LG hiking Rapu-rapu stake

Manila Standard Today
Briefs
Business
Saturday, 12 April 2008
B1


LG INTERNATIONAL Corp., a South Korean trading company, is part of a group that may increase its stake in a Philippine copper project after Australia 's Lafayette Mining Ltd. appointed administrators in December.

A deal has been done and we're looking at finalizing the settlement by the end of the month, Ken Fung, a spokesman for Lafayette administrator Ferrier Hodgson said in a phone interview yesterday in Hong Kong . "LG International is involved, he said, declining to say whether other parties may take a stake.

South Korea, which imports 97 percent of its energy and mineral needs, is increasing investments in overseas resource projects to secure supplies. A rescue of the Rapu Rapu project would be a boost for the Philippines ' drive to develop its mining industry.

Lafayette Mining's shares have been suspended from trade on the Australian Stock Exchange since Nov. 29, when they ended at 1.5 Australian cents. LG International stock rose 3.5 percent to 20,650 won at 1:28 p.m. in Seoul yesterday.

Sayani Agabin, a spokesman for Lafayette Philippines Inc., said on Feb. 21 four companies had visited the mine and may offer to invest in the project, without identifying them. Agabin declined to discuss the transaction today. LG International Corp. spokesman Kim Dong Wook couldn't confirm it.

Lafayette Mining, based in Melbourne , said Dee . 18 it was appointing administrators Ferrier Hodgson to arrange a sale or restructure of the mine after it failed to payoff debt Lafayette Mining owns 76 percent of Lafayette Philippines , which runs the mine and a processing plant.

AFP