“WE are now smelting.” Thus declared Davao City investor Leonardo A. Fernandez in announcing to the world that his iron ore venture in Zamboanga Sibugay will not only be extracting rich iron ore deposits, but his company, Mt. Zynai Mining Co. , will smelt these ores into final steel products for Philippine use.
The industrial park will host the smelting plant and other accessory facilities and will cover the 50 hectares of the park. The remaining 50 hectares will be allocated to outsiders in other mining-related ventures.FERNANDEZ said they bought from China two drilling machines, each costing $200,000, to conduct further geological and metallurgical studies to determine a more proximate estimate of the deposit, although his partner from Shenzhou Investor Corp.
At this capacity, it could cut down nearly half of the annual importation of steel billets from China, which charges $24 per ton. Each ship carries 50,000 metric tons of these steel billets. “My target is to kill this dependence on steel from China and to bring down the cost of construction in the Philippines,” he added.
Fernandez said earlier that their agreement was on 60-40 terms, the bigger percentage going to the Philippine market. When pressed for further comment, Lin reiterated that all that would be produced by MZMC may be sold in the Philippines “because we know that the Philippines is really in need of steel.”
The MZMC also negotiated with the Subanen tribe to mine the iron ore in Bayog, which would cover some 15,000 hectares.
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