Benguet Corp. is studying options for a year-round nickel processing and shipping to get more value out of its products, according to a company official.
CFO Renato A. Claravall said in an interview that Benguet Corp. was considering acquiring property along the Surigao-Agusan coastline to be able to process and ship nickel year-round. If it takes this option, the company would likely take on a loan to fund the move.
“If there are suitable properties in the Surigao-Agusan coastline we would be very interested,” Claravall said in a phone interview.
Among the factors Benguet Corp. is considering in line with the target of a year-round nickel processing and exporting are the technologies that would suit its planned operations.
The company has yet to finalize the cost estimates for its various options but the ballpark cost for a nickel processing plant was placed at about $200 million, Claravall said.
In pursuing this strategy, Benguet may also have to find a technical partner, Claravall said.
As for Benguet Corp.’s old debt, he said the bulk had already been settled and that there were ongoing efforts to retire or restructure the remaining 17 percent.
Benguet Corp. also has the option of building its processing plant in its Sta. Cruz nickel project site in Zambales, which sits on a 1,406.7-hectare property. Half of this property can be used for processing, the official said.
At present, Benguet subsidiary Benguet Corp. Nickel Mines Inc. produces and ships nickel from Zambales from November to May. Rainy weather, from June to October, disrupts shipments due to rocky waves off Zambales.
“Another thing we can do is to form a joint venture with a Chinese company. We can become its raw materials supplier,” Claravall said.