DMCI Mining set to open two new mines amid record year

Consunji-led DMCI Mining Corp. is eyeing to hit record production this year after nearly surpassing its 2022 level in the first six months of 2023.

DMCI Mining said its first-half output hit 1.12 million wet metric tons (WMT) in the first half of the year, 98% higher than the 567,000 WMT last year and up from the 1.03 million WMT for the full-year 2022.

“We attribute our strong performance to improved operational efficiency and permit timing,” DMCI Mining president Tulsi Das Reyes said in a regulatory filing.

The firm is also scheduled to open two new mines in the coming months.

“To sustain our growth momentum and offset the impact of our Berong mine depletion, we are looking to open new mines in Zambales,” he added.

Reyes said the company is currently in the process of securing a permit for an area inside Zambales Diversified Metals Corp. (ZDMC), which it targets before the end of the year. The area was already drilled prior to the firm’s acquisition.

This will be operated by Zambales Chromite Mining Co. (ZCMC). and is estimated to produce some 20 million MT.

“We will possibly, I’m confident we’ll get the permit, shovels in the ground, depende sa timeline ng mga suppliers namin, the way the regulators approve our permit, but I’m very confident it’ll happen within the proper time frame, plus minus one month,” Reyes said.

This comes after ZDMC was granted an amended environmental compliance certificate (ECC) in January, which allowed it to increase its annual production to a maximum of 2.7 million dry metric tons.

The company in June said it targets 1.5 million WMT of nickel ore this year, after ZDMC produced 599,000 WMT of nickel ore in the first quarter.

While the location of the second mine was not disclosed, it is set to generate at least 70 million high-grade MT which it aims to open by mid-2024.

DMCI Mining posted a P708-million net income in the first semester, reflecting a 35% decline from P1.09 billion due to lower selling prices and increased costs from higher shipments, fuel consumption, depreciation, amortization, and labor expenses.

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. —VAL, GMA Integrated News