Manila Standard Today / Business Stories
Wednesday, February 20, 2008
By Othel V. Campos
Lafayette Philippines, operator of the copper-gold operations of Rapu-Rapu Polymetallic Inc. in Albay, is negotiating the sale of its project to Korean Resources Inc.
“From what Kores told me, Lafayette is asking for P100 million. But I’m told the two firms are still haggling,” Mines and Geosciences Bureau director Horacio Ramos told Standard Today.
He said Kores was still in the process of conducting a due diligence study of the Rapu-Rapu project.
“All told, the company spent around $64 million for the development of the project. $44 million was what it took to have the company operating, and another $20 million for rehabilitation,” Ramos said.
Bayani Agabin, company vice president and legal counsel, said Kores had expressed interest to absorb Rapu-Rapu’s outstanding liabilities.
The Australian subsidiary on February 6 filed a petition for rehabilitation because of financial difficulties.
Agabin said Lafayette was asking the court to issue a stay order to prohibit creditors from foreclosing on the company.
The plant is not operating on its full capacity.
“The new plant has just been commissioned. So we’re still at a break-in phase. We hope to gain momentum once this phase is fully exhausted,” he said.