South Korean electronics part maker IM Co. is entering a new business of mineral development in the Philippines, which encompasses the mining, refining and production of rare earths from a mine owned by the Philippine government.

According to sources on Tuesday, IM signed a memorandum of understanding with Philippine General Minerals Project Inc. (PGMPI), a Philippine rare earth miner, at the Philippine Embassy in Seoul, which requires the establishment of a joint venture. If the project goes as planned, the mine alone is expected to generate 1 trillion won ($776 million) in annual sales.

Established in 2019 with the support of the Philippine government, PGMPI has mineral mining, smelting and export rights for a total of 13 areas in the Philippines. It serves as a public-private partnership (PPP) partner with the Philippine government to normalize government-owned mines, mine and smelt rare earths, and eradicate unlicensed mining and smuggling overseas.

The MOU gives IM a stake in the joint venture and the right to develop the mine in Nabunturan, southern Philippines. The JV will be equipped with the necessary facilities for mining and infrastructure for direct rare earth production, including the establishment of a smelter to extract key minerals.

The Philippines has one of the world’s top 10 mineral production potentials and is considered the second richest mineral resource country in Southeast Asia after Indonesia.

According to PGMPI, the types of refined metals that can be produced from rare earths in the Nabunturan area’s Zone 1 include silver, platinum, palladium, gold and rhodium.

IM’s main business is the sale of optical module components applied to electronic products. It has recently been strengthening the competitiveness of its existing voice coil motor (VCM) module business, while diversifying its business by seeking mergers and acquisitions and equity investments in other industries such as waste treatment.

By Yang Yeon-ho and Minu Kim

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