Busan Equity Partners launches core minerals business in Philippines
Jong-Kwan Park
Jun 20, 2023 (Gmt+09:00)
Busan Equity Partners (BEP), a South Korean private equity firm, is partnering with Philippine mineral development company PGMPI to develop overseas resources.
BEP tries to secure core minerals needed for high-tech industries such as semiconductors and secondary batteries to contribute to the stability of the domestic supply chain and create new growth engines for the future.
BEP announced on Tuesday that it has entered into a strategic partnership with PGMPI to develop core minerals in the Philippines.
Under the agreement, BEP will invest $10 million to acquire a 40 percent stake in PGMPI. It has also secured the rights to core minerals from the Philippines. Future strategic collaboration, including the establishment of a joint venture (JV), was also promised.
PGMPI was established in 2019 as a state-owned enterprise backed by the Philippine government to develop rare minerals. It is now a private company. It owns the mining, production and concession rights to 20 mines in 13 regions of the Philippines. The company is headed by Antonio Palade Jr., a former general in the Philippine military.
The Philippines is one of the world's top 10 potential producers of minerals, with diverse resources such as nickel, chromium and copper. In Southeast Asia, it is considered the second most mineral-rich country after Indonesia.
The Philippines is also rich in rare earths, which are becoming increasingly important in recent years. Through the establishment of the JV with PGMPI, BEP will jointly operate infrastructure for strategic mineral production, including the extraction of key minerals and the establishment of a smelting plant.