Wednesday, January 17, 2007 RP’s mineral deposits attract ‘many’ investors
THE local mining industry is showing signs of bullishness with the entry of foreign investors, an official of a local mining firm said.
Peter Yu, Cebu Ore Mining and Mineral Resources Corp. (COMMRC) director, said mining firms in Korea, China, India, Ukraine and a local mining operator have expressed intentions of inking a deal with COMMRC either for a direct mineral purchase, joint venture, royalty operating agreement or further financing of an existing project.
“The country is blessed with rich mineral reserves like iron, copper and gold. This is why we are an attractive destination among highly industrialized nations in Asia,” Yu told Sun.Star Cebu.
He said when COMMRC started iron and gold explorations on a 15,390-hectare company-owned property in Zamboanga and in Sibugay province in Mindanao, inquiries from foreign and local investors started pouring in.
Approval
The exploration project covers four iron projects in the towns of Bayog, Buug, Sominot and Midsalip, Zamboanga.
He said COMMRC is waiting for the Department of Environment and Natural Resources’ approval of its application for a mineral production sharing agreement for the Zamboanga project. The exploration phase of the undertaking has been completed, he added.
During exploration activities, an estimated 1.1 million metric tons of iron ore was discovered, said Edgar Hao, COMMRC director for technical services.
The quality of the ore consists of 64.4 to 69.29 percent iron; 0.012 to 0.035 percent phosphorous; 0.14 to 1.07 percent moisture; 1.2 to 3.9 percent silicon; 0.008 to 0.44 percent sulfur; and 0.59 to 0.89 percent aluminum.
Yu said that based on a 1.5-kilometer “continuous vein” survey by geologists, about 130 million metric tons of iron ore are yet to be uncovered.
The survey already covers 3.5 kilometers, he said.
Because of the large area, Yu said negotiations between COMMRC and Falcon Ridge Resources and Management Corp., a mining company in Zamboanga, are in full swing, either for a possible partnership or royalty operating agreement for large-scale mining of high-grade iron and gold.
Yu said a South Korean investor also plans to pour about P50 million on the project, although negotiations are to be finalized on Feb. 8 yet.
Future plant
Yu said an Indian investor, who has heard of the Zamboanga project, also plans to partner with COMMRC. This, after an Indian company bared plans to set up a blast furnish plant in the Philippines, which will pre-process iron ore.
Yu said a Ukrainian billionaire is also expected to visit the mining site on Jan. 22.
“Inquiries from these investors are a sign that the Philippines is indeed rich in untapped mineral resources,” Yu said.
China-based Share Blossoms Inc., in a joint venture with COMMRC, bared plans to mine copper and gold deposits in Minglanilla town, Talisay City and in Barangays Talamban, Mabini and Kalunasan in Cebu City.
Incorporated in 2003, COMMRC is engaged in resource development projects nationwide. (MMM)
