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Wednesday, May 24, 2006
Firm to reopen this year, pays P10M to Toledo City
The long-awaited reopening of Atlas Consolidated Mining and Development Corp. (ACMDC) in Luto-pan, Toledo City is set in six to 18 months and is expected to bring socio-economic benefits to the city and its constituents, the firm’s president and chairman, Alfredo Ramos, said yesterday.
“The mine will generate substantial foreign exchange earnings of up to $3 billion in the next 12 years. Furthermore, it will provide up to 3,000 new jobs in Toledo City and nearby areas, as we as millions in tax remittances to both the national and local governments,” Ramos said in a press conference.
Ramos, of the National Bookstore chain, handed to Toledo City Mayor Arlene Espinosa-Zambo a check for P10 million as part of the mining firm’s compromise agreement with the City Government to settle real property tax.
In addition, Ramos also handed to Zambo one million ACMDC shares worth P8 million.
Shares
The balance of five million shares will be delivered by ACMDC to the City Government upon the resumption of the mining operations. With this, The Toledo City Government will become one of the big stockholders of ACMDC.
City Councilor Eric Espinosa, the mayor’s brother, said the money and shares of stocks are on top of an ACMDC property that was turned over to the City Government and will become the site for the future modern City Hall.
Zambo said ACMDC’s original unpaid tax obligation was P280 million, but the City Government agreed to a compromise settlement of P100 million in cash, shares of stocks and real estate properties because they want the mining firm to reopen immediately so the people can have jobs.
Labor
Rodrigo Cal, assistant vice president for operations, said they will initially hire 300 to 400 people at the start of the rehabilitation and about 3,000 workers when the Carmen Lift 1 will be fully operated.
The Carmen Pit with reserves of 132 million metric tons has a mine life of 12 years and the average future production of 108.5 million pounds of copper and 47,900 ounces of gold per year plus silver, magnetite and pyrite.
As the labor problem, Ramos said in a press conference that they are readying P101 million for the former ACMDC workers who have benefit claims.
They are coordinating with the Department of Labor and Employment as to the mechanics of the payments.
Martine C. Bucking-ham, executive vice president and chief finance officer, said the complete rehabilitation of the mining firm needs about $160 million, and their initial cash on hand is $40 million.
With the reopening of ACMDC, the Toledo City Government is expected to receive P12 million per year in taxes, the National Government with P306.252 million in taxes, and an estimated P188.5 million a year in foreign exchange generation.
At present, ACMDC is only paying P542,000 in taxes to the National Government and P183,000 to the City Government.
Before the suspension of the mining operations in the 1990s, ACMDC paid P634 million in annual taxes to the National
Government and P11 million a year to Toledo City Government.
“We are looking forward for to reopening of ACMDC. We don’t mind how much they’ve paid in back taxes as long as people have jobs,” Zambo said.
ACMDC was acknowledged as Southeast Asia’s largest copper mine during its peak. Before a devastating typhoon in 1990, a slump in metal prices and a labor problem which led to the mine’s closure in 1994, ACMDC shored up the local economy by employing 12,000 residents.
Vice Mayor Rudy Espinosa, the mayor’s father, thanked ACMDC officials for their effort to reopen the mine.
For Bisaya stories from Cebu. Click here. (May 24, 2006 issue)
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