DMCI mines fire 400 workers

posted August 15, 2016 at 11:45 pm by  Jenniffer B. Austria

http://thestandard.com.ph/business/213385/dmci-mines-fire-400-workers.html

Mining companies owned by the Consunji Group are laying off 400 workers and putting on hold their expansion plans after operations were ordered suspended by the Environment Department.

DMCI Holdings said in a disclosure to the stock exchange Berong Nickel Corp. was set to lay off over 300 seasonal workers in the coming weeks, while Zambales Diversified Metals Corp. fired over a hundred personnel due to the suspension orders.

“Early this year, we were planning on expanding our operations. But with the suspension, we have no choice but to put everything on hold,” said DMCI Mining president Cesar Simbulan, Jr. 

“We actually acquired over P100 million in additional heavy equipment during the first half, and had plans of hiring more workers to ramp up production. Unfortunately, this is no longer possible,” added Simbulan.

DMCI Mining in the first six months of 2016 registered a 25-percent decline in nickel ore shipments to about 873,000 wet metric tons from 1.16 million tons to due to receding nickel prices and sluggish demand for lower-grade nickel.

The average selling price per wet metric ton in the six-month period fell 40 percent from $41 to $28. 

With the suspension orders, DMCI is bracing for an even tougher second half. DMCI Mining said it was fully cooperating with the government to facilitate the audit and lift the suspension order.

“Our mining and environmental management protocols are consistent with regulatory standards so we hope to resolve the suspensions and resume operations soon,” Simbulan said.

He said the company was in discussions to the host communities to explain the current situation.

“They know that this is something beyond our control,” Simbulan said.

DMCI Mining chief finance office Aldric Borlaza said the contents of the suspension orders were “vague” and did not say what the mining companies should do to resume operations.

Borlaza said the company would likely ship 1.3 million WMT this year from 1.6 million last year amid the suspension orders.

Eighty percent of the the DMCI Mining’s shipment goes to Chine while the rest are exported to Japan.

The Environment Department is conducting an audit of all operating mines to determine their compliance with safety standards.

Other mining firms suspended by the Environment Department were BenguetCorp Nickel Mines Inc., Eramen Minerals Inc., LNL Archipelago Minerals Inc.,  Citinickel, Claver Minerals Corp., Mt. Sinai Mining Exploration and Development Corp. and Emir Mineral Resources Corp.

Lopez was a known anti-mining advocate before her appointment as head of the Environment Department.