Atienza endorses FCF Minerals' bid for large-scale exploration

MANILA, Philippines - Environment and Natural Resources Secretary Jose L. Atienza is endorsing to President Arroyo the application of FCF Minerals Corp. (FCFMC) to convert its exploration permit (EP) into a financial technical assistance agreement (FTAA) to explore and develop a 3,093-hectare mineral-rich area in Quezon, Nueva Vizcaya.

Atienza said granting an FTAA to FCFMC would advance the revitalization program of the country’s minerals industry. If approved, FCFMC’s FTAA will be the 4th FTAA granted under the Philippine Mining Act of 1995.

“The approval of FCFMC’s FTAA will show once more the continuing confidence of investors in the Philippines and the government’s sustained efforts to rise above difficulties,” Atienza said.

An FTAA is an agreement between the government and a contractor for large-scale exploration, development and utilization of gold, copper, nickel, lead, zinc and other minerals, except for cement raw materials, marble, granite and sand and gravel and construction aggregates.

An FTAA, which is open to Filipinos and foreign corporations with up to 100-percent foreign equity has a term of 25 years, renewable for another 25 years.

Atienza said the entry of FCFMC would intensify the development of the gold and molybdenum deposits in the area which the mining firm had identified in its recent exploration activities in the area.

FCMC said the identified deposits, measure more or less 1,000 meters in length, 500 meters in depth and 17 meters in thickness.

FCFMC also determined the presence of 31.17 million tons of minerals which at two grams per ton gold may contain 2.005 million ounces of gold and 34.42 million pounds of molybdenum.

Atienza said a study undertaken by the Mines and Geosciences Bureau (MGB) showed that the area is highly mineralized and may warrant a more detailed exploration work to confirm positive ore reserves for future development and utilization.

FCFMC, Atienza said, is qualified to apply for an FTAA considering that the company’s current authorized capital of P210 million or $4.468 million is way above the government’s required minimum paid-up capital of P10 million.

Atienza said the conversion of FCFMC’s EP to an FTAA is beneficial to the government considering that the company is in its final exploration stage and is nearing the development and utilization stages.

Atienza said the proposed contract for FTAA conforms with the provisions of the Philippine Mining Act of 1995 and DAO No. 96-40, as amended, hence, more detailed provisions on environmental protection, mine safety and health and community development are included.

The three approved FTAAs belong to Oceana Gold, covering 19,363 hectares in Nueva Vizcaya; Sagittarius Mines covering 27,945 hectares in South Cotabato; and Agusan Petroleum and Mineral Corp. covering 46,052 hectares in Mindoro.