HK firm eyes joint venture with Vulcan

MANILA, Philippines - Vulcan Industrial & Mining Corp. has forged a memorandum of understanding with Hong Kong-based China Trend Investments Ltd. allowing the latter to conduct a 60-day review of all the local mining firm’s exploration projects.

Both companies are hopeful they will sign a two-year memorandum of agreement in which China Trend will choose the projects that it will develop into a mine. The contract was signed during the state visit of President Aquino in Beijing, wherein China Trend pledged $1 billion for mining development.

Upon the end of the MOU period and China Trend signs a memorandum of agreement with Vulcan, it would pay Vulcan $1 million. In addition Vulcan can get advances against royalties up to a maximum of P500 million, payable 30 percent on the first year from date of signing of MOA, 30 percent after 18 months and 40 percent upon the end of the two-year period of the MOA.

At present, identified claims of various mines assigned to or located by Vulcan include Marian gold mines in Cordon, Isabela; Dinapique gold project in Isabela; Luz copper project in Sipalay, Negros Occidental; Manlupo copper project in Damutan, Negros Occidental; Panaon gold prospect in Pintuyan, Southern Leyte and Davao gold and copper project in Manay and Taragona.

On the other hand, subsidiary Vulcan Materials Corp.’s identified claims include Subic gabbro project in Zambales; Palawan Silica Sand in Roxas and San Vicente; Morong concrete aggregates in Bataan; Batangas concrete aggregates; Bolinao cement/limestone project in Pangasinan and comet Dinagat project.

Identified claims to third parties include Nueva Ecija project in Gapan and Penaranda; Davao gold project in Manay and Taragona and Malimono offshore gold project.

Incorporated in January 1953, Vulcan and its subsidiaries are engaged in mining and mineral exploration. It owns three approved mineral prediction sharing agreements (MPSAs), exploration permit/MPSA applications for 10 mining prospects/projects and operates another two mining projects under operating agreements with third parties.

Vulcan has been participating in oil exploration projects since 1976 and is part of two groups which have petroleum contracts.