After NGCP, Maharlika injects $76.4 million into Makilala Mining Company

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'Following the lifting of the ban in mining, we felt that this is an area where we can truly leverage and really add value to the economy,' says Maharlika Investment Corporation President Rafael Consing Jr.

MANILA, Philippines – After its maiden investment in the National Grid Corporation of the Philippines (NGCP), the Maharlika Investment Corporation (MIC) is taking its funds to the country’s mining sector.

The MIC and the Makilala Mining Company Incorporated (MMCI) inked a binding term sheet for a $76.4 million bridge loan facility to fund the latter’s updated feasibility study and Front-End Engineering Design (FEED). The two parties are also discussing the sale of Makilala’s shares to MIC.

“The next step is for us to do a bankable feasibility study, and that’s going to take maybe about two to three months of confirmation,” MIC President Rafael Consing Jr. said in a forum on Monday, February 24.

Last year, the Department of Environment and Natural Resources (DENR) granted a six-month extension for the mining company’s flagship project, the Maalinao-Caigutan-Biyog Copper-Gold Project in the Cordillera Administrative Region, to provide additional proof of financial capability.

In its quarterly activities report, MMCI parent firm Celsius Resources said the extension would allow them to finalize a potential investment deal with the MIC.

MMCI also received a certification precondition from the National Commission on Indigenous Peoples that the firm has secured the consent of the local community for its mining activities.

Celsius was granted a 25-year Mineral Production Sharing Agreement (MPSA) by the DENR in March 2024. The project is one of $1.5 billion in investment pledges that the Marcos administration secured from the President’s visit to Melbourne, Australia.

The deal with Celsius comes nearly a month after the MIC also made its maiden investment by acquiring a minority stake in the NGCP.

For Consing, the Maharlika Investment Fund’s backing of a mining firm like MMCI aims to boost the sector’s share of the country’s gross domestic product (GDP) since the industry’s slice of GDP is less than a percent.

“Following the lifting of the ban in mining, we felt that this is an area where we can truly leverage and really add value to the economy,” he said. – Rappler.com