Atlas Mining expects full operations before 2008

The resumption of the operation of the Atlas Consolidated Mining Corporation might be expected before the end of this year as its rehabilitation had gone full blast since September last year, among other preparations for such goal.

According to the 2006 report of the Mines and Geo-Sciences Bureau, the mining firm during its initial three-month rehabilitation, from September to December, had already hired a total of 597 workers to work on the full-blast rehabilitation that started last January.

The workers were assigned to repair the roofing of structures, dismantle and open the ore processing equipment, repair of drainage system of the open pit, and rehabilitation of tunnels, among others.

The Crescent Asian Portfolio, a Singapore-based investment house, had released US$13 million to fund the rehabilitation for the purpose of saving the mine and avert the further deterioration of its facilities and equipment.

The mining company had sealed a US$40 million deal last May with the Singaporean group that was composed of other investors with total fund reserves exceeding US$15 billion.

The Crescent group released US$33 million investment, the US$13 million of which was spent for the initial rehabilitation works through the last quarter of last year.

The MGB said that the updated Mine Feasibility Study, completed August last year, had allowed the mine company to start ore production and processing even as early as the first month from the start of the rehabilitation.

Another vital component that needed to be complied with for the resumption of operations of Atlas Mining was the settlement of the benefits of all 1,982 terminated employees.

The MGB reported that, as of last year, Atlas already paid in full the balance of the separation benefits, amounting to over P111 million, of these employees from the rank and file to senior managers.

Atlas Mining also obtained a US$100 million investment guarantee from a bank that was needed in attracting foreign investors to the mining operations, said the MGB report.

Atlas Mining, which started operations in 1955, was closed in 1994 because of mounting labor problems on top of the sharp drop of copper prices in the world market at the time. - Ferliza C. Contratista/RAE