MRC Allied to list Tampakan unit next year

MANILA, Philippines - MRC Allied Industries Inc. is planning to list its unit MRC Tampakan Mines Inc. on the stock exchange by way of introduction, according to a top company official.

MRC chairman and president Benjamin Bitanga said the listing of MRC Tampakan, whose main asset is the 7,995- hectare gold and copper mine site in Kiblawan, Davao del Sur and Columbio in Sultan Kudarat, will take place next year.

Bitanga said MRC Tampakan would need to undertake an initial public offering (IPO) a year after listing by way of introduction.

He said a Chinese group has signified interest to invest or enter into a joint venture with MRC with respect to the development of the Tampakan project, which is adjacent to the $5.2-billion Xstrata Tampakan copper-gold mine in South Cotabato.

With an estimated 2.2 billion tons in mineral resources, Xstrata’s Tampakan mine has the potential to become the biggest gold mine in Asia and the fifth biggest gold project in the world once operational.

Bitanga said he is very excited about the Tampakan project, pointing out earlier geological studies showed similar findings as those in the Tampakan mine during its initial test phase.

MRC is also planning to undertake a stock rights offering next month or January next year to raise around P720 million to fund the development of a gold processing plant in San Miguel, Surigao del Sur.

The company last week signed an agreement with Manobo Sectorial Tribe Council, the exclusive holder of the Express Priority Rights recently endorsed by the National Commission on Indigenous Peoples for the development of an area of about 20,000 hectares within mineral-rich Surigao del Sur.

The plant, which will require a total capital outlay of P800 million, will produce a minimum of 2,000 tons of gold a day. It will eventually process copper.