Carmen Copper Corp., a subsidiary of Atlas Consolidated Mining and Development Corp., is on track with the rehabilitation of its Toledo copper mine located in Toledo City, Cebu.
In a disclosure to the Philippine Stock Exchange, Carmen Copper reported that it has essentially completed phase 1 of the rehab work and is now ready to process at about half the planned maximum ore production.
At full capacity, the Toledo copper mine can process 42,000 tons of ore per day.
Phase 2 of the rehab will consist of underground development work.
Commercial operation is expected within the first half of 2009.
The Toledo copper mine is projected to produce up to 130 million pounds of copper, 70,000 ounces of gold, 260,000 ounces of silver, 160,000 dry metric tons (DMT) of pyrite and 440,000 DMT of magnetite concentrates per year.
The mining firm Carmen Copper has an off-take agreement with MRI Trading AG of Switzerland. Carmen Copper has agreed to sell to MRI the first 60,000 dry metric tons of copper concentrate produced from its Toledo copper mine.
The first delivery has been set for June 2009.
As part of the terms of the off-take agreement, MRI agreed to provide a hedge on copper prices for the first 30,000 tons of concentrate. MRI would pay for concentrates delivered into its warehouse at the Sangi Port in Toledo City, Cebu.
The start of operations of its Carmen Copper project has been factored in Atlas’ projection of a much higher revenue next year.
For this year, Atlas projects a revenue of at least P500 million from its existing nickel mining operations.
Atlas is optimistic that next year its revenue will increase between P2 billion and P3 billion once its Carmen Copper mine starts operation in the second quarter of 2008.
The Toledo mine has an estimated copper ore reserve of 870,000 metric tons.
MRI Trading, according to its website, is a private company engaged in international physical commodities trading and investments.