Metals Exploration secures environmental compliance certificate for Runruno gold-molybdenum project

Metals Exploration (AIM: MTL) has been awarded he Environmental Compliance Certificate (ECC) for the Runruno gold-molybdenum project on the island of Luzon in the northern Philippines following a positive evaluation of the project’s environmental impact statement by the Environmental Management Bureau (EMB).

The ECC certified that the project has complied with all the requirements of the Environmental Impact Statement (EIS) system and will not cause significant negative environmental impact. The project EIS detailed the baseline environmental conditions and potential impacts to the project area, as well as the safeguards designed to minimise any adverse effects on the health and welfare of the community and the environment.

The EIS was submitted to the EMB and was jointly reviewed by the members of the Environmental Impact Assessment Review Committee EIARC, which recommended the ECC after a thorough review. This was followed by an endorsement by the EMB Director for final review and approval by the Department of Environment and Natural Resources Secretary.

The company said that the certificate award is a significant milestone for the project, showing support from the Philippine government for the development of the project. The financial or technical assistance agreement for the project was secured in October 2009.

“The award of the ECC marks yet another key milestone for the Runruno project and, following the granting of the FTAA in October last year, further demonstrates that the permitting and regulatory process in the Philippines is effective, and that the company is able to operate effectively within it,” said managing director of Metals Exploration Jonathan Beardsworth.

The Financial and Technical Assistance Agreement (FTAA) for Runruno was signed by order of President Macapagal-Arroyo in October 2009, thus upgrading the project from its previous exploration permit status. The FTAA set up a partnership between Metals Exploration and the Philippine government, designed to allow the company 100 percent ownership of the project, while developing the mineral resource in an environmentally and socially responsible manner. 

The FTAA ensures security of title for 25 years with an option to extend for a further 25 years. It provides Metals Exploration with a tax holiday for up to 5 years following commencement of production until it has recovered its pre-operating expenses and investment.

Metals Exploration is targeting a 10 year operation at Runruno with a production of 100,000 oz (ounces) of gold and 1 million lbs (pounds) of molybdenum per year. The resource currently stands at 1.5 million oz of gold and 25.4 million lbs of molybdenum.