In a letter to Environment and Natural Resources Secretary Heherson Alvarez, WMCP general manager for projects Ian Smith formally submitted WMCP’s withdrawal.
Following an evaluation of the mineral resources of its mining site in Tampakan, Mindanao, the company decided that "it would not be able to meet a rate of return on investment acceptable to WMC."
WMCP is a subsidiary of WMC Resources Limited of Australia, one of the world’s biggest mining firms.
Aside from the ROI consideration, WMCP said it took into account the continuing drop in the price of copper in the world market.
WMC Resources, through its various subsidiaries and WMCP, has had a presence in the Philippines of more than 10 years.
WMCP had undertaken copper and gold exploration activities in the South Cotabato, North Cotabato, Sultan Kudarat and Davao del Sur, concentrating in Tampakan where it was able to identify a mineral resources.
In early 1998, WMCP announced a large tonnage, low-grade mineral resource totalling 900 million tons at 0.75 percent copper and 0.30 gram per ton gold using a copper cut-off grade of .50 percent.
WMC Resources has agreed to sell its mining rights in the Tampakan copper project to Southcot Mining Corp., Tampakan Mining Corp. and Sagittarius Mines, Inc.
The sale and transfer of its mining rights will pave the way for WMCP’s complete pull-out from the Philippines.
The mining sector has been off limits to foreign investors since 1995 following the non-implementation of the Mining Act which was questioned by some sectors.