MacroAsia to start mineral exploration

MacroAsia Corp., a company majority owned by Lucio Tan, may now proceed with its mineral exploration activities in Brooke’s Point after the provincial board of Palawan withdrew its objection to the company’s mineral production sharing agreement (MPSA).

MacroAsia obtained the MPSA from the Mines and Geosciences Bureau covering 1,114 hectares of land in Brooke’s Point, Palawan.

The Palawan provincial board withdrew its objection after MacroAsia committed to fulfill its corporate and social obligations to the indigenous communities to be affected by the company’s planned mining operations.

"The regional director of the Mines and Geosciences Bureau explained that exploration work is part and parcel of the MPSA, but if MacroAsia declares that mining the area is feasible, the corresponding local government consultation will again have to be undertaken, along with all other applicable environmental requirements," the Sangguniang Panlalawigan said in a resolution.

MacroAsia, a listed aviation support company, earlier said it would need more than $1 million to jumpstart exploration activities in Palawan.

To help fund the project, MacroAsia will team up with a foreign investor. The company is now in talks with five foreign investor groups from Canada, China, Korea, Japan and Australia for possible joint exploration of the area. The company is keen on taking in only one or two partners for the project.

The MPSA gives MacroAsia the exclusive right to conduct mining operations within the contracted area.

Mining operations that are allowed include exploration, development and utilization for commercial purposes of nickel, chromite, iron and other associated mineral deposits that may be found in the area.

The MPSA will be in effect for 25 years and is renewable for a maximum 25 years under the same terms and conditions as the existing agreement.

Foreign investors have taken a second look at the Philippine mining industry following a Supreme Court decision allowing foreigners to wholly own local mining projects.

MacroAsia inherited the mining claim over the property from Cobertson Holdings Corp., formerly Infanta Mineral & Industrial Corp. It does not own the title to the land but can use it for mining purposes.

Tan took over Cobertson in 1995 to undertake a backdoor listing of MacroAsia. Infanta Mining was the country’s leading nickel mining operator in the 1970s.

Apart from the mining business, MacroAsia operates four subsidiaries and two associated companies, which directly render services to airline customers of Ninoy Aquino International Airport (NAIA), Mactan-Cebu International Airport (MCIA) and Davao International Airport.