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Posted on September 06, 2011

Miner’s output surges

PHILEX MINING Corp.’s metal output and shipments as of August continued to rise over year-ago levels due to higher metal prices. The miner said in a statement yesterday the estimated value of its ore production from its Padcal mine in the province of Benguet for January to August rose 48% to P10.99 billion from the P7.42 billion in the same period last year. The value of the firm’s shipments, meanwhile, reached P9.23 billion, up 52.56% from the P6.05 billion in the same period a year ago. Philex said that for the month of August alone, the value of its ore production amounted to P1.476 billion, 13.54% higher than the P1.3 billion last year. The firm said it produced 11,518 ounces of gold valued at P886 million in August, lower in terms of volume than the 13,738 ounces of gold output last year, but higher in terms of value compared to the previous year’s P769 million. The firm’s copper production reached 3.237 million pounds valued at P571 million, compared to the 3.356 million pounds of copper amounting to P506 million last year. Philex also said it mined 10,971 ounces of silver worth P19 million, lower than the 13,615 ounces valued at P12 million a year ago.

Exploration area to grow

LISTED TRANS-ASIA Oil and Energy Development Corp. and other members of the service contract 51 consortium will enter another phase of exploration in Leyte. “The Department of Energy approved the service contract 51 consortium’s entry into exploration sub-phase 4, with a work commitment of 100 line-kilometers of onshore 2D seismic program and a corresponding financial obligation of $3 million,” Trans-Asia said in a disclosure to the bourse yesterday. The service contract is located in Leyte. The area is estimated to produce two million to 18 million barrels of oil. Drilling began in April and may cost $2.5 million to $3 million. The drilling was estimated to be completed within 27 days. The service contract covers 332,000 hectares. Trans-Asia’s consortium partners include Alcorn Gold Resources Corp., PetroEnergy Resources Corp. and NorAsian Energy Ltd., a unit of Otto Energy. Otto Energy was supposed to transfer 40% equity in SC 51 to Swan Oil and Gas Ltd. but remain as operator. A “farm out” agreement allows a company to offer part of its participating shares in a service contract to another company to help fund projects in the area. Shares of Trans-Asia closed flat at P1.03 a piece.

Business ties forged

INFORMATION CAPITAL Technology Ventures, Inc. (ICTV) has inked a partnership deal with Chinese technology giant Huawei International Pte. Ltd. for a possible business relationship. “[ICTV] has entered into a Memorandum of Understanding (MoU) with Huawei International Pte., Ltd., Huaweir Technologies Phils., Inc., and Next Mobile, Inc.,” ICTV said in disclosure to the local stock exchange yesterday. The MoU, the firm said, was signed on Sept. 2, during the Philippine-Eastern China Business Forum held in Shanghai. “The parties desire to explore the possibility of entering into a business relationship which will allow each party to provide its respective contribution in order to attain the common purpose of implementing Next Mobile’s nationwide buildup plans,” ICTV said without elaborating. ICTV provides telecommunication services. Huawei, on the other hand, is one of the world’s largest supplier of networking equipment and for mobile telecommunications infrastructure. Revenues of Huawei Technologies Co. Ltd. from the Philippines is expected to grow over $400 million this year from about $320 million in 2010, driven by telecom carrier, enterprise and consumer business units, officials said last month.

Hog farms planned

PILMICO FOODS Corp., the food unit of the Aboitiz Group, plans to put up two new swine farms by next year on top of the five company-owned farms as the firm seeks to control more operations rather than lease facilities, a ranking official said last week. “We are building more swine farms. We’re building farm [number] 6 and 7, which we expect to complete by next year,” Sabin M. Aboitiz, president and chief executive officer said in a chance interview. The first of the two farms, he said, is expected to be completed by June of next year, while the second farm should be operational by the second-half of next year. “In our own farms, our cost is much lower. It is well-ventilated and very modern,” he said. He also said the firm’s rented farms only have a capacity of 500 to 1,000 hogs, lower compared to the 7,000 hogs their own farms can accommodate. The firm also makes wheat flour.