MANILA, Philippines - Listed technology conglomerate IPVG Corp. said yesterday it will construct a $250-million mineral refinery in the Philippines in partnership with Canadian firm REC.
In a disclosure to the Philippine Stock Exchange, IPVG said the plant, which will be built through affiliate New Wave Resources, will churn out 3,000 metric tons of refined mineral by 2015. The finished product is used in several industries including high technology applications and green technology.
IPVG intends to export most of its finished products to countries such as Japan, Korea, the US and Europe, where the product enjoys high demand.
Under the deal, REC will build the refinery and sell the majority of refined products through long-term off-take contracts.
“REC and its partners have extensive design and construction expertise in mineral processing as well as equipment manufacturing and product trading. They will work exclusively with IPVG in the Philippines to build this and any future refineries,” the company said.
IPVG chief executive officer Enrique Gonzalez said funding for the project will be sourced from a combination of equity and debt.
“Due to the nature of this business, this project can be financed through a project finance scheme backed up the strength of our long-term off-take contracts. There will be a substantial portion sourced from external sources but IPVG is the lead proponent in this project,” he said.
Gonzalez said the company has already identified two locations for the refinery but refused to name them until the company has signed a lease agreement.
In March, IPVG, through its affiliate Conqueror Space Ltd., also signed a memorandum of understanding with REC to build and operate a similar mineral refinery in India. This facility will allow IPVG to expand in potentially larger, more lucrative markets.
REC is a Vancouver, Canada-based company formed to address shortages of strategic and rare minerals in international markets by building processing facilities in key locations around the world.
Last February, IPVG was granted the exclusive rights to engage in the business of refining metal ores and other minerals in the Philippines.
IPVG acquired 100 percent of New Wave, a company affiliated with a leading refinery in China, for P2.8 billion.
The move follows the successful restructuring of IPVG last year, which involved the sale of all or substantially all of its assets to a new privately-held firm, IP Ventures Inc.