The Maharlika Investment Corporation (MIC) approved a $76.4-million loan to Makilala Mining Company Inc. (MMCI) to support the Maalinao-Caigutan-Biyog Copper-Gold Project in the province of Kalinga.

This was shared in a statement released Monday by Australia-based Celsius Resources Limited, an affiliate of MMCI.

“The MIC’s decision to invest in the project underscores the Philippine Government’s strong commitment to advancing the critical metals sector and fostering a responsible mining industry that delivers meaningful benefits to host communities,” Celsius executive chairman Atty. Julito Sarmiento said.

Celsius said MMCI officials and MIC chief executive officer Rafael Consing Jr. signed the binding term sheet for the loan.

The loan will serve multiple purposes: support the completion of a feasibility study and engineering design for the mining project, build a main road in the province of Kalinga, and implement a skills training program for the Balatoc community.

3-year maturity

The loan has a maturity of three years and a 12.5 percent fixed interest rate on a compounded quarterly basis.

An initial $10 million fund will be delivered.

“Discussions on the additional equity funding required are ongoing, given total estimated capital expenditure of the project. We look forward to updating investors once binding equity agreements have been finalized,” Celsius said.

Initial assessment on the Maalinao-Caigutan-Biyog Copper-Gold Project shows the mine contains over 1.6 million tons of copper and 1.3 million ounces of gold.

This translates to a $1.5 billion cashflow over the 25-year life of the mine and an internal rate of return at more than 31 percent. Celsius said the return period is as “swift” as 2.67 years.

“The project is a world-class asset in the Philippines that will support the world’s energy transition,” Celsius said.

Copper is used to build technologies for renewable energy, such as solar panels, wind turbines and batteries.

The announcement on the mining project came after the MIC  shared it partnered with Thailand’s Charoen Pokphand Group Co., Ltd. (CP Group) to develop local agriculture, energy, and digital sectors by establishing a private equity fund amounting up to $1 billion

The MIC manages the Maharlika Investment Fund as the Philippines’ first sovereign wealth fund aimed at augmenting government revenues to fund job-generating projects.

According to Republic Act 11954, the MIC has an authorized capital stock P500 billion.