Manila's Atlas eyes London, Hong Kong Listing

Atlas Consolidated Mining remains on course to list in Hong Kong or London despite turbulent global markets, but has not yet set a timetable, its chief financial officer said.

Atlas, which has stakes in the Berong nickel mine and Toledo copper project in the Philippines, was one of the country's biggest foreign exchange earners during a mining boom in the late 1970s and early 1980s. It was listed on the American Stock Exchange until 1996.

"We're still very committed to a secondary listing," CFO Martin Buckingham told Reuters on Thursday. "Obviously we'd like to choose a slightly better moment in history than now."

Copper and nickel prices have fallen amid the financial industry turmoil, but Buckingham is optimistic about the outlook for the metals sector and the company's operations. Copper fell to a near eight-month low on Wednesday as investors cut positions to avoid risk exposure. Nickel prices tumbled almost 5% after Lehman Brothers filed for bankruptcy protection this week.

Even at current levels, copper and nickel prices are higher than three or four years ago, he said.

Atlas, which has a market value of nearly $250m, has hedged half the 60,000t of copper concentrate in its supply agreement with privately owned Swiss company MRI Trading signed last month.

Supply deals

Berong Nickel, in which London-listed Toledo Mining has a 56% stake, is also in talks to double its long-term annual supply deal with BHP Billiton to 1 million tonnes of nickel laterite beginning in March, cushioning the impact of weakening demand from China.

"In both instances, I think Atlas has protected itself very well," Buckingham said. "There is still a shortage of copper concentrate. As for nickel, it's more volatile and subject to demand, but because we have the BHP contract we're well cushioned."

The Berong mine, potentially the world's fourth-largest nickel laterite resource, is expected to export less than its targeted 1.5 million tonnes of laterite ore this year due to shipping difficulties in the first half.

"It will probably be marginally short (of target)," said Buckingham.

After securing a copper concentrate supply deal with MRI Trading, the group is pursuing long-term supply contracts with other smelters including those in China, India and Japan.

Buckingham said Atlas hopes to conclude some deals before the end of November.

Atlas subsidiary Carmen Copper operates the Toledo mine in the central Cebu province, once the world's third-largest copper producer. It is estimated to have deposits of 874 million tonnes of copper with an average grade of 0.41%.

Operations resumed only in July after a 14-year break due to typhoon damage. Production of copper concentrate began this month.

Reuters