MANILA, Philippines - Listed Canadian mining firm MBMI Resources Inc., which is trying to regain its Financial and Technical Assistance Agreement (FTAA) for its planned nickel mining projects in Palawan, intends to invest up to $180 million in the Philippines once its large-scale mining permit is restored.
Of that $180-million investments, MBMI chairman Grant B. Walsh pointed out, $18 million would be invested in the affected local communities.
Likewise, he said, MBMI intends to employ up to 600 workers, pumping in a monthly payroll of P15 million.
Walsh, in an interview with mining reporters last Friday, said that MBMI is ready to invest up to $180 million for the exploration, development and operation of its mining claims in Palawan once the government restores its FTAA.
Walsh arrived last week to visit its Palawan projects over the weekend.
MBMI president and chief executive officer John H. Wong added that MBMI has already invested $50 million in the Philippines from 2004 to 2011.
He explained that if MBMI recovers its FTAA, it is ready to bring in immediately P40 million for exploration.
After the resources are confirmed and a mining feasibility study is completed, Wong said, development and construction could be started for the operation of the mines.
Once the mines are operational, Wong said, there are plans to put up a High-Pressure Acid Leach (HPAL) processing plant with an initial capacity of 15,000 tons.
The processing plant would have a cost of between $80 to $100 million.
Eventually, the processing plant would be ramped up to a capacity to process up to 30,000 tons, requiring an additional investment of $80 million.
According to Walsh, MBMI has already raised the funds for its mining projects and is merely waiting for the favorable and speedy resolution and restoration of its FTAA which was granted in June 2011.
MBMI used to operate in Palawan through two local mining firms that only had small-scale mining permits issued by the Local Government.
However, following its favorable partnership and operation in Palawan from 2006 to 2008, MBMI opted to apply for an FTAA which was finally granted in June 2011.
The FTAAs of MBMI’s affiliates were signed by the authority of the President of the Philippines on April 12, 2010 and were registered with the DENR on May 31, 2010.
The same were formally issued on June 2, 2010 to affiliates of MBMI, Narra Nickel Mining & Development Corp., Tesoro Mining and Development Inc., and McArthur Nickel Mining.
The FTAAs cover the Alpha, Bethlehem and Rio Tuba properties.
MBMI said the decision to rescind its FTAA was made in connection with a case filed by Redmont Consolidated Mines Corp., which has questioned the basis for the granting of the FTAAs.
MBMI has several pending court cases with regards to the rescission of its FTAA and the decision of some of its local partners/affiliates to likewise rescind their agreement/tie-up to develop the affected Palawan mine projects.
Walsh is hopeful though that under President Aquino administration, the government would be “very progressive” and ensure business and investments are encouraged.