DMCI Mining Corp., a wholly-owned unit of DMCI Holdings Inc., said Friday it plans to increase nickel ore shipments by 56 percent year-on-year to 2.5 million wet metric tons in 2016 amid a strong demand.
The company said it expected total shipments to reach 1.6 million WMT this year, up from 900,000 WMT in 2014.
DMCI Mining recorded a net income of P643 million in nine months to September this year, lower than the P840-million profit it booked in the same period last year due to weak global ore prices.
“There is continued softening of ore prices because of weak global demand and high metal inventories. We are keeping a tight control over our costs to keep our pricing competitive,” DMCI Mining vice president for business development Tulsi Das Reyes told reporters.
The Consunji-owned firm allocated P300 million for capital expenditures this year, which will be used to acquire heavy equipment for mining preparations.
DMCI Mining also budgeted the same amount for 2016 to sustain its equipment purchases and production ramp-up.
“We expect 2016 to be challenging given the market conditions. But we are optimistic that our efficiency measures, coupled with the prolonged El Niño-induced dry season will allow us to boost our production and shipment levels next year,” Reyes said.
Ore prices of high grade coal dropped by almost half from $68 per ton to $35 a ton, but DMCI said the average effect for the company was only $8, because it was shipping different grades of nickel ore.
DMCI Mining was established in 2007 to engage in ore and mineral mining and exploration.
The company uses open pit technique to extract nickel, chromite and iron laterite for direct shipping to China and Japan.
“We export majority to China, mostly to steel plants and traders,” Reyes said.
The company operates mines in Sta. Cruz and Candelaria, Zambales. In October 2012, DMCI Mining also has a majority stake in Toledo Mining Corp., which operates the Berong mine in Palawan.
DMCI also acquired a stake in ENK Plc, which owns the Acoje mine in Zambales.