MANILA, Philippines - San Miguel Corp. has approved an investment in the 30-kilometer Skyway project as well as the mothballed Nonoc nickel mine in Southern Mindanao.
In a disclosure to the Philippine Stock Exchange yesterday, San Miguel said its board approved an investment through its subsidiaries in operating companies which, in turn, would hold the controlling and operational rights in the Skyway project, South Luzon Arterial Road (STAR) tollways project and the Nonoc mine.
The company did not give out other details.
The investments are in line with San Miguel’s aggressive diversification plan aimed at spurring further growth.
San Miguel wholly-owned unit San Miguel Holdings Corp. holds a 46 percent stake in Atlantic Aurum Inc., the corporate vehicle of the Citra Group that has controlling equity interest in Citra Metro Manila Tollways Corp.
Citra Metro Manila is the concession holder and operator of the Skyway project, an elevated toll road that connects the capital to areas south of Metro Manila.
San Miguel Holdings has the option to increase its stake in Atlantic Aurum to 51 percent at a later date.
The conglomerate’s infrastructure portfolio includes a 35-percent interest in Private Infrastructure Development Corp., a consortium of companies building the P15-billion Tarlac-La Union toll expressway project, the Caticlan Airport, and the MRT-7 Railway. They are in various stages of development.
In January this year, San Miguel disclosed it was holding negotiations with the controlling shareholders of Philnico Mining & Industrial Corp. for a possible investment in the Nonoc mine.
Philnico is 55 percent owned by Compline Resources Co. of Hong Kong , 30 percent by Australia’s Pacific Energy Ltd. and the balance by local investors.
Located on Nonoc Island off Surigao City, the Nonoc mine is believed to hold one of the biggest nickel and cobalt resources in Southeast Asia. It ceased operations in 1982 due to tight liquidity problems and high energy costs. Philnico reportedly failed to pay the government $263.8 million in debt.
During the period of the plant’s operation, a total of 22.7 million tons of ore were mined and processed.
The potential of the mine as a large source of nickeliferous mineral was first recognized in the 1950s after initial exploration that was carried out by the Philippine Bureau of Mines, during which time the area was proclaimed as a mineral reserve.
San Miguel has been aggressively moving away from its core food and beverage business, and into heavy and high-growth sectors including telecommunications, oil refinery, power and infrastructure.
The conglomerate likewise approved the declaration of cash dividends amounting to P0.35 per share to stockholders of record as of Jan. 4, 2013. The dividends are payable on Jan. 30, 2013.