Bulk of equity for BOI-listed projects invested in mining

Title

Language

English

Source

Business Day Special Report March 27, 1974

Year

1974

Rights

In Copyright - Educational Use Permitted

Fulltext

Page 12 Business Day March 27, 1974 BULK OF EQUITY FOR BOI-LISTED PROJECTS INVESTED IN MINING SUBSCRIBED CAPITAL OF PROJECTS BY THE BOI, UNDER R.A. 5186 WITH FOREIGN EQUITY CLASSIFIED BY FIRM AND NATIONALITY OF INVESTORS January 1971 - December 1973 (In thousand pesos) FOREIGN SUBSCRIBED CAPITAL Date of Approval Total Filipino Total U.S. SPANISH CHINESE BRITISH JAPANESE Others Not Fbsident NonResident Resident NonResident Resident NonResident Resident NonResident Resident NonResident Resident GRAND TOTAL 871,249 534,620 336,629 202,101 854 37,088 11,388 2,674 2,250 - 31,614 31,408 AGRICULTURE 161,405 113,405 48,000 21,733 16,516 6,186 3,445 Tree farming 300 180 120 Provident Tree Farms, Inc. 10/71 300 180 120 Livestock and poultry 161,105 113,225 47,880 21,733 - 16,516 6,186 - - - - 3,445 San Miguel Corp. 11/71 161,105 113,225 47,88 21,733 - 16,516 6,186 - - - - 3,445 MINING 355,857 237,663 118,194 71,635 854 201 2,140 130 - 11,715 25,267 Iron ore 67,211 47,504 19,707 5,060 854 ____ 472 111 - - 6,958 - Inco Mining Corp. 3/72 6,644 6,406 238 238 — Phil. Iron Mines, Inc. 6/72 41,878 27,136 14,742 4,516 854 3,120 Anglo-Phil. Mining Co. 12/72 14,689 13,562 1,127 544 _ _ 472 111 _ _ _ _ Pellet Corp, of the Phil. 7/72 4,000 400 3,600 3,600 Copper ore 217.200 137,011 80,189 56,518 _ 201 1,668 19 . _ _ 4,757 17,026 Consolidated Mines, Inc 9/73 26,296 22,352 3,944 3,944 - 301 - - - - < Baguio Gold Mining Co , Inc 4/72 13,313 11,449 1,864 — - - — — 1,864 Ape- Exploratic 5/73 3,015 2,593 422 172 - 201 X* ■ ~ 19 - - - 30 T_. jj 'TujiqjC.o Corp. “ 7/72 • 10,114 8^427 1,687 - - . — . - - - — 1,687 PHtex -Mining Corp. >2/72 61,7211 45,248 16,473 3,518 — I - ^1,668 - - - 11,287 « Atlas Consolidated Mining < "r. . " Corp. 12/73 102,741 46,942 55,799 48,884 4,757 2,158 Nickel ore 71,446 53,148 18,298 10057 - - - - - - - 8,241 Marinduque Mining & Ind. Corp. 1/71 71,446 53,148 18,298 10,057 8,241 MANUFACTURING 353,987 183,552 170,435 108,733 20,371 3,062 2,544- 2,250 19,899 2,696 Food 24,354 19,361 4,993 2,582 - - - - 2,411 - - - - Republic Flour Mills, Inc. 3/71 24,354 19,361 4,993 2,582 - - - - 2,411 - - - - Wood products 206,430 82,609 123,821 101,207 20,371 - 1,301 - 133 - - - 809 Nasipit Lumber Co., Inc. 8/71 11,888 11,531 357 207 - - - - 108 — - 42 Insular Lumber, Inc. 12/71 10,500 2 10,498 10,498 — Mahogany Products, Inc. 2/71 1,808 191 1,617 1,592 - - - - 25 — — — — Picop 9/73 182,234 70,885 111,349 88,910 20,371 - 1,301 - - 767 Rubber products 800 560 240 - - 240 - - - - - - Phil. Belt Corp. 5/72 800 560 240 - - 240 - - - - ’ - - Vegetable oil 7,500 5,250 2,250 - - - - 2,250 - - - lligan Bay Mfg. Corp. 9/73 7,500 5,250 2,250 - - - - - 2,250 - - - Chemicals & Chemical products 75,045 52,328 22,717 - - 925 - - - 15,203 1,500 5,089 Filipinas Synthetic Fiber Corp. 5/72 33,008 19,805 13,203 13,203 - Phil. Petrochemical Products Inc. 6/72 7,115 5,616 1,500 _ - - - - - - 1,500 Indo Phil. Textile Mills, Inc. 11/73 8,222 4,933 3,289 - _ - Grand Imperial Textile Mills 6/73 3,700 2,775 925 925 — - — — — Inc. Phil. Cellophane Mfg., Inc. 3/73 18,000 16,200 1,800 - - - - - - Arrow Parts Mfg. Corp. 11/73 5,000 3,000 2,000 - _ - - - - - 2,000 - Non-metallic mineral products 6,370 5,863 507 - - - 427 - - - - 80 Pacific Enamel Mfg. Corp. 3/73 5,900 5,487 413 _ 413 _ _ _ - Visayan Glass Corp. 7/23 470 376 94 - - - 14 - - - 80 Metal products 12,000 7,200 4,800 _ Hooven Phil., Inc. 3/71 12,000 7,200 4,800 - - - - - - - - - Machinery except electricl machinery 2,250 1,350 900 - - - - - - - - - Radiowealth-Kirloskar Corp. 4/72 2,250 1,350 900 Electrical products 18,918 8,807 10,111 4,944 169 _ 4,600 307 Ever Electrical Corp. 2/73 1,300 1,014 286 _____ - - - 169 - - - - - 26 Engineering Equipment, Inc. 6/72 5,618 393 5,225 4,944 281 Delta Electric Motor Corp. 4/71 12,000 7,400 4,600 - - - - - - 4,600 Transport Equipment 320 224 96 _ _ _ _ - 96 _ Delsa Mfg. Corp. 12/72 320 224 96 96 - ~r March 27, 1974 Day Page 13 A significant amount of capital for Board of Investments-registered projects under the In vestments Priorities Plan went into mining activi ties. This is based on the January 1971 to Dec ember 1973 BOI data on subscribed capital of /Specified Non- Name of NonResident Resident Foreign 17,252 120 120 120 Swedish Match, Inc. (Swedish) 6^252 6,252 — Not available 6,252 AG & P, Wolff & Co., Kawasaki Steel Ltd. - Kawetsu Mining Co &' Kawasaki Steel Ltd. Not available 10,880 John Hoti Co., Ltd Teijin Co. Ltd. Toyo Menka Kaisha Ltd. 3,289 Eastern Spinning Ltd. (India) 1,800 Non available (Swiss) - Yasaki Co. Ltd. _4A°°_ 4,800 Alcoa Corp. (Australia) 900 900 Klrloskar Bros Ltd. ((India) __92 91 HoiSutloc (Portuguese) - Maidensha Electric Mfg. , Co., Ltd. Sakata Shokai, Ltd. projects with .foreign equity under the Invest ment Incentives Act. The bulk of this min ing capital is concentrat ed on the development and exploitation of cop per ore deposits. Not much capital has gone into iron ore develop ment. According to BOI data, a total of over P871 million have been subscribed in BOI-registered corporations be tween January 1971 and December 1973 by do mestic and foreign invest ors. Of this total, P355 million went into mining activities, P353 million into manufacturing and P161 million into agri culture. Of the P355 million capital in the mining sec tor, P217 million or 61.12 per’ cent was the capital subscribed in copper ore companies. Copper producers The BOI lists six com panies it has registered as copper ore producers. These are: Consolidated Mines, Inc., Baguio Gold Mining Co., Inc., Apex Exploration, Inc., West ern Minolco Corporation, Philex Mining Corp oration, and Atlas Con solidated Mining Corp oration. Of these firms, Atlas outranks the rest with a subscribed capital of over P102 million or 47.00 per cent of the total capital subscribed in copper ore companies. According to BOI data, foreign participa tion is also significant in the mining sector with foreign nationals subscri bing by as much as P118 million in these mining ventures. This is 35.11 per cent of the total P336 million capital sub scribed by foreign invest ors in BOI-reg istered projects between Jan uary 1971 and Dec ember 1973. Again, the bulk of the subscribed capital of P118 million went into the copper ore com panies. The BOI data show that the foreign in vestors have subscribed a total of P80 million in these firms with Atlas gaining a greater share amounting to P55 mil lion. Commitments The Board's continued support for the copper sector is a result of its program to locally smelt and refine copper ores. Because of the long-term commitments of local mining companies to supply copper ore ab road, there is a project ed deficiency of supply for the proposed copper smelters. The country's copper output in 1971 was 197,573 metric tons, about 23 per cent higher than in 1970. Product ion of copper, because of favorable prices, has been growing at an an nual average rate of 13 per cent since 1961. In the absence of local pro cessing plants, the entire country's copper ore output is exported. Manufacturing Total subscribed capi tal in the field of man ufacturing is significant. It amounts to a total of, P353 million with foreigners contributing P170 million. Prominent under this category is food processing, where a significant amount of venture capital has been invested. Anybody can tend you money. But at PDCP, you'll have the professional expertise and experience behind it. Most financial institutions would probably just hand over the money to you. And leave you to your fate in the business jungle. It would be easier on us if we'd just do the same. But simply lending you money isn't enough assurance that your venture is going to succeed. This is why we giye you a lot more help other than just the financial kind. There's help in the form of PDCP's profess ional knowhow. Its expertise in evaluating the viability of your proposal. And this is backed by more than a decade of involvement in a wide ranging scope of industries. We care fully discuss your proposal with you because there's nothing like perfect planning. We see to it that you don't over-invest or under-invest' by designing the most suitable financing plan. If you're just a shade unsure of your prospects, we can clear up your doubts and apprehensions. We have Project Teams that are available for direct consultation and assistance. Anything discussed will be kept just between you and us. When we do finally grant you the loan, you can be certain that PDCP had put a lot of thought into your venture. It's viable. And it's going to be profitable. If you're in need of financial assistance as well as PDCP's kind of professional knowhow to go with it, write us for detailed information. Better still, drop by our offices. PRIVATE DEVELOPmrnT CORPORATlOn OF THE PHlUPPinES JVibadoncj Kprporasyon sa Pagpapaunlad ng fUtpinas PDCP Bldg. Ayala Avenue, Makati, Rizal Tel. 88 89-91 • Cable Address: PRIDECOP. Manila The log phase-out pro gram, on the other hand, has much to do with the increased investment in wood processing facili ties. Between January 1971 and December 1973, some P206 million has been subscribed by investors in Nasipit Lum ber Co., Insular Lumber, Mahogany Products and Paper Industries Corpor ation, four of the wood processing firms with sig nificant foreign equity participation. Of this to tal subscribed capital, 88.34 per cent or P182 million was subscribed in PICOP. The foreign participa tion amounts to P123 million with P111 mil lion going to PICOP's to tal capital base. Chemicals Chemicals and chem ical products is one area that has attracted subs and Long-Term Credits • Small Business Term Loans • Equity Capital • Project Development < and Technical Advisory Services tantive capital in the last few years. Between Jan uary 1971 and Dec ember 1973, a total of P75 million has been subscribed in five BOIregistered companies. Of this amount P33 million went to Filipinas Synthetic Fiber Corpor ation and P18 million to the Philippine Cello phane Manufacturing, Inc. The foreign capital participation in this sect or totals P22 million while the local equity contribution isover P52 million. Agriculture In the field of agricul ture, two firms — Pro vident Tree Farms, Inc. and San Miguel's live stock and poultry oper ations — are listed with significant foreign equity components. According to the Board data, a total of P161 million in capital has been subscribed in BO I-registered firms of which P48 million is the foreign sector's 1 contri bution. San Miguel, a highlydiversified food com pany, has a total sub scribed capital of P161 million for its livestock and poultry projects. Foreign equity amounts to over P47 million ac cording to BOI statistics. On the foreign sub scribed capital segment, foreign residents are con tributing significantly to the subscribed capital of BOI-registered pro jects. US residents have put in P202 million; Spanish, P37 million; Chinese, P11 million; British P2.6 million. The bulk of non-resident equity part icipation comes.from the Japanese side, totalling P31.6 million.

pages

12-13

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