva Ecija.
In June 1993, a massive landslide caused by a typhoon resulted in an interruption of Omico’s previous exploration activities. In the following years, the mining industry suffered a slump caused in part by the Asian crisis and by the decrease in the worldwide demand and fall in the market prices of copper and other mineral products.
Since then, management of the company decided to limit its exploration activities to preparation of mine sites and to wait until the demand and market prices of copper and other mineral products become favorable before it starts its mining operations.