Consunji-led DMCI Holdings Inc. is funneling P28 billion for capital spending this year for its coal mining, nickel mining, power, and property businesses.
It’s an increase for the previous year’s P16.5 billion budget for the Consunji-led businesses. Of the group-wide capital spending, Semirara Mining and Power Corp. will receive P14.5 billion. SMPC is currently expanding its capacity to a maximum of 16 million metric tons.
On the other hand, DMCI Mining is hopeful that it can recover the losses the company incurred during the mining crackdown by previous Department of Environment and Natural Resources (DENR) Secretary Gina Lopez.
Two of its subsidiaries Berong Nickel Corporation in Palawan and Zambales Diversified Mining Corporation received suspension orders from DENR last year and is experiencing regulatory issues up to this year.
“We were projecting shipping out 800,000 tons of nickel ore this year but that was considering output for Q2,” DMCI Mining president Cesar Simbulan said last week.
“It looks unclear at this point as the 2nd quarter is ending and we haven’t been able to operate yet,” he added.
A more realistic target for 2017 would be 500,000 tons of nickel ore since the upcoming rainy season will dampen operations, Simbulan added.
DMCI Mining has shipped a total of 158,000 metric tons of stockpiled ore worth P299 million and divided into three shipments. This was after the DENR granted the company a reprieve from the suspension orders.
The company filed an appeal with the Office of the President against the new suspension. Under rules and regulations, the office has to stop the execution of DENR’s order. Since filing the appeal, DMCI has started rehiring its workers that were laid off following the suspension.
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