MANILA, Philippines — DMCI Mining Corp., the nickel mining arm of Consunji-led DMCI Holdings Inc., is bullish that it would ship a record volume of three million wet metric tons (WMT) this year following the operations of its two new mine sites this year.
DMCI Mining president Tulsi Das Reyes said they anticipate a “historical” year for the business with the opening of its two new mine sites.
“We had a poor performance last year because Zambales was shipping out the only grade that we had available. We have been working on our expansion and so, whatever was produced we had to sell so we could not play with the market. We were totally inflexible,” Reyes said.
“It is only when we opened up some areas and we opened up (new mines)that we got flexibility. That is why we are calling this year a recovery year,” Reyes added.
DMCI Mining started the operations of Zambales Chromite Mining Co. (ZCMC) last month which has a production capacity of one million WMT. The ZCMC is expected to have full operational capacity within the first quarter.
Furthermore, the company is anticipating the operations of Berong Nickel Corp.’s Long Point Mine in Palawan soon as it is already in the final stages of securing a mineral production sharing agreement (MPSA) from the government.
“With increased production capacity and the Long Point port nearing completion, we are confident in delivering improved operational and financial performance this year,” Reyes said.
In the third quarter of last year, DMCI Mining contributed P48 million in the consolidated net income of DMCI Holdings Inc., a turnaround from the P154 million loss incurred in the same period of 2023.
Reyes noted that other factors that would contribute to the DMCI Mining’s shipment target this year would be the reported cut in Indonesia nickel output, which would significantly influence global market prices of the metal.
Reports have indicated that Indonesia, which accounts for at least half of global nickel supply, is poised to further slash its nickel production and export this year to hike prices in the world market.
“If Indonesia cuts its supply by that number, we should see the price improving. So we’re quite bullish this year,” Reyes said, while noting that China’s demand for nickel has been continuously increasing.
“China is quite hungry,” he added.
Furthermore, erratic weather patterns may hinder the firm from achieving its production and export target for the year as it experienced last year, Reyes added.
For one, the port construction at Long Point mine has been delayed due to unfavorable weather conditions causing strong waves in the area, Reyes said. The company plans to complete the port within the next 45 days.
DMCI Mining may be forced to push their shipment schedules if unfavorable weather conditions persist this year.
This year, the company is allocating P400 million in capital expenditures (capex) to support its expansions in the two new mines. Last year, the firm invested P634 million in capex that primarily went for the construction of the mine sites.