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AFTER
sealing a partnership with Zamboanga-based mining firms,
TKC Steel Corp. is now finalizing an agreement with a
local cooperative for the mining of iron-ore reserves in
Rizal province.
In a
statement, TKC said the initiative was in conjunction
with the program to have a steady supply of iron ore for
its forthcoming blast-furnace project slated for
commissioning in the fourth quarter of 2008.
Iron ore
is the primary raw material in the manufacture of steel
billet, which is the principal product of TKC’s
subsidiary, Treasure Steelworks Corp., based in Iligan
City.
TKC
already completed talks with the Kooperatiba ng mga
Katutubo Remontado at Dumagat ng Sta. Ines, the rightful
owner and inhabitants of the property in Sta. Ines,
Rizal, which contains several mining tenements. The
property is said to contain an estimated 30 million
metric tons of iron-ore reserves.
Under
the proposed terms of reference, TKC will have a
70-percent stake in the joint-venture company, while the
remaining 30 percent will be represented by the
cooperative, being the owner of the property that will
be mined.
The
indigenous tribes are also set to receive additional
social benefits provided by TKC on top of the financial
benefits from the mining operations.
“TKC’s
initiatives in mining operations are aimed at
establishing an effective backward integration model to
secure a steady supply of iron ore as a major component
for the manufacture of high-quality steel products,”
said president Anthony Dizon.
On
Monday the company announced its partnership with Mikro-Tech
Inc. and Karanglan Resources and Mining Corp. for the
purchase of the Zamboanga mining firms’ iron ore output.
Karanglan Resources and Mining Corp. is in Bayog,
Zamboanga del Sur, with roughly 50 million iron-ore and
manganese reserves. Mikro-Tech Inc., meantime, conducts
the actual mining operations of the sites.
TKC is
the only steel manufacturer listed on the Philippine
Stock Exchange. It is part of the Tiu Group of Companies
that also owns several businesses in the financial
servicing and hospitality and tourism sectors. Among
them are iRemit, an overseas remittance-services
company, Sterling Bank of Asia; and the Discovery Hotel
chain.
The
company is currently embarking on a capital-enhancement
exercise through a follow-on offering of approximately
P2.3 billion worth of shares. Listing of the additional
shares is scheduled today.
The
proceeds will be used to finance its blast-furnace
facility, as well as its expansion plans for its two
subsidiaries—Treasure Steelworks and the China-based
Zhang Zhou Stronghold Steel Works Co. Ltd., a
manufacturer of steel pipes in the southeastern Chinese
province
of Fujian. |
