Era of irresponsible mining gone - MRC Allied exec

MANILA, Philippines - The era of irresponsible mining is gone and the cleansing of all mineral claims by the Mines and Geosciences Bureau (MGB) is heralding a new era of responsible and sustainable mining.

According to Benjamin M. Bitanga, president and chief executive officer of MRC Allied Inc., gone is the era when mining claimants could make a stake and leave their claims years on end without any activity.

The mining business, Bitanga pointed out, is now so different with indigenous peoples, local communities and environmentalist more involved in mining activities.

Mining, Bitanga admitted, has become so expensive, that investors must ensure the viability and sustainability of their operations.

Even before any mineral is actually taken out of the ground, Bitanga pointed out, mining companies must already make a substantial investment in preparing the IPs and the local communities and ensuring their support for the mining project.

Thus, mining operators now, Bitanga said, are becoming more responsible in ensuring that their operations are sustainable and do as little harm as possible to the environment.

At the same time, Bitanga pointed, with gold prices projected to hit as much as $1,800 per ounce by the end of this year, the government should encourage the entry and operation of responsible miners such as Swiss-based Xstrata, the major investor in the Sagitarrius Mines Inc.’s $5.9 billion Tampakan copper-gold project in Mindanao.

The Tampakan copper-gold project, once operational, is expected to contribute as much as one percent to the country’s gross domestic production (GDP).

Gold prices are already close to $1,500/oz and the high prices of metals are expected to last for the next three to five years, Bitanga said.

MRC Allied Inc., which holds a gold and copper claim in Kiblawan, Davao del Sur and Columbio, Sultan Kudarat, hopes to beat SMI in starting mining operations in the potentially gold-rich area.

MRC’s mining claim is adjacent to SMI’s $5.9 billion Tampakan copper-gold project which is aiming for a 2016 operations.

MRC Allied, through its it mining subsidiary MRC Tampakan Mines, Inc, hopes to finish exploration activities in their area by this year so that they can determine their ore body.

If the exploration reveals an ore body, Bitanga said, they intend to start mining operations immediately, hopefully by 2013-2014, ahead of  SMI.

MRC Allied is a publicly-listed holding firm. It holds a mining claim covering almost 8,000 hectares in Mindanao.