Australia, RP to develop mine

Australia, RP to develop mine

MANILA (AFP): The government has entered into a US$50 million
agreement with Arimco Mining Corp. of Australia to develop a mine
site in the northern Philippines, President Fidel Ramos said
yesterday.

He said the financial or technical assistance agreement (FTAA)
with Arimco, owned and controlled by Climax Mining Ltd. and
Petroleum Securities, will enable the parties to skirt a
constitutional provision limiting foreigners to 40 percent equity
in the exploitation of natural resources.

Arimco will infuse 50 million dollars into the project, which
covers Quirino and Nueva Vizcaya provinces, and "shall join and
assist our government in the subsequent development for
commercial purpose of any mineral deposits which may be found in
the area," he said in a speech.

No other terms of the agreement were disclosed.

Ramos described it as "the first ever of its kind undertaken
in accordance with the 1987 constitution, which uniquely offers
to foreign investors a fair scheme under which they can
reasonably take on the risks attendant to the exploration and
mining business."

Airline industry
starts recovering

SINGAPORE (AFP): National carrier Singapore Airlines (SIA)
said yesterday it sees no dramatic improvement in the airline
industry before 1995.

But the company said in its annual report that "the medium- to
long-term outlook for Asian carriers is bright, with recovery
from recession in Western countries, the Asia-Pacific's
continuing economic boom and exponential growth in the intra-
regional travel."

Chairman J.Y. Pillay said there might be a modest recovery in
the airlines performance.

"Nothing spectacular, but it should confirm our resolve not to
be peripherals. What we do not do is as important as what we do
do," Pillay said.

"The dubious charms of global-megacarrierdom hold no
attractions for us. We shall persevere with our Global Quality
Alliance with Swissair and Delta."

Pillay said that, within Asia, SIA would "knit closer ties
with allied interests within Asia".

Asian routes now account for 46.2 percent of SIA's total
revenue compared with 30.9 percent five years ago.

SIA's group pre-tax profits fell 7.7 percent on the previous
year to S$871.4 million (US$569.5 million) in the year to March.
Profits for the airline were also down by 7.7 percent to $733
million.