Bacnotan scouts for mining investments

REPORT FROM BUSINESSWORLD Listed holding firm Bacnotan Consolidated Industries, Inc. is pursuing opportunities in the mining sector, President Ramon R. Del Rosario, Jr. told BusinessWorld. On the sidelines of the annual stockholders’ meeting last week, Mr. del Rosario said Bacnotan and its oil and mineral exploration firm Trans Asia Oil and Energy Development Corp. will set up a subsidiary for its mining projects before the yearend. "We have been looking at the prospects in mining for some time. We realize the environment for mining has very significantly improved," he said. "We are looking at it more intensively. We had a small involvement in mining in the past, which is Philippine Iron Mines but we had no major operation in mining," he added. Its 26% affiliate Trans Asia Oil, he said, was interested in adding mining resources in its scope. In a filing, Trans Asia Oil said the Mines and Geosciences Bureau (MGB) Regional Office in Daraga, Albay, endorsed its application for a mineral production sharing agreement (MPSA) for the exploration of a 585-hectare block in Jose Panganiban, Camarines Norte, to the MGB Central Office in Quezon City. The area of interest includes the former mine site of Philippine Iron Mines which is prospective for iron, copper, gold, molybdenum and uranium deposits. The coverage of the MPSA has been reduced to 333 hectares to exclude areas on which mining is prohibited, such as swamps and beaches. "Discussions were held with a number of foreign and local groups interested in joint exploration of metallic resources within the company’s claim area," Trans Asia Oil said. Mr. del Rosario said his company has yet to determine how much money it would be setting aside for mining investments. "At this point, we have not yet firmed up the project. It will depend on the requirements of the projects itself. We are very hopeful we will do something concrete this year," he added. Possible IPO If the prospects are "good enough," the mining subsidiary will list its shares in the exchange. "We will look forward to doing that but there are no specific plans yet," he said. Mr. del Rosario’s announcement of Bacnotan’s plan to engage in mining came after food and beverage firm San Miguel Corp. confirmed plans of venturing into mining and power, among others. San Miguel recently disclosed it will increase its authorized capitalization to 7.5 billion shares equivalent to P37.5 billion at par value from the current 4.5 billion to fund the group’s acquisitions and expansion into other businesses as well as pay down debts and finance possible share buy-back. San Miguel said it was planning to venture into power, mining, infrastructure, water, and other utilities to tap new engines of growth. — Ruby Anne M. Rubio/BusinessWorld