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FOR the
protection of stock buyers, the Philippine Stock
Exchange (PSE) continues to uplift reporting standards
and has issued an additional protective measure—a
checklist of documentary requirements for mining
companies that want to be listed in the bourse.
The PSE
action coincided with government parallel moves in the
mining industry, with the latest being the installation
of regional minerals management councils to oversee
mining projects in the provinces.
Mines
and Geosciences Bureau (MGB)
Central Visayas director Roger de Dios said, “The specific functions
of the councils were not yet outlined, but basically the
councils will resolve issues that will affect the
operations of the mining industry.”
De Dios
said they expect a “mining boom” starting next year
because of the numerous explorations and mining projects
being started all over the country, an expectation that
dovetails right into the bourse’s plans to continue
improving mine companies’ reporting standards to put
them on a par with global practice.
First on
the stock-exchange checklist is compliance with the
Philippine Mineral Reporting Code (PMRC), which goes
into full effect this January.
This
checklist number requires a company applying to be
listed to submit a report containing information on its
mineral resource and/or reserve prepared in accordance
with the standards set by the code and signed by a
competent person as defined by the code, jointly
validated by the MGB director or his appointed
representative.
Chamber
of Mines of the
Philippines
president Benjamin Philip Romualdez said the new mining
standards will protect the interest of the investors.
“We don’t want companies to take advantage of the less
informed. We have to put some guidelines to put us [on
a] par with international standards.”
Earlier,
PSE president Francis Lim said mining companies found
violating the PMRC would be liable under the Securities
Regulation Code.
At
present, 14 mining firms are listed at the bourse. From
January to July this year, the mining and oil index rose
43.6 percent.
Another
one may soon be listed. The mining bureau’s de Dios said
the Toledo Copper Mines in western Cebu, owned by the
Atlas Consolidated Mining and Development Corp., will
reopen later this year. This is much anticipated because
it is seen as reviving the mining industry in the
region.
The
Toledo mines was at one point the third-biggest copper
mine in the world until dropping world copper prices and
labor problems forced the mine to close down in the
1990s.
A cement
factory in Sibonga town in southern
Cebu—Bayan Cement—is also set to open. De Dios said the company
owned by Foreign Affairs Undersecretary Francisco
Benedicto is just completing its environmental
clearances.
He added
several explorations are being conducted in Central
Visayas particularly for gold, copper, and limestone.
He said
explorations for silica, gold, copper, and other
metallic minerals are ongoing in Oriental Negros.
All
these would be overseen by the mining councils, which de
Dios said would be composed of government agencies’
representatives, private-sector representatives and
mining- industry stakeholders. They will be directly
under the regional development councils in each region.
Other
bourse-listing requirements include a certified true
copy of the MGB’s approved copy of its complete
operation program, duly prepared and signed by a
licensed mining engineer, geologist or metallurgical
engineer, whichever is applicable.
The
application must also be supported by an MGB
certification that the mineral claims or rights as of
the date of application are still valid and owned by the
issuer or any of its subsidiaries; that they are being
developed in accordance with the MGB-approved work
program; and that the applicant has been complying with
the reporting requirements of the MGB.
“An
applicant company must likewise give certified true
copies of exploration permits, mineral agreements,
financial or technical assistance agreement and mining
project feasibility. At a minimum, applicant mining
firms or their subsidiaries should hold an exploration
permit,” added the bourse announcement.
Proof of
adequate working capital to sustain the approved work
program and appropriateness of capital structure are
also mandated. Meanwhile, all the funds raised via the
stock market while the application is pending will be
placed under escrow.
“The
escrow agent shall not release any portion of the funds
for any purpose other than the disclosed intended use of
proceeds and in accordance with the timetable of
expenditure. Moreover, to ensure transparency in the use
of proceeds, companies shall disclose via the exchange’s
online disclosure system any disbursements made in
connection with the planned use of proceeds,” the bourse
added. |
