Canadian mining company TVI Pacific has received a declaration of mining project feasibility (DMPF) from the Philippine Government for the Agata iron ore project in Agusan del Norte, Mindanao.
The Agata iron ore project is being developed by Agata Mining joint venture (AMJV), which is a joint venture between TVI Pacific and Mindoro Resources.
The project's DMPF grant from the Philippine Mines and Geosciences Bureau of the Department of the Environment and Natural Resources to permits the development, extraction and sale of iron, nickel and other associated minerals.
In addition, approval has been granted by the Philippine authority for the construction of a port facility for the proposed direct shipping ore operation of the high-iron laterite resources at the project.
TVI Pacific chairman, president and CEO Cliff M. James said that the approval would allow the company to move back into production while working to further realise its proposed nickel processing project for the benefit of the shareholders and the community.
"We continue to successfully achieve significant milestones that include the results of testing at our pilot plants in both China and the Philippines, and the technical programme remains on-track to provide metallurgical data required to design the proposed full-scale processing plant and to finalise a bank feasibility study," James said.
TVI Resource Development has scheduled to start the site development in May, while the shipping of the high-iron laterite is expected through the third quarter of this year, which is awaiting remaining port approvals and financing.
The feasibility study from September 2013 affirmed a low initial start-up capital of $10.1m, a high Internal Rate of Return of 187% and payback within first year of operation, and the post-tax net present value for the project was reported to be $37.9m.
Investment in the Philippine mining industry has seen a 61.4% increase to $1.311bn in 2013, compared with a target of $817.58m, according to PhilStar.com.