Canadian firm renews bid for North Davao Mining

Crew Mineral Philippines Inc. (CMPI), the local unit of Canadian mining company Crew Gold which controls Apex Mining Co. Inc. (Apex) in Compostela Valley North Davao, is reviving plans to bid for North Davao Mining Corp. (NDMC) which is scheduled for privatization this year by Natural Resources Mining Development Corp. (NRMDC).

"It will be advantageous to government if Apex is finally allowed to operate it, something will happen tomorrow because we are already there and we have all the facilities and the workforce," said CMPI managing director Leo Cleto A. Gamolo.

Gamolo said CMPI is in the best position to bid for NDMC because Apex’s existing minerals production plant is within the Compostela Valley. Apex and NDMC however, are locked in a legal dispute because their mining claims overlap each other. The case has been pending with the Mines and Geosciences Bureau’s regional arbitration panel since 1998.

NRMDC president Artemio Disini said earlier however, that the privatization of NDMC will push through, adding the legal tussle is not seen to significantly affect the turnout of bidders since more than 15 investors revived their interests in buying NDMC, especially with the transfer in recent months of NDMC’s trusteeship from the Privatization Management Office to the NRMDC.

Prior to its closure in 1992, NDMC operated an open pit mining copper mining project in Maco, Compostela Valley. Its assets were then transferred to the Asset Privatization Trust (APT) which is now the PMO, at a price of P4.7 billion. Parts of these assets have been disposed by the PMO.

Disini said there are still substantial copper reserves in the area. It has remaining copper reserves of 65 million metric tons with a grade of 0.34 percent copper and gold reserves of 1.1 million MT with a grade of five grams gold per ton of ore.

CMPI, as early as 2004, offered $3 million or about P150 million for NFMC.

"That was just the upfront money. We were willing to negotiate for the royalty. They were putting it up for bidding but there were no takers because NRMDC still had to update geological data, we were still rejected though," said Gamolo.

Gamolo said acquiring NDMC is part of the long-term investment plan of CMPI.

"We are interested in North Davao because of the mine’s general potential. It is in a gold district area that’s why we were willing to risk $3-million upfront. And I think that was the biggest offer they (NRMDC) received."

He disclosed that CMPI is also willing to strike a settlement with NDMC to finally resolve their long-drawn mining claims dispute.

CMPI and its Filipino partners, Mapula Creek bought a combined 72 percent of Apex in 2000 while 28-percent is listed in the stock exchange.

Last year, CMPI started the rehabilitation of Apex, mines which along with NDMC, was shut down in the early 1990s when metal prices crashed. The rehabilitation is expected to be completed before the end of the year.

Joel M. Muyco, resident manager of Apex, said that while the rehabilitation work is ongoing, the company is still continuing its exploration work.