1 . Affirmation of the difficulty
The Benguet Corporation refused to publish concentrate examples to the Filipino Associated Smelters and Refining Corporation (PASAR).
The Benguet Corporation encounters shortage in producing their products and complying its deal to Mitsubishi Metal Firm and complying the LOI.
2 . Analysis of the caseStrengths
The Benguet Firm is the main producer of copper concentrates. It was the oldest mining company, the greatest gold and chromite developer and one of the largest copper mineral producers in the Philippines. Smelted
Benguet Organization production was expected to decline steadily which in turn results a negative impact to Mitsubishi Metallic Corporation.
The Letter of Instruction (LOI) guarantees the Filipino Associated Smelting and Improving Corporation (PASAR) an adequate way to obtain copper concentrates from most local companies which results/causes pressure to Benguet Firm in submitting its selections to DERIVAR.
Is it doesn’t biggest and oldest exploration corporation started since 1903 and produces largest platinum, chromite and copper inside the Philippines. It truly is active in exploration to get gold, birdwatcher, chromite and coal.
Its expertise is about search, mining, beneficiation and marketing of nutrients.
Benguet Corp. faces issue from very own shareholders. It also fears by selling all their concentrates to foreign smelting and improving plants becauseof the mercury content which usually results Benguet enter into a 12year agreement to Mitsubishi Metal Company.
3. Alternative Solutions to the challenge
The Benguet Organization provides 5-year summary of financial performance, including the individual subsidiaries’ contributions as well as the resulting results which effects of returning of the company stakeholders. The Benguet Firm tried to possess a relationship to different small mining companies which outcomes higher procedure employment and workers.
Seeing that, Benguet Firm worriedly looked for foreign buyers of its focuses. The corporation decided to have a partnership with other foreign smelting and improving companies that can help them mercury content of their products.
The LOI will help the Filipino Industry to minimize its dependence of international especially Japanese people smelter whom processed most of the local exploration outputs which usually PASAR can it best to accommodate the local exploration corporations here in Philippines.
As Benguet Company could not possibly meet the contract to Mitsubishi and fulfill the quota to PASAR, the Benguet Firm must send first its concentrates to PASAR to refine that before creating to Mitsubishi Corporation to minimize the refining and smelting charges from the Japanese Companies, so you will see no refund of the total project cost and it will have no contractual and employees would be affected.
4. Pointed Solution
The Notification of Instruction (LOI) was executed not for negative functions but for the favorable of all exploration corporations. These types of is the reason why the LOI 1387 forced and mandated all of the local exploration corporations to submit their products towards the Philippine Linked Smelting and Refining Corporation (PASAR) for testing, improving and smelting of exploration products before transporting that to the foreign companies nevertheless the Benguet Company president, Mr. Jaime Versus. Ongpin is definitely doubtful to PASAR’s functionality in smeltingand refining their products. The reason why Benguet Corporation-PASAR Controversy. Yes the PASAR encountered difficulties upon its initially year but everyone deserves second possibility. I believe that PASAR could help the Beguet Corporation on its trouble about smelting and improving its focuses and to reduce the mercury on the mining goods.