British firm seeks tax incentives for P7.1 billion gold bullion project

MANILA, Philippines – FCF Minerals Corp., the local subsidiary of British firm Metals Exploration Plc is seeking tax perks and other incentives for its P7.099-billion investment for the production and manufacture of gold bullion in Nueva Vizcaya.

The Board of Investments (BOI) is mulling the possibility of giving perks to the export firm as a new export producer of gold bullion with an annual gold capacity of 115,000 ounces (oz).

The company’s primary purpose is to engage in the continuing exploration, development and commercial operation of mineral claims in the area.

Earlier, FCF Minerals country manager Craig Watkins said they expect the Mines and Geosciences Bureau (MGB) to approve within the fourth quarter this year the company’s proposed mining activities. He said this will allow the company to proceed with the construction work at the mine area. Watkins said that the Runruno mine in Nueva Vizcaya could produce an average of 96,700 ounces of gold over a 10.4-year mine life.

In the first five years of the Runruno mine life, the site is expected to produce 101,800 ounces of gold a year, while in the remaining five years, average production is expected to decline to an estimated 92,700 ounces of gold a year.

An earlier study commissioned by Metals Exploration said the site has been estimated to contain proven and probable mining reserves of about 780,000 ounces of gold. Watkins said the company saw a payback period of three and a half years, if the price of gold averaged at around $1,000 an ounce.