The Mount Zynai Industrial Park (MZIP) with an estimated project cost of one billion US dollars (54.3 billion pesos) will rise in barangay Sta. Cruz, Municipality of Diplahan, Zamboanga Sibugay.
Leonardo A. Fernandez, the chairman and chief operating officer of MZMC in an interview with Davao media prior the groundbreaking ceremony said, on February 3, 2022, MZMC has acquired a 14.8-hectareproperty in said municipality to start the first phase of the MZIP, which involves land preparation.
“MZIP is a one billion US dollar worth project that hopefully would spike up the country’s economy,” he said.
Fernandez said they have chosen Diplahan as seat of the MZIP because of its proximity to vast mineral resources among others, iron ore and coal in Zamboanga Sibugay and nearby Zamboanga del Sur and Zamboanga del Norte.
Of the100-hectare MZIP, 50 hectares will be assigned for the steel mill and smelting plant while the remaining 50 hectares will be open for local and foreign investors in the steel industry.
Fernandez said the smelting plant is viewed to reduce the cost of construction in the country because MZMC will be selling steel at a cheaper price as it has sufficient supply of raw materials like iron ore and has its own steel mill and plant that will process the ore into steel bars. MZMC he said does not need to sell the ore to foreign markets like China for steel processing nor it will import raw materials for steel processing. “We are producing and processing our raw materials into steel products,” Fernandez said.
“So you eliminate the cost when the cost is eliminated so you would have the cheapest steel in the Philippines, you can now compete with China, we can compete Asian countries, this is the start of the dawn of our industrialization,” Fernandez said.
He further added that the steel mill and smelting plant which is targeted to produce 1.5 metric tons of steel per year would generate up to 20,000 jobs and it would eventually create about 1,000 industries and 1,000 factories.
“We will build the first steel mill and smelting plant with a target volume of 1.5 million steel production per year,” Fernandez said.
“Our smelting plant owns the resources we will not beg for supply, we have steady supply because we have our own mining,” he added.
MZMC will start the MZIP site development next month and targets to start operation in three to four years.
Acquired properties and resources
MZMC has recently acquired two drilling machines at $200 each to determine the minable reserve to come up with the plant's design. Fernandez said it will take about six months to design the plant.
Also on Feb. 3, MZMC acquired the Mineral Production Sharing Agreement (MPSA) No. 349-2010-IX for the iron ore mines that covers, 2637 hectares in Midsalip, Zamboanga del Sur and Siayan, Zamboanga del Norte from Czarstone Mining Corp, also a Filipino-owned mining company.
Fernandez said MZMC has also signed a memorandum of agreement last month (May)with the Pigsalabukan Gokom de Bayog or the Subanen tribe for the utilization of 15,000hectares of their property for iron ore exploration, extraction and processing. A thousand hectare owned by the Subanens under CADT will be reserved for agroforestry, agriculture production and other community development projects. The area is located in the municipality of Bayog in Zamboanga del Sur. Up to2,000 Lumads will be relocated to pave the way for the project, Fernandez said.
He said the Sangguniang Bayan of Diplahan passed a resolution of no objection to the project.
Meanwhile, Timuay Lucenio Manda, the tribal leader of Pigsalabukan Gokom de Bayog thanked MZMC for its assurance of assistance and community development interventions for the Subanens. He said the Subanens are also thankful of MZMC’s assurance to provide 5 percent as royalty for the tribal group way above the 1 percent mandated by law. “At first, we were doubtful about MZMC, if they were really sincere. But as our discussions continue, we see the sincerity of the company in securing the benefits due for the IPs,” Manda said in vernacular.
“Mt. Zynai, we will give 5percent not 1 percent as royalty because my argument is they own the land we are not the owner of the land that is their land so it's important ibigay natin ang dapat para sa kanila I promise to God if he will guide me on this I will change the life of the Ips and this is the beginning because binigay na sa akin ang 15,000 hectares,” Fernandez said.
Joint venture
MZMC has entered into a joint venture with Chinese company, Shenzhou Investor Corporation.
Shenzhou Chairman Ninchy Lin in an interview said the project will create jobs for the locals and more tax revenue for the government. He said their company will help MZMC from exploration, financing to marketing.
“Instead of exporting ore we will do processing. This will give an opportunity for local people to get jobs and for local governments to get more tax income,” Lin said.
He also assured to help in the marketing of the steel produced at the smelting plant saying 100 percent will be marketed in the Philippines. “Currently, the Philippines is importing from other countries due to lack of supply. We hope that once the smelting plant starts, we can supply the entire country,” Lin said.
Meanwhile, Germogenes C. Esperon, the outgoing National Security Adviser, led the groundbreaking of the MZIP and Mount Zynai Steel Mill and Smelting Plant.
In his brief message, Esperon said he fully supports the project saying it is the fruit of the Duterte administration’s effort to clear the area of urgency problem.
In the last State of the Nation Address of President Rodrigo Duterte on July 26, 2021,he announced that his administration had built road networks in Western Mindanao to “provide easier access to farms and easily transport their products at low cost and in great quantities to industries and economic zones located in Diplahan, Zamboanga Sibugay.”
Esperon said the infrastructure development together with the peace keeping efforts has resulted in the coming in of MZMC and other investors to the benefit of the local residents.
With the billion-dollar MZIP project, he reminded MZMC specifically Fernandez to ensure that the environment is protected and the Subanens (Lumads) will be given what is due for them as owners of the minable areas.
“ This region was declared cleared of insurgency on June 14. That’s why this is a good opportunity for investors like Mount Zynai and other investors in agriculture manufacturing,” Esperon said in an interview.
He said local residents and the indigenous people like the Subanens will surely benefit from MZMC’s investment and future other investments to come into the province.
“Mr. Fernandez, congratulations for this project. Be sure to take care of the environment and the IPs,” he said. Text and photos Judy Quiros
Drilling and crushing machines at the plant. (from L) Shenzhou Chairman Ninchy Lin, National Security Adviser Hermogenes C.Esperon and MZMC Chair Leonardo Fernandez
Laying of capsule
(2nd from L) Shenzhou Chairman NinchyLin, MZMC Chair Leonardo Fernandez and National Security Adviser Hermogenes C.Esperon (center) and other VIPs during the ribbon cutting
Unloaded Iron ore at the smelting plant ready for crushing
Esperon talks with some of the Subanens
(From L) Lin, Esperon, and Fernandez walk through the plant for the groundbreaking ceremony
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