London-based miner still finds PH a desirable place for investment

By: Ronnel W. Domingo Philippine Daily Inquirer 12:14 AM February 27, 2017 http://business.inquirer.net/225307/london-based-miner-still-finds-ph-desirable-place-investment ECR Minerals plc continues to look at the Philippines as a desirable place to do business in despite facing the twin problems of an uncertain regulatory environment and an ongoing dispute with its local partner. The London-based gold exploration company said in a statement it would keep monitoring political developments in the Philippines, especially those affecting the mining industry, and would assert its rights in the Danglay project in Benguet. The project is part of a joint-venture agreement (JVA) among ECR, its Cordillera Tiger Gold Resources Inc. and partner Tiger International Resources Inc. In August 2016, ECR said it had given up being operator of the Danglay project, formerly called Itogon. In arriving at such decision, ECR noted that “the new [Duterte] administration has not adopted a supportive stance toward the mining industry.” To compound the matter, the company said Tiger International now refused to acknowledge ECR’s 25-percent interest in Danglay and was not cooperating with ECR to discuss the project’s future. ECR said it had fulfilled the two necessary conditions under the JVA to earn a 25-percent interest in the project—estimation of a mineral resource, and spending more than $500,000 or about P25 million on exploration. ECR said that as of March 31, 2016, it had invested in Danglay some £1 million or about P62 million. In January 2017, ECR appointed lawyers to begin the process of enforcing its rights to Danglay “either in court or through arbitration.” At the same time, ECR said it had sent a proposal to Tiger International to encourage an amicable resolution of the dispute. The company is still awaiting regulators’ action on its application for the renewal of the exploration permit for Danglay. “Although ECR’s operational focus remains on [projects in Australia and Argentina], the Danglay project … remains a promising project,” ECR chief executive Craig Brown said in a statement. Exploration results so far showed that Danglay has 1.2 million tons of material that could yield 60,500 ounces of gold. ERC said the target for further exploration could have up to 170,000 ounces of gold. “The mining industry in the Philippines currently faces an uncertain operating environment, however we remain hopeful that the situation may improve in future,” Brown said. “Therefore, [we] are determined to protect ECR’s investment in the Danglay project and drive the project forward as far as possible.” Earlier this month, Environment Secretary Regina Lopez said she wanted 23 mines closed, five others suspended, and 75 mineral production sharing agreements canceled.