Benguet Corporation, a prominent player in the Philippine mining industry, is set to expand its operations while diversifying into new business sectors.
The company has emerged from a prolonged period of debt, which had previously restricted its growth potential. With a clean balance sheet and improved creditworthiness, Benguet Corp. is now poised to enhance its footprint in the mining sector and explore additional ventures, including renewable energy, agriculture, real estate, bulk water, and mining logistics.
Benguet Corp. announced plans to build a diverse portfolio beyond its core mining operations. In a recent disclosure, the company stated its intention to increase investments and engage in capital market activities to support new projects and expand current operations. These efforts aim to create new revenue streams and potentially lead to future dividend payouts for shareholders.
The company’s expansion plans are rooted in its strengthened financial position. Benguet Corp. recently became debt-free, following the successful termination of a debt restructuring agreement dating back to 1993. The agreement initially involved 23 creditor banks and financial institutions, amounting to over P1.4 billion. The resolution of these debts has freed the company from the financial constraints that hindered its growth for more than 30 years.
Lina Fernandez, Benguet Corp.’s president, highlighted the significance of overcoming the debt burden, describing it as a culmination of management’s relentless efforts. The company signed a mutual rescission agreement with its remaining creditors, including Wilshire Business Consulting Corp. and Armstrong Capital Holdings Corp., with Philippine Veterans Bank serving as trustee. This agreement effectively released Benguet Corp. from outstanding debt liabilities.
Benguet Corp. operates several mining facilities, including a gold mine in Benguet, nickel mines in Zambales, and a processing facility in Baguio City. While maintaining its focus on mining, the company is actively exploring opportunities in other industries. These include industrial equipment trading, port services, shipping services, real estate, and lime kiln operations.
The company also announced a cash dividend to its shareholders, marking a significant milestone. This is the first time in 35 years that Benguet Corp. has made such payments. The cash dividend amounts to P0.20 per common stock and P0.28 for convertible preferred stock, payable to shareholders of record as of November 14.
As part of its expansion strategy, Benguet Corp. is considering entering the renewable energy sector. The company’s diversification efforts align with global trends emphasizing sustainable energy solutions. By investing in renewable energy, Benguet Corp. aims to contribute to the Philippines’ efforts to transition toward cleaner energy sources.
Benguet Corp. also expressed its commitment to supporting local communities by creating job opportunities and enhancing the quality of life for residents in areas where it operates. The company aims to balance its economic growth with environmental responsibility and social development.