SOURCE: PNA
In a remarkable milestone, for the first time in 15 years, the Philippine government has granted a permit to the copper mining project of Perth-based Celsius Resources. This significant event comes with initial investments of USD253 million, equivalent to around PHP14 billion. This project stands as a testament to the evolving landscape of the mining industry, setting the stage for more sustainable and profitable developments in the future.
The local unit of Celsius Resources, Makilala Mining Company, Inc. (MMCI), was granted a Mineral Production Sharing Agreement (MPSA) by the Department of Environment and Natural Resources (DENR) on March 15. This 25-year MPSA, which can be extended for another 25 years, is for the company's Maalinao-Caigutan-Biyog (MCB) Mining Project in the Cordillera Administrative Region. This agreement gives MMCI the exclusive rights to explore, develop, and commercially produce copper and associated minerals within the 2,500-hectare contract area.
The MCB mining project forms part of the USD1.53-billion investment pledges that President Ferdinand R. Marcos Jr. received during his visit to Melbourne, Australia earlier this month. The future of the Philippines as a regional hub for smart and sustainable manufacturing was the highlight of his address to the Australian business community.
The MCB project sets a benchmark for sustainable mining practices, with an initial capital expenditure of USD253 million and an estimated payback period of approximately 2.7 years. The company has committed to adhere to strict labor standards and environmental norms, setting a precedent for future mining projects.
The operation of the MCB project will significantly boost the national economy. The government's share of production includes an excise tax on mineral products on top of a royalty of at least 4 percent of the gross output, in addition to other taxes, duties, and fees levied by existing laws.
MMCI will also pay an annual occupation fee to the host municipality, thereby contributing to local development. The company is also in the process of obtaining the Certificate of Pre-condition from the National Commission on Indigenous Peoples (NCIP) as part of the Free, Prior and Informed Consent (FPIC) Process.
In an important development, MMCI has already signed an agreement with the Balatoc Tribe community outlining the terms and conditions for utilizing their land for mining. This agreement includes an annual royalty payment of not less than 1 percent of the value of the gross output of minerals sold.
The company has also committed to allocate "a minimum of 1.5 percent of operating costs necessary for the development of the host and neighboring communities". This initiative will not only contribute to the economic development of these communities but also foster stronger relationships with them.
The company plans to hire qualified Filipino citizens during mining operations, wherein the company will provide training and recruitment programs. This initiative will not only boost local employment rates but also foster skills and capacity development within the community.
"Now is our chance to deliver on our firm commitment to work with the government and the local communities to develop the MCB Project in a sustainable manner that creates value not only for our shareholders but also for our communities,” Celsius executive chairperson Julito Sarmiento said. As we look to the future, the MCB project serves as a beacon of sustainable mining practices and economic development in the Philippines.
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