Celsius Resources Ltd (ASX:CLA) welcomes the news that one of its Philippines subsidiaries, Makilala Mining Company, Inc. (MMCI), has obtained the consent of the Balatoc Indigenous Cultural Community (ICC) to develop the Maalinao-Caigutan-Biyog (MCB) Copper-Gold Project in northern Luzon, the Philippines.
After a series of consultations and negotiations, a Memorandum of Agreement (MOA) between MMCI, the Balatoc ICC and the National Commission on Indigenous Peoples (NCIP) was signed on November 14.
Legitimacy, credibility and trust
The company considers the consent of the Balatoc ICC crucial for the development of the MCB Project, as it represents a social licence to operate that “is anchored on legitimacy, credibility, and trust”.
MMCI president Atty. Julito R Sarmiento said: “The signing of the agreement signifies the commitment of the company to do right by the Balatoc ICC.
“We have always ensured that we abide and respect the customary laws and traditions of the community in all aspects of our engagements, to demonstrate our strict adherence to environmental, social and governance (ESG) principles and best practices consistent with our firm commitment to transformative mining.”
Memorandum of Agreement
The MOA represents the collective decision of the Balatoc ICC for MMCI to carry out exploration, development, production and operation activities at the MCB Project area, and is valid for 25 years.
It also outlines the commitments and obligations of all parties to the agreement as well as the economic, social, environmental and cultural benefits of the project to the Balatoc ICC during the life of the mine.
“This is a historical moment as it reflects the aspirations of the community for the future of the Balatoc Tribe,” Pasil Municipal Mayor Alfredo B Malannag Jr said.
“With MMCI at the forefront of development, our dreams of harnessing our natural resources without sacrificing our future and the environment will soon be realised. We have partnered with MMCI since their first exploration in the area in 2006 and the community has established a very good relationship with them.”
“I believe that this partnership will help develop the community further as this is such a big investment in terms of business and employment opportunities, overall progress and other benefits,” added Kalinga provincial governor James S Edduba.
Terms of the agreement
The key provisions of the MOA include a resource benefit-sharing scheme, under which the company has agreed to:
- pay a 1% royalty share during the life of the mine based on gross output, subject to actual commodity prices, fluctuations in transport and other costs;
- pay a 0.25% royalty share to clan land claimants over the 170 hectares of direct and indirectly affected lands covering the project area during the life of mine; and
- issue 4.05 million shares in the capital of the company, subject to the achievement of certain performance milestones, to the members of the host ICC through their nominated indigenous peoples’ organisation.
Finalising permits is next on the agenda, as the company works towards application for a mineral agreement with the Philippine government. MMCI is now in the process of completing the documentary requirements for a mining permit.
Approval is a three-tiered process requiring host community support, local government endorsement and finally national government sign-off. With the first two ticked off, the MCG moves closer to fruition.