Apollo Global Capital (APL) has inked a deal with a contractor to extract at least 100,000 metric tons of magnetite iron from its offshore mining claim in Cagayan.
Through its subsidiary, JDVC Resources, and partner operator,l AgbiagMining and Development, APL entered into a mines consortium agreement with its sixth equipment procurement contractor, Pelletized Iron & Titanium Vanadium Philippines (PITV).
Under the agreement, PITV would extract black sand from 100 hectares out of the 1,897-hectare mining claim assigned by APL to Agbiag in 2014.
PITV will supply and run siphon vessels and commercial extraction production platforms to process and export high grade magnetite iron sand, and marine sands for reclamation throughout the charter of the vessels.
It will also take part in the mining, operation and processing of the magnetite iron sand in their assigned offshore mining area of operation.
Agbiag recently obtained the green light from the Cagayan Economic Zone Authority (CEZA) to develop an on-shore production platform for a magnetite iron ore upgrading plant to be used by PITV.
Instead of putting the magnetic separators on board a vessel, PITV plans to conduct the processing onshore to achieve higher export grade magnetite iron through the upgrading plant inside CEZA.