Neoman de la Cruz, regional director of the Mines and Geosciences Bureau (MGB) in the Cordilleras, said the Shenjen Group of China which visited the site in Pasil, Kalinga-Apayao has asked assistance in conducting a due diligence on the gold prospect.

"They’re studying if it can be mined out. This will involve a very big amount," de la Cruz said in an interview.

Batong Buhay, a goldsilver project covered by a mining lease contract over 444 hectares issued in 1981, is estimated to have a reserve of 86.9 million metric tons (MT) at 0.599 percent copper with a gross value of $ 1.1 billion.

As investors look into the gold project, the state-owned Natural Resources Mining and Development Corp. (NRMDC) which will be appointed to manage the project is awaiting for the turnover of Batong Buhay to NRMDC from the Privatization and Management Office (PMO). PMO is the former Asset Privatization Trust.

"We’re still waiting for PMO to turn it over to us. The government is very meticulous about reviewing legalities on the transfer. We’re hoping they’ll expedite it (for release) in one week because it’s taking a longer time than we expected," said NRMDC President Artemio F. Disini.

Disini said Batong Bahoy will be subjected by NRMDC to a bidding similar to what government has done to the Dinagat nickel project and what it will do with the North Davao and Diwalwal gold projects.

Batong Buhay, one of the country’s 24 priority projects, is estimated to require investment of  $ 200 million and to generate potential gross sales of $ 150 million per year.

Excise tax due to the government is placed at $ 3 million per year (without incentives) and potential income tax is estimated at $ 21 million per year.

Employment to be generated will be 1,000 jobs and direct employment arising from its operations will be 5,000.

Batong Buhay is just one of the important mining projects in the Cordillera Administrative Region as there are presently eight approved mineral production sharing agreement (MPSA) in the area. (MMA)