Mining firm exploring five towns in Leyte to extract magnetite sand for export to China

published April 08, 2010 in BusinessWorld

PALO, Leyte -- A mining company is initially investing P200 million on a mining claim covering five Leyte towns, expecting to produce 1.2 million tons per year of titano-magnetite iron ore.

Jeric E. Lapan, general manager of Northern Access Mining, Inc. said in an interview the firm has seen progress in its exploration for magnetite sand in the towns of Tanauan, Tolosa, Dulag, Julita, and Tabon-Tabon since it started operation in 2008.

“There is a big deposit of magnetite sand in Leyte and it has been proven already by mining companies that explored in Leyte coastal communities back in 1970s. For Tolosa area alone, we are talking of three million tons concentrate,” Mr. Lapan told BusinessWorld.

Julita and Tabon-Tabon are not coastal towns but it was covered by the mining firm’s exploration because of the presence of sand. “Very few people know that when you walk 10 kilometers inland, you still have sand underneath. Whenever there is sand, there is always magnetite,” he explained.

Mr. Lapan said the firm was aiming to meet rising demand for this mineral in China.

Magnetite is a magnetic and very dense mineral of iron. It is an important source of iron for the iron and steel industries but it also has other uses as an industrial mineral to produce many “value-added” products.

High-grade magnetite is used in many chemical processes including the production of iron sulfate, which is used to purify water. Heavy concrete has a variety of uses, from baffles and containment tanks in nuclear power plants and in counter weights for washing machines.

With the community expected to oppose mining activities, the company is investing in education, a microfinancing program, and environment-friendly activities like tree planting, the official said.

“We are doing our operation slowly because we are trying to educate everyone first. While we are educating, we have started investing in the community so [residents] would feel ... the social benefit,” he added.

Northern Access Mining was established in 2008 and is still in the exploration phase.

Studies show that other than magnetite sand, Leyte also has deposits of copper, iron, bentonite, nickel, limestone, peat, and dolomite.

“None of those minerals have been measured yet. The only one that was measured is the magnetite sand. I would say that we have a lot of those here. As a young company, we want to develop our technology here in Leyte,” Mr. Lapan said.-Sarwell Q. Meniano