Aussie mining firm’s Bicol proj endorsed for ecozone status

Trade Secretary Cesar V. Purisima has endorsed to Malacañang the Rapu-Rapu mining project site of Australia’s Lafayette Mining Ltd. as a special economic zone.

Purisima said they have recommended that the project be classified as a special ecozone "to again spark the interest of foreign mining firms in the country by offering them more incentives and recognizing their contribution to the export industry."

Lafayette Mining’s Rapu-Rapu project in Legaspi, Albay will produce copper, gold, silver and zinc, with an estimated value of $350 million over the initial six-year life span of the project.

The mining project is expected to start operations by the fourth quarter this year and begin exporting by next year.

The capital expenditure by the Australian mining firm for the site is placed at around $41 million.

Purisima said the commencement of the Rapu-Rapu project would send a strong signal to foreign investors that the government is still keen on harnessing its mineral resources in spite of the recent setback posed by a Supreme Court decision regarding foreign control of local mining concerns.

Purisima is keen on attracting foreign investors to invest in the country’s mining sector to allow the country to avail of the current global window of opportunity wherein mineral prices are quite high.

Gold, copper and nickel prices are at their highs, due to several factors that include increased demand from a growing world economy and fears of global instability such as the Iraq war.

Globally, there are no new big copper mines being opened and the Philippines has plenty of mineral resources which have remained untapped.

The mining sector has a multiplier effect on the economy. A revival of mining activity would also perk up the construction industry and the stockmarket lead to job creation and development of rural communities.

Expected to benefit most from a revival of the mining sector would be Mindanao, where 80 percent of the country’s mineral resources remain untapped.