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San Miguel Proposes to Reopen Nonoc Nickel Mine

  • Monday, December 24, 2012
  • Source:

  • Keywords:San Miguel Nonoc Nickel Mine
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Business Inquirer Net reported that diversified conglomerate San Miguel Corporation will reopen the Nonoc nickel mine with a new USD 2.5 billion refinery, in a deal that is only awaiting the approval of President Aquino.

Mayor Ernesto Matugas, who took part in the talks between San Miguel and Philnico’s controlling partners early this year said that a major aspect of the “friendly takeover” bid would be San Miguel’s construction of a modern nickel refinery and its offer to shoulder a portion of the mine operator’s standing obligations some USD 300 million to the national government and PHP 200 million in real property taxes to the city government.

In last Thursday’s Philippine Stocks Exchange disclosure, San Miguel said its board has approved the Nonoc nickel mining projects, along with the Skyway and South Luzon Arterial Road projects.

The construction of a “modern, eco-friendly refinery” was the latest detail to emerge in the deal, Matugas said, adding this information was relayed to him by San Miguel CEO Ramon Ang during a recent meeting in Manila.

Mayor Matugas said he and his brother, Surigao del Norte Rep. Francisco Matugas (1st district), were invited to the San Miguel-Philnico talks because any agreement that would emerge from the negotiations would be “fruitless” owing to Philnico’s tax obligations to the local government. Ferdinand K. Constantino, San Miguel corporate information officer, earlier confirmed the negotiations.

In the MOU, San Miguel offered USD 85 million for Philnico’s outstanding debt of USD 263.8 million to the Department of Finance, and at least PHP 50 million for the company’s P200 million unpaid real property taxes to the city government.

Source - Business Inquirer Net
  • [Editor:editor]

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