Rapu Rapu is estimated to annually produce 50,000 ounces of gold, 10,000 tonnes of copper concentrates, 14,000t of zinc concentrates and 600,000oz silver over a six-year mine life.
Lafayette managing director Andrew McIlwain said the event was significant in the company’s history – marking its emergence from the crowded field of junior explorers to producer.
The event is also significant for the country with Rapu Rapu representing the first foreign funded mine since 1968.
Proposed changes to mining law in 1997 spent seven years in legal traffic before being passed in late 2004.
A Senate Inquiry into the granting of several approvals sensitive to mining in 2001 marked the start of a bumpy road for Lafayette.
But the Melbourne-based company came through the process with a steely resolve and pushed forward into production four years on.
McIlwain admitted eyebrows were raised when he made clear his intensions to mine the Philippines and was not without his doubters, but his approach has proved successful.
“We took the approach of being very transparent in the processes and we had key guys on the ground – one guy in particular who had been there nine years – who had forged relationships with key people and had a great rapport with locals on the island,” he told MiningNews.net.
“Though the project has a greater potential than a six-year mine life, we didn’t want to scare people (locals) or appear on the radars of environmental groups.
“We don’t pay for any favours and now have a reputation, so people don’t ask.”
McIlwain said the north-east of the Philippines was a reduced risk compared to the mainland and the south, and operations on the whole were not difficult compared to Lafayette’s trailblazing days.
“The location is sublime – 40km from the mainland and away from aggressive opposition and insurgence.
“It (Philippines) is English speaking, has the same time zone, an American based legal system, and a democratic government that is supportive of a resurgence in the mining industry.”
When asked whether he’d encourage other companies to invest in the Philippines he said: “No, we’ll have it all thanks.”
Lafayette shares were up 0.5c during morning trading, after closing on Tuesday at 18c.
