Benguet inks deal to resume Kingking project

MANILA, Philippines - Benguet Corp. has signed an agreement with MinMetals International (HK) Ltd. that would allow the resumption of exploration activity at its King-king project in Pantukan, Compostela Valley.

In a disclosure to the Philippine Stock Exchange, Benguet said MinMetals will provide the necessary funding to bring the Kingking project into full operation within the “quickest possible time.” 

This shall include all advances necessary for the project starting from organization, pre-operating material, financial requirements and similar activities that may require project advances, specifically with regard to all necessary confirmation/validation of project surveys, feasibility study, engineering, procurement and construction of all the needed facilities. MinMetals is a subsidiary of China MinMetals Corp., a Global Fortune 500 company. Founded in 1950, China MinMetals is primarily engaged in metals and minerals, but is also involved in finance and real estate and is among the 44 “key enterprises” in China.

Benguet said both parties are now moving to push for the completion of the bankable feasibility study and the full commercial operation of the Kingking project, which has an approved mineral production sharing agreement.

Over the past 40 years, the Kingking prospect was drilled by Benguet and various firms, logging a combined total of 276 holes aggregating 89,599 meters. 

The Kingking gold project was put on hold in January this year due to a dispute between Benguet and its local partner, Nationwide Development Corp.

Nationwide Development last year filed a complaint with the government to remove Benguet as operator of the project allegedly due to delays.

The Kingking site has an estimated mineral resource of 353 million tons with an average grade of 0.35 percent copper and 0.439 percent gold.