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DMCI to restart mining works

DMCI Mining Corp., a unit of DMCI Holdings Inc., said it plans to restart operations this month after the Mines and Geosciences Bureau clarified the suspension orders issued against mining companies were not final and immediately executory.

DMCI Mining president Cesar Simbulan said the company planned to start building up  inventory and re-hire mine workers that were laid off when the company shut down  operations last year after receiving a suspension order from the Department of Environment and Natural Resources.

Simbulan said the company also appealed the suspension order issued against its mining operations.

DMCI Mining owns Berong Nickel Corp., which received a suspension order in June because of alleged discoloration of Barangay Berong’s river system and tributaries. The government also suspended Zambales Diversified Metals Corp. in July due to alleged “social issues.”

Meanwhile, DMCI Holdings said core net income in 2016 stood flat at P12.1 billion due to lower contributions from its real estate, nickel mining and water businesses.

“The double digit growth of our energy and construction businesses were offset by the sharp drop in profitability of DMCI Homes, DMCI Mining and Maynilad (Water Services Inc.),” said DMCI Holdings chairman and president Isidro Consunji.

DMCI coal mining and power generation unit Semirara Mining and Power Corp. registered an all-time-high consolidated net income of P12 billion in 2016 due on higher coal and power sales. This resulted in a 43 percent year-on-year improvement in income contribution to DMCI to P6.9 billion from P4.8 billion.

Net income contributions from DMCI Homes and Maynilad Water Services fell 46 percent and 19 percent, respectively.

DMCI said the deferred recognition of revenues from its completed high-rise projects led to the earnings slump of DMCI Homes, while the expiration of Maynilad’s income tax holiday in December 2015 pulled down the water company’s profitability. 

Sales and reservation numbers of DMCI Homes, however, hit a historic high of 8,236 units, up 55 percent from 5,325 units in 2015.

Construction unit D.M. Consunji Inc. posted a net income of P938 million, up 49 percent from P628 million the previous year.

Income of off-grid supplier DMCI Power Corp. rose 11 percent to P424 million on higher electricity sales in Masbate and Palawan provinces.

Topics: DMCI Mining Corp.
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