LG International to infuse more funds into Lafayette

LG International Corp., which has a 25 percent stake, is ready to infuse more funds into Lafayette Philippines Inc. (LPI) despite the setback it is experiencing due to the mine tailing spillage in Rapu-Rapu, Albay.

This was the assurance made by Sang-Chun (Scott) Kim, chief representative of LG International Corp. during the recent State Visit of Korean President Roh Moo-Hyun.

Kim said that equity investors in LPI are committed to support the Rapu-Rapu mining operations in spite of the current setback. The only question now is how much additional funds they will put in, Kim said.

Earlier, LPI country manager Rod Watt had assured that it is committed to stay in the Philippines even after the unfortunate mine tailing spillage.

LPI, Watt said, continues to plan for its future in the country, including a possible listing in the Philippine Stock Exchange (PSE).

Watt said that LPI wants to list with the PSE some time in the future after it has resolved its current spillage problem.

The purpose of the PSE listing, Watt explained, is not so much to raise funds, but rather to open up the mining firm to local ownership.

Once a firm decision is made to go ahead with the listing, Watt said, LPI would be ready to list in as short as six months time.

Operations at LPI’s Rapu-Rapu mines in Albay has been suspended in November following two mine tailing spillage incidents.

Watt is hopeful that once the company has been able to comply with a number of government imposed measures, operations at the Rapu-Rapu mines can resume as soon as possible.

Watt confirmed that LPI is losing about $50,000 a day from the closure of operations at the Rapu-Rapu mines.

Watt assured that if government gives the go signal for LPI to resume its Rapu-Rapu mine operation, only base metal processing would resume and not gold ore processing which uses cyanide.

In fact, Watt clarified, LPI was actually scheduled to shift its operation from gold ore processing to base metal production of copper and zinc which does not need cyanide for processing.

Gold production anyway, Watt explained, is just a by-product of its primary base metal production of copper and zinc.

LPI wants to be able resume operations soon to take advantage of the current high world metal prices.