China Metallurgical shifts focus to copper smelting

The China Metallurgical Group Corp. (MCC), China’s leading multidisciplinary multinational company engaged in EPC (engineering, procurement and construction), natural resources exploitation, papermaking, equipment fabrication, real estate development and provision of the related services, has shifted its investment interest to copper processing and smelting after recently reaffirming its interest in investing in the Philippine mining sector.

This was revealed yesterday by Environment and Natural Resources Secretary Jose L. Atienza who said MCC had written him a letter of intent indicating their continued interest in investing in the Philippine mining sector.

Atienza said MCC is seeking more Philippine government support for their possible investment. Mines and Geosciences Bureau (MGB) Director Horace Ramos said MCC has expressed interest in investing in a copper processing and smelting plant.

MCC had earlier expressed interest in investing at least $1.5 billion in an integrated steel plant in the southern Philippines.

Atienza said that while MCC is still interested in an integrated steel plant, “they are going slow on that,” and is instead shifting its interest to copper processing and smelting.

Atienza said he is writing a response to MCC asking for more details of their project “so that we can help them better.”

Ramos said the potential investment of MCC would be “at least $1 billion.”

Ramos cited as an example the $1 billion that PASAR has invested for its copper smelting plant, Xstrata’s $1.8 billion.  He said Atlas Mining Corp.’s investment for its copper processing plant alone already amounts to $400 million.

MCC’s serious interest, Ramos said, is reinforced by its decision to go into a joint venture agreement with the Department of Environment and Natural Resources (DENR)-MGB assessment of Philippine mineral resources.

MCC, Ramos said, would get first crack at any major mineral resource found during the joint mineral resources assessment.

The joint venture with MCC, Ramos said, is a separate undertaking the DENR-MGB has with Australia also for a mineral assessment project.

Atienza and Ramos both expressed optimism that if MCC does commit to invest in the Philippine mining sector, it would help the DENR exceed it projected $10 billion to $13 billion investment target by 2010-2012.

MCC is a major driving force behind the growth of China’s steel industry, and is considered a reputable contractor of key projects in China and abroad.

The company is a leading investor licensed by China’s government in natural resources exploitation businesses. MCC has to date invested as much as $1 billion in mining resources abroad, and owns many production facilities and claims of resources including iron ores, copper, gold, nickel, cobalt, zinc, lead and aluminum, etc.

MCC is also one of the largest equipment manufacturers in China, registering revenues of over RMB 18 billion in 2006.