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Sunday, December 12, 2004
Atlas secures P100M tax deal
By Aledel Gonzalez-Cuizon
Sun.Star Staff Reporter
IN a major development since it ceased operations a decade ago, Atlas Consolidated Mining and Development Corp. (ACMDC) donated over P100 million in cash, shares of stock and properties to the Toledo City Government, as it prepares to reopen its mining operations next year.
In exchange, the Toledo City Government will cancel some of Atlas’ tax declarations and transfer the others from the taxable to the tax-exempt roll.
Properties listed under several tax declarations will be put on the exempted roll effective 1992 and 1994.
However, both parties acknowledged that tax declarations transferred from taxable to tax-exempt due to the suspension of mining operations will be transferred again to the taxable roll upon the resumption and use of the properties in the company’s commercial operations.
The real property tax case between the City and ACMDC, as well as the latter’s tax liabilities, will be settled for P20 million through cash and shares of stocks.
Land donations
ACMDC will also donate to the City parcels of land valued at more than P80 million for the City’s sanitary landfill, government center and market.
Toledo City Mayor Arlene Zambo and ACMDC president and chairman of the board Alfredo Ramos signed the compromise agreement yesterday afternoon in Cebu City.
The settlement amount will be paid in two installments: P5 million upon the signing of the agreement and P5 million upon resumption of mining operations.
With the signing of the agreement, the City and ACMDC “dismiss, remise, quitclaim and abandon, in a manner that is final and irrevocable, any and all claims in law or equity that they have or might have against each other arising out of, in connection with, or relative to the case, including claims against and liabilities of ACMDC for real property tax as of the date of signing of this compromise agreement, the intention being to completely and absolutely free the other from all claims, demands and causes of action of whatever kind and from the claims and disputes being litigated between them in the case.”
ACMDC was one of the world’s largest copper suppliers, but low copper prices, labor problems and ballooning debts forced its closure in 1994.
It ceased operations and was unable to give many workers their separation pay. It also incurred huge tax debts with the Toledo City Government.
Export gains
The Department of Trade lists about 218 million metric tons of copper, as well as gold and silver, in the ACMDC mines as among the raw materials available in Toledo.
The reopening of the mines is expected to contribute to the national economy export earnings of up to $2.2 billion at an average of $110 million a year.
Ramos told Sun.Star yesterday that the compromise agreement is a step towards reopening the company’s mining operations.
No definite schedule was given but Atlas officials hope to get all the permits and approvals for the rehabilitation of the mines to start next year.
Ramos said it is now possible for the company to get financing because copper prices have gone up.
The compromise agreement states that the City “has determined that it is for the best interest of the parties to settle the case amicably, while there are still parties interested to rehabilitate and operate the mines of ACMDC.”
Long-term
In an interview before the signing ceremony, Zambo told Sun.Star that the City is looking forward to developments that will be brought about by the compromise agreement.
She said the compromise agreement manifests the City’s willingness to help the business sector before opening the doors to other investors.
Ramos, for his part, thanked the City for “not seeing the short-term advantage” but the long-term benefits of the agreement.
Zambo hopes the resumption of mining operations would solve the problem of unemployment in the city.
Atlas’ copper mining operations, which started commercial operations in 1955, are centered in Toledo where two open pit mines, two underground mines and milling complexes (concentrators) are located.
(December 12, 2004 issue)
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