Digging for profits: Who owns PH mines?


QUICK FACTS

Name of mining firm: Zambales Diversified Metals Corp.
Location: Sta. Cruz and Candelaria, Zambales
Mining area: 3,765.38 hectares
Metals extracted/mine products: Nickel ore
Nickel production (2020): 354,039 dry metric tons (direct shipping ore) valued at P770,431,279
Mining permit period: 2004-2029

 

OWNERSHIP

Incorporation date: Sept. 14, 2007

Stockholders: 
DMCI Mining Corp.
Simbulan, Cesar Jr. F.
Consunji, Isidro J.
Reyes, Tulsi Das C.
Consunji, Jorge A.

Chairperson of the Board: Consunji, Isidro J.

Zambales Diversified Metals is a subsidiary of DMCI Mining Corp., owned by DMCI Holdings of the Consunji family. 

 

MINING REVENUE FROM SALE OF MINE PRODUCTS

Current assets: P418.99 million (2019)
Current liabilities: P1.54 billion (2019)
Total revenue: P289.35 million (2019)
Revenue from sale of nickel ore: P282.43 million (2019)
Net income: P99.81 million (2019)

 

STATUS OF OPERATIONS

On Feb. 8, 2017, the Department of Environment and Natural Resources (DENR) issued an order cancelling the company’s mineral production sharing agreement (MPSA). This was based on the suspension order imposed on the company on July 17, 2016, the findings of a DENR audit, and other alleged violations of laws and regulations.

The company filed a motion for reconsideration on March 2, 2017 and a notice of appeal with the Office of the President on March 31, 2017.

On Aug. 11, 2017, the Office of the President ordered the company to post a surety bond amounting to P5 million in favor of the DENR, as guarantee that the company would put up a trust fund in case the courts allowed it as a valid condition for the issuance of a permit.[1] 

On Nov. 12, 2018, the DENR resolved the company’s motion for reconsideration. It modified the earlier order to cancel the MPSA, suspending instead the company’s mine production and shipment of ores subject to corrective measures. The company was also ordered to correct all violations and deficiencies (under an action plan) and pay all fines and penalties immediately.

The company submitted a detailed action plan to the DENR on Nov. 27, 2018. The plan was evaluated, reviewed and approved on Nov. 28.

On Sept. 30, 2019, the DENR granted the company's motion for reconsideration and lifted the suspension of mining operations.

 

COMMUNITY PROFILE

Municipality class of mining location: Sta. Cruz, Zambales (1st class)
Population: 58,151 (2015)
Poverty incidence rate: 23.7% (2015)
Human Development Index: 0.53 (2012, provincial)
Municipality class of mining location: Candelaria, Zambales (3rd class)
Population: 27,174 (2015)
Poverty incidence rate: 20.54% (2015)
Human Development Index: 0.53 (2012, provincial)

 

IN THE NEWS

Philippines lifts suspension on nickel-miner Zambales Diversified
2 Zambales mining firms suspended
CA junks environment protection plea vs Zambales mining firms

 

Sources:

General Information Sheet, 2020
Financial Statement, 2019
List of existing Mineral Production Sharing Agreements, Mining and Geosciences Bureau
Philippine Metallic Mineral Production, Mines and Geosciences Bureau
Poverty and socioeconomic indicators, Philippines Statistics Authority

 

Note: The Human Development Index is a measure of how well a country has performed, not only in terms of real income growth, but also in terms of social indicators that measure people's ability to lead a long and healthy life, acquire knowledge and skills, and have access to the resources needed to afford a decent standard of living. An HDI value below 0.550 is considered low and below 0.399 is very low. The national average for the Philippines is 0.718 as of 2020.

This article was produced with the support of Internews' Earth Journalism Network.