Home » , , , , » Philex, Manila Mining near deal

Philex, Manila Mining near deal

Philex Mining Corp., a mining company controlled by Hong Kong’s First Pacific Co. Ltd., said Wednesday it is close to forging a joint venture agreement with Manila Mining Corp.

Philex chairman Manuel Pangilinan told reporters that the two companies had finalized the basic commercial terms of an agreement to develop the Kalayaan copper-gold project of Manila Mining. The Kalayaan mine is adjacent to Philex’s Boyongan property in Surigao del Norte province.

Pangilinan said Philex Mining would obtain a 60-percent interest in the joint venture and operate the Kalayaan project. Manila Mining will keep 40 percent.

“The basic terms have been agreed but there are some terms which our people want to review,” Pangilinan said.

Pangilinan said the joint venture partnership was advantageous to both mining companies because the two mines would achieve economies of scale.

“We have not yet signed anything with them. But I think it will be advantageous because putting two mines together will achieve economy of scale. You have a more efficient mine, lower cost of production. It would be beneficial to both,” Pangilinan said.

Pangilinan said he hopes to finalize the deal within the year.

Manila Mining said earlier it remained in talks with Philex over the possible sale of a portion of its stake in the 2,463-hectare Kalayaan project. Manila Mining has two mining lease contracts with the government in Surigao del Norte and three mineral product sharing agreements covering Surigao del Norte and Agusan del Norte province. Wholly-owned subsidiary Kalayaan Copper-Gold Resources Inc. operates the mine site.

Philex acquired full ownership of the Boyongan copper-gold project in Surigao del Norte after buying the 50 percent stake of Anglo-American Exploration BV and Anglo-American Exploration (Philippines) for $55 million. It also owns and runs the Padcal mine in Benguet province, the only remaining copper-gold project operating in the country.

Philex firm has budgeted P3 billion for capital expenditures this year, with P1.3 billion to be spent for the development of the Padcal mine.-Jenniffer B. Austria, Manila Standard Today

هناك 3 تعليقات:

karaanboguy1 يقول...


Short-term gains resulting in long-term and irreparable damages. This will be the outcome of Malacanang’s decision not to ban large-scale mining operations in the country despite proofs of its ecological unsustainability and lack of economic viability, according to the Legal Rights and Natural Resources Center –Kasama sa Kalikasan-Friends of the Earth-Philippines (LRC-KsK-FoE). “Once again, President Arroyo has turned her promise up-side-down by putting profit before the interest of the people and the environment. This despite the glaring evidence of environmental disasters exemplified by the tailings spills in Rapu-Rapu, Albay and the Marcopper incident in Boac, Marinduque,” said Jo Villanueva, LRC-KsK executive director.

Last March 15, in her speech before volunteer rescue workers of the Leyte landslide, President Arroyo promised that the government will never prefer profits over sound environment. Last March 10, President Arroyo created the Rapu-Rapu Fact-Finding Commission thru Administrative Order No. 145 to probe the mine spill that affected fishing in the waters around Rapu-Rapu island. The President has also agreed to the request of Catholic bishops to review the Mining Act of 1995.

“All these pro-people and pro-environment stance and initiatives made by the President have all become lip service. President Arroyo herself is doing further disservice to her already tarnished credibility. Her decision to allow large-scale mining operations in the country will mean profit for a few and poverty for the majority of the poor and marginalized Filipinos” said Villanueva.

Poor bet LRC claimed that the interest for profit that President Arroyo now protects will benefit not the Filipino people but foreign mining companies who have caused irreparable damage to the country’s environment and the massive displacement of indigenous peoples, farmers and fisher folk.

Mining, according to Villanueva “is a poor bet to the country’s economic growth”. Under the Mining Act of 1995, Villanueva said that gains from mining operations will not ensure real contributions to the country’s economic growth because the law does not provide clear provisions on how the Philippine government, as the owner in trust of the country’s mineral resources, will benefit from its contracts with mining operators....

karaanboguy1 يقول...


“The Filipino people, represented by the state, are the owners of the country’s mineral deposits. Since the state does not have the financial and technical capabilities to extract its mineral deposits, it enters into agreements with mining contractors to help extract its own wealth. The question now is who should receive the larger share of the profit from the mining operations, is it the owner of the mineral deposits or the mining contractor? ” said Villanueva. Huge profit A 2003 report from the Chamber of Mines of the Philippines titled “Philippine Mining Investment Opportunities” showed that the Philippines would only receive a VERY SMALL SHARE FROM THE HUGE PROFIT THAT WOULD BE RAKED IN BY LARGE-SCALE MINING OPERATORS.

For instance, in the 4,663-hectare Rapu-Rapu polymetallic project in Rapu-Rapu, Albay operated by the Rapu-Rapu Minerals Inc. and Ungay-Malobago Mines, Inc. in partnership with Lafayette NL of Australia, LG Collins and KORES of South Korea ,the report showed that the potential annual gross sales would be US$ 41 million.

The mine life of the said project, based on the report, is seven years thus total estimated gross sales would be US$ 287 million. Minus the mining contractor’s US$ 42 million potential total investment, total potential sales would be US$ 245 million.

Of the US$ 245 million potential sales, only 19 percent or US$ 45.5 million would be paid to the Philippine government in the form of excise tax and income tax without incentives. Thus, the mining contractor will be left of a total potential net sale of US$ 199.5 million or 81 percent of the total potential sales.

In the 21, 465-hectare Didipio Copper Project in Kasibu, Nueva Vizcaya, operated by the Climax-Arimco Mining Corp. the report noted that annual potential gross sales would be US$ 49 million. With a mine life of 14 years, total potential gross sales would be US$ 686 million.

Minus the mining contractor’s total potential investment of US$ 63 million, total potential sales would be US$ 623 million.

Of the US$ 623 million potential sales, only 17 percent or US$ 108.92 million would be paid to the government in the form of excise tax and income tax without incentives. Thus, the mining contractor would enjoy a potential net profit of US$ 514 million or 83 percent of the total potential sales.

“The Chamber of Mines report only goes to show that the Philippines would be at a losing end on its business deals with large-scale foreign mining operators. Since the mining contractors enjoy incentives such as corporate tax incentives and duty holidays and are given privilege to fully recover their pre-operating and property expenses before they give the government its revenue share, the profit sharing becomes more inequitable,” explained Villanueva.

karaanboguy1 يقول...

(Part 3)


For further details please contact Jo Villanueva – 0919-4111660 or 0915-5302993

Based on these reports, findings and analysis what is a few million $$$ offered to then president Arroyo? for a favorable view on the issue and perpetuation of the mining act when all it takes is a quick phone call to then NEDA Chair. Neri to water-down the controversy and position itself as the government's advocate, thereby pontius-pilating herself from the argument?
Haven't we observe? these foreign nationals are already out there using their socio-economic programs to purportively aid us insidiously (i know this very serious accusation, but it's true) where their prospective mining interest (a proven time-honored tool to win the hearts and minds of the locals) and as psychology would teach us, we are on the receiving end, thus owe them a humungous "debt-of-gratitude", not knowing that as these sinks in, in due time, it's easy for them to harvest and reap the fruits of their labor (mining projects) and at the same time take everything -hook line and sinker - plus what is between the ... of our female friends and family members....

Popular Posts


The exciting lineup: 39th Bonok-Bonok Maradjaw Karajaw Festival Contingents Revealed!

Are you ready to be swept off your feet by an explosion of color, rhythm, and culture? The 39th Bonok-Bonok Maradjaw Karajaw Festival is jus...


Post your ADS here


Contact Us


بريد إلكتروني *

رسالة *

About Us

Your news and information authority


أرشيف المدونة الإلكترونية

Recent Posts

Copyright © SURIGAO Today | Powered by Blogger