Canadian firm funds ready for mining projects

MANILA, Philippines—MBMI Resources Inc., with headquarters in Toronto, Canada, is ready to invest $180 million in nickel production in Palawan if the company is permitted to do so, officials said in a joint interview.

“We have already raised the money. We need permission from the Philippine government to invest,” company chairman Grant B. Walsh said.

The amount will be invested in production facilities, president and CEO John H. Wong said.

About $80 million to $100 million will be spent for the first phase with nickel output capacity at 15,000 tons per year. Another $80 million will be spent for the expansion of capacity to 30,000 tons per year, Wong said.

From 2004 to present, Wong said, MBMI has already invested $50 million in the Philippines for project studies and related activities.

In the meantime, the officials said, MBMI is working to get the necessary permits from the government. They declined to comment on an ongoing case regarding their large-scale mining contract with the government, saying the case was pending in court.

On April 6, 2011, the Office of the President canceled the consolidated Financial and Technical Assistance Agreement (FTAA) held by the affiliates of MBMI (Narra Nickel Mining and Development Corp., McArthur Mining Inc. and Tesoro Mining and Development Inc.) over several properties in Palawan.

The O.P. issued the decision in response to a complaint by Filipino mining company Redmont Consolidated Mines Inc., which is interested in the areas covered by the FTAA.

Narra Nickel, McArthur Mining, and Tesoro Mining have appealed the case with the Court of Appeals, according to a letter from the Tolosa Romulo Agabin Flores & Enriquez Law Offices to the Mines and Geosciences Bureau.