Integrated logistics and information technology services firm Island Information and Technology Inc. (IITI) is poised to return to the mining business with a potential deal with a “black sand” mining firm.
In a disclosure to the Philippine Stock Exchange, IITI said it was conducting a due diligence audit of JVDC Resources “to assess the feasibility of entering into a merger, consolidation, a mutual purchase or exchange of shares, or any other form of business combination the companies might deem proper.”
IITI is scouting for a financial adviser on a potential deal with JDVC Resources Corp.
JDVC Resources is a mining firm with a mineral production sharing agreement (MPSA) with the government for an offshore mining stake in Cagayan involving 13,240 hectares, based on an IITI press statement.
This MPSA grants it the exclusive right to explore, develop and utilize the magnetite mines and associated mineral resources in the offshore areas of Sanchez Mira, Pamplona, Abulug, Ballesteros, Aparri, Buguey and Gonzaga, in Cagayan.
China is the largest consumer of magnetite ore followed by Japan and Korea.
The world’s largest producer of magnetite ore is the Brazilian mining corporation Vale, followed by Anglo-Australian companies BHP Billiton and Rio Tinto Group, which control over 70 percent of the global market.
IITI was incorporated in 1959 as Island Oil Co. to engage primarily in oil exploration and mineral development projects.
Due to losses, the management decided to shift to metal mining in the province of Isabela, changing its name to Island Mining & Industrial Corp in 1965.
However, the rising costs of operations, fluctuating price of metals in the world market and the deteriorating peace and order situation curtailed operations, prompting management to suspend them in 1981.
In 2000, the company was cleared again to change its corporate name to the present one, and amend its primary purpose to information technology.
In 2005, SEC approved yet another amendment to IITI’s articles of incorporation.
The new primary purpose of IITI is to provide cargo container management and integrated logistics services.
Its secondary purpose is the provision of information technology services.