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.