MRC Allied

MRC Allied

Type	Public (PSE:MRC)
Industry	Property development, Mining
Founded	Manila, Philippines (1977)
Key people	Mr.Benjamin M. Bitanga (Chairman/President) Mr. Lucio Tan Jr.
Website	http://mrcallied.com/

MRC Allied Inc. (MRC) is a property development firm in the Philippines. It is a publicly listed property development firm which has a position in the development of master planned, integrated residential, commercial, recreational, tourism and industrial areas within a single community or township.^[1]

History

MRC Allied was incorporated on November 20, 1990 as Makilala Rubber Corporation, which focused on processing and export of baled natural rubber. In 1993, the majority stockholders and the investment banker Benjamin M. Bitanga acquired Philtread Tire and Rubber Corporation which led to the company’s diversification into property development, especially into township development. On October 25, 1994, the Securities and Exchange Commission (SEC) approved the change in the company’s corporate name to MRC Allied Industries, Inc. A year later the company went public and its shares are listed on the Philippine Stock Exchange (PSE).^[2]

In 1997, MRC decided to sell its rubber business to Makrubber Corporation, a wholly owned subsidiary, in order to focus on its core business of real property development. Negatively affected by the 1997 Asian crisis, MRC essentially maintained minimal operation and simply continued its two eco-friendly projects, the New Cebu Township One (NCTO) of Naga, Cebu and Amihan Woodlands Township (AWT) of Northern Leyte.^[3]

In 2008, upon the approval of the shareholders, the company changed its name to MRC Allied, Inc.

On March 25, 2010, the SEC approved the company’s request to undergo equity restructuring to reduce the deficit of the company as of December 31, 2008. On September 2010, Lucio Tan Jr. paid off Php600 million of its debts from several financial institutions. 85% of MRC is now owned by Menlo Capital Corp., which is 51% owned by Lucio Tan Jr.^[4]

Eco-friendly projects

New Cebu Township One (NCTO) of Naga, Cebu NCTO is a 123-hectare techno park which is Cebu's first fully integrated residential, commercial, industrial and recreational township development. This is a project of MRC Allied Industries, Inc.^[5]

Amihan Woodlands Township (AWT) of Northern Leyte. Land area: 2,312.68 hectares AWT is a special economic zone located in San Isidro and Calubian, Leyte. It is a township best suited for eco-tourism and high-end residential areas with complete facilities, amenities & infra-utilities of international standards.^[6]

Mining

MRC announced its entry into the mining business in November 2010,^[7] which was formalized with the signing of a mining operations agreement with the Alberto Mining Corp. Since then, the company has acquired four non-operating in Mindanao, the most recent of which is the copper and gold mine within the 9,720 hectare property in Boston and Cateel, Davao Oriental.^[8] In March 2011, MRC entered into a mining operations agreement with Alberto Mining Corp. and Pensons Mining Corp., which owns the rights to these mines, which is located beside the mineral rich Mt. Diwalwal.^[9]

In 2011,it also acquired a mining claim covering 7,995 hectares at Kiblawan, Davao del Sur and Columbio, Sultan Kudarat, as well as 3,718.41 hectare gold and copper property located at the Municipality of Marihatag, Surigao del Sur, which is to be named MRC Surigao Mines, Inc.^[10] The Kiblawan Mine is adjacent to the $5.2 billion Tampakan gold and copper project which has the potential to becoming the biggest gold mine in Asia and the fifth biggest gold mine in the world once it becomes operational.^[8] The geological studies conducted by the Alberto Mining Corp. in 2006 showed that tests and readings both in the Tampakan and Kiblawan projects were similar in their initial test phase.^[11]

MRC Allied Inc. plans to list in the London Stock Exchange, the shares of MRC Tampakan Mines Inc. They also plan to hold an initial public offering for this subsidiary within the first quarter of 2011.^[12]

An Australian firm, a Sydney based company, has proposed a joint development venture in the 3,718 hectare gold and copper property in Marihatag, Surigao del Sur. A joint venture deal is now being finalized. The new company will be brought to an IPO in the Australian Stock Exchange, with the Surigao tenement as its primary asset.^[13]

Gaming entertainment

In June 2011, the company is also planning to enter the gaming entertainment and tourism sector to capitalize on the limited number of gaming facilities in the provinces. It plans to put up a casino in its 160-hectare industrial estate in Naga City, Cebu, to be able to transform an idle property into an integrated entertainment resort complex, with the view of acquiring large revenues and developing employment opportunities.^[3]

References