Benguet Corp. said Monday it is infusing P247 million in additional equity into wholly-owned unit Benguetcorp Nickel Mines Inc.
The company in a disclosure to the stock exchange said the additional equity investment would bring Benguetcorp Nickel’s paid-up capital to P1.25 billion and enable the nickel mining unit to complete the development of the Sta. Cruz project in Zambales province.
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Benguetcorp Nickel operates the 1,406.7-hectare nickel tenement in Sta. Cruz and has been exporting high-grade ore to various markets. The nickel mining unit is pursuing a medium-term plan that will transform the company from a simple direct ore exporter into a producer of processed nickel.
The plan includes the adoption of an innovative low-power consuming technology that will upgrade the quality of the lower grade ore. Benguet recently sent a technical team to China to study technology.
Benguetcorp Nickel in August signed an off-take agreement with trader Bright Mining and Resource Company Ltd. of China for the sale of a fixed nickel output over the next three years.
The agreement covers delivery of 1.8 million metric tons of nickel ore with a grade of 1.8 percent nickel.
Nickel is a metallic mineral used in electroplating, coinage and in the manufacture of stainless steel.
The nickel mining company last year shipped some 1.3 million tons of ore with grades ranging from 1.8 percent to 2.05 percent nickel through an off-take arrangement.
The mother company posted a net income of P1.176 billion in the first nine months of the year, a turnaround from a net loss of P58.3 million year-on-year.
Benguet attributed the strong performance to increased gold and nickel production, higher metal prices and gains from the continuing settlement of the company’s debt, as well as from the accelerated payment of the Kingking transaction.
Stock price of Benguet on Monday closed unchanged at P27.50. - (Manila Standard Today / by Jenniffer B. Austria)
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