Carmen Copper to export $1.8M copper concentrate

CEBU - Despite the cease-and-desist order slapped on Carmen Copper Corporation by the Mines and Geosciences Bureau-7, the company is on schedule to export $1.8 million of copper concentrate next month.

In a press conference held at the CCC plant yesterday in Toledo City, Rodrigo Cal, the company’s vice president and resident manager, said that the CDO has not affected the continuation of the plant’s rehabilitation, and testing operation, as MGB-7 has not ordered to stop the entire mining operation, but only the Emergency Tailings Pond facility.

Cal said the environmental issues that are expected to confront the revived mining plant are being addressed.

Cal however did not elaborate on the issue, saying the authorities both from the local government unit and the provincial government are doing something to defend the CCC’s side, and may help the company further address some environmental processes loop holes, “if there are any.”

 “As far as we are concerned, water outflow that is disposed into the Sapangdaku River is harmless. The process done in ETP has no chemical involved,” he said.

But MGB-7 director Roger de Dios issued a cease-and-desist order immediately last September 27 during the inspection of the Sapangdaku River.

Cal said because of the MGB order, the ETP facility of CCC has been closed, and the plant is now operating in a zero-discharge condition.

MGB-7 also ordered the company to compensate families, should the leakage cause any damage on livestock or crops.

But, as of latest report, the company has yet to receive any damage reports. So far, aquatic life in the river is safe and the mine tailings are not toxic, MGB-7 said.

About to complete its $248-million rehabilitation and testing program, Cal said the copper mining plant is ready to ship 10,000 tons of copper concentrate to a Swiss copper buyer—Marc Rich International.

The initial 10,000 tons of copper concentrate that will be exported by CCC next month would translate to estimate revenue of $1.8 million, he said.

At this point, the 3,000-hectare copper mining in Toledo City is employing 5,800 to complete the two phases of rehabilitation, which is expected to be finished by November of 2009.

Number of workers will decrease to about 4,000 once the mining operation will start its full commercial operation.

CCC, formerly known as Atlas Consolidated Mining and Development Corporation, has a capacity to produce 42,000 tons of copper concentrate a day. Phase 1 of the rehab would allow the plant to produce at least 20,000 tons a day.

In 1999, Atlas Mining was penalized by the Department of Environment and Natural Resources-7 for dumping 5.7 million cubic meters of sulfuric acid into the Sapangdaku River, causing massive fish kill in the area.

But Cal said that in the new management, the company is making sure that environmental issues will be addressed seriously, even before it goes full blast operation in the later part of next year.

CCC is expected to provide an average of over 3,000 jobs to Toledo City and neighboring towns. In the next 12 years, it is seen to generate substantial foreign exchange earnings of up to $3 billion.

CCC was able to get a $100-million loan from the Deutsch Bank while a syndicate of foreign banks called Crescent Asian Special Opportunities Portfolio put up an additional $33 million in capitalization.

In the 1980s during the “glory days” of Atlas Mining, the Philippines was the third largest copper [concentrate] supplier in the world with capacity of 110,000 tons a day.

 Cal said the rich ore source within the Toledo area could offer a good source of copper, as well as pyrite and magnetite concentrates in the next 25 years. — Ehda M. Dagooc/MEEV (THE FREEMAN)