Omico bags MPSA for Itogon mine site

MANILA, Philippines - Listed mining firm Omico Corp. finally obtained after a 17-year wait a mineral production sharing agreement (MPSA) from the Department of Environment and Natural Resources, allowing it to jumpstart the exploration and development of a mine site in Itogon, Benguet.

In a disclosure to the Philippine Stock Exchange, Omico said the MPSA, covering a 809-hectare property in the northern mountainous province of Benguet, was signed by DENR Secretary Jose Atienza Jr. on April 8, 2009.

In an interview, Omico president and chief executive officer Tommy King Hin Tia said the company finally secured an MPSA after applying for it on April 3, 1992.  

“We’re quite confident about this property which is right beside Philex Mining Corp.’s Padcal mine,” Tia said, pointing out that the latter is the country’s biggest copper and gold producer. 

Tia said the exploration activities will be conducted by its partner Ivanhoe Philippines Inc., a wholly-owned subsidiary of Canada’s Ivanhoe Mines Ltd. 

Under the agreement signed by Omico and Ivanhoe in April 2007, the Canadian firm has committed to invest initially up to $5.45 million in the exploration.

“Ivanhoe has always been following up on the MPSA. The money they promised to invest has been on standby since last year, ” Tia said.

Tia is also banking on the continued recovery of metal prices abroad. For the past six weeks, the base metals territory is upbeat on increased optimism on demand created by the US and China stimulus packages and declining London Metal Exchange (LME) ware house copper inventories.

Omico is licensed to operate, prospect, mine and deal with all kinds of ores, metals and minerals. It is also engaged in property investment and development of low-cost subdivision housing units.

Last year, the company posted a net profit of P8 million, a reversal of the P2.8-million net loss incurred in 2007, mainly due to sales from its Sta. Rosa Homes project.

Upon its completion in 2010, Sta. Rosa Homes will have a total of 1,071 housing units.

Aside from this, Omico has a joint venture with Robinsons Homes Inc. which will develop the mining firm’s three parcels of land in Tagaytay City into a high-density two-phase residential subdivision, consisting of five residential condominium buildings.

Omico also has an agreement with Sta.Lucia Realty and Development Inc., Asian Pacific Estates Development Corp. (APEDC) and Asian Empire Corp. (AEC), whereby Sta. Lucia will develop into residential and commercial subdivisions properties located in Pinmaludpod, Urdaneta in Pangasinan.