The Board of Investments (BOI) approved the country’s first copper mining project in the last 15 years after the Department of Environment and Natural Resources (DENR) granted the Australian miner Celsius Resources’ petition for a mineral production sharing agreement (MPSA).
“Now is our chance to deliver on our firm commitment to work with the government and the local communities to develop the copper project in a sustainable manner that creates value not only for our shareholders but also for our communities,” Julito R. Sarmiento, Celsius executive chairman, said.
The project is part of the $1.53 billion business investments gathered by the Philippines during the working visit of President Marcos to Australia.
The MPSA will allow Celsius’ local subsidiary Makilala Mining Company, Inc. (MMCI) the exclusive rights to explore, develop, and commercially produce copper and associated minerals within a designated 2,500-hectare contract area of its flagship Maalinao-Caigutan-Biyog (MCB) mining project in the Cordillera Administrative Region (CAR.)
The DENR approved Celsius’ MPSA on March 15, 2024. The MPSA is a 25-year profit-sharing agreement with the Philippine government on a 60:40 sharing ratio, with the government receiving the bigger share as the owner of the resources. MPSA holders like Celsius has the option to renew for another 25 years.
The agreement grants the company exclusive rights to explore, develop, and commercially produce copper and associated minerals within a designated 2,500-hectare area for 25 years, with a possibility of renewal. Notably, this MPSA marks the first new copper project initiated in the Philippines in the last fifteen years.
During the President’s visit to Melbourne, he highlighted the Philippines’ vision to become a regional hub for smart and sustainable manufacturing.
He emphasized the country’s focus on attracting sustainable-driven strategic investments, particularly in critical mineral processing, while ensuring adherence to strict labor and environmental standards.
Sarmiento emphasized that the project goes beyond compliance, aiming to balance business viability with environmental protection, community upliftment, and supporting the government’s socio-economic agenda.
He expressed confidence in achieving this under President Marcos’s leadership.
Celsius managing director Peter Hume said the MPSA marks Celsius’ transition from an exploration company to a developer and, ultimately, a mine operator.
With the permit secured, the company will finalize funding options for the MCB Project, attracting significant investor interest after waiting out the permit’s issuance.