Mining firm pushes to halt Kalinga copper-gold project sale

MANILA, Philippines — A mining firm said it is pushing for legal remedies to stop the planned auction of 40 percent of its Copper-Gold Project in Kalinga on Sept. 8 amid an ongoing legal dispute.

The Celsius Resources Limited, a mining exploration company in the country, said it intends to file a motion for reconsideration by the end of the week to halt the scheduled sale.

This came after a Regional Trial Court in Makati denied its petition to seek interim protection to prevent the foreclosure or disposition of the Makilala Mining Company Inc. (MMCI) interests.

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The MMCI holds the stakes associated with the Maalinao-Caigutan-Biyog Copper-Gold Project in Kalinga.

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The court found the petition of Makilala Holding Limited (MHL), subsidiary of Celsius, insufficient in establishing “irreparable injury,” as the potential loss from the foreclosure was merely economic and can still be addressed through arbitration.

However, according to Celsius, the Makati court expressed “that its ruling was not a determination that an Event of Default occurred, that any alleged default was incurable, or that Equinaire is entitled to foreclose.”

Moreover, the court added that it “recognized that the interpretation of the OLSA (Omnibus Loan and Security Agreement), the alleged defaults and Equinaire’s enforcement rights remain open for determination by an arbitral tribunal.”

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Celsius stressed that if the motion for reconsideration is denied, the MHL will appeal to the Court of Appeals.

The dispute centered between Celsius and Equinaire Holdings Limited, a wholly owned subsidiary of an Indian chemical manufacturing company, over a disputed loan and security agreement heading toward arbitration.

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“Equinaire has cited several alleged defaults, including the Notice of Relinquishment issued by Makilala Holding Limited to Sodor Inc., certain information-security incidents involving MMCI, and MHL’s efforts to obtain a Temporary Order of Protection from the Makati court,” Celsius said.

The conflict further escalated after Celsius’ temporary order of protection previously granted by the Makati court was lifted upon Equinaire’s payment of a P201-million counterbond.

According to Celsius, it is also revising its notice of arbitration to fully determine the merits of the dispute, as well as the “validity of the alleged defaults and Equinaire’s enforcement rights”.

The mining company, moreover, said that even if the auction pushes through, it would still pursue other legal action during the period of its tax-clearance process, which “takes at least 27 working days, or approximately six to eight weeks”.

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“For the Philippine mining sector, the dispute places renewed attention on the ownership and financing arrangements surrounding MMCI,” Celsius said. /cb