At least 4,500 more workers are needed for the scheduled full commercial operations of Atlas Consolidated Mining and Development Corporation by July next year, or about 14 years after it was forced to shut down in 1994.
As of early December this year, Atlas Mining had already hired more than 3,000 employees but, as soon as the rehabilitation of the mine is completed, more workers will be needed to put it finally in production.
Roger de Dios, regional director of Mines and Geosciences Bureau of the Department of Environment and Natural Resources, said that residents of Toledo City are on the priority list for hiring to boost the city’s economy.
Following the closure of the company, it had paid millions to its thousands of laid off workers and it was only last year that it settled in full the balance of P111.78 million in separation benefits to the 1,982 senior employees, including managers and rank and file employees.
There has been no word, however, if these former employees could still gain reentry into the company workforce.
At this time, though, Atlas Mining’s thrust is to finish its rehabilitation that started last September at a cost of US$100 million from a loan approved and guaranteed by PhilExim Bank.
The company also formed a management team to work on the rehabilitation and it also needs US$100 million more in equity to put the mine into production next year.
Current rehabilitation, for which the company’s reopening depends, include the setting up of a complete set of new surface mining equipment and have it ready for commisioning, de Dios said.
He said the new equipment, which is now at the site, consists of 13 units of 100-ton dump trucks, two units of 6-cubic meter capacity backhoes, one 14-cubic meter loader, one grader, and one bulldozer.
On May 5 last year, Atlas Mining sealed a US$40 million deal with the Singapore-based Crescent Asian Special Opportunities Portfolio (CASOP), the US$30 million of which was injected into the Carmen Copper Corporation (CCC) that owns the operating rights of Atlas copper mining operations by virtue of an operating agreement between the two.
The expected reopening of Atlas Mining, with an expected daily production of 20,000 tons of copper ores, has been drawing investors especially with the continuing rise of metal prices in the world market lately.
The Toledo mine is expected to operate by the second quarter of 2008 and produce copper concentrates containing 25 percent to 30 percent of copper product, and yield an annual output of 47,000 tons of copper and 41,000 ounces of gold.
The long-term objective of the company for the Toledo mine is to bring annual copper output to 150,000 tons.
Metal prices have been rising and gold have jumped to $660.10 an ounce on Friday at the New York Mercantile Exchange’s COMEX division from $547.50 per ounce at the start of the year, while copper finished at $3.551 a pound from less than $3 at the start of the year.
At the stock market, Atlas’ potential has been promising likewise as it has been gearing up for a listing at a foreign stock exchange in London or Toronto or Australia within the next two years to raise at least US$100 million.
Stock analyst Joan R. Parayno said that “Atlas [shares] are due for recovery.” She added that Atlas share price has an upside potential and investors should start accumulating the i-ssue.
Parayno added that Atlas shares could reach P18.25 each or even hit the 52-week high of P21.25, which will result in bigger yields. (RAE)