Lepanto Consolidated Mining Co. and its subsidiary Far Southeast Gold Resources Inc. (FSGRI) have signed a memorandum of agreement (MOA) with the Indigenous Cultural Communities/Indigenous Peoples (ICCs/IPs) of the Mankayan Ancestral Domain, marking a key step toward the renewal of Mineral Production Sharing Agreement (MPSA) No. 001-90-CAR.
The agreement signifies the granting of the Free and Prior Informed Consent (FPIC) by the host ICCs/IPs for the renewal of MPSA 001, which covers the companies' mining operations in Mankayan, Benguet.
The MOA will take effect upon the issuance of a Certification Precondition by the National Commission on Indigenous Peoples (NCIP), a requirement before the renewal application can proceed with the Mines and Geosciences Bureau (MGB).
According to Lepanto, the agreement reflects the parties' longstanding relationship, the expected duration of the Far Southeast Project's development phase, and the host communities' intention to maximize benefits from the mining operations.
The agreement will remain in force for 25 years.
Under the MOA, the host ICCs/IPs will receive a monthly royalty equivalent to 1 percent of the mine's gross output, in accordance with existing laws. The companies also committed a one-time P110-million payment for community development projects, including the construction of an indigenous peoples' building.
The signed agreement will be submitted to the NCIP for approval. Once the agency issues the required Certification Precondition, the document will be forwarded to the MGB as part of the MPSA renewal process.
Lepanto was represented in the signing by Vice President for Human Resources, Training and Administration Knestor Jose Y. Godino and Finance Group Manager Charisma S. Pascua.
FSGRI was represented by Vice President Pablo T. Ayson Jr. and Assistant Corporate Secretary Odette A. Javier.
Representing the host ICCs/IPs were Chief Spokespersons Cesar R. Pasiwen, incumbent mayor of Mankayan, Benguet, and former mayor Atty. Frenzel A. Ayong, together with elected elders and leaders from the municipality's barangays.
The signing ceremony was witnessed by local government officials from Mankayan, the NCIP FPIC team headed by Engr. Allan Allatis, and Mines and Geosciences Bureau–Cordillera Administrative Region officials led by Engr. Virginia Briones.
The renewal of MPSA 001 is considered a significant milestone for Lepanto and FSGRI as they advance the Far Southeast Project, one of the country's major undeveloped copper-gold prospects, while maintaining compliance with indigenous peoples' rights and regulatory requirements.
