Retailer Lucio Co-led conglomerate Cosco Capital Inc. has ceded to Brazilian mining giant Vale its stake in a copper mining project in Concepcion, Iloilo.
In a disclosure to the Philippine Stock Exchange, Cosco said it had signed an agreement giving Vale Exploration Philippines Inc. the option to purchase Cosco’s rights, interests and title over the Iloilo copper project.
The deal also gives Vale the exclusive right to undertake exploration activities required to evaluate and assess the possibility of economic accumulations of copper deposits in the Iloilo tenement.
“Vale assumes possession and exploration of the tenement subject to the terms and conditions stated in the agreement,” the disclosure said.
Based on Cosco’s latest annual report, the exploration permit application for the Concepcion tenement was registered and approved by the regional office of the Mining and Geosciences Bureau (MGB) in Iloilo City in 2010. All surface activities remain suspended.
The group has also completed its information, education and communication campaign in all concerned and affected local government units (LGUs) in Concepcion and Iloilo.
As of end-December 2012, the company completed its documentary submissions with respect to its application for renewal of the exploration permit.
Some investors are now taking a second look at the oversold mineral industry on expectations that an upcoming revenue-sharing framework with the government would be reasonable. Doris C. Dumlao