Benguet Corporation posted a net income of P287 Million in 2007, as against losses of P318 Million in 2006 and P270 Million in 2005. This is attributable mainly to management’s streamlining of operations and extraction of value from its various mineral properties. In addition, the strengthening of the peso which generated substantial foreign currency gains as well as the sale of chromite sand fines contributed to the turnaround.

Benguet has moved forward on the company’s other major mining projects considering the outlook for favorable business conditions in the mining industry here and abroad. Following infusion of funds from the private placement of major stockholders, Benguet initiated in mid-2007 the development of its nickel property in Sta. Cruz, Zambales, which has an approved mineral production sharing agreement (MPSA) with the government and an initial Environment Compliance Certificate (ECC). Barangay Guisguis, host community of the Project, the Sangguniang Bayan of the municipality of Sta. Cruz and the provincial government of Zambales have endorsed the project favorably. Permits to start mining have been issued by the DENR. In preparation for
mining operation, a dedicated road and port site have been acquired and are being developed. Commercial shipments are targeted for the 2nd half of 2008. Benguet’s nickel project will contribute significantly to taxes, economic development and upliftment of lives of the local residents.

For the Kingking project, Benguet engaged SRK Consulting, Inc., a renowned JORCaccredited firm based in Australia, to complete the bankable feasibility study. The study when completed will determine the financial feasibility of the project. Kingking, a copper -gold mining property with an estimated resource of 1.04 billion tons, has an approved MPSA with Benguet as sole operator and Nadecor as Royalty Holder, and is identified as one of the top 10 priority mining projects of the DENR.

Benguet is completing the feasibility study for a gold beneficiation project in Balatoc, Benguet province. From 1969 to 1992, Benguet’s gold operations impounded excess mill tailings in 3 ponds which accumulated to about 11.9 million metric tons at 0.65 gold per ton average. Initial metallurgical test indicates that recovery above 70% can be attained. A core research and development team together with a foreign metallurgical R&D service contractor are doing the analysis. If found feasible, the development and construction stage can be completed in 12 to 18 months.

Other projects which Benguet is pursuing are its Coal Project in Surigao del Sur, Ampucao Copper Porphyry in Benguet Province, as well as a copper, gold and iron project in Ilocos Norte and Kalinga Apayao which have applications for Foreign Technical Assistance Agreements.

Benguet has a coal operating contract with the Department of Energy on 12 coal blocks covering 12,000 hectares in Surigao del Sur. Activities to obtain an Environmental Compliance Certificate (ECC) have been initiated to allow development and mining by open pit of an accessible 659,000 tons at Block #206 at initial production rate of 60,000 tons per year. Markets for its initial 31.7 million tons over 6 blocks of lignitic and subbituminous coal are being identified.

A preliminary evaluation done last year on the Ampucao Copper Porphyry indicated a promising project. Several notable Filipino and foreign geologists recognized the existence of copper mineralization south of Acupan in the late 60’s to mid 70’s. When the Philippine Copper Porphyry deposits were studied during the 80’s and 90’s, experts acknowledged and recognized Ampucao as the first porphyry system to be discovered within the Baguio Gold District.