MANILA, Philippines - MRC Allied Inc. is putting up a gold processing plant in a 20,000-hectare property in San Miguel, Surigao Del Sur worth around P800 million, according to the company’s top executive.
MRC chief executive officer Benjamin Bitanga said the company will hold a rights offering either in December this year or in January 2012 to bankroll the construction of the gold facility, which will initially produce 100 tons a day of raw material.
The plant is seen to generate revenues for MRC by the first quarter of 2012, Bitanga said.
He said the facility shall further expand as more raw materials are generated.
The company forged an agreement with the Upper San Miguel Manobo Sectoral Tribe Council, the exclusive holder of the Express Priority Rights (EPR) recently endorsed by the National Commission on Indigenous Peoples (NCIP) for the development of about 20,000 hectares within the mineral-rich area of Surigao del Sur.
“This development is consistent with the goal of MRC to support the tribal groups as the latter will thereby benefit from the employment, education, health and other facilities that will be developed pursuant to the terms of the agreement. In turn, the tribal groups have expressed full support and cooperation with MRC,” Bitanga said.
The company earlier acquired a 2,059-hectare gold and copper mining project in Marihatag, Surigao del Sur for about P140 million.
The company’s entry into the mining industry started with the acquisition of the 8,200-hectare Kiblawan prospect, which straddles between Sultan Kudarat and Davao del Sur.
The Kiblawan mine is adjacent to the $5.2-billion Tampakan copper-gold project.