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Friday, July 1, 2011

The Philippines Takes Friendly But Firm Stance in China Standoff

The Philippines Foreign Affairs Secretary Albert del Rosario (in foreground) and Foreign Affairs Spokesman Ed Malaya (in background) at a news briefing with the Foreign Correspondents Association of the Philippines on July 1, 2011

Philippines officials say they expect to hold high level talks with China in the coming months to maintain good relations, despite heated debate in recent weeks over disputed territory in the South China Sea.

Cooperation

Philippines Foreign Affairs Secretary Albert del Rosario says his office plans to take up an invitation to visit Beijing in the coming months as an opportunity to reaffirm good ties with China.  He says, so far, the country has signed 100 agreements with China related to trade and investment, defense, security and education.

“I believe that the relationship is healthy," del Rosario said, "and that if there are challenges in the Spratlys or in the South China Sea or the West Philippine Sea, we should abstract that challenge at this time and deal with it separately and not have it adversely affect our relations.”

Defense

But at a news briefing with foreign media in Manila Friday, the secretary reiterated the Philippines’ stance of “what’s ours is ours,” and said that joint cooperation and exploration should prevail in disputed areas in the South China Sea.  He said that since February, China has made more than seven intrusions into territory that officials in Manila now refer to as the West Philippine Sea.

The sea contains the Spratly group of islands that are believed to hold vast reserves of oil and natural gas deposits.  The area is also home to major international sea lanes.  China, the Philippines, Vietnam, Malaysia, Brunei and Taiwan claim parts or all of the Spratlys and most of the run-ins have been over these islands.  Beijing insists that nearly the entire South China Sea region has been under Chinese sovereignty for centuries.

American support

Del Rosario met last week with United States Secretary of State Hillary Clinton who renewed America’s commitment to upholding a decades-old mutual defense treaty with the Philippines.  U.S. officials say they have an interest in keeping the sea’s lanes free.

Clinton said Washington remains neutral in territorial squabbles on the South China Sea, but she also said it would help the Philippines obtain “affordable” military equipment.

Looking ahead

The Philippines’ largest warship is a U.S. destroyer used in World War II. Del Rosario says refurbishing old equipment gets expensive and takes a long time to complete.  So, he says his department is looking at the option of leasing U.S. military equipment.

“Which I believe could benefit us in terms of being able to obtain newer assets and earlier delivery and of course with the assistance of the U.S. Congress, something that is more cost effective,” del Rosario said.

Still, del Rosario says he does not believe tension in the South China Sea will reach any stage of aggression that would call for the use of weapons.

The United States has long favored multilateral talks regarding the South China Sea.  But China has repeatedly told the Washington to stay out of the dispute.

 

SM largest Mall of Asia will Acquire into Atlas Mining Philippines for $ 142 Million Dollars

Philippine conglomerate SM Investments Corp said on Friday it will acquire 17.9 percent stake in Atlas Consolidated Mining Corp via a private placement worth $142 million, signaling its entry into the Southeast Asian country's minerals sector.

The buy-in would allow SM, owned by the Philippines' richest man Henry Sy, to take advantage of opportunities in the mining sector, SM chief financial officer Jose Sio said in a statement.

SM will buy a total of 316.2 million shares at 19.56 pesos apiece in Atlas, which is seeking to raise $390 million via equity and convertible notes issues to fund its full takeover of unlisted gold and copper miner Carmen Copper Corp.

The private placement was arranged by BDO Capital Investment Corp, a unit of the SM group's banking arm Banco de Oro Unibank .

Atlas will also issue one-year and five-year convertible notes to Banco de Oro to raise a total $197.8 million. If the notes are all converted into Atlas shares, the SM group would have combined holdings of 33 percent in the miner.

"We are very pleased with the opportunity to be able to make this investment in Atlas at this time," Harley Sy, SM president, said in a statement.

"Atlas is one of the top 20 copper mining companies in the world. It is very well-positioned to take full advantage of its mine site's significant resources to serve its major markets like China and Korea which have a close proximity to the Philippines."

Atlas' Carmen Copper unit operates the 1,674-hectare Toledo mine complex in central Cebu province. The site is estimated to contain about 1.5 billion tonnes of ore, or about 5 million tons of copper.

Carmen Copper plans to spend $200 million to more than double annual capacity to 100,000 tons of copper metal in concentrate in two to three years from the current 42,000 tons. (Reporting by Erik dela Cruz; Editing by Rosemarie Francisco)

 

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