Vol. XXI, No. 182 [ Business World Online ]
Thursday, April 17, 2008 | MANILA, PHILIPPINES
SEOUL — Two South Korean companies have increased their share in the Rapu Rapu mining project, which is expected to generate $350 million in yearly revenues from copper and zinc.
State-run Korea Resources Inc. (KORES) and LG International Corp. have bought the additional stake from Australia’s Lafayette Mining, hiking their ownership to 70% from 26%, LG said in a statement yesterday.
Earlier this year, Lafayette Philippines, a unit of Australia’s Lafayette Mining, held talks to sell the mine to its partner KORES.
KORES was conducting due diligence on Lafayette’s central Philippine mine, which was shut for over a year after cyanide spills in 2005, pushing its parent group close to bankruptcy and tripping up foreign investment in the sector.
Under the deal, the two companies will hold rights to develop, operate and sell output, LG said, adding that their investment will total $43.4 million. KORES and LG International acquired the initial 26% stake in the mine in 2003 and have been selling the minerals to China and South Korea.
The Rapu Rapu mine has been forecast to generate revenues of $350 million a year from annual production of 11,000 tons of copper and 13,000 tons of zinc. — Reuters
____________________________________________________________________
