Echo Bay Invests In Philippine Mine

Denver-based Echo Bay Mines, which owns mining properties in northeastern Washington state, has joined with TVI Pacific Inc. to invest in a Philippine gold and copper mine.

The two companies acquired an option from the Benguet Corp. to the Kingking mine project on Mindanao Island in the Philippines. Echo Bay, which will run the mine, can acquire 75 percent of the project, while TVI can acquire 25 percent.

If the project is carried through to production, the two companies will pay Benguet up to $115 million for the project. The mine could produce up to 200,000 ounces of gold and 110 million pounds of copper a year for 15 years.

The move represents Echo Bay’s first expansion to the Pacific Rim, said Richard Kraus, president and chief executive. Calgary-based TVI has identified the investment potential in the Philippines, he said, which recently enacted mining reforms that encourage international investment.