PNoy firms up almost $1-B investments

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(UPDATED) Pasar commits about $600-M investments while Rolls Royce will provide new Trent engines to Cebu Pacific in a $280-M deal

BUSINESS MEETINGS. President Aquino meets with officials of Swiss commodities giant Glencore International in London. Photo by Finance Secretary Cesar Purisima

MANILA, Philippines (UPDATED) – President Benigno Aquino III on Tuesday, June 5, began a series of meetings with investors in London, firming up a commitment from the Philippine Associated Smelting and Refining Corporation (Pasar), majority owned by commodities trading giant Glencore.

Secretary Ramon Carandang of the Presidential Communications Development and Strategic Planning Office said Pasar/Glencore is planning to invest US$500 million to $600 million “to expand smelting capacity and build a power plant to support its operations.”

Carandang, who was present during President Aquino’s meeting with the British investors in London, said that the Pasar investment would create up to 700 new jobs.

Glencore and mining firm Xstrata manage the Tampakan Copper-Gold mining project in South Cotabato, Mindanao.

Commencement of mining operations at Tampakan have been stalled after the local government banned open-pit mining in the province.

An executive order on mining is yet to be issued by the Aquino government to improve social, environment and revenue-generating issues that hound the extractive industry.

Watch a portion of the meeting below:

Rolls-Royce

In a statement issued by Malacañang Tuesday night, the President also witnessed the signing of a memorandum of understanding between Rolls-Royce and Cebu Pacific which provides for the $280-million dollar acquisition by Cebu Pacific from Rolls-Royce of new Trent 700 engines. 

These are meant for up to 8 leased Airbus aircraft that the carrier will use to launch long-haul operations in the second half of 2013.

Cebu Pacific‘s President and CEO Lance Gokongwei signed the agreement with Alan Webber, managing director and deputy CEO of Royal Aero UK Ltd, the statement added.

President Aquino also witnessed the signing of an agreement between Aboitiz Equity Ventures and Gaz Asia Ltd..

Sabin Aboitiz, president of Pilmico and director of SN Aboitiz Power signed the agreement with Richard Lilleystone, CEO of Gaz Asia Ltd.

The joint statement between the two companies provides for the creation of Asea Gaz Corporation that will develop plants that will convert organic waste materials into liquid bio methane that can be used for vehicle fuel.

See the signing of the two deals, witnessed by President Aquino, below:

LONDON TALKS. President Aquino meets with officials of Cebu Pacific and Rolls-Royce in London. Photo by Finance Secretary Cesar Purisima

He was also scheduled to meet with officials of Shell and Nestlé.

London trip

Hours after Aquino arrived for a 3-day official visit, Aquino and his delegation of about a dozen Filipino businessmen met with officials of British corporations.

After the meetings, Aquino will tour the Imperial War Museum of London.

Malacañang said that on his last day in the UK, Wednesday, June 6, Aquino will meet with British Prime Minister David Cameron at 10 Downing Street, attend a luncheon hosted by the British monarchy, and meet with Prince Andrew, the Duke of York, at the Buckingham Palace.

Aquino will fly to the US on the same day, on the invitation of President Barack Obama. – Agence France-Presse