A ten-million-dollar loan, initially extended to fuel the early stages of a promising Philippine mining project, has shifted ownership. Maharlika Investment Corp. (MIC) has transferred its lending rights to a subsidiary of India’s Kiri Industries Ltd., marking a significant turning point for the Maalinao-Caigutan-Biyog (MCB) copper-gold project.
The loan was originally intended to support crucial front-end engineering design and feasibility studies for the MCB project – work essential to de-risk the venture and attract further investment. MIC’s decision to assign the loan to Equinaire Holdings Ltd., a wholly-owned arm of the India-listed Kiri Industries, signals a successful completion of these initial phases.
Makilala Mining Co., Inc. (MMCI), the recipient of the original bridge loan, retains the option to fully repay the outstanding amount within fifteen business days. Should that not occur, Equinaire Holdings Ltd. will officially assume the role of lender, solidifying its position in the project’s future.
This strategic move is projected to yield returns for MIC exceeding the loan’s already substantial 12.5% annual interest rate. It exemplifies the corporation’s approach to investment – providing vital capital to unlock potential and pave the way for sustained, private sector involvement.
According to MIC’s President and CEO, Rafael D. Consing, Jr., the financing was instrumental in enabling critical early work on the MCB project. The assignment now allows MIC to realize its gains while welcoming a seasoned international partner to guide the project through its next, crucial development stage.
The transaction aligns with MIC’s broader strategy of actively managing its investment portfolio and channeling foreign capital into key sectors of the Philippine economy. By reducing initial project risks, the completed engineering and feasibility studies have created a more attractive environment for new investors.
Kiri Industries’ involvement is particularly noteworthy, coinciding with the commencement of construction on a new greenfield copper smelting plant in India. This participation underscores a growing international confidence in the Philippines’ burgeoning mineral development sector, signaling a positive outlook for future investment.
