Philex, Manila Mining near deal
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
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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 create…
“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 …
“THIS LOSING BET WOULD FURTHER TURN INTO AN ECONOMIC DISASTER WHEN LARGE-SCALE FOREIGN MINING CONTRACTORS CAUSE IRREPARABLE DAMAGE TO THE ENVIRONMENT AND THE LIVES OF DISPLACED COMMUNITIES,” concluded Villanueva.
For further details please contact Jo Villanueva – 0919-4111660 or 0915-5302993
ADDENDUM:
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 …