Atlas settles P280M worth of liabilities with Toledo City

As a necessary step in the reopening of its mining projects, Atlas Consolidated Mining and Development Corp. has settled its P280-million worth of real property back taxes with the Toledo City government in a P100-million compromise agreement.

P10 million was paid in cash, the rest was in kind like shares of stock. The initial payment of P5 million was given last December 2004 upon the signing of the agreement.

In a press briefing held yesterday at the clubhouse of Atlas Fertilizer Chemical Corp., Atlas president and chairman of the board Alfredo Ramos handed over the final installment of P5 million check payment to Toledo City Mayor Arlene Zambo.

The balance will be settled under the terms and conditions set forth in the agreement through the issuance of company shares and the transfer of properties, mostly land in favor of Toledo City.

Ramos also issued 1 million company shares (equivalent to P8 million at P10 par value) to Toledo, making the LGU a stockholder of the mining firm.

Zambo expressed full support for the rehabilitation of the Atlas mining projects saying: "It has been our stand for Toledanons to be able to work with Atlas again, we are not mainly concern with back taxes, we are more concerned of the full revival of the economy, this is a dream that has become a reality."

The reopening of Atlas copper mine come 2007 is expected to revive the company's socio-economic benefits for the city and its constituents.

Acknowledged as Southeast Asia's largest copper mine during its peak, the Toledo mine has been a major economic center over the past fifty years. Before a devastating typhoon and a slump in metal prices led to the mine's closure in 1994, it shored up the city's local economy by employing 12,000 residents and remitting over P634 million to the national government and P11 million to the local government annually.

"The mine, which is expected to be operational in 18 months, will generate substantial foreign exchange earnings of up to $3 billion in the next 12 years. Furthermore, it will provide up to 3,000 new jobs in Toledo and nearby cities, as well as millions in tax remittances to both the national and local governments," Ramos said.

Reopening the mine will require some $170 million," Atlas Executive Vice President and Chief Finance Officer Martin Buckingham sai

He added that the reopening the mine will allow Atlas to take advantage of high copper prices in the world market, which range from between $1.60 and $1.80 a pound.

Demand for minerals such as copper has been on an upswing mainly because of the rapid industrialization of the economies of China and India, Ramos said.

The Toledo Copper Mine is to be operated by Carmen Copper Corporation, a wholly owned subsidiary of Atlas. The company recently partnered with foreign investor Crescent Asian Special Opportunities Portfolio to jumpstart rehabilitation.

The company also plans to look at possible livelihood programs for the local community such as shoe manufacturing, furniture making, glove-making, cattle-fattening and swine-raising, from which locals can earn.

Benefits, which the company plans to restore over the next few years include housing for employees, subsidized schooling at the De La Salle-supervised Andres Soriano Memorial School for employee's children, health benefits, recreational facilities and various community development projects.

The Toledo mine is estimated to have 873 million tons of mineral reserves worth roughly $3 billion.

Atlas is engaged in mineral and metallic mining and exploration, and produces copper concentrates and gold with silver and pyrites as major by-products. Its subsidiary, ACMDC Ventures Inc. is 79 percent owned by Atlas and is engaged in construction and engineering works.

Atlas' planned revival of its mining operations comes in the wake of a recent Supreme Court ruling allowing foreign mining companies full access to local mineral resources. - Joefel O. Banzon