DMCI Holdings Inc. expects mining and power businesses to grow faster than its other subsidiaries.
DMCI chairman Isidro Consunji said Wednesday during the company’s annual stockholders meeting DMCI Mining had secured the needed environmental compliance certificates that would enable it to more than double its nickel ore production in Zambales province.
The company is in the process of securing the needed auxiliary permits to ramp up production and operate the new mines by early next year.
Consunji said with these developments, DMCI Mining could start shipping more and higher grade nickel ore in 2024.
DMCI Power is also expected to accelerate its growth with the commissioning of additional plants in Palawan and Masbate provinces this year.
“Over the next couple of years, I see DMCI Power and DMCI Mining to grow faster than the rest of businesses we have in the group,” Consunji said.
“We have more permitting coming in, and we expect even more for DMCI Mining. There are a lot of shortages of electricity in the areas we operate in—Palawan, Mindoro and Masbate that I believe DMCI Power is in good position to fill the gaps in the supply in these three islands,” Consunji said.
“So we are confident that these two firms will grow faster than the rest of companies in our portfolio,” he said.
Consunji said DMCI Power also plans to construct wind and solar projects in Semirara Island early next year.
These renewable projects will have capacity of up to 15 megawatts that will serve the requirements of coal mining firm Semirara Mining and Power Corp. and island residents.
Consunji expects the group’s growth to be muted in 2023 after a record breaking net income in 2022 due to moderate global economic recovery, persisting geopolitical tensions and elevated domestic inflation.
“Price volatility, cost inflation, high interest rates and the lingering impacts of the pandemic should affect some of our businesses. However, we also see bright spots in the power and water businesses, which should benefit from recovering consumption and better prices,” Consunji said.
Consuni said Semirara and DMCI Mining would focus on optimizing their production while reining in costs.
DMCI Homes will also explore new product formats such as leisure and premium offerings and employ value engineering techniques to identify cost-efficient options, he said.