Mining firms sign deal over Isabela mining project

MANILA, Philippines - Listed Geograce Resources Philippines, Inc. (Geograce) has signed a mining deal with Platinum Group Metals Corp. (PGMC) for an exclusive right to operate and develop a portion of the latter’s mining project in Isabela province. In a disclosure to the stock exchange Wednesday, Geograce said it would exclusively operate 45 hectares out of the total 2,391 hectares covered by the Isabela Nickel project in Dinapigue, Isabela. Geograce will exclusively operate the area under a profit sharing agreement with PGMC, renewable every six months, Carl C. Ng, Geograce vice-president for investor relations, said in a phone interview. The 45-hectare property is operational and has infrastructure consisting of a motorpool, causeway, haul road, laboratory, nursery, pier yard, airstrip and administration office, Geograce said in the disclosure. PGMC is allowed to mine two million metric tons of ore every year in its Isabela mine site. The Dimapigue mining project is covered by a mineral production sharing agreement, which it received two years ago. PGMC received an environmental compliance certificate from the Environment department earlier this year. Aside from signing the agreement, Geograce’s board also said it was reallocating P40 million as a reimbursement to PGMC for the production cost of the ore now in stockpile from the mineral property, the company said. Geograce has exclusive access to nearly 240,000 hectares of nickel, gold, copper and chromite mining projects here. In June, Geograce signed a deal with Brazilian Vale, the world’s second largest mining company, for joint explorations of gold and copper in Masbate. Vale committed $6 million as its initial investment. — Neil Jerome C. Morales, BusinessWorld