Carmen Copper inks $90-M loan for capex

MANILA, Philippines - Carmen Copper Corp., a wholly-owned subsidiary of listed Atlas Consolidated Mining and Development Corp. is borrowing $90 million from five banks to finance its capital expenditures and settle its short-term loan obligations.

In a regulatory filing yesterday, Atlas said Carmen Copper has signed bilateral term loan agreements with Security Bank Corp. for P1.1 billion; Maybank Philippines Inc.,$10 million; Maybank International Labuan branch, $10 million; Rizal Commercial Banking Corp., $19.5 million, and United Overseas Bank Limited, $25 million.

The loans would have a term of four years payable from the date of availment.

Atlas is ramping up metal processing and is sourcing more high-grade ore this year to cope with fluctuating metal prices.

The throughput capacity of the upgraded processing plant in its Carmen Copper-operated Toledo copper mine in Cebu is gradually being increased to reach its target production capacity of 60,000 metric tons (MT) per day.

This year, Carmen Copper would also obtain ore from the high grade Carmen ore body rather than the Lutopan ore body as a short-term strategy to cope with fluctuating metal prices.

This does not mean, however, that resource in the Lutopan ore body has already been exhausted. With higher production volume and higher metal grade, the company would be able to substantially lower the cost of production per unit.

Atlas is ramping up copper concentrate production in the short term because of high demand as copper is used in industrial production.

Enhanced copper production would also give Atlas an additional mine by-product revenue stream through the production of molybdenum in a plant that it commissioned in December last year.

Molybdenum, which is used as an alloy of stainless steel, is produced as a by-product of copper. Most mines do not produce it as a primary by-product.