DMCI plans merging its mining subsidiaries
Diversified engineering conglomerate DMCI Holdings, Inc. is considering the merger of its two mining subsidiaries, Semirara Mining and Power Corporation and DMCI Mining, which are now highly profitable due to surging global prices.
During the firm’s annual stocholders’ meeting, DMCI Chairman Isidro A. Consunji said “We are currently studying whether it will create value for our two sets of stockholders.”
He added that they are looking of transferring or consolidating DMCI Mining into Semirara will create value for both the stockholders of Seminara and the stockholders of DMCI Holdings which owns DMCI Mining.
Aside from its existing nickel mine in Zambales and coal assets in Semirara island, Consunji said DMCI has “several properties in Palawan that are awaiting permits that will lead to an MPSA (Mineral Production Sharing Agreement).”
In Zambales, he said DMCI has a property for chromite as well as some other adjacent areas that are diversified.
While prices are elevated for commodities including nickel and coal because of the Russian invasion of Ukraine, Consunji said there are various challenges such as Covid surges as well as high inflation and interest rates that may affect the profitability of their businesses.
“This year is a hard one to call. While these events are raising the prices of coal, nickel and electricity, they are also disrupting demand, supply chains and economic activities,” he noted.
Consunji added that, “At this point, the only thing we can conclude is that market volatility and uncertainly will remain elevated for the rest of the year.” Meanwhile, DMCI has elected Roberto L. Panlilio, Bernardo M. Villegas, and Cynthia R. del Castillo as independent directors during its Annual Stockholders’ Meeting.
They will take the seats of outgoing Executive Director Herbert M. Consunji and Independent Directors Antonio Jose U. Periquet and Honorio O. Reyes-Lao, who were all tapped to serve as advisors to the Board.
Panlilio is the former Country Chairman for the Philippines of J.P. Morgan, a global leader in financial services while Villegas is an economist, educator, author, columnist and director in several corporations and foundations.
Del Castillo is a Senior Partner and Executive Board member of Romulo Mabanta Buenaventura Sayoc and De Los Angeles. She is the first female independent director of DMCI Holdings and her appointment raises the company’s total female board representation to nearly half (4 out of 9).
“We are happy to welcome our new independent directors and advisors to the board. With their diverse backgrounds, professional expertise and exceptional qualifications, the Board can better navigate the increasingly complex and uncertain business environment,” said Consunji.