TVI Resources Development Philippines Inc. (TVIRD) has again postponed a planned P1.5-billion listing on the Philippine Stock Exchange after its affiliate Agata Mining Ventures Inc. (AMVI) failed an audit by the Department of Environment and Natural Resources.
TVIRD said in a statement that “(d)ue to the uncertain environment in which the Philippine mining industry has operated since the nationwide audit of metallic mines was ordered by the DENR Secretary [Regina Lopez] under the new Duterte administration that came into power in June, TVIRD has placed all activities relating to its previously proposed listing on the (PSE) and initial public offering on hold.”
This was not the first time for postponement. TVIRD initially aimed at an IPO in 2015, which it later moved to early 2016.
TVIRD’s plan was to raise about P1 billion from a primary offer and P505 million from a secondary offer.
TVIRD holds a 60-percent interest in AMVI, which is operator of the Agata nickel laterite mine in Agusan del Norte.
AMVI is among the 20 companies that the DENR announced failed an audit that was launched last July.
The audit team recommended that the DENR withhold the issuance of an ore transport permit—which would stop AMVI’s hauling of ore for shipping to foreign buyers.
TVIRD said AMVI had not yet received a formal letter from the DENR providing a copy of the full audit results or any order for suspension, and that it learned about the results only through the DENR’s press conference announcing these last Tuesday.
“We are certainly taken aback by the audit findings and will work closely with the DENR through AMVI to demonstrate that TVIRD has indeed implemented all necessary environmental protection measures at Agata to ensure that operations continue uninterrupted,” TVIRD chair Cliff James said.
James expressed confidence that AMVI could successfully demonstrate full proof of compliance within the seven-day period—from receipt of the audit results—allowed for a response.
TVIRD said AMVI, which currently employs 1,660 people, will continue operations at the Agata mine until it receives a final decision from Lopez.