Department of Environment and Natural Resources regional executive director Leonardo Sibbaluca said Atlas Consolidated Mining in Toledo City will start its commercial production by July next year.
Financing for Atlas’ rehabilitation is currently being wrapped up with results expected by February. Its reopening will cost P12.475 billion because of record copper prices.
Atlas plans to build a new land-based tailings disposal system, pier and concentrate loading facilities.
Carmen Copper, the new company and proponent of the project, convinced the Board of Investment that it would start operating two open pit mines.
Copper is of lower grade in the open pit compared with that in the underground pit, but its high price is expected to cover the expenses involved in mining.
Operating the open pit has three setbacks: one, it would involve "holing" which would be quite expensive; two, open pit mining has its area limitations; and three, the mine would yield porphyry or low-grade copper which would not fetch high prices.
Since Carmen Copper stopped its operation, copper prices have more than doubled from just a dollar a pound in 1994 to about $2.87 per pound at the current prices.
Based on its representation, Carmen Copper said Atlas would have a capacity to produce 15,204,000 dry metric tons of copper per year. The project would generate 3,455 jobs of which 2,585 are direct.
Once commercially operational in November this year, Carmen Copper would have an annual production of 46,577 DMT of copper, 41,066 ounces of gold, 147,860 oz. of silver, 162,860 tons of pyrite, and 506,290 tons of magnetite.
Atlas closed the Toledo mines in 1994 following a mudslide, low world copper prices and huge debts.
Industry sources point to mismanagement as one of the reasons for its fall, stocking up inventory that got caught up with the decline in prices. The management was also reportedly "top-heavy," causing a huge drain in its operating expenses.
Atlas was formerly controlled by the Soriano group before it was sold to its current owners, Alakor Corp., headed by businessman Alfredo Ramos.
Alakor acquired a majority control of the Toledo mines, with Atlas unloading a big chunk of its obligations in a debt-for-equity swap with Alakor and Minoro Mining and Exploration Corp. – Jasmin R. Uy/LPM