THE mining company of listed Apollo Global Capital Inc. is to commence the extraction of magnetite iron reserves in the seabed off Cagayan by next year.

In a statement, Apollo Global unit JDVC Resources Corp. said it would be partnering with entrepreneur Frank Lao, owner of Choi Garden, for this project, touted as the first for the Philippines.

Under the consortium agreement signed by the parties, Lao acquired two deep-sea mining vessels with a net capacity of 10,000 tons per day.

“The ships are expected to arrive in January, joining another vessel already deployed by JDVC over its offshore mining tenement miles away from the town of Gonzaga, Cagayan,” said JDVC.

JDVC said it owns thousands of hectares of those offshore iron reserves and has secured the full range of required mining, environmental and export licenses and permits from the government.

The national and local governments would also benefit from the project in terms of excise tax, mineral reservation fees, income and value-add taxes, and corporate social responsibility (CSR) initiatives.

The firm mentioned the “bright” outlook for this undertaking as iron prices are hitting a seven-year high, mainly because of the rising iron demand in China.

According to JDVC, the Department of Environment and Natural Resources confirmed that mineral deposits in area totaled 512 million metric tons.

Furthermore, the company cited the Philippine Mineral Reporting Code’s confirmation the mining life for those deposits would last up to 47 years.

Magnetite, as defined by Merriam-Webster, is “a black isometric mineral of the spinel group that is an oxide of iron and an important iron ore.” It is used as an additive in the manufacture of concrete and steel products, magnets, paint, ink, paper, jewelry and cosmetics.