DMCI Mining targets to ship 1.5M WMT nickel ore in 2023

DMCI Mining Corp. is looking at shipping 1.5 million wet metric tons (WMT) of nickel ore this year, after its subsidiary Zambales Diversified Metals Corp. (ZDMC) secured a certificate to produce an additional 1 million WMT.

In a regulatory filing, DMCI Mining's parent firm DMCI Holdings Inc. (DMC) said ZDMC was granted an Environmental Compliance Certificate (ECC) in January to produce 2 million WMT of nickel ore, from the previous 1 million WMT.

ZDMC produced 599,000 WMT of nickel ore in the first quarter of the year, reflecting an 88% growth from 318,000 WMT previously to mark its highest quarterly output. This brought total inventory up 16% to 178,000 WMT.

“We have the necessary facilities and mitigating measures to minimize the impact of our operations on the environment,” DMCI Mining president Tulsi Das Reyes said.

“With these in place, we’re targeting to produce anywhere between 1.7 million to 2 million tons of nickel ore this year,” he added.

Total shipment for the first quarter fell by 21% to 487,000 WMT, on the back of the depletion of the BNC mine and stockpile, which was offset by the jump in ZDMC shipments during the period.

Nickel is a key ingredient in lithium-ion batteries, which are used in most electric vehicles (EVs), driving optimism for the firm.

Reyes late last year said he is optimistic about the EV business, with arrangements being ironed out with firms that currently have a business presence in China and Europe.

DMCI Mining is among the subsidiaries of Consunji-led DMC, along with DM Consunji Inc., DMCI Project Developers Inc., Semirara Mining and Power Corp., and DMCI Power Corp.

Moving forward, Reyes said he is optimistic that DMCI Mining will be able to compete with Semirara in five to seven years’ time, citing investors such as Warren Buffett, Amazon, and Google.

Shares in DMC were trading up by 1 centavo or 0.10% at P9.63 apiece as of 11:27 a.m. on Wednesday. —KBK, GMA Integrated News