Benguet subsidiary pays dividend to parent firm

MANILA, Philippines - Benguetcorp Nickel Mines Inc. (BNMI), Benguet’s nickel subsidiary, yesterday announced that it has paid cash dividends to its parent company equivalent to P32 per share.

In a press statement, BNMI said that in 2010, it posted   net earnings of P101 million from direct shipping ore operations in Sta. Cruz, Zambales involving high-grade nickel ore.

BNMI said that in line with its medium term plan to transform the company from a direct ore exporter into processed nickel producer, the company is now studying different processes using its low grade nickel to produce a higher value material for export.

As such, BNMI has signed a cooperation agreement with a reputable Chinese institute engaged in research, design and development of thermal energy technology.

BNMI said that its operation in Zambales is contributing to the social upliftment of the community by providing local employment and other community services, such as scholarship programs, feeding programs, medical missions, livelihood projects and tree planting activities.

Since 2008, BNMI has planted a total of 48,100 trees in Sta. Cruz, Zambales covering an area of 28.68 hectares.

Benguet Corp., BNMI’s parent firm, just last week reported operating revenues for the nine-month period of P657.5 million, increasing 139 percent from 274.9 million for the same period in 2010.

Further, Benguet reported, its mining operations contributed P597 million or 91 percent of operating revenues.

BNMI’s Sta. Cruz nickel project, Benguet had reported, accounted for P339.6 million, while the Acupan gold operation contributed P251.4 million.

The Acupan gold mine, Benguet said posted net earnings of P72.7 million, or 28 percent higher than the P56.7 million in the same period in 2010.

Acupan’s higher net earning was primarily due to higher gold production of 3,257 ounces compared to last year’s 2,169 ounces, and gold price hike averaging $1,546 per ounce against $1,186 per ounce in 2010.

BNMI, Benguet said, generated net earnings of P83 million from nickel ore shipments from its Sta. Cruz nickel project, as against nil in the same period in 2010.

BNMI, in the third quarter, signed an off-take agreement for the sale and delivery of 1.8 million tons of high grade nickel ore over a period of three years.