First $1Billion USD Combined Cycle Steel Smelting plant to rise in Subanen People's Kingdom in MindanaoA Davao-based company has set aside a 100-hectare project in Zamboanga Sibugay for an industrial park in the country's first steel mill and smelting plant.
President and COO of Mount Zynai Industrial Park (MZIP), Leonardo A Fernandez, said that the project, estimated at US$1 billion (about PHP 50 billion) and launched on June 18, 2022 has already acquired 14.8 hectare property in Barangay Santa Cruz to start its first part, which will include land preparation. Fernandez said he chose the town of Diplahan as the headquarters of the company because it is close to the sources of iron and coal in Zamboanga del Sur and Zamboanga Sibugay and Zamboanga del Norte.
"MZIP is a $1 billion project that will hopefully boost the country's economy," said Fernandez, a former city councilor from Asuncion, who is also the president of the Philippine Party for the Change (PPP), a group that support President Duterte. in 2016 and one of the people who pushed Davao City Mayor, now Vice President, Sara Duterte into the presidency. Out of the 100 hectare project area, 50 hectares will be allocated for the steel industry and smelter, while the remaining 50 hectares will be used as an industrial park to attract local and foreign investors.
Groundbreaking ceremony at Mount Zynai Industrial Park, Integrated Steel Mill and Smelter in Barangay Santa Cruz, Diplahan, Zamboanga Sibugay. Fernandez said that the smelter will significantly reduce the cost of construction in the country, because the selling price of MZMC will be lower than the current market price since the company will get iron, its resources; and will also build mills and factories to turn these metals into steel bars.
He said the company in February this year received a Mineral Production Agreement (MPSA) from Czarstone Mining Corporation, a Filipino mining company, for an area covering 2,637 hectares in Midsalip, Zamboanga del Sur and Siayan, Zamboanga del Norte for iron ore digging. He said that MZMC would not need to sell the ore in foreign markets like China or import raw materials for steel processing.
"We design and process our equipment into steel products," Fernandez said. "That way, you will have cheap steel in the Philippines. Now you can compete with China, we can compete with Asian countries. This is the beginning of the beginning of our production," said Fernandez.
The steel works and smelter aim to produce 1.5 metric tons of steel per year and create up to 20,000 jobs. This will eventually create about 1,000 small businesses and 1,000 companies, Fernandez added.
MZMC will begin development of the site next month and aims to start operations in three to four years. "We will build the first steel mill and smelter with the target of 1.5 million steel production per year," said Fernandez. He added, "At our factory we have the equipment, so we don't have to ask for equipment." MZMC has concluded a joint venture with China's Shenzhou Investor Corporation for the exploration, investment and marketing of steel mills.
“Instead of exporting ore, we will process it here. It will create jobs for the local people while the local government will get tax revenue," Shenzhou CEO Ninchy Lin said.
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