Philippines companies ATN Holdings and AlphaRock Mining have agreed a five-year contract to supply rock aggregates for government infrastructure projects in the country.
ATN said in a stock exchange disclosure that the partnership with AlphaRock would double the amount of aggregates it produces, with an annual volume of 2.4mn tonnes and potential revenues of US$227.9mn (P12bn).
It added that the contract will meet high aggregates demand from Philippines government infrastructure projects, particularly around the capital Manila. The company adds that it has received strong buyers’ interest for 10,000 truckloads of 3/4” & 3/8” aggregates that are urgently needed every month for the construction of Manila tollways, subways, railways, flood control projects, elevated highways, power plants, sea ports, bridges, airports, 1,000 high-rise buildings, factories and land reclamation.
ATN said that high-quality infra rock aggregates are in demand for two major Manila projects that are being funded through a loan from the Japanese International Cooperation Agency (JICA): the US$7bn (P356bn) Metro Manila Subway Project (start date February 27, 2019), and the US$2.8bn (P149bn) North Rail Project Phase 1 (start date February 15, 2019). It added that if 10% of the capital expenditure on the two projects is for rock supply, it will create a new demand of US$949.6m (P50bn) in rock aggregate requirements.
The ATN-AlphaRock Mining contract involves the development of 256 hectares of land owned by ATN in Rizal province for aggregate rock supply, with AlphaRock acting as the second development contractor. ATN said the land is conveniently only 15km from the subway and rail projects.
AlphaRock has a 20-year land development history of delivering 12,000 tonnes of rock per day to other partners.
