TKC Steel in venture to mine iron ore from Rizal property

TKC Steel Corp., the only listed steel manufacturer in the Philippines, announced on Thursday that its board has authorized a company agreement to mine ore reserves in Rizal province in through a venture with a local cooperative. The initiative to mine the ore is in conjunction with the program to provide TKC Steel with a steady supply of iron ore for its blast furnace project slated for commissioning in the fourth quarter of 2008, the company said in a statement. TKC Steel has finalized talks with the Kooperatiba ng mga Katutubo Remontado at Dumagat ng Sta. Ines, the owner and inhabitants of the property in Sta. Ines, Rizal, which contains several mining tenements. The property is said to hold an estimated 30 million metric tons of iron ore reserves, the essential raw material for the operation of the blast furnace project of Treasure Steelworks Corporation, a TKC Steel subsidiary. Under the terms of reference, TKC will have a 70-percent stake in the joint venture company, while the remaining 30 percent will be represented by the cooperative. The cooperative's participation would be the actual land that the JVC will be exploring and mining. “TKC's initiatives in mining operations are aimed at establishing an effective backward integration model to secure a steady supply of iron ore as a major component for the manufacture of high quality steel products," Dizon said. TKC Steel is currently embarking on a capital enhancement exercise through a follow on offering of approximately P2.3 billion which will be completed on Nov. 23. Proceeds from the offering will be used to finance its blast furnace facility as well as its expansion plans for its two subsidiaries; Treasure Steelworks Corp. and Zhang Zhou Stronghold Steel Works Co. Ltd. (ZZS). - Cheryl Arcibal, GMANews.TV