Apollo Global unit signs new mining consortium agreement

A SUBSIDIARY of listed holding company Apollo Global Capital Inc. has entered into a mining consortium agreement for its offshore magnetite iron mining project in Gonzaga, Cagayan.

The listed company said in a stock publication on Tuesday that its subsidiary, JDVC Resources Corp., and Agbiag Mining and Development Corp. had entered into an agreement with the equipment supplier, Pelletized Iron & Titanium Vanadium (Phils.) Corp. (PITV).

“JDVC previously incorporated Agbiag as a mining contractor / operator under a Mine, Joint Venture and Mineral Production Sharing (MPSA) agreement dated September 2014, effectively awarding 1,897.0242 hectares of its offshore area in Cagayan province located in Gonzaga municipality for exploration, commercial extraction, processing and export by Agbiag, ”the statement said.

Under the agreement, PITV was allocated 100 hectares out of an area of ​​1,897.0242 hectares. It will deliver and manage siphon vessels and commercial extraction production platforms including vessel management, maintenance and operation.

“PITV guarantees a minimum monthly production volume of 100,000 tonnes of high quality export iron sand or magnetite,” the statement said.

For its part, Agbiag – as a mining contractor – will supervise, monitor and collect the royalties for JDVC.

Meanwhile, Apollo Global said the Cagayan Economic Zone Authority (CEZA) recently approved Agbiag’s request to establish an onshore production platform for an ore upgrading plant. of magnetite iron, as applied by PITV.

“This will be PITV’s strategic production platform, where instead of putting the magnetic separators on board a ship, it will be installed on land, inside CEZA, in order to obtain production containing iron. High quality magnetite for superior export value. through the recovery plant, ”he said.

In a separate stock exchange communication, Apollo Global said PT. JDVC Resources Indonesia (PT. JRI) entered into a memorandum of understanding on September 27 with PITV and Indonesian companies PT. Yakin Citra Mandiri (PT. YCM) and PT. Sumber Rezeki Solusindo (PT. SRS).

Apollo Global said PT. JRI is a recently established Indonesian subsidiary of JDVC Resources Corp.

“The MoU sets out the parties’ agreement to establish a PITV upgrading plant that will process raw iron ore from Indonesian mines and process it to export grade iron ore with a magnetic fraction of 63. % and more, for sale locally or exported to other countries, ”the disclosure said.

“Eventually, a pellet plant will be established for upstream integration into the supply chain, ultimately selling iron pellets to steel mills in Indonesia or other countries,” he added.

Under the terms of the MoU, PITV will allocate funds for the upgrader project; and the operation and maintenance of the two plants.

TP. JRI will obtain permits and licenses for the extraction and trade of iron ore; and for the operation of the upgrading plant. He is also the one responsible for conducting mining, training and trading for iron ore operations; and allocate the site for the operation of the two factories.

TP. YCM, which owns the iron ore mining concessions in Kalimantan, Indonesia, will supply the licensed mining area and secure long-term iron ore supply for the factories.

In addition, PT. SRS will organize advisory services and corporate social responsibility services.

“PT. JRI was formed to expand Apollo Global’s business activities and to explore opportunities for complementary mining operations in Indonesia… ”the statement read.

“PT. JRI was incorporated with the Indonesian Ministry of Law and obtained its founding act on September 17, 2021. It also obtained a business license from the Indonesian Ministry of Investments, which allows it to engage in the three sectors of activity: large trade in metallic ores, large trade in non-metallic materials and wholesale trade in solid, liquid and gaseous fuels and related products, ”he added.

According to Apollo Global, PT. JRI will apply for a special production operation mining license for trade with the Indonesian Ministry of Energy and Mineral Resources as a requirement before the start of the minerals trade.

“Coupled with a Memorandum of Understanding with an Indonesian mine owner, this Special Trade Mining License will enable PT. JRI the right to operate in the mining area covered by the memorandum of understanding, ”the statement said.

Apollo Global recently completed its follow-up offering, which raised 988 million pesos from the sale of 12.35 billion shares at eight centavos per share. It also acquired a 49% stake in the Singaporean company Poet Blue Ocean Offshore Services Pte. Ltd. as part of the company’s revenue increase.

On Tuesday, shares of Apollo Global on the stock exchange rose 5.36% or 0.006P to end at 0.118P each. – Revin Mikhael D. Ochave