MANILA, Philippines - Listed Benguet Corp. has started settling debts estimated at P1.5 billion, the company said in a disclosure to the Philippine Stock Exchange on Monday.

“The Board approved the buyback from Strato International Holdings Ltd. of [Benguet Corp.] debt papers equivalent to a significant portion of the secured debt with a proposal for similar debt buyback or debt restructuring to the other creditors/holders of debt papers,” the miner said.

As of March 30, the firm’s principal loans subject to a repayment plan under the Philippine National Bank’s Trust Banking Group have reached to P1.5 billion, based on the miner’s first-quarter financial report. The debts are covered by a restructuring agreement or a mortgage trust indenture.

Benguet had received notices of default from various banks but claims there must be a collective declaration from all creditors under the restructuring deal.

Meanwhile, Benguet said its board had also approved a transaction with St. Augustine Mining Ltd. in connection with the Kingking copper-gold project in Compostela Valley. It did not elaborate.

Last May 13, Benguet said in a disclosure it was preparing to appeal the April 29 decision of the Department of Environment and Natural Resources (DENR) stripping it of the right to operate the Kingking project.

Benguet’s partnership with the mine’s owner, Nationwide Development Corp. (Nadecor) has soured, and the latter has appointed a new partner to proceed with the project.

Last May 6, The Mines and Geosciences Bureau approved the work program submitted by Nadecor for the Kingking project, and instructed Nadecor and Benguet Corp. to implement the program immediately.

Nadecor plans to invest as much as $43.5 million to complete an exploration and feasibility study and another $1.3 billion to start commercial operations.

In December, Nadecor signed a deal with Washington-based Rusell Mining and Minerals, Inc. for the latter to invest in Nadecor. Benguet at the same time announced that Chinese mining outfit Minmetals International (HK), Ltd. had agreed to provide financing for the Kingking project.

Kingking, located in Pantukan town, Compostela Valley, has reserves of about 353 million metric tons (MT) of ore with a 0.385% copper grade and 0.439 grams of gold per MT. It is one of the priority mining projects of the government, which is aiming to raise $11 billion in mining investments by 2013.