The company also plans to reopen the mine owned by Philnico Mining with a new refinery worth $2.5bn, reported Inquirer.

San Miguel, vide the partnership, is looking to reduce some of the miner’s $300m liability towards national government and $15.7m outstanding property taxes to the city government.

Commenting on the developments Surigao City Mayor Ernesto Matugas, who was called for discussions between the two parties, confessed of having initial reservations since the proposal entitled payment of only 25% of actual amount owed.

"But we’re willing to accept a lower amount considering the huge economic potentials the reopening of Nonoc will bring to the city," added Matugas.

Surigao City is likely to gain nearly $25m in annual realty taxes derived from one percent of the $2.5 billion refinery cost.