Philex open to investors in Silangan project
Philex Mining Corp. is open to foreign and local investors who want to venture into its Silangan copper-gold project in Surigao del Norte.
“It now depends on valuation and commercial terms, compliance to government regulations, and the strategic value that the potential investors will bring in to the success of Silangan,” said Michael Toledo, chief operating officer of Silangan Mindanao Mining Corp., a wholly owned subsidiary of Philex Mining.
Philex Mining will begin the first phase of the Silangan project this year, starting with the development of a starter mine that will produce around 2,000 tons of ore per day.
Production will be gradually ramped up until it reaches 12,000 tons a day or 4 million tons a year.
The listed mining company was targeting to commence commercial operations of the Silangan mine in the first quarter of 2025.
Philex Mining has so far spent P17.9 billion on the Silangan project. It plans to invest another $224 million to bankroll the mine site through a combination of capital infusion, stock rights offering and debt.
The looser restrictions on mining are seen to boost the country’s mining industry, with some raising the possibility of a renewed influx of foreign capital in the sector.
“These developments are expected to usher in significant benefits to the economy including manufacturing resurgence, and step up investor confidence,” the Australia Philippines Business Council said earlier.
Wilfredo Moncano, chief of the Mines and Geosciences Bureau, earlier said about nine prospective mining projects were seen to benefit from the lifting of the open-pit mining ban and the government could generate up to P80 billion in taxes and royalties once these projects start operating.
“The Philippines has vast untapped natural resources; Australia is a global expert in minerals development and production underpinned by responsible mining practices sought by the Philippine government and community. The potential for rewarding opportunities has always been there,” said Rene Cabrera, president of APBC. INQ