Investments in mining seen to jump this year

Philippine mining investments for 2011 may reach as much as $2.8 billion, according to Mines and Geosciences Bureau director Leo L. Jasareno.

Jasareno told reporters at the opening of the Mining Philippines 2011 Exhibition that the target for 2011 was $1.4 billion in investments but that this could reach $2.8 billion if Chinese investors would pursue their interests.

Actual mining investments reached $900 million in 2010, Jasareno said.

“When we made our projections, we did not take into account potential investments from China,” Jasareno said. Chinese companies recently expressed interest in nickel, iron and manganese projects during President Aquino’s state visit to China early this month.

Total cumulative mining investments reached about $4 billion as of 2010 from 2004, the year when the Supreme Court allowed full foreign ownership of capital intensive, large-scale mining projects.

Looking forward, Jasareno said the government was set to announce five major mining projects worth a total $8 billion to be invested between 2012 and 2016.

The Philippines expects mining investments to reach about $18 billion by 2016 as government streamlines the permitting process for the industry and promotes the country as an investment haven, according to the Department of Environment and Natural Resources.