Offshore mining all set amid delays, says Apollo Global

Listed holding company Apollo Global Capital Inc. (APL) said its subsidiary will commence within the month its offshore iron mine operations in Cagayan, touted as the country’s first large-scale offshore mining project.

APL is working on the offshore mining project through its unit, JDVC Resources Corp., which was supposed to start much earlier if not for Tropical Storm “Agaton” (international name: Megi).

The vessel, MB Siphon 1, which will be used for the offshore mining activities, is already at the mine site in Cagayan Valley. It was deployed in April last year.

“Unfortunately, certain circumstances beyond the control of JDVC or the company have caused a delay in the start of production by one month or until May 30, 2022,” APL said in a disclosure.

When the storm struck the country last month, APL was forced to move the vessel to another area away from the storm’s path.

Some water had entered the pump, causing a short circuit in the breaker despite efforts to keep the vessel unscathed.

“The pump supplier in China was contacted and it has indicated that the necessary parts may arrive by the third or fourth week of May. After arrival of the parts, some testing will be done before operations can commence,” it added.

APL said it will inform the local bourse of a revised project timeline as soon as the vessel’s parts have arrived.

Meanwhile, the company reported the major equipment required for the inland iron upgrading plant facility, designed to raise the iron grade to between 62 percent and 65 percent, is “already on its way.”

“The inland processing facility development is in full blast. The all-Filipino technical engineering group as well as contracting partners are working 24/7 to finish the necessary works in time for this year’s offshore production season,” APL said.

APL is expecting to extract 10,000 tons of magnetite iron ore per day from the mine site, which is said to have a lifespan of 47 years and could yield 512 million metric tons of mineral deposits.

Magnetite is a black isometric mineral of the spinel group that is an oxide of iron and an important iron ore. It can be used to make steel. INQ