Apex Mining may exit loss-making gold mining project in Mongolia

MANILA  -Billionaire Enrique Razon Jr.-led Apex Mining Co. Inc. is mulling over the divestment of its gold mining assets in Mongolia to recover losses from operating the project.

Apex Mining president and CEO Luis Sarmiento visited Mongolia to discuss this with the partners there, according to Apex Mining investor relations officer Ramon Peter Adviento.

“We might be divesting our Mongolian assets, hopefully, reverse that impairment charge of P1.3 billion,” Adviento said in a virtual forum organized by Philstocks Financial Inc.

An entity can incur an impairment charge due to a change in legal or economic circumstances or as the result of a casualty loss from unforeseen hazards.

Through its wholly-owned subsidiary Monte Oro Resources & Energy Inc. (Morei), Apex Mining holds a significant interest in the gold exploration project in Mongolia.

Khar At Uui Gold Project is registered under the joint venture company Erdeneminas LLC, 51 percent of which is owned by Minas de Oro Mongol LLC, a unit of Morei and 49 percent by Mongolian exploration company Erdenejas LLC.

“An interested investor signified their interest to take over the joint venture company but as of November 2022, Erdenejas has not given feedback on this said investor,” Apex Mining said in its 2022 annual report.

Apex Mining plans to expand its mining footprint abroad despite the possibility of unloading the Mongolian gold assets.

“Our geologists are looking at properties in the areas (where the Razon Group) has interests, has ports. If there is a potential, we will look at them,” Adviento said.

“We are moving towards a level of ability to export human capital to open up new mines around the world. We’re preparing for that,” he added.

The company aims to attain “world-class mining status” to unlock access to better capital and developed jurisdictions such as Canada. INQ