INQUIRER FILE PHOTO
MANILA, Philippines—Philex Mining Corp. announced on Monday it has remained on-track to start production in its Silangan Project in Surigao del Norte by 2017.
This developed as Philex’ shares sharply fell at the stock market as the market braced for the revenue impact of a prospective shutdown in its flagship Padcal mine in Benguet for the rest of the year. The share price of Philex slipped by another 8.14 percent to finish at P15.80 on Monday.
In a statement, Philex expressed confidence that the Silangan Project would commence production by 2017, noting that the pre-feasibility study and mine development were “being pursued aggressively.” The company refuted reports that there would be a delay in production schedule due to Executive Order 79, the new mining framework issued by Malacañang.
Philex Mining said the study associated with the decline problems has been completed, and the actual decline development resumed in June 2012. “We’ve increased the number of foreign consultants involved in the pre-feasibility study of the project,” the company added.
It stressed that the mine and production feasibility study would be completed as scheduled by February 2013.
Philex added that the exploration drilling in its Kalayaan Project— also in Surigao del Norte, which has been adjoining the Bayugo deposit of the Silangan Project – was proceeding on schedule and the additional resources of Kalayaan would increase the total resources of the Silangan Project.
The mining firm said it would make a disclosure of the Kalayaan resources at the appropriate time.
“To date, the studies for the Silangan Project have not revealed any obstacles to the commencement of production by 2017 or any reduction in resource estimates of its potential,” Philex said.