Kiri Industries Acquires 40% Stake in Philippine Makilala Mining Company

Kiri Industries Expands Footprint with 40% Stake in Philippine Mining Venture

The acquisition positions Kiri Industries to enhance its copper supply chain amid growing demand for green technologies.

Strategic Acquisition Details

Kiri Industries, through its wholly-owned subsidiary Equinaire Holdings Limited (EHL), has successfully acquired 20 million shares in Makilala Mining Company, Inc. (MMCI), representing a significant 40% stake. The total cash consideration for this transaction amounts to $5.01 million. This acquisition was facilitated through the enforcement of security rights under an Omnibus Loan and Security Agreement (OLSA), following unresolved events of default by the borrower. EHL had previously secured these rights from Maharlika Investment Corporation.

Focus on Copper-Gold Project

Makilala Mining Company is currently pre-revenue and has not yet commenced mining operations. The company is focused on developing the Maalinao-Caigutan-Biyog (MCB) copper-gold project located in Kalinga, Philippines. This project is governed by a Mineral Production Sharing Agreement, which outlines the terms for mineral extraction and revenue sharing. The acquisition is expected to bolster Kiri Industries’ supply chain for copper concentrate, which is crucial for its greenfield project under Indo Asia Copper.

Regulatory and Completion Timeline

The transaction is contingent upon standard Philippine tax clearances, corporate registrations, and updates to the stock transfer book. Completion of these processes is anticipated within 15 to 25 working days, allowing Kiri Industries to finalize its stake in MMCI and move forward with its strategic plans.

Kiri Industries’ Financial Performance

Kiri Industries has shown impressive financial growth, with a consolidated net profit soaring to Rs 290.24 crore in the quarter ending June 2026, compared to Rs 10.14 crore in the same quarter the previous year. Additionally, sales increased by 54.54% to Rs 312.36 crore in Q1 FY27 compared to Q1 FY26. This strong financial performance underscores the company’s capacity to invest in strategic acquisitions like that of Makilala Mining Company.

Market Reaction and Future Outlook

Following the announcement of the acquisition, Kiri Industries’ stock experienced a decline, falling 1.60% to trade at Rs 577.50 on the Bombay Stock Exchange (BSE). This reaction may reflect investor caution regarding the risks associated with pre-revenue mining ventures. However, the long-term outlook for Kiri Industries could be positive, as securing a stake in a copper-gold project aligns with the increasing global demand for copper, particularly in green technologies.

Key Highlights

• Kiri Industries acquires a 40% stake in Makilala Mining Company for $5.01 million.
• The acquisition is part of a strategy to secure a long-term supply of copper concentrate.
• Makilala Mining is developing the Maalinao-Caigutan-Biyog copper-gold project in the Philippines.
• The transaction is subject to regulatory approvals and expected to complete within 15 to 25 working days.
• Kiri Industries reported a significant rise in net profit and sales in recent quarters.

Investor Note: The acquisition of a stake in Makilala Mining Company could position Kiri Industries favorably in the copper market, but investors should remain cautious about the execution risks associated with pre-revenue mining operations.