The Consunji clan is working to incorporate its 10% stake in Tampakan, the largest gold and copper mine in South Cotabato, into its publicly listed holding company, DMCI Holdings.
In a report by Manila Standard, DMCI Holdings president and CEO, Isidro Consunji, said that the interest, presently owned by their private entity Dacon Corporation, will be transferred to DMCI Mining, the mining branch of the firm, once the Tampakan mine is operating.
During the firm’s annual stockholders meeting, Consunji said that they had been considering a larger gold and copper mining asset in Mindanao.
Additionally, this year, DMCI Mining is expected to launch operations for two new nickel mines in Zambales and Palawan.
The company posted a net loss of Php 65 million in the first half of 2024, a stark contrast to its Php 723-million net income from the previous year, due to weak market prices, lower shipments, and costs from its Palawan mine.
DMCI Mining’s total revenues dropped by 60%, from Php 1.08 billion to Php 437 million, while production decreased by 37%, from 523,000 wet metric tons (WMT) to 323,000 WMT, due to permit delays and the near-depletion of its only active mine.
The company’s shipments also declined by 34%, from 487,000 WMT to 322,000 WMT, driven by reduced demand for Philippine nickel ore in China due to global oversupply.
The average grade of nickel sold slipped slightly, from 1.35% to 1.31%, in line with the management’s strategy to withhold higher-grade nickel amidst poor global pricing.
To fund the development of new mines, DMCI Mining secured an additional Php 300 million in long-term debt earlier this year.
DMCI Mining, a subsidiary of DMCI Holdings, operates open-pit mines in Palawan and Zambales through Berong Nickel Corp. (BNC) and Zambales Diversified Metals Corp. (ZDMC).
These subsidiaries focus on extracting nickel ore, chromite, and iron laterite using surface mining techniques known for being cost-efficient and safe.
