DMCI Mining Corp. is allocating P700 million in capital expenditures this year to expand its operations in Palawan and Zambales, aiming for both higher production and long-term processing plans.
DMCI Mining president Tulsi Das Reyes said in a recent interview that the company is awaiting the signing of a Mineral Production Sharing Agreement (MPSA) for its Palawan mine project.
Reyes said the Palawan mine will begin commercial operations with an initial output of 1 million metric tons per year.
“We’re starting from scratch,” Reyes said. “But the port is completed already. We’re just waiting for the MPSA. We are ready to ship.”
Palawan is seen as a key growth area due to its high-grade ore and short hauling distance.
“It’s like a buffet. There’s a lot of options — from high to low grade,” he said.
The company also sees Palawan as a possible site for a High-Pressure Acid Leach (HPAL) or Mixed Hydroxide Precipitate (MHP) plant to produce battery-grade nickel.
DMCI previously formed a joint venture with Nickel Asia Corp. to evaluate the possibility of building a nickel processing plant in the country. The partners are also evaluating which technology to use for this planned venture.
“Japan has the technology, but China has proven they can do it faster and cheaper,” the official said.
However, a HPAL project would require a large ore reserve, he said.
“If you don’t have 3 million tons of reserve, HPAL will not be viable,” Reyes said.
In Zambales, DMCI Mining is also expanding its newly opened mine, which began operations late last year and has already completed five shipments.
The company is expanding the developed area from 20 hectares to 30 hectares by the end of the year.
Meanwhile, its older mine site is nearing depletion and is being prepared for final mine rehabilitation by next year.
Reyes is confident about the Palawan project and expects the company to recover its investments in one to two years due to strong demand from China and Indonesia.
He also noted that nickel prices have improved this year and the company expects them to hold.
