With its turnover to new investors last April, the Rapu-Rapu Polymetallic Project (RRPP) has deposited an initial P30 million into an escrow fund for its Final Mine Rehabilitation and Decommissioning Plan (FMRDP), according to project director Scott Kim of LG International. The fund will cover the costs of rehabilitating the site and decommissioning the mine after operations end in approximately five years, based on mineral reserves.
While the fund is a legal and regulatory requirement, it need not be started until the FMDRP is approved. The trust fund deposit, even before the rehabilitation and decommissioning plan for the project has been green-lighted by authorities, is possibly the first ever to be made by any mining operation in the country. When the plan is approved, regular deposits into the fund by RRPP will continue, based on a stipulated schedule.
The three new shareholders of the Rapu-Rapu Polymetallic project are LG International with 42 percent equity, and Korea Resources Corp. (KORES) with 28 percent equity under a joint venture named Philco; and the Malaysia Smelting Corporation (MSC) with 30-percent equity. Extraction and processing operations are conducted by project subsidiaries Rapu-Rapu Mining, Inc. (RRMI) and Rapu-Rapu Processing, Inc. (RRPI). The project resumed operations last October.
The shareholders bring a synergy of strengths to the Rapu-Rapu Polymetallic project: LG International with its corporate resources and track record; KORES with a wealth of technical mining expertise; and MSC with more than 100 years of experience in mineral processing.
“The first deposit to the trust fund, even if not necessary at this time, signals our recognition of our responsibilities to all stakeholders. Mining is a temporary use of land. This early, we are already looking to the proper rehabilitation and decommissioning of the mine site, so that it will continue to benefit residents and other stakeholders with alternative uses,” said Kim. The fund, he noted, was started in tandem with dialogues that are being conducted with local communities, church leaders, the academe and NGOs, apart from regulatory authorities.