Iron ore mines in Philippines to start production in 2009
October 27th, 2008 | by mantrionline |It is reported that five companies including Global Steel Corporation are eyed as market by the first iron mine to rise in the Philippines after 40 years. The mine is set to start production from Bayog, Zamboanga del Sur by the Q1 of 2009.
Covering a total claim of 60,000 hectares, the Bayog iron mine is seen to produce one million tonnes of iron yearly. For the next 5 to 7 years it is targeted to produce three million tonnes yearly.
Mr Jun P Flores international sales director of Mikro Tech Capital Inc said that “It’s a big deposit. We have properties claims of close to 60,000 hectares for which negotiations are ongoing.”
MTCI, and its subsidiary 168 Ferrum Pacific Mining Inc, has gone into iron mining as it considers as highly critical the presence of iron resource in helping build a local steel industry. It has been eyeing negotiations with GSC which has been seeking for a consolidated supply of a significant volume of iron. MTCI already has a mineral production sharing agreement covering 8,400 hectares over the iron area held by Samar Mining Company. Aside from GSC and Baosteel, MTCI is also negotiating to supply iron to Baosteel and Nanjinzhao.
Mr Flores further said that “These companies are very interested in an iron supply. The grade is very high at between 62% and 68% in iron content.”
The Department of Environment & Natural Resources has granted an MPSA for iron ore production from Bayog in Zamboanga del Sur which covers six barangays. The mine has been operated by Samico in the 1960s to 1970s and had already produced more than 2.2 million tonne of high grade ore. The MTCI Group also runs the Harbor Centre Part Terminal Inc which is the country’s largest non containerized port.
Exploration in Bayog has been suspended in 1972 after the closure of the Zambales Base Metals Inc. which mined Samico’s Sibuguey mines. Then, iron mining was beset with high production cost problems.
Mr Michael Romero chairman of MTCI said in a statement that “168 Ferrum Pacific expects to contribute to the growth of the industry as the Asia Pacific market beings to take a good look again at the Philippines for their iron ore imports.”
The Bayog iron ore bodies are estimated to have a collective ore reserve of 1.01 million dry tonnes and 34.12 million DMT in ore resource with an iron content of 60 to 69.62.
