115,000 Ounces of Gold Bullion for Export to Hong Kong

British-owned FCF Minerals Corp. has proposed to establish a manufacturing and processing plant in Nueva Vizcaya to produce 115,000 ounces of gold bullion for export to Hong Kong with an investment of P7.099 billion.

FCF has sought pioneer incentives with the Board of Investments. The BoI, however, is expected to approve on a non-pioneer status because the technology is not new but with pioneer incentives because it is located in a less developed area in barangay Runruno, Quezon in Nueva Vizcaya.

The FCF project has been endorsed by the Department of Science and Technology and Mines and Geosicnes Bureau for a pioneer status.

Under a pioneer status, a BoI-registered firm is entitled to six years of income tax holiday and four years for non-pioneer status.

The BoI, however, said the project can be upgraded to pioneer status once officially determined that the proposed process(es)/technology(ies) is(are) new and untried in the Philippines.

According to FCF, it will export at least 70 percent of its total production. Aside from exporting to Hong Kong, FCF may also sell gold bullion to the Bangko Sentral ng Pilipinas and such will be considered as “constructive” exports.

It will start commercial operation on June 2012 with 426 workers.

Of the total P7.099 billion project cost, P1.835 billion will go into the construction of the processing plant, P1.589 billion for the production of machineries and equipment and P1.3 billion for contingency fund.

The project is listed in the 2010 Investment Priorities Plan under “Export Activities”.

It is estimated that the proposed project’s mine life will reach 10.41 years, which is more than the 10 years minimum mine life requirement under the 2010 IPP Specific Guidelines.

FCF Minerals Corp. was formerly FCF Mining Corp., a 100 percent Filipino owned firm. It changes its corporate name to FCF Minerals Corp. to reflect its amended purpose as a continuing exploration, development and commercial operation of mineral claims.

Under its new corporate structure, Filipino investor Christian Mining Inc. owns 15 percent in FCF.

FCF has a Financial Technical Assistance Agreement approved by Malacanang on September 19, 2009.

The BoI quoting MGB said that FCF has not started commercial operation yet although it has been involved in various exploration works over the 3,093 hectare contract mining areas in Nueva Vizcaya.

Under the FTAA rule, however, contractors are given a maximum of five years reckoned from the date of commercial operation, which to recover pre-operating, exploration and development expenses.

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