Pangilinan-led Philex Mining Corp. is extending the life of its Padcal mine in Tuba, Benguet until end-2027, citing studies the site can still yield a considerable amount of mineral resources that can boost earnings.
In a disclosure, the country’s largest gold producer said it arrived at the decision after conducting confirmatory drillings and technical studies.
Padcal mine, which started operations in 1958, was scheduled to cease operations at end-2024 after several extensions to its life.
It said extending the mine’s life was in “response to the global demand for green metals and the government’s call for mineral resource development to be a driver for national growth and economic recovery.”
Harnessing whatever was left in Padcal “will provide the continuous employment of 1,838 Padcal employees as well as sustain the necessary assistance given to the social development of the host and neighboring communities,” the firm added.
It said the remaining mineable reserves were estimated to be 42 million tonnes with average gold and copper grades of 0.22 grams per tonne (g/t) and 0.17 percent, respectively, as of October.
The total recoverable gold was expected to hit 233,000 ounces and copper at 127.4 million pounds.
These include remaining reserves from the previously declared mineable reserves totaling 29.4 million tonnes with average gold and copper grades of 0.23 g/t and 0.18 percent, respectively, as of December last year.
As of October, Padcal mine’s mineral resource is approximately 230.4 million tonnes with an average grade of 0.29 g/t for gold and 0.18 percent for copper.
Philex said these developments would also provide a smooth transition toward the commercial operations of the Silangan copper-gold project scheduled for early 2025.
Philex had said an overlap in the operations of Padcal and Silangan mine sites could further bolster its income stream.
The Silangan mine site in Surigao del Norte is expected to process around 2,000 tonnes of ore per day. Its production will be scaled up to 12,000 tonnes a day or four million tonnes a year by the 12th year of operations.
It had projected to generate almost $7 billion in sales of metallic minerals throughout the 28-year lifespan of the Silangan project.