Atlas unit needs $160M to rehabilitate Cebu copper mine

Carmen Copper Corp. (CCC), a wholly-owned subsidiary of Atlas Consolidated Mining and Development Corp. (ACMDC), needs around $160 million for the rehabilitation of the Toledo copper mine in Cebu.

During the company’s stockholders’ meeting, ACMDC chairman Alfredo Ramos said funding for the Toledo copper mine will come from a combination of debt and equity infusions.

Ramos said CCC, a company spun off by ACMDC to take the lead in the development of the Toledo copper mine, has secured environmental permits from the government, allowing the resumption of its mining operations.

He said independent reviews of the mine show commercial viability and its re-opening is expected to reap substantial benefits, both social and economic, to the national and local economies.

Larry Harding, director of Crescent Asian Special Opportunities Portfolio, said his group has committed to infuse $40 million into ACMDC and CCC. Of this amount, $12 million has already been given early this year ($5 million for CCC and $7 million for ACMDC). The capital investment translates to a 34-percent equity in CCC.

Harding said the balance of $28 million is being finalized and will go solely to CCC.

"We are very committed to the Ramos group and with the positive changes happening especially in the Philippine mining industry, we are all the more encouraged to become a long-term investor here," Harding said.

Ramos said the company is also expected to commence production work on its nickel project in Berong, Palawan which reportedly contains the fourth largest nickel laterite resource worldwide in terms of contained nickel.

During the last 18 months, ACMDC through Berong Nickel Corp., and its UK farm-in-partner Toledo Mining Corp. have completed a comprehensive environmental impact study, feasibility work, and local infrastructure development. Initial capital cost for the nickel project was placed at $15 million.

Ramos said several foreign groups have expressed interest in joining or funding the feasibility studies to be conducted by ACMDC but negotiations have yet to be completed.

Initially, the focus of the company’s activities will be the development of a direct shipping operation of both saprolite ore and limonite ore mined from the 288 hectares selected area at Berong. First shipment involving 30,000 metric tons will go to China.

ACMDC also approved an increase in its authorized capital stock to P20 billion from P12 billion.

Ramos said the company is still considering a placement or listing of its shares to raise funds for various projects.