Australian Firm To Establish ₱14-Billion Copper Mining Project In Cordillera

Australian firm Celsius Resources, through its local unit Makilala Mining Company, Inc. (MMCI), is set to invest an initial USD 253 million, approximately PHP 14 billion, to initiate its Maalinao-Caigutan-Biyog (MCB) Copper Mining Project in the Cordillera Administrative Region.

Celsius Resources has allocated USD 253 million as the initial capital expenditure for the MCB project, with a projected payback period of approximately 2.7 years. I Photo: Makilala Mining

The Department of Trade and Industry (DTI) announced that MMCI was granted a 25-year Mineral Production Sharing Agreement (MPSA) by the Department of Environment and Natural Resources (DENR), extendable for another 25 years.

The MPSA grants the company exclusive rights to explore, develop, and commercially produce copper and associated minerals within the 2,500-hectare contract area, added the DTI.

The department emphasized that the MCB mining project is part of the USD 1.53-billion investment pledges received by President Ferdinand R. Marcos Jr. during his recent visit to Melbourne, Australia.

Celsius Resources has allocated USD 253 million as the initial capital expenditure for the MCB project, with a projected payback period of approximately 2.7 years.

Upon commencement of operations, the national government will receive a share of production, including excise tax on mineral products and a royalty of at least 4 percent of the gross output, along with other taxes, duties, and fees as per existing laws, stated the company.

MMCI will also pay an annual occupation fee to the municipality where the project is located, amounting to approximately A$5,000 (PHP 183,000) per year.

The company will initiate the process to obtain the Certificate of Pre-condition from the National Commission on Indigenous Peoples (NCIP) as part of the Free, Prior and Informed Consent (FPIC) Process.

MMCI had previously signed an agreement in 2022 with the Balatoc Tribe community, outlining the terms and conditions for utilizing their land for mining purposes.

Moreover, the company is committed to providing an annual royalty payment of not less than 1 percent of the value of the gross output of minerals sold to the Balotoc Tribe community, as well as a minimum of 1.5 percent of the operating costs necessary for the development of the host and neighboring communities.

It also plans to employ qualified Filipino citizens during mining operations, with provision for training and recruitment programs.

Julito Sarmiento, Executive Chairperson of Celsius Resources, emphasized, "Now is our chance to deliver on our firm commitment to work with the government and the local communities to develop the MCB Project in a sustainable manner that creates value not only for our shareholders but also for our communities."

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