MANILA, Philippines–The Philippines said Wednesday it expected mining investments to rise more than four-fold to $18 billion in five years as global commodity prices soared.
A new mining law allowed foreign investments in 2005, and high metals prices were drawing even more investor interest, Environment and Natural Resources Secretary Ramon Paje said.
“In terms of investments, the aggregate amount of $3.835 billion has been invested in the sector over the last six years. Total investments are projected to reach $18 billion by 2016,” he told a mining conference.
Mining output had already spiked 31 percent year on year in the six months to June to P63.92 billion ($1.48 billion), according to Paje.
The Philippines has untapped mineral wealth estimated at more than $840 billion, with its copper, gold and chromate deposits among the biggest in the world, according to the US State Department’s country profile.
But the country’s resources sector has long underperformed, largely due to powerful domestic opposition that arose from a series of mining accidents that led to environmental disasters, as well as restrictions on foreign investments.
Paje said with just 30 major mines in operation, the Philippines was still not producing enough to take advantage of climbing gold, nickel, copper, iron and chromite prices.
But he said seven major projects should boost both mining investment and output over the next few years.
Paje said Swiss-based Xstrata’s $5.9 billion Tampakan project in the southern Philippines, one of the largest undeveloped copper-gold deposits in the Western Pacific, should start producing in 2016.
Japan’s Sumitomo Metals, Australia’s Oceana Gold, and Britain’s FCF Minerals also plan to go ahead with separate nickel, copper-gold, and gold-molybdenum projects, according to Paje.
The three projects have a combined investment value of more than $1.8 billion.
Chamber of Mines of the Philippines president Philip Romualdez also told the conference President Benigno Aquino’s recent state visit to China drew $2 billion in mining commitments.
Paje said the government would seek to find the “middle ground” when balancing the country’s economic and environmental priorities, but warned a powerful local green lobby would act as a watchdog.
“Given the increasing environmental activism, there is no more way for indiscriminate and irresponsible mining operations but out,” Paje said.