Benguet retains operating...

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Benguet retains operating rights over copper-gold project

abs-cbnNEWS.com | 12/09/2009 7:15 PM

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MANILA, Philippines - Listed miner Benguet Corp. is pushing through
with a gold and copper project in southern Mindanao after the
Department of Environment and Natural Resources (DENR) upheld its
rights as operator.

Benguet clarified that Nationwide Development Corp. (NADECOR) remains
a partner in the mining project.

"The DENR has issued a resolution denying the petition of NADECOR to
remove Benguet as operator of the Kingking project. The DENR Secretary
directed both Benguet and NADECOR as co-contractors to move the
project forward," the listed firm said.

Last week, Benguet signed a memorandum of agreement with Minmetals
International (HK) Ltd. for the financing of Kingking to bring it into
full operation.

NADECOR later wrote the Philippine Stock Exchange informing the bourse
that Benguet had no authority to enter into such agreement because the
miner was removed as operator of Kinking effective August 29, 2008. It
said Benguet has not completed the feasibility study for the project
over the last 12 years, and has not been transparent about its
operations and financial performance.

Benguet however said: "As stipulated in our operating agreement, the
company need not obtain the consent of NADECOR in entering into
contracts and agreements wih reference to the exploration, development
and equipping of the project."

Benguet said it was optimistic that funding from Minmetals would
jumpstart the project "at the soonest possible time."

Kingking is a porphyry copper gold deposit under a Mineral Production
Sharing Agreement covering 1,656 hectares in Pantukan, Compostela
Valley. It has reserves of about 353 million metric tons of ore.
as of 12/09/2009 7:17 PM