TKC Steel, Harbour Centre group form mining jt venture

Local steel giant TKC Steel Corp. has signed an agreement with the group of Harbour Centre owner Mikee Romero to  form a joint venture company that will engage in the mining of  iron ore.

Under the agreement forged by TKC Steel and mining companies Mikro-Tech Inc. and Karanglan Resources & Mining Corp., the JVC will supply TKC Steel with iron ore for its blast furnace facility which is  scheduled to be operational by the last quarter of 2008.

Mikro-Tech is owned by Romero while KMRC is headed by Fidel Bermudez. KRMC is the registered claimant of 8,788.5-hectare tenements containing approximately 50 million iron ore and manganese reserves located in Bayog, Zamboanga del Sur.

Mikro-Tech is responsible for the actual mining operations of the sites.

The agreement stipulates that KRMC and Mikro-Tech shall assign all their rights with respect to their mining assets to the JVC including exploration, development and operation of the claims.

Iron ore is the primary raw material in the manufacture of steel billets, which is the principal product of Treasure Steelworks Corp., a subsidiary of TKC Steel.

TKC Steel president Anthony Dizon said the joint venture ensures a steady supply of iron ore at a more affordable rate for the company.

“Our partnership with Mikro-Tech and KRMC further reinforces our confidence in the blast furnace project, as this provides us the reliability in raw material supply as well as enabling us to improve on our production costs and efficiencies,” Dizon said.

Just recently, TKC Steel raised some P2.3 billion from  a follow-on offering of shares.  Listing of the shares is set on Nov. 23.

Through China-based unit Zhang Zhou Stronghold Steel Works Co. Ltd., TKC Steel  also supplies steel pipes in the  southeastern Chinese province of Fujian.  TKC, the only steel manufacturing firm listed on  the Philippine Stock Exchange, is part of the Tiu Group of Companies that also owns several businesses in the financial servicing and hospitality and tourism sectors. Among them are iRemit, an overseas remittance services company, Sterling Bank of Asia and the Discovery Hotel Chain.