A memorandum of agreement covering a $150-million joint venture for geological mineral exploration and processing in a 35,000-hectare land in Botolan, Zambales was signed between two Philippine-listed companies and a Chinese company Wednesday.

    Former presidential spokesman and chairman of the companies Michael Defensor signed in behalf of Nihao Mineral Resources International Inc. and Geograce Resources Philippines Inc., while company president Zhong Xiaoyun signed in behalf of Jiangxi Rare Earth and Rare Metals Tungsten Group Co. Ltd., a mining company in Nanchang province.

    Defensor, in a phone interview, said: "The existing area has been validated to contain minerals worth $100 million to $500 million."He said that aside from the geological exploration, the MoA also provides for the future construction of an ore processing plant that would increase the yield for purer copper, gold, and nickel eight times from the current 1.5 percent to 12 percent.

    "Jiangxi has over the past six to seven months started its reconnaissance exploration to check the area and decide whether to come in and invest. Now it has finalized its decision for a geological exploration -- that's actual digging," he said.

    "The signing officially commences the exploration," he added.

    Defensor said this exploration will start in two to three months and will spend "millions of dollars" in the area, generating jobs.

    After determining the "resource potential" of the area, he said the joint venture will also start to build the first mineral processing plant in the Philippines which could offer its services to other mining areas.

    Aside from employment and investment, he said the processing plant would provide "value added" to the raw ore mined in the Philippines.

    "We want to establish the Philippines as a mining destination," he said, noting that the country is believed to rank fourth in copper and gold resources, and fifth in nickel.

    "If we develop our resources, that would mean billions of dollars of investments, employment especially for upland dwellers, and an environmental program after the minerals have been mined," he said.