DMCI Mining eyes record production, shipments this year

MANILA, Philippines — As it looks to hit record production and shipments this year, Consunji-led DMCI Mining Corp. plans to open two new mines to sustain its output and growth momentum.

In a disclosure to the Philippine Stock Exchange yesterday, DMCI Mining president Tulsi Das Reyes announced plans to open two new mines – one to be operational by December this year and another is set to open by the second quarter of 2024.

In a briefing with reporters, Reyes said the first is a new nickel mine in Zambales, which is estimated to produce approximately 20 million metric tons (MT).

Located inside the property of Zambales Diversified Metals Corp. (ZDMC), the new mine will be operated by Zambales Chromite Mining Co. (ZCMC).

The company is securing the necessary permits to start operating the mine by year-end.

“I strongly believe that we have a very good chance to get this permit before year-end, but please note we have to get a tree cutting permit afterwards. Once we get the tree cutting permit, we can start mining,” Reyes said.

For the second mine, the company official did not disclose the location, but shared that it is projected to produce at least 70 million MT.

Both mines are expected to yield medium to high grade nickel ores once the company starts operations, Reyes said.

The two new mines will help DMCI Mining sustain its growth momentum and offset the impact of its Berong mine depletion.

Reyes is optimistic the company will hit record volumes in terms of production and shipment this year.

The company has surpassed its 2022 nickel ore production of 1.03 million wet metric tons (WMT), with first half production already at 1.12 million WMT.

Meanwhile, shipments reached 1.06 million WMT during the period, equivalent to 73 percent of the total sales volume of 1.45 million WMT last year.

In 2021, the mining firm shipped an all-time high 1.9 million WMT of nickel ore.

“Normally, the average is one million tons a year. We hit one million tons in the first six months, so we’re very pleased that we will have a historical year in terms of shipments this year and that will help offset the lower prices,” Reyes said.

The company official attributed the strong performance to “improved operational efficiency and permit timing.”

“Shortly after ZDMC was granted an ECC amendment, we worked on securing the auxiliary permits, local manpower, and heavy equipment needed to boost our production capacity,” Reyes said.

Last January, ZDMC was granted an amended environmental compliance certificate (ECC) that allowed the company to raise its annual production to a maximum of 2.7 million dry metric tons.

Moreover, ZDMC will be able to serve a bigger chunk of nickel requirements of customers, particularly China, when Surigao mines close for off-mining season in October.

“With Surigao shutting down or closing for the season of October, we feel that prices will go high because the supply is naturally decreased. So, I’m very positive for the outlook for the last quarter of this year and the first quarter of next year for me, personally, because our mine sites normally operate when Surigao closes,” Reyes said.

For the first half of this year, DMCI Mining recorded a net income of P708 million, a 35 percent drop from P1.09 billion due to lower selling prices and increased costs from higher shipments, fuel consumption, depreciation, amortization, and labor expenses.

Incorporated in 2007, DMCI Mining is in the business of mining, buying, shipping and transporting all kinds of ores, metals and minerals. It involves surface mining and direct shipping of nickel ore and is conducted through simple benching operation using excavators and trucks in Sta. Cruz and Candelaria, Zambales.