Atlas allots $105 million for Toledo upgrade

MANILA, Philippines - Despite lingering concerns on the country’s new mining policy, Atlas Consolidated Mining and Development Corp. is investing around $105 million for the upgrade of the mill facility of its Toledo complex in Cebu, which is operated by its subsidiary Carmen Copper Corp. (CCC).

Atlas executive vice president Adrian Ramos said $50 million will be spent for the upgrade of the copper mill, $30 million for additional optimization and $25 million for upgrading its mine fleet for the delivery of the copper ore.

Ramos said this will enable CCC to increase its output to 10 million pounds of copper concentrate per month from the current production capacity of seven to 7.5 million per month.

 By the end of 2012, the company intends to be able to produce 127 million pounds annually.

The upgraded mill is expected to be operational between the first quarter or second quarter of 2013.

The firm is also conducting exploration activities within the 4,000-hectare tenement of the Toledo complex for fresh copper deposits.

Ramos said even with the prevailing uncertainties in the minerals industry, the company’s expansion activities “will push through no matter what” although in the future, expansion activities will indeed be “more expensive.” 

The Mining Industry Coordinating Council (MICC), the body created to create the implementing rules and regulations (IRR) for the new mining policy, has agreed to stop the granting of incentives to mining companies, particularly the income tax holiday.

The Board of Investments (BOI) has suspended the acceptance of applications for tax incentives.

 “But right now, we cannot wait for the Board of Investments although, of course, incentives would be good,” said Ramos.

Environment and Natural Resources Secretary Paje earlier explained that the MICC decision to remove the provision of income tax holidays for miners was prompted by the practice of some miners to close shop within seven to eight years while it is still enjoying income tax holiday.

 “We can understand why the income tax holiday should be removed but we believe that at least the incentive on capital equipment should be retained,” said Ramos.

Under the Mining Act of 1995, firms with mineral agreements and financial or technical assistance agreements are entitled to fiscal incentives under the Omnibus Investments Code of 1987.

These comprise income tax holidays, incentives for the use of pollution control devices, and tax and duty exemptions on imported capital equipment and spare parts.