World's second-largest miner, RP firm to explore for minerals in Masbate

MANILA, Philippines - Publicly-listed Geograce Resources Philippines Inc. said it forged an exploration agreement with Brazil-based Companhia Vale do Rio Doce (CVRD), the largest iron ore producer and the world’s second-largest mining company. In a disclosure to the Philippine Stock Exchange, Geograce said it agreed to explore seven mining claims in Masbate province with Vale Exploration Philippines, Inc., CVRD’s domestic subsidiary. Under the agreement, Vale has committed $6 million to explore copper, silver, and gold while its Philippine partner will secure all necessary government permits to facilitate operations. For the first twelve months, Vale is expected to conduct the preliminary exploration activities in the mining site such as geochemical and geological sampling, and drilling. The second phase will involve actual exploration, which may last up to two years after the first phase. After the exploration, the companies will have the option to form a joint venture to own, develop, and operate the Masbate mining claims over an area of about 84,046 hectares. The JV company will also be the vehicle to conduct feasibility studies for the mining project’s implementation. Other details of the JV will be mutually agreed upon by the two parties later, the disclosure added. Geograce Resources and Vale may also forge a services agreement where the former will provide services to the latter. Geograce, whose stockholders include former Philippine president Fidel V. Ramos, former senator Leticia Ramos-Shahani, and businessman William Gatchalian, has mining permits in more than 44,000 hectares in the province of Masbate. - Veronica C. Silva, GMANews.TV