Philippine miner Imperial Resources, Inc. is to join with an Indonesian company to explore an asphalt mining site in Sulawesi.
Imperial, originally incorporated as a mining and energy firm but switched to information technology (IT) as its primary purpose in 2000, told the Manila Stock Exchange on Monday that Indonesia's PT. Aspal Buton Nasional had given it exploration, exploitation and development rights over 1,940 hectares of land on Buton Island, South East Sulawesi Province, Indonesia.
Imperial gave Nasional $150,000 as a signing cheque for the deal. It will pay an additional $1 million after the exploration should the mining site prove to be commercially viable, plus a 5% royalty charge on proceeds from the mine.
Imperial President Oliverio Laperal, Sr. was optimistic that the venture would yield profits for about two years, with an 80% return on production costs.
In an interview, Mr. Laperal noted that despite the global economic crunch brought about by the US financial crisis, he was hopeful that they will make money from continuous demand for improved road infrastructure.
"The need for better roads is universal and never-ending. There are many roads in the country that need improvement, and even in countries like China and Indonesia, demand is increasing," he told BusinessWorld.
Imperial has posted three consecutive years of losses starting in 2005. The company posted losses of P23.94 million in 2007, more than double its losses a year earlier.
The company had shifted to IT nine years ago with the incorporation of its subsidiary, Philippine Cyber Colleges Corp., which has schools in Baguio City and Bulacan.
The company went back to coal mining in 2007, hoping to ride on rising prices of gold and other mineral products in global markets.
Source: Business World Online
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