Alakor to take over Atlas copper mine in Cebu

Atlas Consolidated Mining and Development Corp. and Alakor Corp., an investment and holding firm controlled by Alfredo Ramos of the National Bookstore chain, have finalized an agreement for the latter to take over the rehabilitation of ACMDC’s minesite in Cebu in exchange for assuming the payment of the mining firm’s P1.9-billion debt.

In a statement to the Philippine Stock Exchange, ACMDC said both parties executed last Tuesday the Oct. 3, 2000 memorandum of agreement (MOA), wherein Alakor "had assumed and completely settled the company’s (ACMDC’s) debts, including all unpaid interest and penalties owed to local and foreign bank creditors amounting to P1.9 billion."

In return, ACDMC will issue to Alakor shares equivalent to the total value of the debts discharged, including interests and penalties, representing a 41-percent stake in the mining firm.

Alakor will then take over the rehabilitation and re-opening of the Toledo copper mine operations in Cebu, which was once the fifth largest copper mine in the world.

The Toledo mine site has a track record of 39 years of continuous copper operations prior to its closure in 1994. After producing some 5.6 billion pounds of copper, ACMDC was forced to suspend its operations due to the depressed prices of the metal in the international market.

In Nov. 15, 1996, ACMDC forged a tie-up with Minoro Mining and Exploration Corp. in a debt-to-equity deal that would grant Minoro the exclusive right to rehabilitate and run the minesite and control 58 percent of ACMDC with the infusion of funds to pay off the company’s debts. The swap also diluted the holdings of the A. Soriano Corp. (Anscor) group to 13 percent in ACMDC.

But last July 7, 2000, ACMDC terminated its deal with Minoro, claiming the latter failed on its promise to vigorously pursue the rehabilitation program, thus putting more burden on ACMDC’s capacity to pay off creditors.

Aside from the Toledo mine, ACMDC owns a range of strategic assets that include the Berong nickel deposit in Palawan, extensive realty interests, a port facility, a substantial water resource as well as an industrial facility and plant.