PHI Group, Inc. (PHIL), a U.S. public company engaged in energy and natural resources, has signed an agreement in principle covering business cooperation and investment with a Filipino company, Spartan Mining and Development Corporation (SMDC).
The agreement covers dredging, extracting and processing volcanic sand from the Sto. Tomas, Maloma and Bucao Rivers in Zamales Province to restore navigability of these rivers and to produce sand for reclamation purposes.
The total volume of the lahar sand to be dredged is estimated at 1.4 billion metric tonnes. The sand was created by the Mount Pinatubo volcanic eruption in June 1991.
The agreement forms the basis for SMDC and PHI Group to enter into a formal joint venture to dredge, extract, process, sell and export lahar sand from the Zamales rivers. The JV agreement is expected to be executed by the end of November 2015.
In addition, both companies intend to cooperate to develop affordable housing, engineering and construction, steel and power generation projects in Zamales Province in the near future after dredging work has begun.