ATN Holdings. Inc. takes advantage of the government’s infrastructure program by entering a P 760-million partnership contract with AlphaRock Mining Corp. to increase production of rock aggregates and possibly generate a revenue of P 12 billion.
“With the monstrous demand dwarfing Mega Manila rock aggregate supply chain, the company shall sign a five-year contract in the amount of P760 million with AlphaRock Mining as the second development contractor, with contractual commitment for 12 million tons and double ATN production for the Build, Build, Build program,” the company said in a disclosure issued on March 26.
The five-year contract also involves the development of a 256-hectare property in Montalban, Rizal owned by ATN. Also, AlphaRock will be required to deliver ATN 2.4 million tons of rock aggregates during the span of the contract.
Two of the government’s Japan official development assistance-funded infrastructure projects need high-quality rock aggregates said the mining company. These two projects were revealed to be the Metro Manila subway project worth P 365 billion and the P 149-billion North Rail project.
According to ATN, if the 10 percent of the allocated capital spending of said projects will be allocated for rock supply, they will be able create a P 50 billion demand for rock aggregates.
ATN’s property in Montalban currently holds a P 240 billion worth of high quality rock reserves. This supply, and their short distance of 15 kilometers to the government projects needing the rock aggregates, resulted in a “strong buyer’s interest for 10,000 truckloads of 3/4” & 3/8” aggregates urgently needed every month.”
Meanwhile, AlphaRock’s required delivery of 2.4 million tons per year priced at P 1,000 per ton became the basis of ATN’s target revenue of P 12 billion.
ATN, however, noted that adverse weather conditions, a change in political climate, or the slowdown of the budget rollout for infrastructure projects can still affect this projected revenue to come-out of their partnership with AlphaRock.
