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Apollo Global Capital Inc.’s publicly traded mining company will begin mining the magnetite iron reserves on the seabed off Cagayan next year.
In a statement, Apollo Global’s unit, JDVC Resources Corp., said it would partner with businessman Frank Lao, owner of Choi Garden, for this project, touted as the first in the Philippines.
Under the consortium agreement signed by the parties, Lao acquired two deep-sea mining vessels with a net capacity of 10,000 tonnes per day.
“The ships are expected to arrive in January, joining another ship already deployed by JDVC on its offshore mining property miles from the town of Gonzaga, Cagayan,” JDVC said.
JDVC said it owns thousands of hectares of those offshore iron reserves and has obtained the full range of mining, environmental and export licenses and permits required by the government.
National and local governments would also benefit from the project in terms of special taxes, mineral reserve fees, income and value added taxes, and corporate social responsibility (CSR) initiatives.
The firm cited “bright” prospects for this company, as iron prices are reaching a seven-year high, mainly due to rising demand for iron in China.
According to JDVC, the Department of Environment and Natural Resources confirmed that mineral deposits in the area totaled 512 million metric tons.
Additionally, the company cited confirmation from the Philippine Minerals Reporting Code that the useful life of those deposits would last up to 47 years.
Magnetite, as defined by Merriam-Webster, is “a black isometric mineral from the spinel group that is an iron oxide and an important iron ore.” It is used as an additive in the manufacture of concrete and steel products, magnets, paints, inks, paper, jewelry, and cosmetics.
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